Decisive actions being taken to restore Liberty’s performance and profitability

The company says full year results reflect improving SA retail insurance earnings and higher returns from investment markets. It adds that the group’s capital position remains strong.

Financial Highlights

• Normalised headline earnings increased 8% to R2 719 million
• Normalised operating earnings declined 19% to R1 412 million
• Capital adequacy ratio strong at 2.92 times
• Group net customer cash inflows are R6.5 billion
• Insurance indexed new business R8 billion
• Group equity value per share at R140.31
• Assets under management of R720 billion
• Dividend of 691 cents per share

  Commenting on the results, David Munro Liberty Group CEO said: “Liberty has a great core franchise, with a strong team and a large and loyal customer base. But, over the years our business has become layered in complexity and we have become distracted from our core goal of serving our financial advisers and customers at the heart of our business in South Africa. At the same time, we’ve been operating in a challenging macro environment, and a fiercely competitive market. This has led to pressure on margins and our ability to generate value from new business, reflected in the lower margin for the year.

  “We need to take accountability for our operational performance and execute the necessary measures to improve it. Our leadership team is focused on growing our business and improving margins in our life book. Our immediate priorities are restoring the health of the SA Retail Insurance business; improving investment returns in STANLIB; simplifying our business; and further leveraging our relationship with Standard Bank. We are beginning to see some green shoots, which gives us confidence in our plan to restore Liberty’s performance and competitive position.”

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