South African insurer Sanlam posts 6 pct fall in FY profit

PUBLISHED: Thu, 09 Mar 2017 11:42:24 GMT
Share

Sanlam Ltd, South Africa’s biggest life insurer, reported a 6 percent decline in annual profit on Thursday, dragged down by unfavourable currency moves and weaker returns from the equity market.

Normalised headline earnings, a key profit measure that strips out certain one-off items, came in at 8.4 billion rand ($638.79 million), or 408.5 cents per share, in the year to end-December 2016, compared with 8.8 billion rand, or 432.5 cents per share, a year earlier.

Insurers in Africa’s most advanced economy have been bulking up their presence elsewhere in Africa to offset slowing growth at home, but the continent’s prospects have been dealt a blow by a collapse in commodity prices.

“We expect the challenging operating environment and economic climate to persist in 2017,” Sanlam Chief Executive Ian Kirk said in a statement.

Sanlam has operations in 11 African countries, India and Malaysia.

($1 = 13.1498 rand)

(Reporting by Tiisetso Motsoeneng; Editing by Subhranshu Sahu)

Sign Up for Our Newsletter Daily Update
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.