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Johannesburg - South Africa's second-biggest insurer Liberty Holdings Ltd swung to a first-half loss after rising policy lapses hit its life unit, the company said on Thursday.
Liberty, majority-owned by Africa's biggest bank by assets Standard Bank, posted a basic loss per share of 483.3c, compared to earnings per share of 294.4c in the previous corresponding period.
It had forecast a loss per share of between 434c-521c.
Indexed new business, made up of life and off-balance sheet sales, for the six months to end June was at R2.1bn compared to R2.2bn the previous year.
South African insurers' profits have taken a hit from the global slide in equity markets as well as a reduction in consumer demand due to relatively high interest rates, inflation and rising personal debt.
Liberty said it was restructuring its business to help stem the rate of policy withdrawals and said it expected to see the "full benefit" of these initiatives over the next 12-18 months.
Liberty's peer Old Mutual, South Africa's largest insurer, on Wednesday posted a bigger than expected drop in statutory profit.
- Reuters