Liberty joins others insurers in reporting stronger performance

accreditation
0:00
play article
Subscribers can listen to this article
Liberty expects its headline earnings and basic earnings per share to be more than 20% higher than in 2020. Photo: Archive
Liberty expects its headline earnings and basic earnings per share to be more than 20% higher than in 2020. Photo: Archive

In a trading update released on Monday, Liberty says it had a much better first half in 2021 than last year.

The insurer is in the process of compiling its financial results for the six-month ended in June 2021. It expects its headline earnings and basic earnings per share (EPS) to be more than 20% higher than in 2020.

In the first half of 2020, the insurer recorded a headline loss per share of 855.2 cents. Its suffered an interim headline loss of R2.2 billion after setting aside a R3 billion pandemic reserve to prepare itself for Covid-19 death claims, which it topped up with another R73 million at the end of 2020.

In its first-quarter trading update, the insurer said it will reassess its Covid-19 reserve again at the end of June 2021. It is expected to announce any adjustment when it presents its results on 4 August.

The insurer noted a significant increase in death claims in the first quarter of 2021 due to the second wave of Covid-19 infections. 

Still, its SA retail business fared much better than in 2020 in the first few months of 2021, increasing indexed new business sales by 17.8%.

Although earlier predictions were that insurers will take years to recover from Covid-19 setbacks, trading updates from big players suggest otherwise.

Sanlam said it been selling more in the first four months of 2021 than it did in 2019.

Old Mutual said financial advisors in its biggest business unit were also selling more policies per week, and its funeral and underwritten life cover sales were 8% above 2019 numbers in the first quarter of 2021.

Get the biggest business stories emailed to you every weekday.

Go to the Fin24 front page.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Rand - Dollar
14.61
-1.4%
Rand - Pound
20.15
-1.0%
Rand - Euro
17.19
-1.0%
Rand - Aus dollar
10.65
-0.8%
Rand - Yen
0.13
-1.0%
Gold
1,752.26
-2.3%
Silver
22.90
-3.9%
Palladium
2,027.79
+0.6%
Platinum
937.00
-1.2%
Brent Crude
75.46
+2.5%
Top 40
57,098
-1.9%
All Share
63,314
-1.7%
Resource 10
58,796
-4.0%
Industrial 25
80,358
-0.1%
Financial 15
13,942
-2.4%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
What potential restrictions on unvaccinated South Africans may make the biggest difference to public health, the economy?
Please select an option Oops! Something went wrong, please try again later.
Results
Limited access to restaurants and bars
10% - 38 votes
Limited access to shopping centres
17% - 66 votes
Limited access to live events, including sport matches and festivals
28% - 110 votes
Workplace vaccine mandates
46% - 179 votes
Vote