Sunday, 10 August 2014

Kenya's Pan Africa Insurance profit drops 42 pct, shares tumble

Kenya's Pan Africa Insurance Holdings first-half pretax profit fell by 42 percent due to a decline in investment income, triggering an 8 percent fall in its stock.

The company, controlled by South African insurer Sanlam, said investment returns fell by 59 percent to 221 million shillings ($2.52 million) in the period ending June, leading to a decline in pretax profits to 495 million shillings.

Pan Africa said the Nairobi Stock Exchange share index had fallen by 1 percent to 4,885 points by the end of June this year compared to a similar period last year, while property sales also fell eroding its investment income.

By 0803 GMT, its shares traded down 8.59 percent at 117 shillings on the day.

The company said its core life insurance business rose, pushing gross premiums up by 30 percent from the previous year. It also said it plans to start new products this year, having launched a life cover as well as an insurance policy that insures customers who lose their jobs.

The insurer's earnings per share fell by slightly more than half to 4.07 shillings from 8.34 shillings. The group said its board did not recommend paying an interim dividend consistent with the company's dividend policy.

(1 US dollar = 87.8500 Kenyan shilling)

Source:

Reuters

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