Liberty Holdings pushes number of NSE profit warnings to 18
18 NSE-listed firms have issued profit warnings. PHOTO | FILE
What you need to know:
Pan Africa Holdings, Britam and UAP Holdings are other insurers that have issued profit warnings with all of them citing erosion of their portfolios at the bourse.
Listed insurer, Liberty Kenya Holdings, has said its 2015 full-year earnings will drop by at least a quarter, growing the list of Nairobi Securities Exchange (NSE)-listed firms that have issued profit warnings to 18.
The life insurer attributed the anticipated profit drop to a sustained bear run at the Securities Exchange where it is heavily invested.
“There was a decline in asset values which negatively impacted the investment income when compared to the previous year,” Liberty Holdings said in a statement to the NSE.
Liberty posted a 40.6 per cent growth in after tax profits last year to Sh585 million from Sh416 million.
18 listed companies - four of which are insurers - have to date announced an expected sharp drop in earnings compared to the 11 that did so last year.
Pan Africa Holdings, Britam and UAP Holdings have already issued profit warnings with all of them citing erosion of their portfolios at the bourse.
The indicative 20 share index dropped 22 per cent last year underlining the steep drop in stock prices that saw investor wealth at the bourse as measured by market capitalisation shrink by Sh275 billion.
International accounting standards require companies to book their investments at current market prices.
