Liberty eyes higher returns from property market

According to Mr du Toit, Liberty, which has a 55 per cent stake in CIH will handle centralised functions while the different insurance businesses and asset management firm will carry on with their operations.

The decision to focus on property comes at a time the local real estate market has proven resilient even when other sectors of the economy have been hit by the recent economic and financial meltdown.

The sector has been robust in growth, with demand for both commercial and residential properties remaining strong.

Following the 2008 NSE bear market, these firms reported huge losses through impairment of their equities holding as most counters recorded price reduction.

But the recovery of the NSE has enabled them to pick up, with all units posting favourable first half year results.

Liberty Insurance is the main shareholder in CfC Insurance Holdings which has been demerged from CfC Stanbic Holdings.

Liberty Insurance a subsidiary of Standard Bank of South Africa manages the insurance operations of the Standard Group.

“The demerging will not lead to any change in operations but is meant to separate the banking business from wealth management businesses which include insurance and asset management operations,” said Mr du Toit.