Liberty Kenya Holdings Plc, an insurance underwriter, is issuing a profit warning to investors and the general public that based on on preliminary unaudited consolidated financial results after tax for the year ended 31st December 2021 are likely to be lower by at least 25%.
This is compared to audited earnings after tax reported for the same period in 2020.
Liberty Kenya Holdings Plc is the holding company for The Heritage Insurance Company Kenya Ltd and Liberty Life Assurance Kenya Ltd, the short term and long term businesses of the group.
Liberty Kenya Holdings Plc is a subsidiary of Liberty Holdings which is a Johannesburg Securities Exchange(JSE) listed financial services group that offers an extensive, market-leading range of investment, insurance and health offerings to individuals and businesses.
Liberty Holdings is part of the Standard Bank Group.
” The impact of COVID-19 has resulted in significantly higher risk claims in 2021 negatively impacting the consolidated financial results,” said the firm in the notice.
Directors of Liberty Kenya and Management has, however, said the firm and its subsidiaries have maintained a strong capital base, sufficient liquidity and ability to meet their obligations even in these unprecedented times.
Liberty Kenya now joins Sanlam, Limuru Tea and Kakuzi that have also issued profit warning alerts, for financial statements that are expected to be published in March this year.
Liberty Kenya closed Tuesday, January 25, 2022 at KSh 6.84 at the Nairobi Securities Exchange (NSE), recording a 0.9% drop from its previous closing price of KSh 6.90.
Liberty began the year with a share price of KSh 7.00 but has since lost 2.29% off that price valuation, ranking it 36th on the NSE in terms of year-to-date performance.
All firms that have issued profit alerts so far blame their financial woes on business disruptions occasioned by the COVID-19 pandemic.
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