South African insurer Sanlam warns full-year profit could fall by 25 per cent

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South African insurer Sanlam warns full-year profit could fall by 25 per cent

On Friday, the 6th of March 2020, Johannesburg-listed shares’ prices of South Africa’s largest life insurer, Sanlam, headquartered in Cape Town employing more than 103,000 workers as of December 31st, 2018, with long-hailed subsidiaries such as Santam, Sanlam UK Ltd., SORAS Group Ltd.

and a many more, took a header of 4.7 per cent after the company had raised an alarming bell over its profit this year adding the century-old insurer’s 2020 profit could witness a plunge of as much as 25 per cent due to a steep lag of a number of its one-off items.

Aside from that, the largest insurer of South Africa, Sanlam, that started off its journey back in the 1918s but later diversified in to other financial sectors, had also added in its Friday’s (March 6th) statement that the company would be hit with a $15.91 million or 250 million South African Rand amortisation charge related to its takeover of Morocco’s Saham Finances alongside the insurer was expecting another 868 million South African Rand in losses, almost entirely catalysed by a consolidation of special purpose vehicles linked to a black economic empowerment transaction.

Meanwhile, referring to a calamitous outlook in profits this year, Sanlam said in a trading update on Friday (March 6th), “Given the size of these items, headline earnings of the Group for the year ended 31 December 2019 are expected to decrease by between 15% and 25% compared to 2018,” adding the yearly earnings could have been increased between 10 per cent to 20 per cent unless these factors related to black economic empowerment came forth.