South African insurer and financial services group SANLAM expects a decline in its half-year results. Earnings per share should fall by 25 to 35%, while net earnings per share should also fall from 25 to 35%.
These decreases can be explained by a single expense of approximately $ 111 million recorded for international financial transactions, as well as the first consolidation of SAHAM Finances and NUCLEUS as subsidiaries of the group, “which generated a significant expense in additional amortization of 200 million rand ($ 13 million),” says the group.
SANLAM bought the remaining 53.37% of SAHAM Finances last October for $ 1.1 billion. The group is also expected to record a net loss of $ 6.6 million compared to last year’s net profit “in respect of the treatment of SANLAM shares held in subscribers’ portfolios as own shares”.