* Disappointing performance by life business
* Sale of properties cushions earnings
By Duncan Miriri
NAIROBI, Feb 21 (Reuters) – Kenya’s Pan Africa
Insurance Holdings posted a 17 percent decline in
pretax profit for 2011 to 552 million shillings ($6.6 million,
hit by lower valuations of its bonds and equities portfolios, it
said on Tuesday.
Controlled by South African insurer Sanlam, Pan
Africa commands around 23 percent of the life cover business in
the east African nation of 40 million people.
Interest rates shot up last year, tracking higher inflation,
resulting in losses for bond holders and dampening enthusiasm
for shares.
“The reduced profitability is attributable to significant
unrealised losses for our marked to market bonds and equities
portfolios,” Pan Africa said in a statement.
It said the life business had fared worse than it had
projected as Kenyans reeled from a harsh economic environment
marked by high inflation and a steep depreciation of the
currency against the dollar.
“The results of our life business are disappointing and
reflect the reduced puschasing power of our individual and
corporate clients,” it said.
Continued…
