The South African life assurance industry has become the latest victim of a poor global economy and subsequent dire straits for financial markets, but a silver lining is appearing in the form of a slight improvement in the investment markets.
Liberty, South Africa’s third-largest life assurer, this week posted half-year earnings below already negative market expectations as poor equity markets damaged investments and kept customers away.
It was followed by Old Mutual, South Africa’s largest life assurer, which, while managing solid six-month earnings, also reported a 15% drop in operating profit.
Investor uncertainty has also resulted in a lower demand for insurance products, especially single-premium investments. These conditions resulted in slower sales and negatively impacted on earnings.
http://www.mg.co.za/Content/l3.asp?ao=18533http://darker0darker.tripod.com/
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