Unexpected UK liability to hit Alexander Forbess profit
ALEXANDER Forbes said profit from continuing operations (before non-trading and capital items) for the 12 months to March 31 was expected to be 5 to 15 percent lower than in the same period last year after earnings were impacted by an unexpected liability from a previously sold UK subsidiary. The integrated financial services, insurance and investment groups profit from continuing operations of R643 million to R719m reflected resilience in operating income, coupled with good expense management, the group said in a trading statement yesterday. However, despite meaningful progress made through focused cost containment, the growth in expenses year-on-year continued to be impacted by the reduced earnings base resulting from the sale of the short-term insurance business in the prior year. Attributable earnings were also influenced by the financial performance of discontinued operations, which mostly included a matter relating to a legacy UK subsidiary, Alexander Forbes Consultants and Actuaries (Afca), that was sold in 2012 to Jardine Lloyd Thompson Group, and subsequently acquired by Marsh McLennan Companies, inclusive of certain warranties and a limitation of liability.
Unexpected UK liability to hit Alexander Forbess profit
ALEXANDER Forbes said profit from continuing operations (before non-trading and capital items) for the 12 months to March 31 was expected to be 5 to 15 percent lower than in the same period last year after earnings were impacted by an unexpected liability from a previously sold UK subsidiary. The integrated financial services, insurance and investment groups profit from continuing operations of R643 million to R719m reflected resilience in operating income, coupled with good expense management, the group said in a trading statement yesterday. However, despite meaningful progress made through focused cost containment, the growth in expenses year-on-year continued to be impacted by the reduced earnings base resulting from the sale of the short-term insurance business in the prior year. Attributable earnings were also influenced by the financial performance of discontinued operations, which mostly included a matter relating to a legacy UK subsidiary, Alexander Forbes Consultants and Actuaries (Afca), that was sold in 2012 to Jardine Lloyd Thompson Group, and subsequently acquired by Marsh McLennan Companies, inclusive of certain warranties and a limitation of liability.