Ericsson wrote:Reasons given for the decline in profits;
--Depressed NSE prices in the NSE resulting in unrealised losses of sh.143mn
--Change in reserving methodology by IRA which increased Life Business reserves by sh.704mn
--Aggressive provisioning of debtors in General Insurance business resulting in additional ksh.326mn provisioning
--Loss of sh.297.5mn following the hyper inflation reporting in SS as a result of SSP devaluation
--Loss of ksh.89mn following uncharacteristic school fires in 2016
The above justifications are valid and I find their reporting transparent compared to the ones of Sanlam where there was cooking.
@mlennyama
I agree with you 2017 results they will report more than 300% growth
The company says it will prioritise profitable insurance business ahead of market share growth going forward.
They got a thorough beating and some of the ailments will persist as is the case with the whole industry. Sanlam exhibited a deteriorating embedded value YoY for the last three results period.
Stemming the hemorrhage in entirety may not be possible till 2018 at the earliest.
The main purpose of the stock market is to make fools of as many people as possible.