Bloomberg News

CFC Insurance of Kenya Gains Second Day on Profit: Nairobi Mover

March 01, 2012

CFC Insurance Holdings Ltd. (CFCI), a unit of CFC Stanbic Holding Ltd., gained for a second day after indicating higher full-year profit.

Shares of the company, which is also a unit of Liberty Holdings Ltd. (LBH) of South Africa, climbed 6.3 percent to 7.55 shillings as of 1:07 p.m. in Nairobi. The stock climbed 12 percent yesterday, the biggest gain since the company listed on the Nairobi Securities Exchange in April 2011.

Full-year pretax profit may be 800 million shillings ($9.6 million) to 1.2 billion shillings for the year ended Dec. 31, the company said yesterday in a statement published in the Daily Nation, without giving a comparable figure for the preceding year. The figures indicate a doubling in profit, said Eric Musau, a research analyst at Nairobi-based Standard Investment Bank Ltd. “Overall the underlying business has done well,” Musau said by phone today. “But the statement did not give potential losses from investments in financial securities.”

The company has faced “the market-related impact of the decline in value of certain financial instruments” during the 12 months through December, Managing Director Mike du Toit said.

Calls to du Toit and the head of finance seeking profit figures for 2010 went unanswered.

First-half net income climbed 73 percent to 334.5 million shillings, CF reported on Aug. 30.

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net


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