"We certainly feel our business is poised to take advantage of any growth that will come through in the economy," Chief Executive Officer David Munro in a telephone interview. "We expect a subdued outlook for the South African economy at this point in time."
The insurer on Thursday posted a slight drop in first-half profit to R1.52 billion ($114 million) from R1.54 billion a year earlier as its turnaround strategy maintained earnings. The company is in the middle of a revamp which has helped to stabilise the business in a weak local economy, Liberty said in a statement.
The company managed to boost new business by 57 percent from a year earlier by simplifying its product range and controlling costs, Munro said. Margins also widened to 0.7 percent from 0.4 percent. This came after the insurer improved and simplified its product range and controlled costs, he said.
Shares rise
Shares in the Johannesburg-based insurer rose 1.8 percent by 10:14 a.m. in the city, the only one of six members in the FTSE/JSE Africa Life Assurance Index to post gains.
The company, which suffered a data breach in June, will work on improving its risk and control management, as well as turning around its struggling asset manager Stanlib. Liberty has delayed plans to expand across Africa to focus on growing in its home market, Munro said.