Liberty plans to expand footprint in Africa

The Liberty Properties presence in Africa through the Standard Bank network.

Liberty first foray into Africa, through its role as the development manager of Levy shopping centre in Lusaka, the company now looks at broadening their footprint by launching an African Direct Property Development Fund in 2013.

Liberty has a presence in 15 African countries and one of its main objectives is offering investors commercial retail property opportunities in countries such as Nigeria and Kenya.

Liberty‚ which released its annual report this week‚ said that as far as the retail business was concerned‚ it would explore short-term bancassurance businesses in Africa and further penetrate the business banking base of Standard Bank.

On the retail business side Liberty‚ which is 53.6% owned by Standard Bank‚ has pointed out in its 2012 annual report that in 2013 it will explore short-term bancassurance businesses in Africa and further penetrate its business banking base.

Liberty has a master agreement with Standard Bank which enables it to distribute products using the bank’s platform.

Part of the strategy for Liberty in Africa has been to entrench itself in areas where Standard Bank operates. The bank‚ which is the largest in Africa by assets and earnings‚ operates in 16 African countries‚ excluding South Africa.

This year Liberty has plans to expand its footprint in West Africa‚ particularly in Ghana and Nigeria.

In East Africa‚ Liberty Kenya‚ previously CfC‚ is looking to enhance its bancassurance business.

Liberty’s asset manager Stanlib‚ which has won five Raging Bull awards this year‚ should announce a deal in Ghana in the short term.

On the investment side the company said in its annual report that it was looking to launch Liberty branded unit trusts.

In the year to end December 2012 Liberty posted an increase of 38% in black economic empowerment (BEE) normalised headline earnings to just over R3.7bn with R1.9bn coming from markets division Libfin which benefited from strong markets. BEE normalised earnings take into account the company’s black ownership programme.

Liberty’s Retail SA‚ which provides long-term insurance and wealth products‚ was the second largest earnings contributor posting BEE normalised earnings of R1.3bn. Retail SA is the largest writer of retail risk products in the affluent segment comprising with 27% market share.

Following its financial performance in 2012 the insurer’s remuneration committee allocated CEO Bruce Hemphill total compensation of R23.6m compared to R20.7m in 2011.

Hemphill received fixed payment of R4.9m and a cash bonus of R7.9m.

About R3.8m came in the form of a deferred bonus of R3.8m and R7m through long-term incentives.

Hemphill‚ who has been in the Standard Bank Group since 1993‚ was previously Stanlib chief executive‚ CE‚ a position now held by Thabo Dloti.

Casper Troskie‚ the chief financial officer‚ was allocated total compensation of R13.8m made up of a R3.1m fixed pay and a R4.5m cash bonus. About R1.6m was deferred and R4.5m awarded in long-term incentives.

Last year Liberty’s retail division paid out R6bn in death and disability claims. The insurer has 5.9-million retail policies in force. and its distribution headcount was 3‚634 at the end of 2012.

One of the objectives in 2013 is to expand sales capacity and grow share of market‚ especially in the emerging consumer market.

In total the company had an employee base of 9‚449 of which 56% are women and 73% black.

Liberty’s total group payroll cost (excluding commission earners) for 2012 was R3bn versus R2.6bn in 2011.