Old Mutual shareholders will miss out on dividends for the fifth year running after the insurer's net loss widened by 28 percent.
The board of directors said they do not recommend a dividend payment for the financial year 2022 following a Sh1.39 billion net loss linked to higher tax expenses.
The insurer last paid dividends in 2017 when it was trading as UAP Old Mutual when shareholders earned Sh1.7 per share amounting to Sh359 million.
“The board of directors do not recommend a dividend payment for the year 2022,” said Old Mutual chief executive Arthur Oginga.
The rise in loss from Sh1.08 billion posted in 2021 came in the period when tax expense increased by 76 percent to Sh1.59 billion.
The group, which operates in 14 countries had on Thursday issued a profit warning preparing investors for the drop in earnings in the period under review.
Old Mutual said it had written off a significant portion of deferred tax assets from the balance sheet resulting in a significant increase in the corporate tax expense.
Deferred tax assets are used to lower taxes in the future when a company makes a profit. The tax assets usually accrue in years when a company makes losses.
