StockMarketWire.com - Cross border financial services provider STM Group warned its full-year profit would be hurt 'uncollectable policy fees' and weaker than expected new business wins in an insurance division.

On the positive side, the company said those setbacks would be offset by reserves releases, which amounted to 'at least £0.5m' in the fourth quarter. In the previous financial year, £1.3m of reserves were released.

Life insurance unit STM Life Assurance PCC incurred a number of one-off costs in the second half, including £0.2m of uncollectable fees and £0.1m related to cancellations of uneconomical policies.

Additionally, there had been a £0.2m reduction in the forecasted new business pipeline, reflecting a timing delay in some policies not likely to go live until 2019.

'The anticipated release of the technical reserve provides a significant positive contribution to earnings, as it has done in previous years,' STM said.

'Including this anticipated contribution, the board remains confident that the group will report overall profit before tax for 2018 in line with its previous expectations.'

'Trading across all other group divisions has been in line with management's expectations.'



Story provided by StockMarketWire.com