In contrast, although not strictly comparable, Old Mutual reported a 14% increase in headline earnings for its financial year to December 31. Similarly, Sanlam reported a 37% increase in headline earnings per share for the same period, while Discovery also increased headline earnings by 37% for the six months to that date.
Momentum Group's share price ended 10.85% higher at R32.68 on Thursday, a price that was also 57% up from the R20.75 it traded at a year ago, indicating that investors may have anticipated the strong interim perfor- mance. The interim dividend increased by 42% to 85 cents. Shareholders also benefited from the R1bn share buyback during the period.
"This excellent set of results was achieved because every business in the group performed well. It was largely driven by management interventions to improve persistency and enhance the new business mix,’ CEO Jeanette Marais said in an interview on Thurs- day.
She said that the results of the past six months were supported by a favourable external investment and underwriting environment, but similar conditions may not necessarily remain in the second half of the financial year.
For example, she mentioned that their data showed there are usually higher insurance claims in the sec- ond half. Nevertheless, she anticipated strong growth overall for the year, as all the businesses in the group are cur- rently performing well.
Operating profit increased by 33% to R2.8bn. Investment returns from the group’s shareholder asset portfolios more than doubled, while new business sales remained flat at R38.9bn.
The value of new business (VNB) increased 40% to R279 million, largely supported by a shift in the new business mix towards more profitable protec- tion business in Momentum Retail, an improvement in Metropolitan's VNB, and the positive contribution from life annuities in Momentum Investments.
Further contributions included a significantly improved underwriting result in Momentum Insure, which had been turned around and had improved its claims ratio.
There was a also strong underwrit- ing performance in Guardrisk, profit released from annuities in Momentum Investments, continuing new business profitability in Metropolitan Life, and higher earnings from...
Momentum Group's share price ended 10.85% higher at R32.68 on Thursday, a price that was also 57% up from the R20.75 it traded at a year ago, indicating that investors may have anticipated the strong interim perfor- mance. The interim dividend increased by 42% to 85 cents. Shareholders also benefited from the R1bn share buyback during the period.
"This excellent set of results was achieved because every business in the group performed well. It was largely driven by management interventions to improve persistency and enhance the new business mix,’ CEO Jeanette Marais said in an interview on Thurs- day.
She said that the results of the past six months were supported by a favourable external investment and underwriting environment, but similar conditions may not necessarily remain in the second half of the financial year.
For example, she mentioned that their data showed there are usually higher insurance claims in the sec- ond half. Nevertheless, she anticipated strong growth overall for the year, as all the businesses in the group are cur- rently performing well.
Operating profit increased by 33% to R2.8bn. Investment returns from the group’s shareholder asset portfolios more than doubled, while new business sales remained flat at R38.9bn.
The value of new business (VNB) increased 40% to R279 million, largely supported by a shift in the new business mix towards more profitable protec- tion business in Momentum Retail, an improvement in Metropolitan's VNB, and the positive contribution from life annuities in Momentum Investments.
Further contributions included a significantly improved underwriting result in Momentum Insure, which had been turned around and had improved its claims ratio.
There was a also strong underwrit- ing performance in Guardrisk, profit released from annuities in Momentum Investments, continuing new business profitability in Metropolitan Life, and higher earnings from...
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The Mercury (Digital) - 1 Issue, March 24, 2025