<\/p>\n
Momentum Group continues to deliver strong earnings results, reporting normalised headline earnings (NHE) of more than R7 billion for the financial year ended 30 June 2026. This is up 13% compared to the prior year.<\/p>\n
NHE exceeded the R7 billion ambition one year earlier than the original plan set out to transform the financial services provider into an advice-led, tech-enabled business.<\/p>\n
It said the results were underpinned by stronger operational performance across most business units, five of which have now achieved NHE of more than R1 billion for the year.<\/p>\n
NHE per share increased by 18% from 451.0 cents to 530.0 cents, headline earnings per share improved by 18% from 446.9 cents to 528.7 cents, and earnings per share increased by 16% from 445.1 cents to 516.2 cents.<\/p>\n
Read:
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All financial per share metrics further benefited from the buyback programme completed during the year.<\/p>\n
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\u201cDespite the shift in long-term yields following the South African Reserve Bank\u2019s decision to lower the inflation target, the group\u2019s solvency position and liquidity resilience remain strong relative to our internal targets, supported by ongoing capital optimisation initiatives,\u201d the insurer said in a Sens on Thursday.<\/p>\n
The group\u2019s operating profit increased by 9% from R5.5 billion to nearly R6 billion.<\/p>\n
It said life insurance earnings were positively impacted by:<\/p>\n
Improved persistency and alterations experience in Momentum Retail,
\nFewer onerous contracts and strong annuity profits in Momentum Investments,
\nPositive mortality and expense experience and fewer onerous contracts in Metropolitan Life,
\nStrong underwriting results from Momentum Corporate, and
\nImproved operating profit in Momentum Africa.<\/p>\n
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Earnings in asset management activities benefited from favourable equity market conditions that bolstered asset-based fee income, while non-life earnings were assisted by strong underwriting performance in Guardrisk, improved underwriting results in Momentum Insure and favourable claims experience on capitation contracts in Momentum Health.<\/p>\n
\u201cOur health insurance business in India contributed positively to earnings, achieving positive annual IFRS 17 earnings for the first time.<\/p>\n
\u201cNegative market impacts on the protection business, due to the downward pivot in long-term yields and increased reinsurance rates resulting in assumption changes, detracted from Momentum Retail\u2019s NHE,\u201d Momentum added.<\/p>\n
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The group declared a final dividend of 120 cents per ordinary share, bringing the total dividend for the financial year to 230 cents per ordinary share. Its up 31% on the prior year.<\/p>\n
Snapshot of contribution from operating profit and investment return from the group\u2019s assets to NHE per business unit:<\/p>\n
Image: Sens<\/p>\n
Group new business performance<\/p>\n
The group\u2019s new business sales as measured by PVNBP improved by 18% to R93.8 billion.<\/p>\n
Momentum Retail delivered strong growth in long-term savings new business volumes.
\nMomentum Investments achieved good growth on the Wealth platform, partially offset by lower guaranteed annuity sales.
\nMomentum Corporate delivered new business growth driven by large single premium structured investment, living annuity and FundsAtWork deals.
\nMomentum Africa achieved strong new business volumes following increased corporate protection new business volumes in Lesotho, Namibia and Botswana, along with increased retail new business volumes in Namibia.
\nMetropolitan Life\u2019s PVNBP decreased following the business\u2019s stringent focus on the quality of new business and salesforce management.<\/p>\n
Overall, the group\u2019s new business margin declined to 0.5%.<\/p>\n
Read: Momentum mulls IPO for its venture with Indian billionaire Birla<\/p>\n
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Outlook<\/p>\n
Momentum said the operating environment remains challenging on several fronts, with geopolitical tensions in the Middle East and persistent market volatility still weighing on the global outlook, unsettling investment markets and adding pressure to supply chain costs.<\/p>\n
Closer to home, South Africa\u2019s economy is growing only modestly, and affordability remains a real constraint for consumers.<\/p>\n
\u201cAlthough inflation has cooled and interest rates have started to decline, households are still absorbing the effects of several years of high living costs, particularly transport, electricity and other essential expenses.<\/p>\n
\u201cWe expect this to keep shaping the financial choices people make and the demand for our financial products and services.\u201d<\/p>\n
#Momentum #hits #R7bn #earnings #target #year #early<\/p>\n","protected":false},"excerpt":{"rendered":"
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