Every business in the Group performs well

Momentum Group announced excellent interim financial results for the six months ended 31 December 2024. Key highlights include normalised headline earnings (NHE) of R3.4 billion, up 44% on the prior period, and a 33% increase in operating profit to R2.8 billion. Investment return from the Group’s shareholder asset portfolios more than doubled relative to the comparative period and new business sales remained flat at R38.9 billion. 

The Group achieved solid value of new business (VNB) growth of 40% to R279 million, largely supported by the change in new business mix towards more profitable protection business in Momentum Retail, an improvement in Metropolitan’s VNB and the positive contribution from life annuities in Momentum Investments. Overall, the Group’s new business margin improved to 0.7% from 0.5% in the prior period.

Group CEO, Jeanette Marais, was pleased with the Group’s financial performance. "This excellent set of results was achieved because every business in the Group’s diversified portfolio of businesses performed well. It was largely driven by management interventions to improve persistency and enhance the new business mix. Further contributions included a significantly improved underwriting result in Momentum Insure which improved their claims ratio, strong underwriting performance in Guardrisk, and profit released from annuities in Momentum Investments, improved new business profitability in Metropolitan Life, and higher earnings from the group risk business in Momentum Corporate. Earnings were further supported by improved persistency experience across most of the Group’s operations and a favourable external investment and underwriting environment.” 

According to Risto Ketola, Group Finance Director, normalised headline earnings per share increased by 48% from 165.6 cents to 244.8 cents, reflecting the benefits of the share buyback programme over the period. Headline earnings per share improved by 55% from 157.4 cents to 243.6 cents and earnings per share increased by 55% from 157.4 cents to 244.3 cents. 

The Group declared an interim dividend of 85 cents per ordinary share, representing an increase of 42% on the prior period. Ketola added: “Given our strong capital and liquidity position and considering our Capital Management Framework, the Board has approved a further R1 billion for the buyback programme of the Group’s ordinary shares given the prevailing discount to embedded value.”  

“The prior R1 billion share buyback programme communicated to investors at the F2024 annual results announcement was largely completed by 5 February 2025. In total, the Group has completed R3.2 billion in share buybacks since the first half of F2023, which have created nearly R2 billion in value for shareholders,” Ketola said.

Outlook

Marais added perspective to the results: “We are proud of the outstanding results we delivered despite intensified competitive pressures and sluggish economic growth. Given that the results of the past six months were supported by a favourable external investment and underwriting environment, similar conditions may not necessarily persist in the second half of the financial year.” 

“We remain steadfast in improving the VNB and driving sales volume growth. Our Impact strategy positions us well for the remainder of the financial year. Advice will continue to be a key differentiator for us – carving out a unique space in the market and providing great value to our clients. Our leading market share in the Independent Financial Adviser segment places us well to deliver value. By leveraging technology to enhance the client experience and empower our advisers, we will ensure that our solutions remain relevant, accessible, and tailored to evolving client needs,” Marais concluded. 

The Group stated that they believe their financial ambitions for F2027 are achievable. Their Impact strategy targets for F2027 include achieving normalised headline earnings of R7 billion, return on equity of 20% and a VNB margin of 1% to 2% while delivering sustainable value to stakeholders.