Disciplined execution drives earnings growth

Momentum Group today announced excellent financial results for the six months ended 31 December 2025, reflecting disciplined strategic execution and the continued resilience of its diversified portfolio. Normalised headline earnings (NHE) increased by 8% to R3.7 billion, while operating profit increased 10% to R3.1 billion, underpinned by solid performances across business units. Return on equity (ROE) remained robust at 24%, comfortably above the Group’s target of 20%.

Jeanette Marais, Momentum Group CEO, said three clear trends boosted the Group’s financial performance: “Firstly, underwriting profitability remained at high levels. Secondly, rising markets and solid investment performance lifted assets under management and asset-based fee income. And thirdly, persistency stayed strong across all business areas, further aiding earnings.”

Sales showed double-digit growth in volumes, with the present value of new business premiums (PVNBP) increasing by 11% to R43.3 billion. This was driven by strong performances from Momentum Investments, Momentum Corporate and Momentum Africa. The value of new business (VNB) decreased 15% year-on-year to R238 million, primarily due to a shift from higher-margin guaranteed annuity sales to living annuities.

Marais noted that improving VNB remains a strategic priority: “Although we are encouraged that VNB increased in all businesses except one, and that VNB improved by 25% when compared to the previous sequential six-month period, it is a key focus for us to further improve the value of new business across all business units. It is encouraging that as the VNB contribution from guaranteed annuities continue to reduce as sales volumes decrease, other businesses are starting to compensate.”

Risto Ketola, Momentum Group Finance Director, reported that NHE per share increased 12% to 274.9 cents. “We declared an interim dividend of 110 cents per ordinary share, an increase of 29% on the prior period. Our solvency level is within the target range and the Group continues to invest selectively in both organic and inorganic growth to position itself well for the future.”

Landmark Bonitas partnership

“Being selected as the preferred healthcare administration partner for Bonitas Medical Fund affirms our leadership in the health administration market. It results in the biggest transfer of a medical scheme from one provider to another in the history of South Africa. This transaction adds more than 750 000 beneficiaries under our administration and shifts our market share from 22% to 30%, establishing Momentum Health as the second largest medical scheme administrator in South Africa,” said Marais.

Strategic focus on advice delivers growth

“The success of our advice ecosystem provides a powerful and sustainable growth engine,” said Marais. “Momentum Distribution Services maintained its market leadership in the independent financial adviser (IFA) space with 10% annual premium equivalent (APE) growth. Vertical integration from our tied agency force, Momentum Financial Planning, resulted in nine times higher net flows into Momentum solutions, increasing to R1.2 billion. Consult, our sponsored IFA network, increased assets under administration by 25% to R59 billion. Metropolitan is also seeing sustained results and an improvement in the quality of new business from its tied agency channel.”

AI delivers measurable value

Marais was clear that digital innovation is a core driver of performance. “Our practical application of digital and AI creates a compounding structural advantage for the future. AI is not an emerging capability for us; it is already delivering measurable value. We have 60 active digital initiatives focused on risk mitigation, cost efficiency and adviser enablement. Just seven of these have already generated R40 million in savings by automating processes and unlocking capacity for higher-value client support. The next step is to continue scaling the initiatives that work, and to embed AI and intelligent automation as a compounding structural advantage for the Group.”

Closing comments on financial results

Marais concluded: “I am proud of the excellent results in the first half of the financial year. I continue to see the powerful impact of our deeply embedded purpose and culture on our ability to keep on delivering tangible results. Execution is multiplied when purpose, strategy and culture behaviours align. We are confident in our position and our ability to continue creating value for all our stakeholders”.

Newly appointed Board Chair

In addition to the interim results announcement, on Wednesday 18 March Momentum Group announced the appointment of Tyrone Soondarjee as Independent Chair of the Momentum Group Boards.

Soondarjee is a highly seasoned and commercially focused chartered accountant and board member with more than 40 years of experience across financial services, telecommunications and professional services. His previous roles include Chair of Grindrod Bank, Chief Financial Officer of Cell C, Group Financial Director of Sasfin Banking Group, and Director of Finance at Deloitte. Tyrone is currently non-executive Chair of Rentworks Holdings.

As an already serving independent non‑executive director and a member of a number of Board committees in the Group, Soondarjee brings deep institutional knowledge, strong governance expertise and strategic leadership to the role.

Soondarjee holds a BCompt, BCompt Honours, a Postgraduate Diploma in Auditing, and is a Chartered Accountant (SA). The Board welcomes his appointment and the continuity of strategic leadership it ensures.