While Momentum Metropolitan management noted in its commentary on the results for the year to end June 2022 that there wasn’t a single factor that caused the significant increase in earnings and that all its businesses performed well, it said the results were positively impacted by improved mortality rates and the release of funds from prior Covid-19 provisions. Investment performance also recovered compared with the previous year.
More than R1.6 billion related to mortality claims. It is noteworthy that most of the provisions were used in the first half of the year when mortality was still very high. Nearly 70% of the release of provisions occurred in the first six months. Read: Momentum Metropolitan reports earnings recovery, double-digit new business growth [Mar 2022] However, it is significant that Momentum deemed it unnecessary to raise large new provisions for future claims.