Momentum Metropolitan books record earnings amid interest rate boost

  • 📰 News24
  • ⏱ Reading Time:
  • 30 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 15%
  • Publisher: 80%

Business News News

Business Business Latest News,Business Business Headlines

Insurer Momentum Metropolitan Holdings (MMH) has delivered double-digit profit growth thanks to a continued drop in Covid-19 mortality claims and the positive effect of higher interest rates on the cash reserves.

The Centurion-headquartered insurance and investment group reported a more than 16% rise in attributable profit to R4.4 billion in the year to end-June on Wednesday, with the group upping its total dividend a fifth to 120c per share.

"Our business model of empowered, accountable business units has demonstrated its resilience and agility, assisting the group in coping with the multiple headwinds South Africa faced in the last year." Rowan Burger, head of strategic finance at MMH, told News24 the positive investment variance was due to the favourable returns on its invested cash reserves, which are typically held in government bonds. Higher expected long term interest rates, which drove up yields on fixed income securities, helped reduce the present value of the group’s long-term insurance liabilities.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 4. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Momentum Metropolitan buys RMI Investment Managers stake from OUTsuranceInsurance and investment group Momentum Metropolitan Holdings (MMH) has agreed to buy OUTsurance’s remaining stake in RMI Investment Managers Group.
Source: News24 - 🏆 4. / 80 Read more »