Momentum Metropolitan reports historic peak in earnings

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The Group recently announced record-breaking F2023 results, sales challenges and strategic acquisitions.

“Our business model of empowered, accountable business units has demonstrated its reliance and agility, assisting the Group in coping with the multiple headwinds South Africa faced in the last year,” he said.

Meanwhile, the company also reported a 4% decline in value of new business which made R600 million. The group said this was due to lower new business volumes and higher distribution costs. The shares were purchased at an average price of R17.87 per share – a 43% discount to the R31.39 embedded value per share at 31 December 2022.

“The Group’s dividend policy to declare dividends within a payout range of 33% to 50% of normalised headline earnings, remains unchanged,” said Ketola. The Group said the acquisition was a strategic move to complement its existing in-house businesses, adding the move would not only give them a minority stake in multiple independent owner-managed boutiques, but supported transformation and new entrants into the market.ALSO READ:The Group said while earnings had improved, recent pressure on sales was a concern, adding disposable income would remain under pressure due to rising interest rates, high inflation and low economic growth in SA.

“Our view is that the underlying run rate of earnings is approximately R4 billion per year,” she said.

 

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Momentum Metropolitan books record earnings amid interest rate boostInsurer 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.
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