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Momentum - operating updatde
Momentum Metropolitan Life ("MMIG") reported a strong operational performance for the three months ending 30 September 2025, with normalised headline earnings of R1.76 billion, supported by effective strategic execution and positive market variances. Key metrics include an 8% increase in recurring premiums to R1.15 billion, a 5% rise in single premiums to R16.49 billion, and an 8% growth in present value of new business premiums to R22.39 billion. The group's new business volume increased by 8%, though the value of new business declined by 26% to R146 million, mainly due to lower life annuity sales. The group's solvency remains healthy at 1.76 times SCR. The outlook remains optimistic, with a focus on sales growth and strategic initiatives, despite a challenging economic environment.
Company outlook
We are encouraged by the excellent earnings performance the Momentum Group achieved over the past quarter, reflecting the resilience of our empowered and accountable business units. We are firm in our commitment to delivering value for our clients and stakeholders and will maintain our enhanced focus on driving sales volumes and improving VNB outcomes.
The outlook for South Africa indicates modest growth supported by improved energy availability, easing interest rates and inflation, and the successful exit from the Financial Action Task Force greylist. While this is encouraging, our operating environment remains challenged by an increasingly competitive landscape, with subdued economic growth and the elevated cost of living affecting new business growth and margins.
We remain focused on delivering on our Impact strategy, with progress on strategic initiatives gaining momentum. We believe that our financial ambitions for F2027 (NHE of R7 billion, ROE of 20% and VNB margin of 1% to 2%) are achievable, with the focus being on improving the VNB margin in the near term.
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