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MMI
MMI
MMI - MMI Holdings Limited - MMI puts solid platform in place for future growth
MMI HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 2000/031756/06
ISIN Code: ZAE000149902
JSE Share Code: MMI
NSX Share Code: MIM
("MMI" or the "company")
MMI puts solid platform in place for future growth
MMI Holdings Limited (MMI), the diversified financial services group that
includes Metropolitan and Momentum, today released a solid set of half-year
results to December 2011, with core headline earnings increasing by 4% to R1 294
million as compared to the previous half-year to December 2010, under tough
operating conditions.
MMI CEO Nicolaas Kruger says the integration of the group is proceeding well and
according to plan. `We did a lot of work in 2011 in trying to balance the
merger, business-as-usual and charting a way forward for MMI. We have largely
bedded down our strategy and are now concentrating all our energy on
implementing our strategic objectives.`
`We are in our second year of the merger and restructuring costs have been
incurred in order to integrate the businesses. The benefits from these merger
activities are expected to emerge over time. The group remains on track to meet
the targeted merger savings of R500 million per annum, to be achieved over the
next two to three years,` continues Kruger.
The 4% increase in core headline earnings was largely underpinned by good
performance from Metropolitan Retail and Metropolitan Health. The group`s new
business annual premium equivalent (APE) decreased by 3% to R2.9 billion. The
value of new business amounted to R311 million for the six months ended 31
December 2011.
MMI`s overall new business margin reduced from 1.6% for the six months ended 31
December 2010 to 1.5% for the six months ended 31 December 2011. This margin is
however higher than the overall new business margin of 1.4% for the 12 months
ended 30 June 2011.
The group has reviewed the investment mandates for its shareholder capital.
This has resulted in a lower-risk investment strategy being implemented for
Metropolitan Life`s shareholder capital. This change reduced the amount of
capital required and ensured a strong capital position. `MMI is in a sound
financial position despite uncertain market conditions. Our strong capital
buffer of R4.0 billion remains appropriate for the current operating conditions`
says Kruger.
The group`s embedded value sits at R30.8 billion or R19.20 per share as at 31
December 2011, representing an annualised return on embedded value of 7.1%.
`MMI`s strong building blocks have been put in place and this will provide a
solid foundation from which we can deliver on our vision to be a leader in
meeting financial services needs,` says Kruger.
Ends
6 March 2012
Sponsor:
Merrill Lynch SA (Pty) Limited
On behalf of: MMI Holdings
Contact: Lerato Mametse
Telephone: 084 406 8272
Email: lerato.mametse@mmiholdings.co.za
Date: 06/03/2012 07:06:01 Produced by the JSE SENS Department.
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