Key Financial Metrics
Momentum Metropolitan Holdings (MMH) has shown resilience over the nine months ending March 31, 2024. Key financial metrics indicate a positive trajectory.
| Metric | 3QF2024 | 3QF2023 | ฮ% |
|---|---|---|---|
| Recurring premiums (R million) | 2,955 | 3,465 | (15)% |
| Single premiums (R million) | 46,972 | 35,572 | 32% |
| New business (PVNBP, R million) | 60,267 | 50,087 | 20% |
| Total direct expenses (R million) | 9,346 | 8,673 | 8% |
| AUM on Momentum Wealth investment platform (R billion) | 265 | 232 | 14% |
| Health members under administration (โ000) | 1,252 | 1,225 | 2% |
| Momentum Insure claims ratio | 68.0% | 77.6% | – |
Performance Highlights
The group’s robust earnings were supported by favorable mortality experience and good investment income. Positive investment variances were recorded due to a reduction in the yield curve.
Business Units Performance
Momentum Retail
Momentum Retail saw a 13% increase in PVNBP, driven by growth in protection new business.
| Metric | 3QF2024 | 3QF2023 | ฮ% |
|---|---|---|---|
| Recurring premiums (R million) | 795 | 801 | (1)% |
| Single premiums (R million) | 1,923 | 1,811 | 6% |
Momentum Investments
Momentum Investments benefited from strong growth in annuity new business volumes.
| Metric | 3QF2024 | 3QF2023 | ฮ% |
|---|---|---|---|
| Recurring premiums (R million) | 191 | 154 | 24% |
| Single premiums (R million) | 34,468 | 28,642 | 20% |
Metropolitan Life
Metropolitan Life’s earnings improved due to better persistency experience and lower expenses.
| Metric | 3QF2024 | 3QF2023 | ฮ% |
|---|---|---|---|
| Recurring premiums (R million) | 1,226 | 1,283 | (4)% |
| Single premiums (R million) | 1,527 | 1,421 | 7% |
Momentum Corporate
Momentum Corporate’s PVNBP improved significantly, driven by strong single premium structured investment inflows.
| Metric | 3QF2024 | 3QF2023 | ฮ% |
|---|---|---|---|
| Recurring premiums (R million) | 439 | 877 | (50)% |
| Single premiums (R million) | 8,258 | 3,013 | >100% |
Momentum Metropolitan Africa
Momentum Metropolitan Africa saw a 6% decrease in PVNBP due to lower retail and corporate sales in Lesotho and Botswana.
| Metric | 3QF2024 | 3QF2023 | ฮ% |
|---|---|---|---|
| Recurring premiums (R million) | 304 | 350 | (13)% |
| Single premiums (R million) | 796 | 685 | 16% |
Operational Highlights
The Group’s resilience is reflected in its strong operational performance. Direct expenses growth was slightly above inflation, driven by investments into capabilities and service improvements.
New Business Performance
Momentum Retail saw a 13% growth in PVNBP, reflecting year-on-year growth in protection and long-term savings new business.
Momentum Investments recorded a 21% increase in PVNBP, supported by a change in business mix towards higher margin annuities.
| Business Unit | 3QF2024 | 3QF2023 | ฮ% |
|---|---|---|---|
| Momentum Retail | 6,280 | 5,580 | 13% |
| Momentum Investments | 35,319 | 29,265 | 21% |
| Metropolitan Life | 4,987 | 5,359 | (7)% |
| Momentum Corporate | 11,586 | 7,657 | 51% |
| Momentum Metropolitan Africa | 2,095 | 2,226 | (6)% |
| Total PVNBP | 60,267 | 50,087 | 20% |
Solvency and Share Repurchase
Momentum Metropolitan Life’s solvency cover ratio improved from 2.11 times the SCR to 2.21 times. The share repurchase program is ongoing, with 20 million shares bought back, of which 18 million have been cancelled.
Outlook
The Group’s robust capital position and product diversification remain key strengths. MMH is focused on driving new business volumes, improving sales mix and margin, and reducing the cost base.
The operating environment is expected to remain under pressure due to weak economic growth and inflationary pressures. However, MMH remains committed to delivering on its objectives and adapting to the evolving needs of clients.
Conclusion
Momentum Metropolitan Holdings continues to show positive performance, driven by strong new business volumes and operational efficiency. The Group is well-positioned to navigate economic challenges and deliver value to its stakeholders.