Momentum Group has surpassed its R7 billion normalised headline earnings target a year ahead of schedule after reporting a 13 percent increase in earnings for the financial year ended June 2026.
The financial services group said normalised headline earnings rose to more than R7 billion, with five of its business units each contributing more than R1 billion. The performance marks an early achievement of a target that formed part of Momentum’s plan to become a more advice-led and technology-enabled financial services business.
Operating profit increased by 9 percent, from R5.5 billion to nearly R6 billion, while the group said its solvency and liquidity positions remained strong despite changes in long-term yields following the South African Reserve Bank’s move to lower the inflation target.
Momentum attributed the stronger result to improved performance across much of the business. Life insurance earnings benefited from stronger policy persistency at Momentum Retail, fewer onerous contracts and better annuity profits at Momentum Investments, improved mortality and expense experience at Metropolitan Life and stronger underwriting at Momentum Corporate.
Asset-management earnings were supported by favourable equity markets, which lifted fee income. Guardrisk and Momentum Insure also recorded stronger underwriting results, while Momentum Health benefited from favourable claims experience. The group’s health insurance operation in India recorded positive annual IFRS 17 earnings for the first time.
New business sales, measured by the present value of new business premiums, increased 18 percent to R93.8 billion. Momentum Retail recorded strong growth in long-term savings volumes, Momentum Investments expanded business on its Wealth platform and Momentum Corporate benefited from large structured investment, living-annuity and FundsAtWork transactions.
Momentum Africa also recorded strong new business volumes, helped by increased corporate protection business in Lesotho, Namibia and Botswana and higher retail volumes in Namibia. Metropolitan Life, however, reported lower new business volumes as it maintained a stricter focus on the quality of new sales and sales-force management.
Despite the sales growth, the group’s new business margin declined to 0.5 percent.
Momentum declared a final dividend of 120 cents per ordinary share, taking the total dividend for the year to 230 cents per share — 31 percent higher than the previous financial year.
The insurer cautioned that the operating environment remains difficult. Middle East geopolitical tensions and persistent market volatility continue to affect the global outlook, while South Africa’s economy is growing only modestly and household affordability remains constrained after several years of elevated living costs.
Momentum said easing inflation and lower interest rates should provide some relief, but transport, electricity and other essential expenses are still influencing household financial decisions and demand for financial products.
Source: Moneyweb. Read the original report.
