Listed financial services group Momentum Metropolitan on Monday (May 30), reported a 26% increase in operating profit for the nine months ending March 2022, to Rand 1.74 billion, supported by strong earnings growth in Momentum Life, Momentum Corporate, Momentum Metropolitan Health and Guardrisk.
The group saw normalized core earnings 46% higher than the comparative period. This earnings growth was supported by a less severe impact on earnings than Covid-19, particularly for Momentum Corporate which experienced a significant turnaround, he said.
New business volumes, measured by the present value of new business premiums (PVNBP), increased by 16% compared to the previous period to R54.5 billion. The growth of the new business was driven by strong performance from Momentum Investments, Metropolitan Life and Momentum Corporate.
Net mortality gains for the quarter of R100 million resulted in nine-month losses of R278 million (net of reinsurance and taxes), an improvement over the net mortality losses of R378 million reported for the first six months of the financial year . =
The return on the group’s investment more than doubled from the prior period to 852 million Rand, aided mainly by the general recovery in investment markets, fair value gains from the revaluation of the group’s investment in venture capital funds and from foreign exchange earnings on foreign currency resources.
Earnings per main share increased 59% from 99.7 cents to 158.3 cents and earnings per share improved 6% from 108.0 cents to 114.9 cents.
Return on equity (ROE) for the third quarter was 18.2%, up from 11.7% in the previous period. This increase follows the improvement in the group’s earnings.
“We are encouraged by the resilience of the Group’s operational performance in a period of difficult economic conditions. The group’s strong levels of capital and liquidity allow our business portfolio to focus on realizing the strategic objectives of our strategy to reinvent and grow. These include various initiatives related to digital transformation and efforts to improve the efficiency of our capital. “