Momentum Group said yesterday the positive impetus in its year-end results continued into the first quarter of the 2025 financial year, with good operational performance supported by satisfactory new business at most business units.
The financial services, insurance, and investment group said in an operational update that, from an earnings perspective for the three-month period, most business units continued to deliver encouraging results.
“The favourable moves in key economic indicators are starting to reflect in our business experience; it is, however, too soon to indicate a significant change,” the group directors said.
Recurring premiums increased 8% to R1.08 billion in the quarter. Single premiums were up 3% to R15.68bn. Total direct expenses were up 8% to R3.24bn. Assets under administration increased 17% to R280bn. Health members under administration increased 2% to 1 279.
Group sales, as measured by the present value of new business premiums (PVNBP), increased 5% to R20.7bn year-on-year. This was supported by continued growth in life annuities and new business volumes from Momentum Investments.
Africa’s PVNBP improved 25%, following good retail sales growth in Namibia and Botswana and higher corporate sales in Lesotho.
While Momentum Retail’s sales volumes were flat, the new business mix shifted toward higher-margin protection products.
There was a marginal decline in Metropolitan Life sales volumes, and Momentum Corporate saw lower single premium sales volumes.
The group value of new business (VNB) improved, supported by a shift in new business volumes towards higher-margin products across many business units.
There was continued progress with Metropolitan Life and Momentum Insure, where turnaround strategies were in place.
At Momentum Insure, better management of underwriting, aided by a favourable claims environment, led to an improved claims ratio, below the business's long-term target range of 58% to 62%.
Curate Investments, the new integrated single manager business offering a range of local and global unit trusts, was launched in August.
“Our partnership in India, Aditya Birla Health Insurance (ABHI), continues to grow strongly with increased attention on improving the combined ratio,” Momentum directors said.
“We are cautiously optimistic about the early indications of economic recovery in South Africa, with inflation easing and the start of the interest rate reduction cycle alleviating the pressure on disposable income,” they said.
BUSINESS REPORT