Half Year 2025 Momentum Group Ltd Earnings Call Transcript
Key Points
- Momentum Group Ltd (NAM:MMT) reported a 44% increase in normalized headline earnings to ZAR3.4 billion for the six months ended December 31, 2024.
- The company achieved a 40% growth in Value of New Business (VNB) to ZAR279 million, driven by strong performance in Momentum Retail.
- Momentum Insure experienced a significant turnaround, with earnings of ZAR230 million and a combined ratio improvement from 106% to 90%.
- The company declared a dividend of ZAR0.85 per share, reflecting a 42% increase, and announced a further ZAR1 billion in share buybacks.
- Return on equity reached 25%, the highest in the industry, attributed to effective capital management and a focus on high-ROE products like life annuities.
- New business sales remained flat at ZAR38.9 billion, with no repeat of large deals from the previous period in Momentum Corporate.
- Metropolitan's VNB, although improved, remains negative, indicating ongoing challenges in achieving profitability.
- The Africa segment's operating profitability is modest, with no dividends from African countries due to current performance levels.
- The company faces competitive pressures, particularly in the group risk and investment sectors, which could impact future sales volumes.
- Concerns were raised about the impact of client withdrawals on long-term retirement savings, with over 400,000 clients making withdrawals.
Good Morning. Morning. When you say good morning, you get a response. I mean, you don't say good morning, then there's silence, you worry what is going on. Very, very warm welcome to this presentation of the interim financial results of Momentum Group for the period ended December 31, 2024.
My name is Dan Moyane. Jeanette, I promise myself when I stand here today, I won't make the same mistake I've made twice in the past when I presented the results. I know exactly in which office I'm standing. I'm not -- I'm standing in ReStoreâs office. So if I make a reference to that, I said to myself, don't make the same mistake today.
Okay, we are of course live to you on from the company's offices in Centurion in Tshwane. And welcome to everybody who's joining us today, the analysts, the investors, shareholders, journalists and employees of course, most importantly, of the company who can watch us and follow us right now live. We are live on BDTV channel 412, that's on DSTV if you prefer to watch that and you've got access to the platform or
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