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MMI HOLDINGS LIMITED - MMI Holdings Summarised Group Results for the 12 Months ended 30 June 2017

Release Date: 06/09/2017 07:05
Code(s): MMI     PDF:  
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MMI Holdings Summarised Group Results for the 12 Months ended 30 June 2017

MMI Holdings Limited
Incorporated in the Republic of South Africa
Registration Number: 2000/031756/06
JSE share code: MMI
NSX share code: MIM
ISIN: ZAE000149902
("MMI" or "the group")

MMI HOLDINGS SUMMARISED GROUP RESULTS FOR THE 12 MONTHS ENDED 30 JUNE 2017

SUMMARY OF KEY METRICS

MMI's diluted core headline earnings of R3 208m (200 cents per share) were effectively flat year-on-year. The largest positive driver of earnings was mortality
experience which was R176m stronger in F2017, mainly as a result of much improved mortality profits in our Corporate & Public Sector (C&PS) segment. Core earnings
were also aided by our decision to exit certain countries to improve focus on remaining operations. The largest headwind to earnings was the R179m reduction in
discretionary margin releases relative to the prior year. F2017 also represents the first full year of start-up losses incurred in respect of our India health
insurance joint venture (JV) and aYo, the MTN JV.

Diluted headline earnings were R1 336m lower than diluted core headline earnings in F2017. R577m of the difference relates to amortisation of acquisition related
intangibles. Another R458m of the difference arises from changes to actuarial assumptions and as a result of investment variances. Investment returns for the year
were significantly lower than those assumed in the actuarial basis. Material actuarial assumption changes include a reduction in lapse assumptions on level premium
risk policies and on joint life risk policies. Furthermore, R249m of the difference between core and headline earnings is attributable to non-recurring items. 
R175m of the R249m arises from our decision to reduce our footprint in Africa and the UK.

Our dividend policy references core headline earnings and targets a coverage range of 1.5x to 1.7x over time. We have declared a 92 cent per share final dividend
which results in a full year dividend of 157 cents per share in respect of F2017. This equates to a 1.3x dividend cover.

New business volumes are down 6% year-on-year to R41.6bn when measured on the present value of new business premiums (PVNBP) basis. Volumes were up on prior year for
Metropolitan Retail (+5%) and for International (+3%). Momentum Retail is the largest business in the group and accounts for more than half of the new business
volumes. PVNBP for Momentum Retail was down 3% for the year; mainly due to weaker sales of guaranteed endowments. C&PS volumes were down 16% versus F2016 due to weak
inflows on investment products. 

New business margins declined from 1.6% to 1.3%. Volume growth was modest across all four segments and as such we have seen new business margins under pressure
across all of the segments. Overall value of new business (VNB) has declined by 23% to R547m. We believe that the main driver of margin improvement in the future 
will be to improve the productivity and scale of our various sales channels.

Group embedded value is slightly down over the year to R42.5bn (June 2016 was R43.0bn). This equates to embedded value per share of R26.51 on 30 June 2017. The 
return on embedded value (ROEV) for the year was 4.7%. ROEV on covered business was 8.3% during the period (12.6% excluding investment variances, interest rate 
changes, and forex movements). The ROEV on non-covered business was, however, disappointing at -10.4%. The biggest contributors to the weak non-covered ROEV were 
reduced valuations of our International operations and our SA asset management operations.

Operating experience variation on the embedded value (EV) basis was modestly positive in F2017. Mortality and morbidity variances added R140m to positive variances
(vs R161m in prior year). Credit experience also remains supportive and our credit risk variance was R117m in F2017 versus R70m in F2016.


Key metrics                                            F2017       F2016   Change (%)

Diluted core headline earnings per share (cents)       200.0       199.9           0
Diluted headline earnings per share (cents)            117.7       132.2         (11)
Dividend per share (cents)                             157.0       157.0           0
New business volumes (PVNBP, Rm)                      41 595      44 090          (6)
Value of new business (Rm)                               547         712         (23)
New business margin (%)                                  1.3         1.6        (0.3)
Embedded value (Rm)                                   42 523      42 989          (1)
Return on Embedded Value (%)                             4.7        12.8        (8.1)

ANALYSIS OF GROUP EARNINGS 

Diluted core headline earnings for the period were R3 208m which represents marginal growth on the comparative period. The main positive contributor to core
earnings growth was C&PS where mortality profits improved significantly in the latter part of the financial year. Earnings from the Shareholder Capital segment 
are also up on the back of increasing investment income (in line with growth in investible assets).

Momentum Retail
Momentum Retail's earnings declined by 15% to R1 271m. Earnings from covered operations (life insurance) are down 9% to R1 467m whereas losses from non-covered
operations increased to R196m.

The main reason for the reduced life insurance earnings is discretionary margin releases that were R179m lower in F2017. While we expect the level of discretionary
margin releases to steadily decline over time, the decline in F2017 was exceptional due to a combination of certain discretionary margins being fully depleted by the
end of F2016 and due to the interaction between investment returns and the release profile of the discretionary margins.

Experience variances were also weaker year-on-year (approximately R100m lower on an IFRS basis) although mortality and morbidity variance remained strong. New
business strain was significantly lower than in the prior period due to lower sales of products with high initial reserving strain (ie lower guaranteed endowment
sales).

Losses from non-covered operations reported within Momentum Retail increased from R111m to R196m. Profits on our Momentum Wealth platform declined due to higher
investment in platform functionality and modest growth in assets under management. The improved operating performance in our short-term insurance operation is also
somewhat hidden by the more conservative treatment of deferred tax assets in the current period.

Metropolitan Retail
Metropolitan Retail's earnings declined by 6% to R660m. Earnings declined due to weakening persistency, higher new business strain, and increased spending on new
initiatives. Mortality and morbidity experience remains strong. Persistency experience was negative overall in F2017. We are taking management action to improve
collection rates and have seen positive results in recent months.

Corporate and Public Sector
C&PS earnings increased by 23% to R835m with improved underwriting experience, excluding disability experience, explaining more than R150m of the year-on-year
increase. Unfortunately disability experience remains problematic and our experience variation deteriorated slightly during the past year. We continue to put 
through substantial price increases on disability risks and expect underwriting results to improve over time.

Our property business, ERIS, contributed R99m (+46%) to core headline earnings and Guardrisk made another solid contribution of R200m (+40%). Health contributed 
R136m to C&PS in F2017.

International
Losses from International increased during the period to R166m. F2017 is the first year where India and aYo are included in the numbers for the full twelve months.
These two entities incurred R90m higher start-up losses in F2017 than in F2016. The scaling back in Africa also had a positive impact on F2017 core headline earnings.

Shareholder Capital
Investment income is up slightly for the period to R668m (net of tax). The level central costs that are not allocated to operating segments is sharply down. This is
consistent with the large basis change we made at the end of F2016.

                                    F2017      F2016  Change (%)
Rm                                  
Momentum Retail                     1 271      1 493        (15)
Metropolitan Retail                   660        700         (6)
Corporate & Public Sector             835        680         23
International                        (166)      (156)        (6)
Operating profit                    2 600      2 717         (4)
Shareholder Capital                   608        489         24
Diluted core headline earnings      3 208      3 206          0

NEW BUSINESS COMMENTARY

New business volumes are down 6% to R41.6bn for the year when measured as PVNBP. Volume growth was dragged down by 16% decline in sales from the C&PS segment. The
largest contributor to new business is Momentum Retail where volumes ended down 3% for the year. New business margin declined from 1.6% of premiums to 1.3%. Lower
volumes resulted in negative operational gearing relative to distribution expenses.

Momentum Retail
Momentum Retail's sales were 3% lower over the year. Single premium new business was under pressure due to limited balance sheet capacity constraining guaranteed
endowment sales. Life annuities was the one single premium product area that experienced decent growth over the year. Our core risk offering, Myriad, had similar
sales volumes in F2017 as in F2016. Our recurring premium savings volumes picked up in F2017 aided by good demand for retirement annuities.

New business margins are down slightly from 1.1% of premiums to 1.0%. The margin has been negatively affected by the operational gearing between the 3% decline in 
new business volumes and the distribution channel overheads.

Metropolitan Retail
Metropolitan grew recurring premium volumes by 12% in line with the increase in the agent headcount. Metropolitan Retail's agent headcount increased by 12% during 
the year. Risk sales were up 15% while recurring premium savings business was up 7% year-on-year. Single premium new business was down 12% following the change to 
de minimis rules allowing pension pots below R247,500 to be cashed out at retirement. While being a small component of new business, it is worthwhile noting that 
single premium new business excluding annuities was up 20% for Metropolitan Retail.

Value of new business is down 7% to R178m. This represents a new business margin of 3.4% on premiums. The new business margin has declined due to three primary
causes; changes to how group schemes business is structured, higher effective acquisition costs due to a high proportion of new agents in the sales force, and 
lower-than-expected persistency from the telesales channel.

New business profits have increased by 38% over the period. This margin expansion from 2.8% of premiums to 3.5% of premiums was achieved despite an additional
allowance being made for early duration lapses in our VNB basis. The margin improvement reflects benefits of operational gearing from rising volumes, lower interest
rates, shift in mix towards risk business, and the reduction in sales of unprofitable smaller life annuities.

Corporate and Public Sector
C&PS new business was down 16% for the year. New business volumes were materially lower in group risk business where the competitive market pricing is putting
conversion rates under pressure. On-balance sheet investment flows were also weak during the year. Recurring premium savings business was aided by ongoing demand 
for our FundsAtWork umbrella fund solution.

New business margins declined from 1.5% of premiums to 0.6% of premiums. The decline mainly reflects the negative interaction between the lower volumes and 
relatively high fixed distribution costs. The assumed future risk margins have also been moderated in light of current market dynamics.

International
International new business was up 3% year-on-year. The strongest growth was achieved in Namibia where growth was 9%. Botswana was the only large market where sales
were somewhat disappointing and declined by 6%.  Overall new business margin for International was 2.9% of premiums (unchanged year-on-year).

Present Value of New Business Premiums (Rm)       F2017       F2016   Change (%)

Momentum Retail                                  22 774      23 468          (3)
Metropolitan Retail                               5 164       4 936           5
Corporate & Public Sector                        11 121      13 232         (16)
International                                     2 536       2 454           3
MMI total PVNBP                                  41 595      44 090          (6)

EMBEDDED VALUE

Our embedded value was R26.51 per share on 30 June 2017. Together with the dividend paid during the period (R1.57 per share) this represents an ROEV of 4.7% over 
the year. ROEV excluding investment variances, forex movements, and economic assumption changes was 8.3%.

Our covered business continues to produce steady EV growth despite the tough operating environment and generated ROEV of 8.3% (excluding market items this equates 
to 12.6%). Our non-covered operations, which include many of our International operations earmarked for exit, had a difficult year and generated ROEV of -10.4%.

Experience variation
Our overall experience variation (including development expenses) for the period was negative R49m. Persistency variance was negative R198m across the group. We are
seeing higher terminations in the group risk space in light of the highly competitive pricing observed across that market segment. We have also seen persistency
deteriorate in the lower-income market segments. Persistency in higher-income market segments remains in line with expectations.

Risk variances remain strong in aggregate despite ongoing weakness in the group disability space. Overall mortality and disability variance was positive R140m with
retail operations generating nearly R300m of positive variances on this front.

Expense management continues to be well implemented across MMI and our expense variance was R50m before allowing for specific development expenses (R67m). Our 
credit risk variance of R117m is well up on that achieved in the prior year.

Assumption changes
The current period included a number of relatively large assumption changes. Many of the changes are offsetting and as such the net impact on embedded value is a
positive R403m.

Adjustment of mortality and disability assumptions to reflect recent experience has an overall positive impact of R139m on EV. However, this includes a significant
positive adjustment in Momentum Retail (R410m) offset by a large negative adjustment in C&PS on the group disability business.

The overall change to persistency assumptions is negative R26m in F2017, but the impact in adjusted net worth (and thus capital) was substantial (>R700m decline).
This reflects an assumption of lower lapses on level premium and joint life policies which require us to hold a larger reserve for these policies on our balance
sheet. This is, however, countered by offsetting benefits of longer persistency in the value of in-force (VIF) component of the EV calculation.

During the year we have also moved our valuation approach from using a single point in the yield curve to using the full term structure when valuing prospective
liabilities. This has had an overall positive impact on EV at 30 June 2017.

Non-covered EV earnings
Non-covered EV earnings were negative R835m for the period. The valuation of our International operations, increased allowance for Multiply expenses, and reduction 
in the carry value of our domestic asset management subsidiaries explains the vast majority of the reduction in EV. Non-covered operations with positive ROEV
contributions included Guardrisk, Eris, and our various health operations.


                                 EV total          ANW      Net VIF

Rm
New business                          547       (1 495)       2 042
Unwind of RDR                       2 865            0        2 865
Expected profit                         0        4 091       (4 091)
Experience variance                   (49)         140         (189)
Operating assumptions                 403         (628)       1 031
Investment return on ANW              652          652            0
Investment variance                (1 354)        (144)      (1 210)
Economic assumption changes          (164)          (1)        (163)
FX translation effect                 (36)         (24)         (12)
EV profit on non-covered             (835)        (835)           0
EV profit                           2 029        1 756          273

CAPITAL, DIVIDEND, AND OUTLOOK

Our capital position remains satisfactory and we had a capital buffer of R3.7bn on 30 June 2017 on the current statutory basis. Our available capital resources at 
the end of the period stood at R19.9bn, where as we are currently utilising R13.7bn of capital in our existing businesses. Outside of the existing operations we 
have also set aside R1.5bn for the next dividend payment and R1.0bn to fund strategic initiatives.

                                         Jun 17     Jun 16
                                 
Rbn
NAV as per EV statement                    16.3       16.9
Qualifying debt capital                     3.6        3.6
Less: NAV in strategic subsidiaries        (3.6)      (3.5)
Less: Required capital                    (10.1)      (9.7)
Capital buffer before deployment            6.2        7.3
Deployed for dividend payable              (1.5)      (1.5)
Deployed for strategic initiatives         (1.0)      (2.2)
Capital buffer                              3.7        3.6


The capital buffer increased by roughly R100m over the period. The primary reasons for the increase is that we no longer hold R1bn for uncommitted initiatives in
light of our increased focus on our core initiatives and on existing initiaves. This benefit is offset by the low level of retained earnings and by an increase in
required capital. Required capital has increased mainly due to low investment market returns increasing the stress arising in the investment resilience test 
component of the CAR calculation. Change in our yield curve sensitivity and increase in credit risk capital requirement also played a part in the increase to 
required capital.

Movement in capital buffer              Rbn

Capital buffer on 30 June 2016          3.6    
Profit from covered business            2.6    
Profit from non-covered business       (0.7)   
Dividends and new capital              (2.4)   
Increase in required capital           (0.6)   
Change in strategic commitments         1.2    
Capital buffer                          3.7    

Investors should note that actual capital investments during the period do not affect the capital buffer as they are usually fully provided for in the 'deployed for
strategic initiatives' item. For information we can point out that we invested around R900m during the year:

- Approximately R400m was invested into shareholder backed property developments
- Approximately R200m was invested into venture capital investments via Exponential
- Approximately R100m was invested into our International operations
- Approximately R100m was invested into Momentum Short-term Insurance
- Approximately R100m was invested into various smaller investments.

These injections were offset by proceeds from sales of property assets (c. R500m) and sale of a subsidiary (c. R100m).

Dividends
Our dividend policy is to maintain a dividend cover between 1.5 and 1.7 times core headline earnings, but with provision to go below the lower range to maintain
stable dividends if there is a temporary decline in earnings. This is subject to our capital position making the dividend payment feasible.

We remain adequately capitalised and have thus declared a final dividend of 92 cents per share. This results in a dividend cover of 1.3x for F2017. We plan to 
return to our targeted dividend cover range in due course.

Strategy update
We remain committed to our client-centric strategy that is purposefully focused on providing for our clients' needs in order to enhance their lifetime Financial
Wellness. At the same time we continue to refine the actions and decisions to optimise delivery on our strategy  aspirations. Investors should be aware that:

- The business is increasingly focused on execution,  with strategy now well ingrained in the various  business areas;
- We have announced our plan to exit a number of African countries to improve focus on remaining operations.
- We continue to invest in our Multiply programme and see it as a key component of our client engagement strategy;
- We continue to invest in our distribution channels and the recent launch of our insurance products in selected African Bank branches is one manifestation of
  this focus.


SUMMARY OF FINANCIAL INFORMATION 

Audited results for the 12 months ended 30 June 2017

MMI HOLDINGS GROUP

DIRECTORS' STATEMENT
The directors take pleasure in presenting the audited summarised results of MMI Holdings financial services group for the year ended 30 June 2017. The preparation of
the group's results was supervised by the group chief financial officer, Risto Ketola (FIA, FASSA, CFA).

Corporate events
During the current year, the FSB approved the transfer of the FNB Life book of business from MMI Group Ltd to FirstRand Life Assurance Ltd. MMI Group Ltd recognised a
profit of R73 million relating to the sale which was effective from 1 October 2016.

During June 2017, MMI Holdings and African Bank announced a partnership that will allow each other exclusive rights to sell their products to the combined client base.
The value sharing partnership comprises lending and insurance business ventures.

Basis of preparation of financial information
These summarised consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS); International Accounting 
Standard 34 (IAS 34) - Interim financial reporting (with the exception of disclosures required in terms of paragraph 16A(j)); the SAICA Financial Reporting Guide as 
issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council; the JSE Listings Requirements and 
the South African Companies Act, 71 of 2008. The accounting policies applied in the preparation of these financial statements are in terms of IFRS and are consistent 
with those adopted in the previous years except as described below. Critical judgements and accounting estimates are disclosed in detail in the group's integrated 
report for the year ended 30 June 2017, including changes in estimates that are an integral part of the insurance business. The group is exposed to financial and 
insurance risks, details of which are also provided in the group's integrated report.

New and revised standards effective for the period ended 30 June 2017 and relevant to the group
- The following amendments to standards and interpretations became effective for the first time in the current period and had no impact on the group's earnings or net
  asset value: Amendments to IFRS 10 Consolidated financial statements, IAS 28 Investments in associates and joint ventures, IFRS 11 Joint arrangements, IAS 1 
  Presentation of financial statements, IAS 16 Property, plant and equipment, IAS 38 Intangible assets and IAS 27 Separate financial statements.
- The International Accounting Standards Board (IASB) made amendments to various standards as part of their annual improvements project. These amendments had no impact
  on the group's earnings.

Segmental report
To align segmental reporting to change in management responsibilities, we have made numerous movements across the five segments. The changes can be categorised into two 
main themes: (1) transfer of smaller operations previously shown as part of the Shareholder Capital segment into the client-facing segment where management responsibility 
actually rests and (2) transfer of UK operations previously residing in Momentum Retail or in Shareholder Capital to the International segment. The group has also refined
the manner in which costs related to our Rewards programme are allocated. This has resulted in Momentum Retail carrying more of these costs than under the previous allocation
methodology. The new segmental reporting had no impact on the current or prior year reported earnings, diluted earnings or headline earnings per share, or on the net asset
value or net cash flow.

The client-centric reporting view reflects the following segments:

    Momentum Retail: Momentum Retail offers a wide range of financial solutions to middle and affluent market segments. Our product range spans all major insurance lines (life, 
    disability, health, motor, property, and all-risks) and a wide range of savings and investment products. We differentiate our business through the quality of our advice 
    channels and our commitment to high levels of client engagement to encourage our clients to make choices that optimise their financial and physical wellness. Our most popular 
    product solutions are retirement savings and life insurance. Momentum Retail is closely associated with Multiply, our client engagement programme. Clients who have Multiply 
    active on their policies enjoy premium discounts, partner rewards and access to personal financial management tools.

    Metropolitan Retail: Metropolitan Retail is a long-established life insurance provider in the lower- and middle-income segments. Metropolitan Retail's most popular products
    include funeral plans, savings policies, underwritten life cover policies, and annuities. Our funeral plans are low sum insured whole life policies designed to pay for funeral
    costs. To extend our distribution channels and expand our solutions basket, Metropolitan recently partnered with African Bank to offer insurance and lending products to the 
    existing Metropolitan client base.

    Corporate and Public Sector: Corporate and Public Sector provides insurance, administration and investment services to employee groups in the private and public sectors. The 
    business is one of the largest underwriters of death and disability insurance in the corporate market. We also have a strong market share in umbrella funds (multi-employer 
    retirement schemes) and annuity solutions.

    International: MMI International operates in the rest of Africa, India and the United Kingdom. We offer a wide range of solutions in these areas, with a focus on life, 
    health and short-term insurance products. In Africa, life insurance is offered in nine countries and health insurance offered in seven as well as in India. Our Multiply wellness 
    programme is only active in India at present, where it complements the health insurance offering. 

    Shareholder Capital: The Shareholder Capital segment reflects investment income on capital held to support operations, earnings from start-up ventures not yet allocated to other 
    segments, and some costs not allocated to operating segments (eg certain holding company expenses).

The product houses support the segments to deliver best of breed product solutions that segments can distribute to clients. There are five of these centres of excellence supporting 
the segments, namely: Investments and savings, Life Insurance, Health, Short-term Insurance and Client Engagement Solutions. Each of the centres of excellence design solutions that 
meet unique Financial Wellness needs of clients as identified by our segment business.

Embedded value information
In addition to the segmental reporting changes, the methodology for classifying business as covered or non-covered has been reviewed and the following changes have been implemented:
- Guardrisk Life business has been reclassified as non-covered as the business being written is mainly fee income in nature rather than underwriting exposure.
- An entity will only be classified as covered business once it has reached sufficient operational scale to support all operational expenses attributable to that entity.

As a result, with effect from 1 July 2015, Guardrisk Life Ltd and a number of International life and health entities were transferred to non-covered business. The prior year has been 
restated to reflect these transfers to non-covered business.

Corporate governance
The board has satisfied itself that appropriate principles of corporate governance (King IV) were applied, where possible, throughout the year under review.

Changes to the directorate, secretary and directors' shareholding
On 21 July 2016, Voyt Krzychylkiewicz was appointed as an alternative director to Peter Cooper. On 1 October 2016, Professor Stephen Jurisich was appointed to the board. On 22 November 2016,
Johan Burger retired from the board and as deputy chairman. On 1 December 2016, Louis von Zeuner was elected as deputy chairman of the board.

All transactions in listed shares of the company involving directors were disclosed on SENS.

Changes to the group executive committee

Change in roles
Mary Vilakazi          Deputy CEO and Group Finance Director 
Khanyi Nzukuma         CEO Momentum Retail and acting CEO Metropolitan Retail 
Thinus Alsworth-Elvey  CEO Corporate and Public Sector, UK and Momentum Investments 
Herman Schoeman        CEO MMI Short-term Insurance Centre of Excellence (previously CEO Corporate and Public Sector) 

Appointments/resignations     Role                                 Appointments              Resignations 
Innocent Dutiro               CEO International                    1 July 2016 
Linda Mthenjane               Group executive of human capital     10 October 2016 
Vuyo Lee                      Group executive officer of brand                               28 February 2017
Danie Botes                   Chief Operating Officer                                        13 June 2017
Etienne de Waal               CEO Momentum Retail                                            13 June 2017
Risto Ketola                  Group Chief Financial Officer        22 June 2017 
Ashlene van der Colff         Group Head of Operations             22 June 2017 

Contingent liabilities and capital commitments
The group is party to legal proceedings and appropriate provisions are made when losses are expected to materialise. The group had no material capital commitments at 30 June 2017 that were not
in the ordinary course of business other than those disclosed in the 2017 integrated report.

Events after year-end
No material events occurred between the reporting date and the date of approval of these results.

Final dividend declaration
Ordinary shares
- On 5 September 2017, a gross final dividend of 92 cents per ordinary share was declared by the board, resulting in a total dividend of 157 cents per share.
- The dividend is payable out of income reserves to all holders of ordinary shares recorded in the register of the company at the close of business on Friday, 29 September 2017, and will be paid
  on Monday, 2 October 2017.
- The dividend will be subject to local dividend withholding tax at a rate of 20% (as announced in the 2017 Budget) unless the shareholder is exempt from paying dividend tax or is entitled to
  a reduced rate.
- This will result in a net final dividend of 73.60 cents per ordinary share for those shareholders who are not exempt from paying dividend tax.
- The last day to trade cum dividend will be Tuesday, 26 September 2017.
- The shares will trade ex dividend from the start of business on Wednesday, 27 September 2017.
- Share certificates may not be dematerialised or rematerialised between Wednesday, 27 September 2017 and Friday, 29 September 2017, both days inclusive.
- The number of ordinary shares at the declaration date was 1 575 371 221.
- MMI's income tax number is 975 2050 147.

Preference shares
- Dividends of R19.0 million (2016: R20.1 million) (132 cents per share p.a.) were declared on the unlisted A3 MMI Holdings Ltd preference shares as determined by the company's Memorandum of 
  Incorporation.

Integrated information
The integrated report for 2017 will be posted to shareholders before 30 September 2017.

Directors' responsibility
The preparation of these results, and the correct extraction thereof from the group's audited 2017 annual financial statements, are the responsibility of the directors. This announcement does not 
include the information required by paragraph 16A(j) of IAS 34. The full summarised IAS 34 compliant results (including paragraph 16A(j)) are available on MMI's website and at MMI's registered 
offices upon request. A printed version of the full financial statements and the SENS announcement may be requested from the group company secretary, Maliga Chetty tel: 012 684 4255.

External audit
These summarised results have not been audited, but have been extracted from the group's 2017 annual financial statements, which have been audited by PricewaterhouseCoopers Inc. and their unqualified
audit report, together with the group's audited 2017 annual financial statements, are available for inspection at the company's registered office. In addition, the summarised group embedded value 
information has been extracted from the 2017 group embedded value report, which has been reviewed by PricewaterhouseCoopers Inc. in accordance with the embedded value basis of MMI, and
the review report is available for inspection at the company's registered office.

Signed on behalf of the board


JJ Njeke                        Chairman
Nicolaas Kruger                 Group chief executive officer

Centurion
5 September 2017

DIRECTORS: MJN Njeke (chairman), LL von Zeuner (deputy chairman), NAS Kruger (group chief executive officer), M Vilakazi (deputy chief executive and group finance director), 
P Cooper, F Jakoet, Prof SC Jurisich, Prof JD Krige, PJ Moleketi, SA Muller, V Nkonyeni, KC Shubane, FJC Truter, BJ van der Ross, JC van Reenen, W Krzychylkiewicz (alternate to P Cooper)

GROUP COMPANY SECRETARY: Maliga Chetty

WEBSITE: http://www.mmiholdings.com

TRANSFER SECRETARIES: Link Market Services SA (Pty) Ltd (registration number 2000/007239/07) Rennie House, 13th Floor, 19 Ameshoff Street, Braamfontein 2001. 
                      PO Box 4844, Johannesburg 2000   
                      Telephone: +27 11 713 0800   
                      E-mail: info@linkmarketservices.co.za   

SPONSOR - SOUTH AFRICA: Merrill Lynch South Africa (Pty) Ltd 

SPONSOR - NAMIBIA: Simonis Storm Securities (Pty) Ltd 

AUDITORS: PricewaterhouseCoopers Inc

REGISTERED OFFICE: 268 West Avenue, Centurion 0157

SENS ISSUE: 6 September 2017


MMI HOLDINGS GROUP - IFRS FINANCIAL INFORMATION

SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION      
                                                                                                          30.06.2017           30.06.2016
                                                                                                                  Rm                   Rm
ASSETS

Intangible assets                                                                                             11 260               12 433
Owner-occupied properties                                                                                      4 105                3 112
Property and equipment                                                                                           389                  432
Investment properties                                                                                          7 340                7 422
Investments in associates and joint ventures                                                                     595                  680
Employee benefit assets                                                                                          410                  445
Financial assets designated at fair value through income                                                     369 205              373 630
Investments in associates designated at fair value through income                                             15 039               10 499
Derivative financial assets                                                                                    2 439                1 977
Available-for-sale financial assets                                                                               18                  125
Held-to-maturity financial assets                                                                                397                  122
Loans and receivables                                                                                          7 293                7 615
Reinsurance contract assets                                                                                    4 495                5 092
Deferred income tax                                                                                              249                  279
Properties under development                                                                                     111                  187
Insurance and other receivables                                                                                4 621                4 497
Current income tax assets                                                                                        581                  537
Non-current assets held for sale                                                                                   -                  470
Cash and cash equivalents                                                                                     27 353               29 148
Total assets                                                                                                 455 900              458 702

EQUITY
Equity attributable to owners of the parent                                                                   22 956               24 109
Non-controlling interests                                                                                        292                  290
Total equity                                                                                                  23 248               24 399

LIABILITIES
Insurance contract liabilities
  Long-term insurance contracts                                                                              106 581              107 115
  Short-term insurance contracts                                                                               7 661                6 978
Investment contracts                                                                                         257 772              257 985
  - with discretionary participation features (DPF)                                                           24 338               25 195
  - designated at fair value through income                                                                  233 434              232 790
Financial liabilities designated at fair value through income                                                 37 331               38 374
Derivative financial liabilities                                                                               1 827                2 097
Financial liabilities at amortised cost                                                                        1 229                1 058
Reinsurance contract liabilities                                                                               1 368                  973
Deferred income tax                                                                                            3 198                3 812
Employee benefit obligations                                                                                   1 334                1 452
Other payables                                                                                                14 128               14 384
Provisions                                                                                                        57                   43
Current income tax liabilities                                                                                   166                   32
Total liabilities                                                                                            432 652              434 303

Total equity and liabilities                                                                                 455 900              458 702


SUMMARISED CONSOLIDATED INCOME STATEMENT        
                                                                    12 mths to    12 mths to
                                                                    30.06.2017    30.06.2016
                                                                            Rm            Rm

Net insurance premiums                                                  28 191        28 971
Fee income (1)                                                           7 411         7 679
Investment income                                                       18 958        17 522
Net realised and fair value gains                                          183        11 824
Net income                                                              54 743        65 996

Net insurance benefits and claims                                       24 441        26 609
Change in actuarial liabilities and related reinsurance                 (2 267)         (674)
  Change in long-term insurance contract liabilities                    (1 437)          354
  Change in short-term insurance contract liabilities                      (86)          (71)
  Change in investment contracts with DPF liabilities                     (855)         (940)
  Change in reinsurance assets                                            (278)         (331)
  Change in reinsurance liabilities                                        389           314
Fair value adjustments on investment contract liabilities                6 650        16 205
Fair value adjustments on collective investment scheme liabilities         688          (153)
Depreciation, amortisation and impairment expenses                       1 665         1 408
Employee benefit expenses                                                5 249         5 341
Sales remuneration                                                       5 283         5 304
Other expenses                                                           7 367         6 695
Expenses                                                                49 076        60 735

Results of operations                                                    5 667         5 261
Share of (loss)/profit of associates and joint ventures                   (126)           18
Finance costs (2)                                                       (1 023)         (937)
Profit before tax                                                        4 518         4 342
Income tax expense                                                      (2 937)       (2 164)
Earnings for year                                                        1 581         2 178

Attributable to:
  Owners of the parent                                                   1 536         2 142
  Non-controlling interests                                                 45            36
                                                                         1 581         2 178

Basic earnings per ordinary share (cents)                                 98.4         137.6
Diluted earnings per ordinary share (cents)                               98.1         135.9


1. Fee income consists of the following:
   - Investment contracts: R2 477 million (30.06.2016: R2 471 million)
   - Trust and fiduciary services: R1 608 million (30.06.2016: R1 892 million)
   - Health administration: R1 764 million (30.06.2016: R1 945 million)
   - Other fee income: R1 562 million (30.06.2016: R1 371 million)

2. Finance costs consist of the following:
   - Preference shares issued by MMI: R113 million (30.06.2016: R110 million)
   - Subordinated debt: R351 million (30.06.2016: R341 million)
   - Cost of carry positions: R408 million (30.06.2016: R346 million)
   - Other: R151 million (30.06.2016: R140 million)


SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
                                                                       12 mths to         12 mths to
                                                                       30.06.2017         30.06.2016
                                                                               Rm                 Rm

Earnings for year                                                           1 581              2 178
Other comprehensive (loss)/income, net of tax                                (103)                83
  Items that may subsequently be reclassified to income                      (224)               (24)
    Exchange differences on translating foreign operations                   (218)               (27)
    Available-for-sale financial assets                                        (4)                 3
    Share of other comprehensive loss of associates                            (2)                 -

  Items that will not be reclassified to income                               121                107
    Land and building revaluation                                             142                124
    Remeasurements of post-employee benefit funds                              11                 (1)
    Income tax relating to items that will not be reclassified                (32)               (16)


Total comprehensive income for year                                         1 478              2 261

Total comprehensive income attributable to:
    Owners of the parent                                                    1 434              2 193
    Non-controlling interests                                                  44                 68
                                                                            1 478              2 261


RECONCILIATION OF HEADLINE EARNINGS 
attributable to owners of the parent

                                                                                 Basic earnings                 Diluted earnings
                                                                         12 mths to      12 mths to          12 mths to    12 mths to
                                                                         30.06.2017      30.06.2016          30.06.2017    30.06.2016
                                                                                 Rm              Rm                  Rm            Rm

Earnings                                                                      1 536           2 142               1 536         2 142
Finance costs - convertible preference shares                                                                        39            41
Dilutory effect of subsidiaries (1)                                                                                 (14)          (23)
Diluted earnings                                                                                                  1 561         2 160
Intangible assets and other impairments (2)                                     417             158                 417           158
Tax on intangible assets and other impairments                                  (61)            (10)                (61)          (10)
Release of foreign currency translation reserve                                   -             (92)                  -           (92)
Gain on sale of business/subsidiary                                             (94)           (115)                (94)         (115)
Tax on gain on sale of business/subsidiary                                       21               -                  21             -
Impairment of owner-occupied property below cost                                 28               -                  28             -
Headline earnings (3)                                                         1 847           2 083               1 872         2 101
Net realised and fair value losses/(gains) on excess                             94            (112)                 94          (112)
Basis and other changes and investment variances                                458             517                 458           517
Adjustments for MMI shares held by policyholder funds                           (42)            (98)                (42)          (73)
Amortisation of intangible assets relating to business combinations             577             618                 577           618
Non-recurring items (4)                                                         249             155                 249           155
Core headline earnings (5)                                                    3 183           3 163               3 208         3 206

1. In the current year, the MMI Holdings Namibian group, Metropolitan Kenya and Cannon are consolidated at 96% in the results. In the prior year, Metropolitan Health was also consolidated at 100%.  
   For purposes of diluted earnings, diluted non-controlling interests and investment returns are reinstated. For Metropolitan Health, this is no longer the case as all the shares in Metropolitan 
   Health Corporate (Pty) Ltd which were held by Kagiso Tiso Holdings (Pty) Ltd have been purchased by the group in June 2017.
2. The current year includes impairments relating to:
   - Goodwill, customer relations and internally developed software (R213 million) in the International segment that are recognised on acquisition of subsidiaries as the companies are making losses. 
     A risk discount rate of 18.2% (2016: 19.0%) has been used in the impairment calculation.
   - Internally developed software in International (R88 million) and Metropolitan Retail (R76 million) whereby certain components will no longer be used and/or the costs to maintain the system exceed 
     the economic benefits. A risk discount rate of 11.6% has been used in the impairment calculation. 
   The prior year includes the impairment of Cannon goodwill, software in International and Health and Hello Doctor goodwill.
3. Headline earnings consist of operating profit, investment income, net realised and fair value gains, investment variances and basis and other changes.
4. Non-recurring items include costs relating mainly to the restructuring of the group. The current year also includes the core earnings/loss relating to companies in countries that the group has or 
   will be exiting in the near future.
5. Core headline earnings comprise operating profit and investment income on shareholder assets. It excludes net realised and fair value gains on financial assets and liabilities, investment 
   variances and basis and other changes that can be volatile, certain non-recurring items, as well as the amortisation of intangible assets relating to business combinations.


EARNINGS PER SHARE (cents)
attributable to owners of the parent 
                                                 12 mths to    12 mths to
                                                 30.06.2017    30.06.2016

Basic
Core headline earnings                                203.9         203.1
Headline earnings                                     118.3         133.8
Earnings                                               98.4         137.6
Weighted average number of shares (million)           1 561         1 557
Diluted
Core headline earnings                                200.0         199.9
Weighted average number of shares (million) (1)       1 604         1 604
Headline earnings                                     117.7         132.2
Earnings                                               98.1         135.9
Weighted average number of shares (million) (2)       1 591         1 589

1. For diluted core headline earnings per share, treasury shares held on behalf of contract holders are deemed to be issued.
2. For diluted earnings and headline earnings per share, treasury shares held on behalf of contract holders are deemed to be cancelled.

DIVIDENDS                                                  2017    2016

Ordinary listed MMI Holdings Ltd shares (cents per share)
Interim - March                                              65      65
Final - September                                            92      92
Total                                                       157     157


MMI Holdings Ltd convertible redeemable preference shares (issued to Kagiso Tiso Holdings (Pty) Ltd (KTH))
The A3 MMI Holdings Ltd preference shares are redeemable in December 2017 (after extending it under the same terms by six months in the current year) at a redemption value of R9.18 per share unless 
converted into MMI Holdings Ltd ordinary shares on a one-for-one basis prior to that date. On 3 October 2016 and 3 April 2017, 1 million preference shares were converted into ordinary shares, on
each date. The ordinary shares were originally issued at a price of R10.18 per share. Dividends are payable on the remaining preference shares at 132 cents per annum (payable March and September).

Significant related party transactions
R369 million of the ordinary dividends declared by MMI Holdings Ltd in September 2016 (R362 million of the ordinary dividends declared in September 2015) and R261 million of the ordinary dividends 
declared in March 2017 (R261 million of the ordinary dividends declared in March 2016) were attributable to RMI Holdings Ltd. Dividends of R39.5 million (2016: R41.9 million) were paid to KTH on 
the A3 MMI Holdings Ltd preference shares in the current year. Dividends of R8 million (2016: R5 million) were paid to KTH on the MHC A ordinary shares.


SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                  
                                                                           12 mths to    12 mths to
                                                                           30.06.2017    30.06.2016
                                                                                   Rm            Rm

Changes in share capital
Balance at beginning and end                                                        9             9

Changes in share premium
Balance at beginning                                                           13 847        13 795
Conversion of preference shares                                                    14            17
(Increase)/decrease in treasury shares held on behalf of contract holders        (124)           35
Balance at end                                                                 13 737        13 847

Changes in other reserves
Balance at beginning                                                            1 955         1 866
Total comprehensive (loss)/income                                                (102)           51
Employee share schemes - value of services provided                               (26)            -
BEE cost                                                                            4             4
Change in non-distributable reserves                                               (3)            2
Transfer (to)/from retained earnings                                              (40)           32
Balance at end (1)                                                              1 788         1 955

Changes in retained earnings
Balance at beginning                                                            8 298         8 877
Total comprehensive income                                                      1 536         2 142
Dividend paid                                                                  (2 456)       (2 475)
Transactions with non-controlling interests                                         4          (214)
Transfer from/(to) other reserves                                                  40           (32)
Balance at end                                                                  7 422         8 298

Equity attributable to owners of the parent                                    22 956        24 109

Changes in non-controlling interests
Balance at beginning                                                              290           501
Total comprehensive income                                                         44            68
Dividend paid                                                                     (53)          (60)
Transactions with owners                                                           11          (219)
Balance at end                                                                    292           290

Total equity                                                                   23 248        24 399

1. Other reserves consist of the following:
- Land and building revaluation reserve: R807 million (30.06.2016: R742 million)
- Foreign currency translation reserve: -R98 million (30.06.2016: R122 million)
- Revaluation of available-for-sale investments: R7 million (30.06.2016: R11 million)
- Non-distributable reserve: R54 million (30.06.2016: R50 million)
- Employee benefit revaluation reserve: R88 million (30.06.2016: R77 million)
- Fair value adjustment for preference shares issued by MMI Holdings Ltd: R940 million (30.06.2016: R940 million)
- Equity-settled share-based payment arrangements: -R10 million (30.06.2016: R13 million)


SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS      
                                                     12 mths to    12 mths to
                                                     30.06.2017    30.06.2016
                                                             Rm            Rm

Net cash inflow from operating activities                   586         8 842
Net cash outflow from investing activities                 (288)       (1 051)
Net cash outflow from financing activities               (2 093)       (4 817)
Net cash flow                                            (1 795)        2 974
Cash resources and funds on deposit at beginning         29 148        26 174
Cash resources and funds on deposit at end               27 353        29 148




NON-CONTROLLING INTERESTS  
                                            30.06.2017    30.06.2016
                                                     %             %

Cannon Assurance                                  33.7          33.7
Eris Property Group                               23.7          23.7
Metropolitan Health Ghana                          0.9           0.9
Metropolitan Health Group                            -          17.6
Metropolitan Health Namibia Administrators        49.0          49.0
Metropolitan Kenya                                33.7          33.7
Metropolitan Swaziland                            33.0          33.0
Metropolitan Tanzania                             33.0          33.0
Metropolitan Health Zambia                        35.0          35.0
MMI Holdings Namibia                               9.9          10.3
Momentum Mozambique                               33.0          33.0
Momentum Swaziland                                33.0          33.0


BUSINESS COMBINATIONS - JUNE 2017

There were no significant business combinations for the 12 months ended June 2017. Goodwill and customer relationships to the value of R11 million each were recognised due to a small acquisition.

BUSINESS COMBINATIONS - JUNE 2016

There were no significant business combinations for the 12 months ended June 2016.


RECONCILIATION OF GOODWILL  
                            30.06.2017    30.06.2016
                                    Rm            Rm


Balance at beginning             1 237         1 333
Business combinations               11             -
Impairment charges (1)            (100)         (104)
Exchange differences               (20)            8
Balance at end                   1 128         1 237

1. Goodwill relating to the Cannon (International segment) and Momentum Financial Technology (International segment) acquisitions were impaired by R62 million (30.06.2016: R41 million) and R38 million
   (30.06.2016: Rnil) respectively during the current year due to these companies making losses. Goodwill of R63 million relating to Hello Doctor (International and Corporate and Public Sector segments)
   was also impaired in the prior year.

MMI HOLDINGS GROUP - SEGMENTAL INFORMATION

12 mths to 30.06.2017                    Momentum     Metropolitan       Corporate and                 Shareholder   Segmental   Reconciling        IFRS 
                                           Retail           Retail       Public Sector  International      Capital       total     items (1)       total
                                               Rm               Rm                  Rm             Rm           Rm          Rm            Rm          Rm

Revenue
Net insurance premiums                     24 740            6 898              27 167          4 130            -      62 935       (34 744)     28 191
  Recurring premiums                        9 663            5 877              16 951          3 476            -      35 967        (9 291)     26 676
  Single premiums                          15 077            1 021              10 216            654            -      26 968       (25 453)      1 515

Fee income                                  3 496              146               4 270            835           73       8 820        (1 409)      7 411
  Fee income                                3 011              143               3 708            794            2       7 658          (247)      7 411
  Intergroup fee income                       485                3                 562             41           71       1 162        (1 162)          -

Expenses
Net payments to contract holders
  External payments                        25 360            5 321              25 574          2 624            -      58 879       (34 438)     24 441

Other expenses                              5 994            2 448               5 681          2 419          201      16 743         2 821      19 564
  Sales remuneration                        2 184            1 029               1 462            615            -       5 290            (7)      5 283
  Administration expenses                   2 631            1 280               3 125          1 346          589       8 971           121       9 092
  Amortisation due to business               
   combinations and impairments                 -               73                  31             88           37         229           977       1 206
  Cell captive business                         -                -                 186              -            -         186         1 800       1 986
  Direct property expenses                      -                -                   -              -            -           -           443         443
  Asset management and other
   fee expenses                               379               60                 309             84           10         842           649       1 491
  Holding company expenses                      -                -                   -              -           63          63             -          63
  Intergroup expenses                         800                6                 568            286         (498)      1 162        (1 162)          -

Diluted core headline earnings              1 271              660                 835           (166)         608       3 208             -       3 208
Operating profit/(loss)                     1 861              926                 969           (102)         (48)      3 606             -       3 606
Tax on operating profit                      (631)            (267)               (270)           (87)         (12)     (1 267)            -      (1 267)
Investment income                              57                2                 187             27          822       1 095             -       1 095
Tax on investment income                      (16)              (1)                (51)            (4)        (154)       (226)            -        (226)

Covered                                     1 467              685                 387            203          648       3 390             -       3 390
Non-covered                                  (196)             (25)                448           (369)         (40)       (182)            -        (182)
                                            1 271              660                 835           (166)         608       3 208             -       3 208

Actuarial liabilities                     195 283           32 417             131 420         12 894            -     372 014             -     372 014


1.  The 'Reconciling items' column includes: investment contract business premiums and claims; intergroup fee income and expenses; non-recurring items included in
    administration expenses (R263 million); direct property and asset management fees for all entities, except non-life entities, that are set off against investment 
    income for management reporting purposes but shown as an expense for accounting purposes; asset management fees from cell captive business; the amortisation 
    of intangibles relating to business combinations; expenses relating to consolidated collective investment schemes and other minor adjustments to expenses and fee income.



Restated                                   Momentum     Metropolitan       Corporate and                 Shareholder   Segmental   Reconciling        IFRS 
12 mths to 30.06.2016                        Retail           Retail       Public Sector  International      Capital       total     items (1)       total
                                                 Rm               Rm                  Rm             Rm           Rm          Rm            Rm          Rm


Revenue
Net insurance premiums                       25 634            6 816              26 608          4 054            -      63 112       (34 141)     28 971
  Recurring premiums                          9 278            5 558              15 170          3 322            -      33 328        (8 720)     24 608
  Single premiums                            16 356            1 258              11 438            732            -      29 784       (25 421)      4 363
Fee income                                    3 555              209               4 940            773           96       9 573        (1 894)      7 679
  Fee income                                  2 992              179               4 203            664           19       8 057          (378)      7 679
  Intergroup fee income                         563               30                 737            109           77       1 516        (1 516)          -
Expenses
Net payments to contract holders
  External payments                          24 846            6 037              30 568          2 513            -      63 964       (37 355)     26 609

Other expenses                                5 907            2 293               6 309          2 348          121      16 978         1 770      18 748
  Sales remuneration                          2 154              967               1 537            653            -       5 311            (7)      5 304
  Administration expenses                     2 804            1 158               3 385          1 391          256       8 994           443       9 437
  Amortisation due to business 
   combinations and impairments                   -                -                  12              -           72          84           823         907
  Cell captive business                           -                -                 203              -            -         203         1 178       1 381
  Direct property expenses                        -                -                   -              -            -           -           317         317
  Asset management and other
   fee expenses                                 248              103                 437             26            2         816           532       1 348
  Holding company expenses                        -                -                   -              -           54          54             -          54
  Intergroup expenses                           701               65                 735            278         (263)      1 516        (1 516)          -

Diluted core headline earnings                1 493              700                 680           (156)         489       3 206             -       3 206
Operating profit/(loss)                       2 066              972                 841           (151)        (158)      3 570             -       3 570
Tax on operating profit                        (629)            (272)               (242)           (26)         (17)     (1 186)            -      (1 186)
Investment income                                72                -                 111             25          850       1 058             -       1 058
Tax on investment income                        (16)               -                 (30)            (4)        (186)       (236)            -        (236)

Covered                                       1 604              723                 279            185          616       3 407             -       3 407
Non-covered                                    (111)             (23)                401           (341)        (127)       (201)            -        (201)
                                              1 493              700                 680           (156)         489       3 206             -       3 206

Actuarial liabilities                       202 368           32 942             124 330         12 438            -     372 078             -     372 078


1. The 'Reconciling items' column includes: investment contract business premiums and claims; intergroup fee income and expenses; non-recurring items included in 
   administration expenses (R190 million); direct property and asset management fees for all entities, except non-life entities, that are set off against investment
   income for management reporting purposes but shown as an expense for accounting purposes; asset management fees from cell captive business; the amortisation of 
   intangibles relating to business combinations; expenses relating to consolidated collective investment schemes and other minor adjustments to expenses and fee income.


CHANGE IN DILUTED CORE HEADLINE EARNINGS
                                                                            Restated
                                          Change       12 mths to         12 mths to 
                                               %       30.06.2017         30.06.2016
                                                               Rm                 Rm


Momentum Retail                              (15)           1 271              1 493
Metropolitan Retail                           (6)             660                700
Corporate and Public Sector                   23              835                680
International                                 (6)            (166)              (156)
Operating segments                            (4)           2 600              2 717
Shareholder Capital                           24              608                489
Total diluted core headline earnings           -            3 208              3 206


SEGMENT BY CENTRE OF EXCELLENCE

                                        Momentum         Metropolitan     Corporate and                      Shareholder 
                                          Retail               Retail     Public Sector  International           Capital          Total
                                              Rm                   Rm                Rm             Rm                Rm             Rm

12 mths to 30.06.2017

Covered
Operating profit                           1 467                  685               387            203                37          2 779
Investment income                              -                    -                 -              -               611            611
Total                                      1 467                  685               387            203               648          3 390

Non-covered          
Investment and savings                        61                    -               119             82                 -            262
Life insurance                                 -                    -                 -           (111)                -           (111)
Health                                       (29)                   -               136            (82)                -             25
Short-term insurance                        (162)                  (7)              200            (80)                -            (49)
Client engagement                            (66)                 (18)              (25)           (24)               12           (121)
Unallocated expenses                           -                    -                 -              -               (60)           (60)
Other operations                               -                    -                18           (154)                8           (128)
Total                                       (196)                 (25)              448           (369)              (40)          (182)

Core earnings                              1 271                  660               835           (166)              608          3 208

Restated
12 mths to 30.06.2016 (1)

Covered
Operating profit/(loss)                    1 604                  723               275            185               (43)         2 744
Investment income                              -                    -                 4              -               659            663
Total                                      1 604                  723               279            185               616          3 407

Non-covered
Investment and savings                       136                    -               108            (19)                -            225
Life insurance                                 -                    -                 -            (84)                -            (84)
Health                                       (43)                   -               157            (68)                -             46
Short-term insurance                        (151)                  (6)              143            (54)                -            (68)
Client engagement                            (53)                 (17)              (22)           (23)               17            (98)
Unallocated expenses                           -                    -                 -              -              (102)          (102)
Other operations                               -                    -                15            (93)              (42)          (120)
Total                                       (111)                 (23)              401           (341)             (127)          (201)

Core earnings                              1 493                  700               680           (156)              489          3 206

1. Refer to segmental report paragraph in the Directors' statement for more information on the restatements. 


INVESTMENTS AND SAVINGS CENTRE OF EXCELLENCE - NON-COVERED BUSINESS

                                                                           Momentum         Corporate and 
                                                                             Retail         Public Sector     International                Total    
                                                                                 Rm                    Rm                Rm                   Rm

12 mths to 30.06.2017 

Revenue                                                                        1 118                   865               490               2 473
Fee income                                                                       710                   379               373               1 462
Performance fees                                                                   3                    13                 -                  16
Intergroup fees                                                                  344                   340                13                 697
Investment income                                                                 61                   121                 1                 183
Fair value gains                                                                   -                    12               103                 115

Expenses and finance costs                                                    (1 014)                 (689)             (405)             (2 108)
Fair value adjustments on investment contracts                                     -                     -              (103)               (103)
Other expenses                                                                (1 005)                 (640)             (302)             (1 947)
Finance costs                                                                     (9)                  (49)                -                 (58)
Share of profit of associates                                                      -                     1                 -                   1

Profit before tax                                                                104                   177                85                 366
Income tax expense                                                               (43)                  (32)               (3)                (78)
Non-controlling interest                                                           -                   (26)                -                 (26)
Core earnings                                                                     61                   119                82                 262

Operating profit before tax                                                       61                    90                84                 235
Tax on operating profit                                                          (30)                  (11)               (3)                (44)
Investment income                                                                 43                    55                 1                  99
Tax on investment income                                                         (13)                  (15)                -                 (28)
Diluted core headline earnings                                                    61                   119                82                 262

Restated
12 mths to 30.06.2016

Revenue                                                                        1 161                   746               362               2 269
Fee income                                                                       771                   329               379               1 479
Performance fees                                                                  12                     -                 -                  12
Intergroup fees                                                                  325                   333                15                 673
Investment income                                                                 53                    45                12                 110
Fair value gains/(losses)                                                          -                    39               (44)                 (5)

Expenses and finance costs                                                      (970)                 (595)             (397)             (1 962)
Fair value adjustments on investment contracts                                     -                     -                41                  41
Other expenses                                                                  (962)                 (560)             (423)             (1 945)
Finance costs                                                                     (8)                  (35)              (15)                (58)
Share of profit of associates                                                      -                    13                 -                  13

Profit/(Loss) before tax                                                         191                   164               (35)                320
Income tax expense                                                               (55)                  (38)               16                 (77)
Non-controlling interest                                                           -                   (18)                -                 (18)
Core earnings                                                                    136                   108               (19)                225

Operating profit/(loss) before tax                                               146                   134               (29)                251
Tax on operating profit                                                          (48)                  (32)               14                 (66)
Investment income                                                                 46                     8                (2)                 52
Tax on investment income                                                          (8)                   (2)               (2)                (12)
Diluted core headline earnings                                                   136                   108               (19)                225



HEALTH CENTRE OF EXCELLENCE - NON-COVERED BUSINESS
                                                             Momentum         Corporate and 
                                                               Retail         Public Sector   International       Total    
                                                                   Rm                    Rm              Rm          Rm

12 mths to 30.06.2017

Revenue                                                           560                 2 049             468       3 077
Net insurance premiums                                            209                   390             259         858
Fee income                                                        340                 1 419             191       1 950
Investment income                                                  11                    27              18          56
Intergroup fees                                                     -                   213               -         213

Expenses and finance costs                                       (603)               (1 856)           (384)     (2 843)
Net payments to contract holders                                 (151)                 (279)           (168)       (598)
Other expenses                                                   (450)               (1 576)           (216)     (2 242)
Finance costs                                                      (2)                   (1)              -          (3)

Share of loss of associates                                         -                     -            (105)       (105)
(Loss)/Profit before tax                                          (43)                  193             (21)        129
Income tax expense                                                 14                   (57)            (36)        (79)
Non-controlling interest                                            -                     -             (25)        (25)
Earnings attributable to ordinary shareholders                    (29)                  136             (82)         25


Operating (loss)/profit before tax                                (53)                  167             (72)         42
Tax on operating profit                                            17                   (49)            (24)        (56)
Investment income                                                  10                    26              15          51
Tax on investment income                                           (3)                   (8)             (1)        (12)
Diluted core headline earnings                                    (29)                  136             (82)         25


Closed schemes                                                      -                   106              66         172
Open scheme                                                       (23)                   (6)           (148)       (177)
Other                                                              (6)                   36               -          30
                                                                  (29)                  136             (82)         25


                                                            Principal             Principal
                                                              members               members           Lives

Closed schemes                                                      -               834 061         404 756
Open schemes                                                  108 244                50 380         207 882
                                                              108 244               884 441         612 638


HEALTH CENTRE OF EXCELLENCE - NON-COVERED BUSINESS

                                                             Momentum         Corporate and 
                                                               Retail         Public Sector  International       Total    
                                                                   Rm                    Rm             Rm          Rm

Restated
12 mths to 30.06.2016

Revenue                                                           433                 2 089            823       3 345
Net insurance premiums                                            176                   390            623       1 189
Fee income                                                        249                 1 640            192       2 081
Investment income                                                   8                    27              8          43
Intergroup fees                                                     -                    32              -          32

Expenses and finance costs                                       (493)               (1 862)          (844)     (3 199)
Net payments to contract holders                                 (133)                 (294)          (476)       (903)
Other expenses                                                   (358)               (1 568)          (368)     (2 294)
Finance costs                                                      (2)                    -              -          (2)

(Loss)/Profit before tax                                          (60)                  227            (21)        146
Income tax expense                                                 17                   (61)           (30)        (74)
Non-controlling interest                                            -                     -            (17)        (17)
Earnings attributable to ordinary shareholders                    (43)                  166            (68)         55

Dilutory effect of subsidiaries                                     -                    (9)             -          (9)
Diluted core headline earnings                                    (43)                  157            (68)         46

Operating (loss)/profit before tax                                (66)                  191            (65)         60
Tax on operating profit                                            19                   (55)           (18)        (54)
Investment income                                                   6                    27             16          49
Tax on investment income                                           (2)                   (6)            (1)         (9)
Diluted core headline earnings                                    (43)                  157            (68)         46


Closed schemes                                                      -                   113            (68)         45
Open scheme                                                       (43)                    9              -         (34)
Other                                                               -                    35              -          35
                                                                  (43)                  157            (68)         46


                                                            Principal             Principal
                                                              members               members          Lives

Closed schemes                                                      -               830 548        459 688
Open schemes                                                   95 888                47 574              -
                                                               95 888               878 122        459 688



SHORT-TERM INSURANCE CENTRE OF EXCELLENCE                                                           
                                                         Momentum         Metropolitan    Corporate and        
                                                           Retail               Retail    Public Sector   International              Total 
                                                               Rm                   Rm               Rm              Rm                 Rm

12 mths to 30.06.2017

Net insurance premiums                                        616                    -                -            148                 764
Fee income                                                     13                    3              566             17                 599
  Management fees                                               -                    -              435              -                 435
  Investment fees                                               -                    -               73              -                  73
  Underwriting fees                                             -                    -               58              -                  58
  Other fee income                                             13                    3                -             17                  33
Investment income                                              30                    -               93             12                 135
Fair value losses                                               -                    -                -             (9)                 (9)
Total income                                                  659                    3              659            168               1 489

Expenses and finance costs                                   (784)                  (9)            (379)          (241)             (1 413)
Net payments to contract holders                             (449)                   -                -           (133)               (582)
Change in actuarial liabilities                                 -                    -                -              7                   7
Other expenses                                               (335)                  (9)            (367)          (115)               (826)
Finance costs                                                   -                    -              (12)             -                 (12)

(Loss)/Profit before tax                                     (125)                  (6)             280            (73)                 76
Income tax expense                                            (37)                  (1)             (80)            (9)               (127)
Non-controlling interest                                        -                    -                -              2                   2
Earnings attributable to ordinary shareholders               (162)                  (7)             200            (80)                (49)

Operating (loss)/profit before tax                           (130)                  (6)             187            (71)                (20)
Tax on operating profit                                       (34)                  (1)             (54)            (9)                (98)
Investment income                                               3                    -               93              -                  96
Tax on investment income                                       (1)                   -              (26)             -                 (27)
Diluted core headline earnings                               (162)                  (7)             200            (80)                (49)

Momentum Short-term Insurance                                 (83)                   -                -              -                 (83)
MMI Short-term Insurance Administration                       (79)                  (7)               -            (25)               (111)
Guardrisk Group                                                 -                    -              200              -                 200
Cannon Short-term                                               -                    -                -            (55)                (55)
                                                             (162)                  (7)             200            (80)                (49)




SHORT-TERM INSURANCE CENTRE OF EXCELLENCE
                                                         Momentum         Metropolitan    Corporate and        
                                                           Retail               Retail    Public Sector     International           Total 
                                                               Rm                   Rm               Rm                Rm              Rm
Restated
12 mths to 30.06.2016

Net insurance premiums                                        570                    -                -               208             778
Fee income                                                     21                    -              463                15             499
  Management fees                                               -                    -              405                 -             405
  Investment fees                                               -                    -               62                 -              62
  Underwriting fees                                             -                    -               (6)                -              (6)
  Other fee income                                             21                    -                2                15              38
Investment income                                              25                    -               64                21             110
Fair value losses                                               -                    -                -                (4)             (4)
Total income                                                  616                    -              527               240           1 383

Expenses and finance costs                                   (793)                  (8)            (334)            (305)          (1 440)
Net payments to contract holders                             (467)                   -                -             (126)            (593)
Change in actuarial liabilities                                 -                    -                -              (26)             (26)
Other expenses                                               (326)                  (8)            (323)            (153)            (810)
Finance costs                                                   -                    -              (11)               -              (11)

(Loss)/Profit before tax                                     (177)                  (8)             193              (65)             (57)
Income tax expense                                             26                    2              (50)               8              (14)
Non-controlling interest                                        -                    -                -                3                3
Earnings attributable to ordinary shareholders               (151)                  (6)             143              (54)             (68)
  
Operating (loss)/profit before tax                           (195)                  (8)             130              (65)            (138)
Tax on operating profit                                        31                    2              (33)               8                8
Investment income                                              18                    -               64                3               85
Tax on investment income                                       (5)                   -              (18)               -              (23)
Diluted core headline earnings                               (151)                  (6)             143              (54)             (68)

Momentum Short-term Insurance                                (124)                   -                -                -             (124)
MMI Short-term Insurance Administration                       (27)                  (6)               -               (9)             (42)
Guardrisk Group                                                 -                    -              143                -              143
Swaziland                                                       -                    -                -               (2)              (2)
Tanzania                                                        -                    -                -                1                1
Cannon Short-term                                               -                    -                -              (44)             (44)
                                                             (151)                  (6)             143              (54)             (68)


MMI HOLDINGS GROUP - STATUTORY EXCESS

STATUTORY EXCESS   
                                                                                                 30.06.2017    30.06.2016
                                                                                                         Rm            Rm

Group excess per reporting basis                                                                     22 956        24 109
Net assets - other businesses                                                                        (2 849)       (2 939)
Fair value adjustments on Metropolitan business acquisition and other consolidation adjustments      (2 946)       (3 471)
Excess - long-term insurance business, net of non-controlling interests (1)                          17 161        17 699
Disregarded assets (2)                                                                                 (847)         (983)
Difference between statutory and published valuation methods                                           (942)         (582)
Write-down of subsidiaries and associates for statutory purposes                                     (1 328)       (1 246)
Unsecured subordinated debt                                                                           3 602         3 557
Consolidation adjustments                                                                               (33)          (53)
Statutory excess - long-term insurance business                                                      17 613        18 392
Capital adequacy requirement (CAR) (Rm) (3)                                                           6 577         6 238
Ratio of long-term insurance business excess to CAR (times)                                             2.7           2.9
Discretionary margins                                                                                12 407        12 702

1. The long-term insurance business includes both insurance and investment contract business and is the simple aggregate of all the life insurance companies in the 
   group, including life insurance companies in Africa. In respect of Guardrisk, only MMI's promoter exposure to the South African long-term insurance business, 
   Guardrisk Life Ltd, is included. It excludes the short-term insurance businesses of Guardrisk, Momentum Short-term Insurance and Cannon (Kenya), as well as the 
   other non-life insurance entities, including African health operations. The figures are after non-controlling interests but excludes certain items which are 
   eliminated on consolidation.
2. Disregarded assets are those as defined in the South African Long-term Insurance Act, 52 of 1998, and are only applicable to South African long-term insurance 
   companies. Adjustments are also made for the international insurance companies from reporting excess to statutory excess as required by their regulators. It 
   includes Sage intangible assets of R464 million (30.06.2016: R491 million).
3. The CAR is an aggregation of the separate CAR's, with no assumption of diversification benefits. MMI elected to adopt the revised actuarial guidance note SAP 104
   (version 9) which was published in August 2017 but permitted adoption for reporting dates on or after 30 June 2017.


MMI HOLDINGS GROUP - EMBEDDED VALUE INFORMATION


EMBEDDED VALUE RESULTS
                                                                                                                                           Restated
                                                                                                                      30.06.2017         30.06.2016
                                                                                                                              Rm                 Rm

Covered business
Reporting excess - long-term insurance business                                                                           17 161             17 699
Reclassification to non-covered business                                                                                  (2 206)            (1 897)
                                                                                                                          14 955             15 802
Disregarded assets (1)                                                                                                      (504)              (531)
Difference between statutory and published valuation methods                                                                (942)              (575)
Dilutory effect of subsidiaries (2)                                                                                          (53)               (51)
Consolidation adjustments (3)                                                                                                (21)               (40)
Value of MMI Group Ltd preference shares issued                                                                             (500)              (500)

Diluted adjusted net worth - covered business                                                                             12 935             14 105
Net value of in-force business                                                                                            21 130             20 862

Diluted embedded value - covered business                                                                                 34 065             34 967

Non-covered business
Net assets - non-covered business within life insurance companies                                                          2 206              1 897
Net assets - non-covered business outside life insurance companies                                                         2 849              2 939
Consolidation adjustments and transfers to covered business (3)                                                           (2 415)            (2 776)
Adjustments for dilution (4)                                                                                                 720                690

Diluted adjusted net worth - non-covered business                                                                          3 360              2 750
Write-up to directors' value                                                                                               5 098              5 272
  Non-covered business                                                                                                     6 344              6 379
  Holding company expenses (5)                                                                                              (671)              (557)
  International holding company expenses (5)                                                                                (575)              (550)

Diluted embedded value - non-covered business                                                                              8 458              8 022

Diluted adjusted net worth                                                                                                16 295             16 855
Net value of in-force business                                                                                            21 130             20 862
Write-up to directors' value                                                                                               5 098              5 272
Diluted embedded value                                                                                                    42 523             42 989


Required capital - covered business (adjusted for qualifying debt) (6)                                                     6 449              6 098
Surplus capital - covered business                                                                                         6 486              8 007
Diluted embedded value per share (cents)                                                                                   2 651              2 680
Diluted adjusted net worth per share (cents)                                                                               1 016              1 051
Diluted number of shares in issue (million) (7)                                                                            1 604              1 604

1. Disregarded assets include Sage intangible assets of R464 million (30.06.2016: R491 million), goodwill and various other items.
2. For accounting purposes, MMI Holdings Namibia, Metropolitan Kenya and Cannon have been consolidated at 96% in the statement of financial position (in the prior 
   year, Metropolitan Health was consolidated at 100%). For embedded value purposes, disclosed on a diluted basis, the non-controlling interests and related funding
   have been reinstated.
3. Consolidation adjustments include mainly goodwill and intangibles in subsidiaries that are eliminated.
4. Adjustments for dilution are made up as follows:
   - Dilutory effect of subsidiaries (note 3): R106 million (30.06.2016: R123 million)
   - Treasury shares held on behalf of contract holders: R353 million (30.06.2016: R292 million)
   - Liability - MMI Holdings Ltd convertible preference shares issued to KTH: R261 million (30.06.2016: R275 million)
5. The holding company expenses reflect the present value of projected recurring head office expenses. The international holding company expenses reflect the 
   allowance for support services to the international life assurance and health businesses.
6. The required capital for covered business amounts to R10 051 million (restated 30.06.2016: R9 655 million) and is adjusted for qualifying debt of R3 602 million 
   (30.06.2016: R3 557 million).
7. The diluted number of shares in issue takes into account all issued shares, assuming conversion of the convertible redeemable preference shares, and includes the
   treasury shares held on behalf of contract holders.


ANALYSIS OF NET VALUE OF IN-FORCE BUSINESS
                                                              Restated
                                              30.06.2017    30.06.2016
                                                      Rm            Rm

Momentum Retail                                   11 379        10 936
  Gross value of in-force business                12 865        12 274
  Less cost of required capital                   (1 486)       (1 338)
Metropolitan Retail                                3 758         3 692
  Gross value of in-force business                 4 396         4 376
  Less cost of required capital                     (638)         (684)
Corporate and Public Sector (1)                    3 846         4 223
  Gross value of in-force business                 4 743         4 988
  Less cost of required capital                     (897)         (765)
International (2)                                  2 147         2 011
  Gross value of in-force business                 2 403         2 226
  Less cost of required capital                     (256)         (215)

Net value of in-force business                    21 130        20 862

1. Prior year has been restated to exclude Guardrisk Life Ltd from the Corporate and Public Sector.
2. Prior year has been restated to exclude International life and health entities not yet at operating scale.


EMBEDDED VALUE DETAIL
                                                                           Adjusted             Net value of                           Restated
                                                                          net worth                 in-force    30.06.2017           30.06.2016
                                                                                 Rm                       Rm            Rm                   Rm

Covered business
Momentum Retail                                                               4 337                   11 379        15 716               15 388
Metropolitan Retail                                                           2 249                    3 758         6 007                6 200
Corporate and Public Sector                                                   2 563                    3 846         6 409                6 535
International (1)                                                             1 766                    2 147         3 913                3 768
Shareholder Capital                                                           2 020                        -         2 020                3 076

Total covered business                                                       12 935                   21 130        34 065               34 967

                                                                           Adjusted              Write-up to                           Restated
                                                                          net worth         directors' value    30.06.2017           30.06.2016
                                                                                 Rm                       Rm            Rm                   Rm

Non-covered business
Momentum Retail                                                                 979                    1 128         2 107                2 271
  Investment and savings                                                        596                      806         1 402                1 776
  Health                                                                          6                      373           379                  128
  Short-term insurance                                                          377                      137           514                  380
  Client engagement                                                               -                     (188)         (188)                 (13)
Metropolitan Retail                                                               -                      (78)          (78)                 (84)
  Client engagement                                                               -                      (78)          (78)                 (84)
Corporate and Public Sector                                                   1 652                    4 095         5 747                5 018
  Investment and savings                                                        304                    1 066         1 370                1 255
  Health                                                                        399                    1 116         1 515                1 278
  Short-term insurance (2)                                                      949                    1 904         2 853                2 570
  Client engagement                                                               -                        9             9                  (85)
International (1)                                                              (215)                     275            60                  822
  Investment and savings (3)                                                    190                      522           712                  877
  Life insurance                                                                319                      (40)          279                  418
  Health                                                                        366                      434           800                  725
  Short-term insurance                                                          113                       26           139                  249
  Client engagement                                                               -                      (92)          (92)                   -
  Other (shared services) (4)                                                (1 203)                    (575)       (1 778)              (1 447)
Shareholder Capital                                                             944                     (322)          622                   (5)
  Short-term insurance                                                          101                        -           101                  147
  Client engagement                                                             368                        -           368                  179
  Other (head office expenses) (4)                                              475                     (322)          153                 (331)

Total non-covered business                                                    3 360                    5 098         8 458                8 022

Total embedded value                                                         16 295                   26 228        42 523               42 989
Diluted net asset value - non-covered business                               (3 360)
Adjustments to covered business - net asset value                             4 226
Reporting excess - long-term insurance business                              17 161

1. On 1 July 2015, African life and health entities not yet at operating scale were transferred to non-covered business (30.06.2016: adjusted net worth of 
   R466 million and value of in-force of R146 million). The prior year has been restated to reflect the transfer.
2. On 1 July 2015, Guardrisk Life Ltd was transferred to non-covered business (30.06.2016: adjusted net worth of R169 million and value of in-force of R660 million).
   The prior year has been restated to reflect the transfer.
3. This includes MMI non-covered subsidiaries domiciled in the United Kingdom and related territories.
4. The International shared services impact reflects the allowance for support services to the International life assurance and health businesses. The Shareholder 
   head office expenses impact reflects the present value of projected recurring head office expenses.


DIRECTORS' VALUE PER VALUATION METHOD
                                                  Covered    Appraisal                  Covered  Appraisal          Restated
                                              methodology       value   30.06.2017  methodology      value        30.06.2016
                                                       Rm          Rm           Rm           Rm         Rm                Rm

Non-covered business
Momentum Retail                                       955       1 152        2 107          630      1 641             2 271
  Investment and savings                              576         826        1 402          502      1 274             1 776
  Health                                              379           -          379          128          -               128
  Short-term insurance                                  -         514          514            -        380               380
  Client engagement                                     -        (188)        (188)           -        (13)              (13)
Metropolitan Retail                                     -         (78)         (78)           -        (84)              (84)
  Client engagement                                     -         (78)         (78)           -        (84)              (84)
Corporate and Public Sector                         4 388       1 359        5 747        3 868      1 150             5 018
  Investment and savings                                -       1 370        1 370            -      1 255             1 255
  Health                                            1 535         (20)       1 515        1 298        (20)            1 278
  Short-term insurance                              2 853           -        2 853        2 570          -             2 570
  Client engagement                                     -           9            9            -        (85)              (85)
International                                       1 143      (1 083)          60        1 130       (308)              822
  Investment and savings                              458         254          712          504        373               877
  Life insurance                                      242          37          279          291        127               418
  Health                                              417         383          800          323        402               725
  Short-term insurance                                 26         113          139           12        237               249
  Client engagement                                     -         (92)         (92)           -          -                 -
  Other (shared services)                               -      (1 778)      (1 778)           -     (1 447)           (1 447)
Shareholder Capital                                     -         622          622            -         (5)               (5)
  Short-term insurance                                  -         101          101            -        147               147
  Client engagement                                     -         368          368            -        179               179
  Other (head office expenses)                          -         153          153            -       (331)             (331)

Total non-covered business                          6 486       1 972        8 458        5 628      2 394             8 022


- Covered methodology refers to APN107 (embedded value methodology) and the risk discount rate of covered business. The Health businesses, Momentum Wealth and 
  Guardrisk are valued using embedded value methodology.
- For Health business, explicit assumptions are made around large scheme terminations. The key assumption is the long-term profit as a percentage of revenue.
- Discounted cash flow models for Investment and savings, as well as Short-term insurance business, include assumptions around future new business. To reflect the
  additional uncertainty introduced, the risk discount rates for these businesses are approximately 2.8% and 1.8% higher than covered business risk discount rates.
- For Eris, we approximate discounted cash flows using a Price/Earnings multiple.
- The International shared services impact reflects the allowance for support services to the International life and health businesses. The Shareholder head office
  expenses impact reflects the present value of projected recurring head office expenses.


 
ANALYSIS OF CHANGES IN GROUP EMBEDDED VALUE                                                                                                             Restated
                                                                                              Covered business                          12 mths to    12 mths to 
                                                                                                                                        30.06.2017    30.06.2016
                                                                                 Adjusted net        Gross value of    Cost of               
                                                                                  worth (ANW)        in-force (VIF)        CAR            Total EV      Total EV
                                                             Notes                         Rm                    Rm         Rm                  Rm            Rm

Profit from new business                                                               (1 495)                2 343       (205)                643           805
  Embedded value from new business                               A                     (1 495)                2 247       (205)                547           712
  Expected return to end of period                               B                          -                    96          -                  96            93
Profit from existing business                                                           3 603                  (486)         6               3 123         1 703
  Expected return - unwinding of RDR                             B                          -                 2 675       (348)              2 327         2 260
  Release from the cost of required capital                      C                          -                     -        442                 442           450
  Expected (or actual) net of tax profit transfer to net worth   D                      4 091                (4 091)         -                   -             -
  Operating experience variances                                 E                        207                  (177)       (12)                 18            73
  Development expenses                                           F                        (67)                    -          -                 (67)          (99)
  Operating assumption changes                                   G                       (628)                1 107        (76)                403          (981)

Embedded value profit from operations                                                   2 108                 1 857       (199)              3 766         2 508

Investment return on adjusted net worth                          H                        652                     -          -                 652           823
Investment variances                                             I                       (144)               (1 116)       (94)             (1 354)         (126)
Economic assumption changes                                      J                         (1)                 (177)        14                (164)         (124)
Exchange rate movements                                          K                        (24)                  (16)         4                 (36)           53
Embedded value profit - covered business                                                2 591                   548       (275)              2 864         3 134
Transfer of business to non-covered business                     L                       (675)                    -          -                (675)       (1 333)
Changes in share capital                                         M                        (20)                   (5)         -                 (25)            4
Dividend paid                                                                          (3 066)                    -          -              (3 066)       (2 838)
Change in embedded value - covered business                                            (1 170)                  543       (275)               (902)       (1 033)

Non-covered business
Change in directors' valuation and other items                                                                                                (696)        1 080
Change in holding company expenses                                                                                                            (139)          961
Embedded value (loss)/profit - non-covered business                                                                                           (835)        2 041
Changes in share capital                                         M                                                                              25            (4)
Dividend paid                                                                                                                                  610           363
Finance costs - preference shares                                                                                                              (39)          (41)
Transfer of business from covered business                       L                                                                             675         1 333
Change in embedded value - non-covered business                                                                                                436         3 692

Total change in group embedded value                                                                                                          (466)        2 659

Total embedded value profit                                                                                                                  2 029         5 175

Return on embedded value (%) - internal rate of return                                                                                        4.7%         12.8%



ANALYSIS OF CHANGES IN ADJUSTED NET WORTH
                                                                                      Covered business  
                                                                                                                                     
                                                   Momentum       Metropolitan        Corporate and                     Shareholder                                      
                                                     Retail             Retail        Public Sector    International        Capital         Total
                                                         Rm                 Rm                   Rm               Rm             Rm            Rm
                                                                                                                                 

12 mths to 30.06.2017

Embedded value from new business                       (827)              (201)                (213)            (254)             -        (1 495)
Expected (or actual) net of tax profit 
 transfer to net worth                                2 257                810                  604              420              -         4 091
Operating experience variances                           86                 22                    8               47             44           207
Development expenses                                    (36)                 -                  (31)               -              -           (67)
Operating assumption changes                           (503)                50                 (122)             (53)             -          (628)
Embedded value profit from operations                   977                681                  246              160             44         2 108

Investment return on adjusted net worth                 269                157                  145               63             18           652
Investment variances                                   (178)                 5                   21               13             (5)         (144)
Economic assumption changes                              (3)                 -                    -                2              -            (1)
Exchange rate movements                                   -                  -                    -              (24)             -           (24)
  
Embedded value profit - covered business              1 065                843                  412              214             57         2 591


ANALYSIS OF CHANGES IN GROSS VALUE OF IN-FORCE                      
                                                                                       Covered business
                                                                                                                                      
                                                         Momentum          Metropolitan       Corporate and                             
                                                           Retail                Retail       Public Sector    International                 Total
                                                               Rm                    Rm                  Rm               Rm                    Rm


12 mths to 30.06.2017

Embedded value from new business                            1 141                   431                 326              349                 2 247
Expected return - unwinding of RDR                          1 411                   529                 579              252                 2 771
Expected (or actual) net of tax profit
 transfer to net worth                                     (2 257)                 (810)               (604)            (420)               (4 091)  
Operating experience variances                                (50)                   (2)               (143)              18                  (177)
Operating assumption changes                                1 090                   134                (173)              56                 1 107
Embedded value profit/(loss) from operations                1 335                   282                 (15)             255                 1 857

Investment variances                                         (701)                 (251)               (130)             (34)               (1 116)
Economic assumption changes                                   (44)                  (11)                (99)             (23)                 (177)
Exchange rate movements                                         -                     -                   -              (16)                  (16)

Embedded value profit/(loss) - covered business               590                    20                (244)             182                   548



                                                 
ANALYSIS OF CHANGES IN COST OF CAR

                                                                                         Covered business
                                                                                                                                     
                                                         Momentum          Metropolitan          Corporate and                          
                                                           Retail                Retail          Public Sector   International               Total
                                                               Rm                    Rm                     Rm              Rm                  Rm

12 mths to 30.06.2017

Embedded value from new business                              (86)                  (52)                   (45)            (22)               (205)
Expected return - unwinding of RDR                           (156)                  (78)                   (89)            (25)               (348)
Release from the cost of required capital                     210                   127                    105               -                 442
Operating experience variances                                  -                     -                    (12)              -                 (12)
Operating assumption changes                                  (50)                    -                      -             (26)                (76)
Embedded value loss from operations                           (82)                   (3)                   (41)            (73)               (199)
Investment variances                                          (53)                   53                    (94)              -                 (94)
Economic assumption changes                                    (7)                   (3)                    (4)             28                  14
Exchange rate movements                                         -                     -                      -               4                   4
Embedded value (loss)/profit - covered business              (142)                   47                   (139)            (41)               (275)


ANALYSIS OF CHANGES IN GROUP EMBEDDED VALUE  
   
                                                                                         Covered business
                                                                                                                                       
                                                         Momentum          Metropolitan          Corporate and                         Shareholder 
                                                           Retail                Retail          Public Sector   International             Capital        Total
                                                               Rm                    Rm                     Rm              Rm                  Rm           Rm  


12 mths to 30.06.2017

Embedded value from new business                              228                   178                     68              73                   -          547
Expected return - unwinding of RDR                          1 255                   451                    490             227                   -        2 423
Release from the cost of required capital                     210                   127                    105               -                   -          442
Operating experience variances                                 36                    20                   (147)             65                  44           18
Development expenses                                          (36)                    -                    (31)              -                   -          (67)
Operating assumption changes                                  537                   184                   (295)            (23)                  -          403
Embedded value profit from operations                       2 230                   960                    190             342                  44        3 766
Investment return on adjusted net worth                       269                   157                    145              63                  18          652
Investment variances                                         (932)                 (193)                  (203)            (21)                 (5)      (1 354)
Economic assumption changes                                   (54)                  (14)                  (103)              7                   -         (164)
Exchange rate movements                                         -                     -                      -             (36)                  -          (36)
Embedded value profit - covered business                    1 513                   910                     29             355                  57        2 864


Restated
12 mths to 30.06.2016

Embedded value from new business                              251                   191                    199              71                   -         712
Expected return - unwinding of RDR                          1 201                   406                    513             231                   2       2 353
Release from the cost of required capital                     222                   129                     99               -                   -         450
Operating experience variances                                341                   123                   (364)             59                 (86)         73
Development expenses                                          (57)                  (42)                     -               -                   -         (99)
Operating assumption changes                                 (140)                   82                   (729)           (147)                (47)       (981)
Embedded value profit/(loss) from operations                1 818                   889                   (282)            214                (131)      2 508
Investment return on adjusted net worth                       269                   155                    115             100                 184         823
Investment variances                                          (91)                   41                    (88)             12                   -        (126)
Economic assumption changes                                   (87)                  (85)                    98             (50)                  -        (124)
Exchange rate movements                                         -                     -                      -              53                   -          53
Embedded value profit/(loss) - covered business             1 909                 1 000                   (157)            329                  53       3 134



A. VALUE OF NEW BUSINESS 

VALUE OF NEW BUSINESS (3,4)

                                                                                                        Corporate and
                                                       Momentum Retail (5)  Metropolitan Retail     Public Sector (1)  International (2)     Total
                                                                       Rm                    Rm                    Rm                 Rm        Rm

12 mths to 30.06.2017

Value of new business                                                 228                   178                    68                 73       547
  Gross                                                               314                   230                   113                 95       752
  Less cost of required capital                                       (86)                  (52)                  (45)               (22)     (205)

New business premiums                                              17 624                 2 325                 4 637                824    25 410
  Recurring premiums                                                1 135                 1 220                   751                439     3 545
  Single premiums                                                  16 489                 1 105                 3 886                385    21 865

New business premiums (APE)                                         2 784                 1 331                 1 140                478     5 733
New business premiums (PVP)                                        22 774                 5 164                11 121              2 536    41 595
Profitability of new business as a percentage of APE                  8.2                  13.4                   6.0               15.3       9.5
Profitability of new business as a percentage of PVP                  1.0                   3.4                   0.6                2.9       1.3


Restated
12 mths to 30.06.2016

Value of new business                                                 251                   191                   199                 71       712
  Gross                                                               314                   244                   244                 83       885
  Less cost of required capital                                       (63)                  (53)                  (45)               (12)     (173)

New business premiums                                              18 713                 2 343                 6 019                841    27 916
  Recurring premiums                                                1 103                 1 087                   895                400     3 485
  Single premiums                                                  17 610                 1 256                 5 124                441    24 431

New business premiums (APE)                                         2 864                 1 213                 1 407                444     5 928
New business premiums (PVP)                                        23 468                 4 936                13 232              2 454    44 090
Profitability of new business as a percentage of APE                  8.8                  15.7                  14.1               16.0      12.0
Profitability of new business as a percentage of PVP                  1.1                   3.9                   1.5                2.9       1.6



1. Value of new business has been restated to exclude Guardrisk Life Ltd that was transferred to non-covered business.
2. Value of new business has been restated to exclude the African entities not yet at operating scale that was transferred to non-covered business.
3. Value of new business and new business premiums are net of non-controlling interests.
4. The value of new business has been calculated on closing assumptions. Investment yields at the point of sale have been used for fixed annuity and guaranteed 
   endowment business; for other business the investment yields at the reporting date have been used.
5. For Momentum Retail, the definition of new business has been amended to exclude negative alterations after the commission clawback period. This change aligns 
   with the definition used internally by Momentum Sales.



ANALYSIS OF NEW BUSINESS PREMIUMS

                                                                                           Corporate and
                                            Momentum Retail (3)    Metropolitan Retail  Public Sector (1)  International (2)      Total
                                                            Rm                     Rm                 Rm                 Rm         Rm
12 mths to 30.06.2017

New business premiums                                   17 624                  2 325              4 637                824     25 410
  Recurring premiums                                     1 135                  1 220                751                439      3 545
    Risk                                                   532                    811                306                  -      1 649
    Savings/Investments                                    603                    409                442                  -      1 454
    Annuities                                                -                      -                  3                  -          3
    International                                            -                      -                  -                439        439
  Single premiums                                       16 489                  1 105              3 886                385     21 865
    Savings/Investments                                 15 455                    374              2 917                  -     18 746
    Annuities                                            1 034                    731                969                  -      2 734
    International                                            -                      -                  -                385        385


New business premiums (APE)                              2 784                  1 331              1 140                478      5 733
  Risk                                                     532                    811                306                  -      1 649
  Savings/Investments                                    2 149                    447                734                  -      3 330
  Annuities                                                103                     73                100                  -        276
  International                                              -                      -                  -                478        478

Restated
12 mths to 30.06.2016

New business premiums                                   18 713                  2 343              6 019                841     27 916
  Recurring premiums                                     1 103                  1 087                895                400      3 485
    Risk                                                   534                    703                417                  -      1 654
    Savings/Investments                                    569                    384                477                  -      1 430
    Annuities                                                -                      -                  1                  -          1
    International                                            -                      -                  -                400        400
  Single premiums                                       17 610                  1 256              5 124                441     24 431
    Savings/Investments                                 16 631                    312              3 959                  -     20 902
    Annuities                                              979                    944              1 165                  -      3 088
    International                                            -                      -                  -                441        441

New business premiums (APE)                              2 864                  1 213              1 407                444      5 928
  Risk                                                     534                    704                417                  -      1 655
  Savings/Investments                                    2 232                    415                873                  -      3 520
  Annuities                                                 98                     94                117                  -        309
  International                                              -                      -                  -                444        444

1. Value of new business has been restated to exclude Guardrisk Life Ltd that was transferred to non-covered business.
2. Value of new business has been restated to exclude the African entities not yet at operating scale that was transferred to non-covered business.
3. For Momentum Retail, the definition of new business has been amended to exclude negative alterations after the commission clawback period. This 
   change aligns with the definition used internally by Momentum Sales. 

RECONCILIATION OF LUMP SUM INFLOWS
                                                                                                  Restated
                                                                           12 mths to           12 mths to
                                                                           30.06.2017           30.06.2016 
                                                                                   Rm                   Rm

Total lump sum inflows                                                         26 968               29 784
Inflows not included in value of new business                                  (6 518)              (6 853)
Term extensions on maturing policies                                              345                  342
Retirement annuity proceeds invested in living annuities                        1 107                1 008
Non-controlling interests and other adjustments                                   (37)                 150
Single premiums included in value of new business                              21 865               24 431


PRINCIPAL ASSUMPTIONS (South Africa) (1,4)                                 30.06.2017           30.06.2016
                                                                                    %                    %

Pre-tax investment return
  Equities                                                                       12.9                 12.7
  Properties                                                                     10.4                 10.2
  Government stock                                                                9.4                  9.2
  Other fixed-interest stocks                                                     9.9                  9.7
  Cash                                                                            8.4                  8.2
Risk-free return (2)                                                              9.4                  9.2
Risk discount rate (RDR)                                                         11.7                 11.4
Investment return (before tax) - balanced portfolio (2)                          11.6                 11.4
Renewal expense inflation rate (3)                                                6.8                  7.4

1. The principal assumptions relate only to the South African life insurance business. Assumptions relating to international life insurance businesses are based on
   local requirements and can differ from the South African assumptions.
2. Risk-free returns are taken from an appropriate market-related, risk-free yield curve as at the valuation date. Appropriate risk premia are added to the risk-free
   yields in order to derive yields on other asset classes. Expected cash flows at each duration are discounted using yields appropriate to that duration. The 
   investment return on balanced portfolio business was calculated by applying the above returns to an expected long-term asset distribution.
3. An inflation rate of 6.0% p.a. is used over the planning horizon (three years) where after the inflation rate is derived from market inputs as the difference 
   between nominal and real yields across the term structure of these curves. An additional 1% expense inflation is allowed for in some divisions to reflect the 
   impact of closed books that are in run-off.
4. The assumptions quoted in the table are representative rates derived at the 10-year point of the yield curves.

B. EXPECTED RETURN

The expected return is determined by applying the risk discount rate applicable at the beginning of the reporting year to the present value of in-force covered 
business at the beginning of the reporting year. The expected return on new business is determined by applying the current risk discount rate to the value of new business
from the point of sale to the end of the year.

C. RELEASE FROM THE COST OF REQUIRED CAPITAL

The release from the cost of required capital represents the difference between the risk discount rate and the expected after tax investment return on the assets backing the required capital over the year.

D. EXPECTED (OR ACTUAL) NET OF TAX PROFIT TRANSFER TO NET WORTH

The expected profit transfer for covered business from the present value of in-force to the adjusted net worth is calculated on the statutory valuation method.

E. OPERATING EXPERIENCE VARIANCES


OPERATING EXPERIENCE VARIANCES
                                                                                                           Restated
                                                                             12 mths to 30.06.2017       12 mths to
                                                                                                         30.06.2016
                                                           Notes           ANW    Net VIF       EV               EV
                                                                            Rm         Rm       Rm               Rm

Momentum Retail                                                             86        (50)      36              341
Mortality and morbidity                                        1           156          9      165              235
Terminations, premium cessations and policy alterations        2          (111)       169       58               65
Expense variance                                                            40          -       40              (24)
Credit risk variance                                                        39          -       39               20
Other                                                          3           (38)      (228)    (266)              45

Metropolitan Retail                                                         22         (2)      20              123
Mortality and morbidity                                        1            78          5       83               88
Terminations, premium cessations and policy alterations        4           (61)        (8)     (69)              10
Expense variance                                                           (23)         -      (23)              (9)
Credit risk variance                                                        21          -       21               10
Other                                                                        7          1        8               24

Corporate and Public Sector                                                  8       (143)    (135)            (321)
Mortality and morbidity                                        5          (152)         -     (152)            (235)
Terminations                                                   6            20       (211)    (191)            (113)
Expense variance                                                            36          -       36             (122)
Credit risk variance                                                        57          -       57               40
FNB Life - share of profits                                                  -          -        -               37
Other                                                          7            47         68      115               72

International                                                               47         18       65               59
Mortality and morbidity                                        1            35          9       44               73
Terminations, premium cessations and policy alterations                      3          1        4              (22)
Expense variance                                                            (3)         -       (3)               5
Other                                                                       12          8       20                3

Shareholder Capital                                                         44          -       44              (86)
Opportunity cost of required capital                                         -        (12)     (12)             (43)
Total operating experience variances                                       207       (189)      18               73


Notes
1. Overall, mortality and morbidity experience for the 12 months were better compared to what was allowed for in the valuation basis.
2. Better than expected experience, especially on voluntary premium increases.
3. Includes one off impact arising from improved modelling of rider benefits as well as increased premium discounts.
4. Unfavourable experience on mainly risk products written by new intermediaries.
5. Worse than expected income disability underwriting experience.
6. Higher than expected terminations on risk business.
7. Includes a release of discretionary liabilities held in respect of data and systems no longer deemed necessary following completion of investigations.

F. DEVELOPMENT EXPENSES

Business development expenses within segments.

G. OPERATING ASSUMPTION CHANGES

OPERATING ASSUMPTION CHANGES

                                                                                                    Restated
                                                                     12 mths to 30.06.2017        12 mths to
                                                                                                  30.06.2016
                                              Notes               ANW     Net VIF         EV              EV
                                                                   Rm          Rm         Rm              Rm

Momentum Retail                                                  (503)      1 090        587             (71)
Mortality and morbidity assumptions               1               296         114        410              18
Termination assumptions                           2              (680)        620        (60)             24
Renewal expense assumptions                                        (1)        (55)       (56)            164
Holding company expenses                                            -           -          -            (325)
Modelling, methodology and other changes          3              (118)        411        293              48

Metropolitan Retail                                                50         134        184              82
Mortality and morbidity assumptions                               (12)         (3)       (15)            271
Termination assumptions                                             5         (20)       (15)            (30)
Renewal expense assumptions                                       (59)          4        (55)            (46)
Holding company expenses                                            -           -          -            (345)
Modelling, methodology and other changes          3               116         153        269             232

Corporate and Public Sector                                      (122)       (173)      (295)           (733)
Mortality and morbidity assumptions               4              (138)       (220)      (358)            (35)
Termination assumptions                           5                 -         105        105               7
Renewal expense assumptions                                        43         (89)       (46)           (260)
Holding company expenses                                            -           -          -            (225)
Modelling, methodology and other changes                          (27)         31          4            (220)

International                                                     (53)         56          3            (147)
Mortality and morbidity assumptions               1                19          83        102              52
Termination assumptions                           2               (63)          7        (56)            (25)
Renewal expense assumptions                                         4          15         19             (21)
Modelling, methodology and other changes                          (13)        (49)       (62)           (153)


Shareholder Capital                                                 -           -          -             (47)
Methodology change: cost of required capital                        -         (76)       (76)            (65)
Total operating assumption changes                               (628)      1 031        403            (981)

Notes
1. Allowance for better than assumed mortality and morbidity experience on risk business.
2. Strengthening of the long-term persistency assumptions.
3. Various modelling and methodology changes including the adoption of the yield curve for valuation purposes and changes in the allowance for future premium 
   reviews on Momentum Retail risk products.
4. Allowance for lower future profitability on income disability business.
5. Allowance made for improved persistency experience, mainly on FundsAtWork.


H. INVESTMENT RETURN ON ADJUSTED NET WORTH

INVESTMENT RETURN ON ADJUSTED NET WORTH
                                                                                               Restated
                                                                               12 mths to    12 mths to      
                                                                               30.06.2017    30.06.2016
                                                                                       Rm            Rm

Investment income                                                                     620           614
Capital appreciation and other                                                         68           242
Preference share dividends paid and change in fair value of preference shares         (36)          (33)
Investment return on adjusted net worth                                               652           823


I. INVESTMENT VARIANCES

Investment variances represent the impact of higher/lower than assumed investment returns on current and expected future after tax profits from in-force business.

J. ECONOMIC ASSUMPTION CHANGES

The economic assumption changes include the effect of the change in assumed rate of investment return, expense inflation rate and risk discount rate in respect of 
local and offshore business.

K. EXCHANGE RATE MOVEMENTS

The impact of foreign currency movements on International covered businesses.

L. TRANSFER OF BUSINESS TO NON-COVERED BUSINESS

This transfer represents the alignment of the net assets and value of in-force of subsidiaries between covered and non-covered business.

M. CHANGES IN SHARE CAPITAL

Changes in share capital include the recapitalisation of some of the International subsidiaries.


COVERED BUSINESS: SENSITIVITIES - 30.06.2017 
                                                                                                        In-force business                  New business written
                                                                                      Adjusted        Net       Gross      Cost of        Net    Gross    Cost of               
                                                                                     net worth      value       value      CAR (3)      value    value    CAR (3)
                                                                                            Rm         Rm          Rm           Rm         Rm       Rm         Rm

Base value                                                                              12 935     21 130      24 407       (3 277)       547      752       (205)

 1%  increase in risk discount rate                                                                19 262      22 943       (3 681)       405      627       (222)
     % change                                                                                          (9)         (6)          12        (26)     (17)         8
 1%  reduction in risk discount rate                                                               23 198      26 041       (2 843)       708      893       (185)
     % change                                                                                          10           7          (13)        29       19        (10)
10%  decrease in future expenses                                                                   22 497      25 774       (3 277)       666      871       (205)
     % change (1)                                                                                       6           6            -         22       16          -
10%  decrease in lapse, paid-up and surrender rates                                                21 800      25 077       (3 277)       705      927       (222)
     % change                                                                                           3           3            -         29       23          8
 5%  decrease in mortality and morbidity for assurance business                                    23 036      26 343       (3 307)       686      891       (205)
     % change                                                                                           9           8            1         25       18          -
 5%  decrease in mortality for annuity business                                                    20 777      24 027       (3 250)       535      740       (205)
     % change                                                                                          (2)         (2)          (1)        (2)      (2)         -
 1%  reduction in gross investment return, inflation rate and risk discount rate        12 935     21 858      25 063       (3 205)       634      839       (205)
     % change (2)                                                                            -          3           3           (2)        16       12          -
 1%  reduction in inflation rate                                                                   21 912      25 189       (3 277)       622      827       (205)
     % change                                                                                           4           3            -         14       10          -
10%  fall in market value of equities and properties                                    12 618     20 091      23 306       (3 215)
     % change                                                                               (2)        (5)         (5)          (2)
10%  reduction in premium indexation take-up rate                                                  20 694      23 971       (3 277)       507      712       (205)
     % change                                                                                          (2)         (2)           -         (7)      (5)         -
10%  decrease in non-commission related acquisition expenses                                                                              658      863       (205)
     % change                                                                                                                              20       15          -
 1%  increase in equity/property risk premium                                                      21 978      25 255       (3 277)       587      792       (205)
     % change                                                                                           4           3            -          7        5          -

1. No corresponding changes in variable policy charges are assumed, although in practice it is likely that these will be modified according to circumstances.
2. Bonus rates are assumed to change commensurately.
3. The change in the value of cost of required capital is disclosed as nil where the sensitivity test results in an insignificant change in the value.


MMI HOLDINGS GROUP - ADDITIONAL INFORMATION

ANALYSIS OF ASSETS MANAGED AND/OR ADMINISTERED (1)
                                                                                                                             Restated
                                                                                                      30.06.2017       30.06.2016 (2)
                                                                                                              Rm                   Rm

Managed and/or administered by Investments
Financial assets                                                                                         406 175              442 582
  Momentum Manager of Managers                                                                            90 220               83 703
  Momentum Investment Consultants                                                                         10 073               10 327
  Momentum Collective Investments                                                                         72 667               62 201
  Metropolitan Collective Investments                                                                     19 860               39 847
  Momentum Asset Management (3)                                                                          151 241              184 389
  Momentum Global Investments                                                                             55 724               55 228
  Momentum Alternative Investments                                                                         6 390                6 887
Properties - Eris Property Group                                                                          21 307               27 346
  On-balance sheet                                                                                         8 778                8 534
  Off-balance sheet                                                                                       12 529               18 812

Momentum Wealth linked product assets under administration                                               151 203              153 730
  On-balance sheet                                                                                        97 082               96 858
  Off-balance sheet                                                                                       54 121               56 872
Managed internally or by other managers within MMI (on-balance sheet)                                     67 399               64 597
Managed by external managers (on-balance sheet)                                                           15 144               16 605
Properties managed internally or by other managers within MMI or externally                                2 778                2 657
Corporate and Public Sector - segregated assets                                                                -                  216
Corporate and Public Sector - cell captives on-balance sheet                                              15 508               17 834

Total assets managed and/or administered                                                                 679 514              725 567

Managed and/or administered by Investments
  On-balance sheet                                                                                       227 255              225 396
  Off-balance sheet                                                                                      178 920              217 186
                                                                                                         406 175              442 582

1. Assets managed and/or administered are included where an entity earns a fee on the assets. Non-financial assets (except properties) have been excluded.
2. Momentum Manager of Managers restatement: Recent operating model changes in the Investment business has resulted in the consolidation of asset administration 
   agreements between entities resulting in a decrease in assets under administration with no impact on earnings.
3. In the prior year, MMI performed certain administrative functions for Aluwani Capital Partners (Aluwani) on an arms-length basis. This resulted in R36 billion
   being included in Momentum Asset Management which was managed by Aluwani. These assets were transferred to Aluwani in the current year.


NET FUNDS RECEIVED FROM CLIENTS (1)

                                                                                          Gross 
                                                                    Gross single      recurring         Gross          Gross       Net inflow/
                                                                         inflows        inflows        inflow        outflow         (outflow)
                                                                              Rm             Rm            Rm             Rm                Rm  
12 mths to 30.06.2017                                                                                     

Momentum Retail                                                           15 077          9 663        24 740        (25 360)             (620)
Metropolitan Retail                                                        1 021          5 877         6 898         (5 321)            1 577
Corporate and Public Sector                                               10 216         16 951        27 167        (25 574)            1 593
International                                                                654          3 476         4 130         (2 624)            1 506
Long-term insurance business fund flows                                   26 968         35 967        62 935        (58 879)            4 056
Off-balance sheet fund flows
Managed and/or administered by Investments (2)                                                         64 548       (101 884)          (37 336)
Properties - Eris Property Group                                                                        2 067         (8 350)           (6 283)
Momentum Wealth linked product assets under administration                                              7 368        (10 081)           (2 713)
Corporate and Public Sector - segregated assets                                                             -           (216)             (216)
Total net funds received from clients                                                                 136 918       (179 410)          (42 492)

Restated
12 mths to 30.06.2016

Momentum Retail                                                           16 356          9 278        25 634        (24 846)              788
Metropolitan Retail                                                        1 258          5 558         6 816         (6 037)              779
Corporate and Public Sector                                               11 438         15 170        26 608        (30 568)           (3 960)
International                                                                732          3 322         4 054         (2 513)            1 541
Long-term insurance business fund flows                                   29 784         33 328        63 112        (63 964)             (852)
Off-balance sheet fund flows
Managed and/or administered by Investments                                                             84 243        (80 887)            3 356
Properties - Eris Property Group                                                                        2 972         (2 227)              745
Momentum Wealth linked product assets under administration                                             10 450        (10 837)             (387)
Corporate and Public Sector - segregated assets                                                            16              -                16
Total net funds received from clients                                                                 160 793       (157 915)            2 878

1. Assets managed and/or administered are included where an entity earns a fee on the assets. Non-financial assets (except properties) have been excluded.
2. The Aluwani assets were transferred to Aluwani in the current year.


ANALYSIS OF ASSETS BACKING SHAREHOLDER EXCESS

                                                                                                         Restated
                                                                          30.06.2017                   30.06.2016
                                                                      Rm              %               Rm          %

Equity securities                                                    441            1.9              372        1.5
Preference shares                                                  1 325            5.8            1 457        6.0
Collective investment schemes                                        330            1.4              264        1.1
Debt securities                                                    6 762           29.5            5 767       23.9
Properties                                                         3 630           15.8            3 436       14.3
Owner-occupied properties                                          2 374           10.3            1 662        6.9
Investment properties                                              1 256            5.5            1 774        7.4
Cash and cash equivalents and funds on deposit                     6 003           26.2            8 488       35.2
Intangible assets                                                  7 144           31.1            8 035       33.3
Other net assets                                                   1 537            6.7              414        1.7
                                                                  27 172          118.4           28 233      117.1
Redeemable preference shares                                        (261)          (1.1)            (275)      (1.1)
Subordinated redeemable debt                                      (3 602)         (15.7)          (3 557)     (14.8)
Treasury shares                                                     (353)          (1.5)            (292)      (1.2)
Shareholder excess per reporting basis                            22 956          100.0           24 109      100.0

NUMBER OF EMPLOYEES
 
                                                                      Restated
                                                   30.06.2017       30.06.2016

Indoor staff                                            9 199           10 077
  Segments
    Momentum Retail                                     1 233            1 360
    Metropolitan Retail                                   923            1 215
    Corporate and Public Sector                           987            1 021
    International                                       1 215            1 295

  Centres of Excellence
    Investments and Savings Solutions                     520              511
    Legacy Solutions                                      224              211
    Life Insurance Solutions                              473              487
    Health Solutions                                    2 333            2 591
    Short-term Insurance Solutions                        283              283
    Multiply                                              128              149

  Group services divisions                                880              954

Field staff                                             8 031            7 483
  Momentum Retail                                       1 130            1 111
  Metropolitan Retail                                   5 395            4 804
  International                                         1 506            1 568

Total                                                  17 230           17 560

1. The prior year has been restated to align to the group's client centric model.


STOCK EXCHANGE PERFORMANCE                                                                               30.06.2017           30.06.2016
12 months
Value of listed shares traded (rand million)                                                                 20 072               25 614
Volume of listed shares traded (million)                                                                        863                1 057
Shares traded (% of average listed shares in issue)                                                              55                   67
Trade prices
  Highest (cents per share)                                                                                   2 669                3 149
  Lowest (cents per share)                                                                                    1 920                1 900
  Last sale of year (cents per share)                                                                         2 024                2 264
Annualised percentage (%) change during year                                                                    (11)                 (25)
Annualised percentage (%) change - life insurance sector (J857)                                                  (6)                  (6)
Annualised percentage (%) change - top 40 index (J200)                                                           (1)                    -
30 June
Price/diluted core headline earnings (segmental) ratio                                                         10.1                 11.3
Dividend yield % (dividend on listed shares)                                                                    7.8                  6.9
Dividend yield % - top 40 index (J200)                                                                          2.8                  2.9
Total shares issued (million)
  Ordinary shares listed on JSE                                                                               1 575                1 574
  Treasury shares held on behalf of contract holders                                                            (18)                 (13)
  Basic number of shares in issue                                                                             1 557                1 561
  Treasury shares held on behalf of contract holders                                                             18                   13
  Convertible redeemable preference shares                                                                       29                   30
  Diluted number of shares in issue (1)                                                                       1 604                1 604
Market capitalisation at end (Rbn) (2)                                                                           32                   36

1. The diluted number of shares in issue takes into account all issued shares, assuming conversion of the convertible redeemable preference shares, and includes 
   the treasury shares held on behalf of contract holders.
2. The market capitalisation is calculated on the fully diluted number of shares in issue.










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