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Trading statement for the six months ended 31 December 2017
MMI Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2000/031756/06)
JSE share code: MMI
NSX share code: MIM
(“MMI Holdings” or “the Company”)
Trading statement for the six months ended 31 December 2017
Shareholders are advised that the group's basic earnings per share is
expected to increase by between 20 and 30 percent (78cps and 85cps) relative
to 65cps earned in the comparative period. Headline earnings per share is
also expected to show an increase of between 20 and 30 percent (77cps and
84cps) relative to 64cps for the comparative period. Basic and headline
earnings have both been boosted by more favourable fair value gains on
shareholder funds and by positive investment variances during the six months.
Shareholders are also advised that the diluted core headline earnings per
share, the group's main earnings measure of operational performance of the
group, is expected to be down by between 0 and 5 percent relative to the
previous period. This equates to a range of 95cps to 100cps for the period.
Diluted core headline earnings was 100cps in 1H17. Diluted core headline
earnings has been negatively affected during the period by weaker persistency
in Metropolitan Retail, weaker life insurance profitability at Momentum
Retail, and an increase in MMI’s share of losses, in line with business
plans, on new initiatives such as the India joint venture. Momentum Corporate
profits have improved materially with group underwriting results showing
significant improvement year-on-year. MMI is well capitalised at 31 December
2017 on both the existing Statutory Valuation Method (SVM) basis and on the
current proposed Solvency Assessment and Management (SAM) basis.
Note that MMI excludes fair value gains, impairment of intangibles, movement
in the value of MMI shares held in policyholder funds, investment variances,
assumption changes and non-recurring items from diluted core headline
earnings, whereas basic earnings includes all these items.
MMI will be releasing results for the six months ended 31 December 2017 on
7 March 2018.
The forecast financial information contained in this trading statement to
shareholders is based on information available at the time of publication
and has not been reviewed and reported on by the Company’s auditors.
Centurion
21 February 2018
Sponsor:
Merrill Lynch South Africa (Pty) Ltd
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