MMI HOLDINGS LIMITED - Audited results for the 12 months ended 30 June 2018

Release Date: 05/09/2018 07:05
 
Wrap Text
Audited results for the 12 months ended 30 June 2018

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 GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration No. 1904/002186/06)
Company code: MMIG

SUMMARY OF FINANCIAL INFORMATION 
Audited results for the 12 months ended 30 June 2018

Reset and grow

Summary of key metrics
During the year MMI Holdings has made good progress on implementing our plan to increase focus on execution. This reset in priorities is done to enable
improved performance and future growth. Key activities include encouraging a more entrepreneurial culture, increased focus on successfully growing our core
businesses in South Africa, and exiting marginal operations outside South Africa. To this end, we have also simplified our operating model and empowered
our businesses with end-to-end accountability from sales to service. Although the continued challenging macro-economic environment negatively impacted
MMI's financial results for the year ended 30 June 2018, operational shortcomings also played a part in the disappointing set of results.

MMI's diluted core headline earnings of R2 809m (176 cents per share) were down 12% year-on-year. This was despite strong mortality and disability results
across the group (risk experience improved by R201m), as well as improved International results for remaining core operations (improvement of R118m). These
positive factors were more than offset by increased investment in client engagement activities and specific technology investments to improve intermediary
and client experience (increase of R92m), the impact of a reinsurance correction and a reinsurance loss including an allowance for higher future reinsurance
premiums on Momentum Retail risk products (R181m aggregate negative impact), lower profits from the Momentum Retail legacy life products (R120m decline) and
weaker early duration lapse experience in Metropolitan Retail (R44m reduction in IFRS persistency variance). MMI's share of losses from our new initiative
investments in India and aYo increased by R90m, in line with business plans.

Diluted headline earnings were R1 341m lower than diluted core headline earnings in F2018. Of this difference, R685m arises from changes to actuarial
assumptions. The positive investment variances seen during the first half of the year reversed due to the low investment market returns and a downward move
in the yield curve between 31 December 2017 and 30 June 2018. Material actuarial assumption changes include a strengthening of the expense basis for retail
operations, strengthened early duration lapse rates in Metropolitan Retail, and a lower assumed exposure to equities for the long-term portfolio supporting
some of our large product lines. Another R115m of the difference is attributable to non-recurring items, including R77m arising from our decision to reduce
our footprint in Africa and the UK.

At the interim results announcement, we communicated that we have revised our dividend policy and that we would repurchase R2bn worth of shares in lieu of
paying dividends during the current calendar year as long as the share price remained at discount to embedded value (EV). At 30 June 2018, 47 million shares
(R971 million, excluding trading costs) have been bought back. In doing this, we acquired R1.2bn EV.

New business volumes are up 1% year-on-year to R42.2bn on a present value of new business premiums (PVNBP) basis. This included year-on-year growth of 3%
for Momentum Retail and 1% growth for Momentum Corporate. PVNBP for Metropolitan Retail was down 1% for the year and International's PVNBP was down 8%,
driven by a 13% decline in Namibia.

Overall value of new business (VNB) was disappointing and declined to R301m. This resulted in new business margins declining from 1.3% to 0.7% of premiums.
Although overall sales volumes remained flat over the period, the margins were driven down by expenses increasing at a faster rate, significant assumption
changes which partly resulted from more realistic treatment of expenses that were previously classified as unallocated, and re-pricing of some products. The
increase in expenses includes investment into initiatives aimed at improving client and intermediary experience during the new business process. We believe
that the main drivers of margin improvement in the future will be to improve the productivity and scale of our various distribution capabilities, as well as
reducing operational and infrastructure costs. This will require ongoing product development and improvements in client service experience.

Group embedded value declined to R39.6bn (June 2017 EV was R42.5bn). This equates to EV per share of R25.43 at 30 June 2018. The return on embedded value
(ROEV) for the year was -1.1% with the ROEV on covered business (mature life insurance operations) increasing by 7.3% during the period. The actuarial
assumption changes mentioned above had a negative impact on covered EV earnings. The ROEV on non-covered business was significantly negative. This was
mainly due to the implementation of a new methodology to determine non-covered valuations, which resulted in downward adjustments in the valuation of most
businesses. The businesses mostly affected include asset management subsidiaries, Client Engagement Solutions and the holding company.

Key metrics                                        F2018        F2017    Change %

Diluted core headline earnings (Rm)                2 809        3 208         (12)
Diluted core headline earnings per share (cents)     176          200         (12)
Diluted headline earnings per share (cents)           93          118         (21)
Operating profit after new initiatives (Rm)        2 345        2 600         (10)
Operating profit before new initiatives (Rm)       2 667        2 795          (5)
New business volumes (PVNBP, Rm)                  42 177       41 595           1
Value of new business (Rm)                           301          547         (45)
New business margin (%)                              0.7          1.3        (0.6)
Embedded value per share (cents)                   2 543        2 651          (4)
Return on Embedded Value (%)                        (1.1)         4.7        (5.8)

Analysis of group earnings
Diluted core headline earnings of R2 809m for the period declined by 12% year-on-year. Operating profits declined by 10% year-on-year, however, if we
exclude the impact of our four large strategic investments (India, aYo, MMI Lending and Money Management) the operating profit on the established businesses
declined by 5%.

Momentum Retail
Momentum Retail's core headline earnings declined by 28% to R920m. Earnings from covered operations (life insurance) were down 25% to R1 096m while losses
from non-covered operations narrowed by 10% to R176m.

Life Insurance demographic experience was strong with mortality, morbidity and persistency experience all better than expected. This was however offset by
an allowance to correct a historic underpayment of reinsurance premiums (R43m), higher reinsurance premiums in the current year (R138m), and generally
higher operating expenses relative to F2017. Covered core headline earnings for Momentum Investments declined R145m year-on-year. This was mainly due to
modest growth in funds under management. Core headline earnings from the Legacy book declined by R120m year-on-year, largely as a result of a lower opening
asset base. The corrected reserving for Investo Loyalty Bonus also continues to put pressure on the Legacy earnings.

Non-covered business in Momentum Retail showed an improvement of 10% to a loss of R176m. Notably, MSTI's core earnings improved by R91m year-on-year to a
profit of R8m due to good growth in earned premiums, lower claims ratios, good expense management and the full recognition of the deferred tax asset in line
with continued improvement in results. Momentum Health (the open scheme) also showed improved results due to increased membership and good expense
management. These improvements were partly offset by the lower earnings from the non-covered Investments business and increased investment in our client
engagement capabilities.

Metropolitan Retail
Metropolitan Retail's core headline earnings declined by 14% to R570m, mainly due to the weaker early duration lapse experience on funeral products, as well
as investments in the African Bank joint venture, in our own branch network, and to improved technology available to our senior advisers. The decision to
adopt a more conservative approach to capitalising IT development costs also affected earnings negatively. This was partly offset by positive mortality
experience and investment returns.

Momentum Corporate
Momentum Corporate's core headline earnings increased by 8% to R903m. This increase was partly driven by an improvement in group risk underwriting
experience. This includes a strong improvement of roughly R100m year-on-year on PHI disability experience. This was partly offset by a decline in risk
experience on group life insurance and lump sum disability business. Management initiatives around the underwriting experience such as premium re-ratings,
increased focus on client servicing and the revised risk-pricing strategy have all contributed to the improved underwriting earnings performance. An
emphasis on expense management also had a positive impact on earnings.

Guardrisk performed exceptionally well again, increasing its core headline earnings by 29% year-on-year to R258m. One of the main drivers of the performance
is a significant improvement in underwriting experience for the year. In the Health business (corporate and public sector schemes), expense savings were a
notable contributor of the 11% earnings improvement to R150m. This includes the impact of introducing a 49% BEE shareholding into our public sector business
which reduced our share of earnings by R25m.

International
Core headline earnings have improved significantly from a loss of R166m for the previous period to a loss of R48m for F2018. This includes the impact of
R88m higher losses from our mobile insurance start up initiative (aYo) and the health insurance joint venture in India (Aditya Birla). These losses are in
line with our business plans. The overall improvement was mainly due to a R57m reduction in central support costs as we start our exit from some African
countries, improved PHI experience in Namibia, as well as strong profit growth from our UK asset management business. Growth in the Ghana, Nigeria, and
Lesotho life businesses also contributed to the improved result.

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

The core headline earnings contribution from Shareholder Capital is down 24% to R464m for F2018, partially due to the sale of a high-yielding property that
was held in the shareholder portfolio during F2017, the proceeds of which are now utilised for ongoing property developments that are not yet in rental
generating stage. A decrease in average money market yields also impacted the Shareholder Capital earnings. Finance costs on subordinated debt also
increased due to R750m of new debt being issued during the period. It should also be noted that the ongoing investments into new initiatives have a negative
impact on the size of the investment income earning asset base.

Core headline earnings (Rm)          F2018       F2017   Change %

Momentum Retail                        920       1 271        (28)
Metropolitan Retail                    570         660        (14)
Momentum Corporate                     903         835          8
International                          (48)       (166)        71
Operating segments                   2 345       2 600        (10)
Shareholder Capital                    464         608        (24)
Diluted core headline earnings       2 809       3 208        (12)

New business commentary
New business volumes for the year increased 1% to R42.2bn when measured as PVNBP. The largest contributor to new business is Momentum Retail where volumes
ended 3% higher for the period. Overall the new business margin was disappointing and declined to 0.7%.

Momentum Retail
Momentum Retail sales were 3% up over the year on a PVNBP basis. Single premium business increased by 2% while recurring premium business increased by 1%.
We have seen good growth in our offshore Wealth business, in the new Guaranteed Return Option product, and in recurring savings products. The increase in
volumes did not translate into growth in value of new business, which decreased to R98m (0.4% margin on premiums). This was mainly driven by initial
expenses increasing at a faster rate than volume growth. In addition, more competitive pricing introduced on our Momentum Wealth platform in April 2017 also
negatively affected value of new business.

Metropolitan Retail
Metropolitan Retail sales volumes on a PVNBP basis were down 1% year-on-year. Metropolitan grew recurring premiums by 2%, including risk business up 1% and
savings business up 4%. PVNBP was negatively affected by strengthening of the early duration lapse assumptions. Value of new business declined to R84m 
mainly due to the new lapse assumptions, higher renewal expense assumptions and a change in mix towards lower margin products. New business margin decreased
to 1.6%.

Momentum Corporate
Momentum Corporate new business on PVNBP basis increased 1% for the year. Recurring premiums were up 7% while single premiums were 10% down year-on-year.
Improved recurring premiums were driven by our FundsAtWork umbrella fund. Large corporate risk inflows remained under pressure in line with the competitive
underwriting cycle as well as the stricter pricing. With significant effort and resources having been dedicated to re-building the sales and distribution
environment, it was pleasing to see increasingly improved new business performance as the financial year progressed. Value of new business in Corporate
increased by 82% to R124m, while new business margin increased from 0.6% to 1.1%.

International
International new business volumes were down 8% year-on-year, which resulted in value of new business declining to a negative R5m. The decline can be
ascribed to the combination of lower volumes and modelling changes on sales related expenses as well as an increase in initial expenses.

Present Value of New Business Premiums (Rm)   F2018      F2017   Change %

Momentum Retail                              23 531     22 774          3
Metropolitan Retail                           5 091      5 164         (1)
Momentum Corporate                           11 218     11 121          1
International                                 2 337      2 536         (8)
MMI total PVNBP                              42 177     41 595          1

Embedded Value
Our total EV was R25.43 per share on 30 June 2018, representing an ROEV of negative 1.1% for the year. Our covered business produced reasonable EV growth
given the significant negative impact of assumption changes and generated ROEV of 7.3%. The ROEV on non-covered operations was -35%, mainly resulting from a
new valuation approach, which resulted in significant downward adjustments in the valuation of most businesses.

Embedded value profits (Rm)  EV total       ANW   Net VIF

New business                      301    (1 658)    1 959
Unwind of RDR                   2 691         -     2 691
Expected profit                     -     3 766    (3 766)
Experience variance              (177)      (22)     (155)
Operating assumptions            (975)     (966)       (9)
Investment return on ANW          636       636         -
Investment variance               (46)      (81)       35
Economic assumption changes        29        18        11
FX translation effect              21        13         8
EV profit on non-covered       (2 949)   (2 949)        -
EV Earnings                      (469)   (1 243)      774

Experience variance
Our overall experience variance, including development expenses, for the period was negative R177m.

Demographic risk experience variances were strong in aggregate (R359m) following the recovery in Momentum Corporate. Retail mortality and disability
generated R279m of positive variances while Corporate generated a positive variance of R28m, compared to the R152m negative variance in the previous period.
International generated a positive variance of R52m.

Our credit risk variance of R96m is down on the prior year number of R117m.

Persistency variance was negative R301m across the group, with the largest impact from the deterioration of persistency experience in Metropolitan Retail of
R141m. This relates to the early duration lapses as discussed under new business commentary. We also saw R59m higher than expected terminations in group
risk products as a result of highly competitive pricing observed across that market segment. Persistency experience on risk business in Momentum Retail was
also negative due to a lower than expected termination experience on level-premium type products.

The negative expense variance for this period reflects the significant investment in our core business.

Operating assumption changes
We made significant operating assumption changes with a net negative impact on EV of R975m. The impact of the expense basis change for the retail businesses
was negative R974m and was introduced following significant overall negative expense variances during F2018. This was partly offset by a positive expense
basis change of R526m for Momentum Corporate.

The termination basis for Momentum Retail was strengthened again for the better than expected persistency on some of our Myriad products and Metropolitan
Retail was strengthened in line with observed early lapse experience. Overall the termination basis changes had an impact of negative R315m.

Another major basis change includes a change in the assumed asset allocation (to a lower risk portfolio) for the long-term portfolio supporting the Myriad
business, thereby reducing the consequential mismatch exposure for shareholders. We have also allowed for the impact of integrating Multiply into the
valuation. Total modelling and other basis changes had a negative impact of R54m on EV.

Non-covered EV earnings
Non-covered EV earnings amounted to nearly negative R3bn for the period. This was mainly due to the reduced valuations of our asset management businesses,
health operations, rewards programme and holding company expenses. Non-covered operations with positive ROEV contributions included Guardrisk, Eris, and our
various health operations.

In reviewing the approach to modelling the non-covered operations, we have adopted a valuation approach that aims to achieve five outcomes:

- Valuations should be based on prudently realistic cash flows
- Valuations should result in valuation metrics that are aligned to those found for listed entities of similar nature
- Valuations should be expected to progress broadly in line with emergence of earnings from the business
- Valuation methodologies should be as consistent as possible across the group
- Generally simplicity is preferred to complexity in the valuation methodology

Capital, capital distribution and outlook
Our capital position remains strong on the current statutory basis and we had a buffer of R2.4bn on 30 June 2018 on our internal basis. The CAR cover ratio
was 2.6x as of 30 June 2018 compared to 2.7x as of 30 June 2017. On a Solvency Assessment and Management (SAM) basis MMI is also well capitalised after
taking into account all capital deployment initiatives and planned capital distributions. In March 2018, Moody's Investors Service confirmed MMIGL's Insurer
Financial Strength (IFS) international scale rating of Baa2 (national rating of http://Aaa.za) and Guardrisk's IFS rating of Baa3 (national scale rating of http://Aaa.za)
with a stable outlook.

The capital buffer decreased by R1.3bn compared to 30 June 2017.  This is the net impact from the following movements:

- R0.9bn decrease in the NAV as per the EV statement, driven by the low level of retained earnings
- R1.4bn increase in the NAV of strategic subsidiaries, the NAV is deemed ineligible for loss absorption purposes and therefore removed from the excess
  capital position
- An increase in subordinated debt of R750m that was raised during the financial year

Movement in capital buffer             R'billion

Opening capital buffer 30 June 2017          3.7
Profit from covered business                 1.7
Profit from non-covered business            (0.2)
Dividends and new capital                   (1.9)
Net subordinated debt raised                 0.8
Increase in required capital                (1.2)
Change in strategic commitments             (0.4)
Closing capital buffer 30 June 2018          2.4

Actual capital investments during the period are generally budgeted for at the start of the year and thus do not tie up to 'Change in strategic commitments'
in the table above. The following strategic investments were actually made during the period:

Area of capital distribution        R'billion

Capital support for subsidiaries          1.0
UK & Africa operations                    0.5
Aditya Birla Joint Venture                0.2
Momentum Short Term Insurance             0.1
Other                                     0.2
Total                                     2.0

Capital distribution
At the interim results announcement it was announced that we have reviewed our dividend policy to ensure that it remains consistent with our capital
deployment plans and the need to maintain steady capital ratios under the SAM regime. We indicated that we would in future target a dividend cover range
centred on 2.5x core headline earnings.

Given that our shares are valued at a discount to EV, we also communicated at the interim results announcement that we opted to buy back shares of up to
R2bn in 2018 in lieu of paying out dividends. We commenced our share repurchase programme on 7 March 2018. At 30 June 2018, 47 million shares, valued at
R971m (excluding trading costs) have been bought back. In doing this, we acquired R1.2bn of EV in exchange for the R1.0bn of cash deployed.

The current buy-back programme will almost certainly be fully utilised by end of the current calendar year. We will review the decision between continuing
with the buy-back programme versus paying a cash dividend for our F2019 interim results. The decision will be a function of our price-to-EV rating, our
capital position, and shareholder requirements at such time.

Strategy update
MMI's vision to be the preferred lifetime Financial Wellness partner with a reputation for innovation and trustworthiness remains appropriate. It will
however be brought to life in simpler terms: We exist to enable people from all walks of life and businesses to achieve their financial and life
aspirations. The MMI Group strategy which focuses on client centricity, growth and excellence therefore remains intact. The specific strategic objectives
will, however, be set in more practical and meaningful terms, with an increased focus on execution and delivery. As a group, MMI will refocus to be more
entrepreneurial and commercial in its thinking and decision-making. 

To execute on this strategy in a more efficient manner, we have introduced refinements to MMI's operating model. The new operating model design aims to
encourage growth by empowering businesses with end-to-end accountability, which includes a practical client focus. Centralised functions need to
demonstrate clear efficiency or standardisation benefits. We will also be increasingly vigilant on not attempting too many new initiatives at any given
time.

Outlook
It is not easy to turn around a comprehensive financial services company like MMI. The maturity of the South African insurance markets and modest short-term
macro-economic growth prospects continues to put pressure on our revenue growth expectations. Given these factors, combined with increased losses expected
in F2019 from our new initiatives, we expect only a modest increase in earnings for F2019. We will continue to focus on financial discipline, cost
efficiencies and streamlining infrastructure to restore annual earnings to a level of R3.6bn - R4.0bn by F2021. Leading up to F2021, we will be working hard
to build the foundation for longer-term prosperity, which will depend on a strong distribution and service culture, and relevant digital enablement.

5 September 2018

CENTURION


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 2018. The
preparation of the group's results was supervised by the group finance director, Risto Ketola (FIA, FASSA, CFA).

Corporate events
BEE transactions
In March, Metropolitan Health Holdings Ltd entered into a transaction with Workerslife SPV and Thebe SPV whereby they purchased 30% and 19% "A" ordinary
shares in Metropolitan Health Corporate (Pty) Ltd (MHC) respectively. The "A" ordinary shares will automatically convert into ordinary shares after 
six months.

Providence Risk Managers (Pty) Ltd entered into a transaction with Thebe Ya Bophelo Administrators (Pty) Ltd whereby they purchased 48% ordinary shares in
Providence Healthcare Risk Managers (Pty) Ltd.

Listed debt
MMI Group Ltd listed new instruments to the total value of R750 million on the JSE Ltd on 4 December 2017. The instruments are unsecured subordinated
callable notes.

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 2018, 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 2018 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 IAS 7 Cash flow statements and IAS 12 Income taxes.
- 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
The group's 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. Multiply encourages clients to be more healthy and active.

  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 products to African Bank's client base and lending products to the existing Metropolitan client base.

  Momentum Corporate: Momentum Corporate 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. We have announced
  our plan to exit a number of African countries to improve focus on remaining operations.

  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 product
houses supporting the segments, namely: Momentum Investments, Life Insurance, Health, Short-term Insurance and Client Engagement Solutions. Each of the 
product houses design solutions that meet unique Financial Wellness needs of clients as identified by our segment business.

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

Changes to the directorate, secretary and directors' shareholding
On 9 October 2017, Voyt Krzychylkiewicz resigned from the board. On 24 November 2017, Ben van der Ross retired from the board having reached retirement age. 
On 16 January 2018, Risto Ketola was appointed to the board as group finance director. On 15 February 2018, Nicolaas Kruger stepped down from the board and 
as CEO. On the same date, Hillie Meyer was appointed to the board as CEO. On 1 March 2018, Jeanette Cilliers (Marais) was appointed to the board and as 
deputy CEO. On 31 March 2018, Mary Vilakazi resigned from the board and as deputy CEO. The group's company secretary, Maliga Chetty, resigned with effect 
from 30 September 2018.

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

Changes to the group executive committee
Appointments/resignations       Role                                                          Appointments               Resignations
Innocent Dutiro                 CEO International                                                                        30 September 2017
Nontokoza Madonsela             Group Chief Marketing Officer                                 9 October 2017
Khanyi Nzukuma                  CEO Momentum Retail and acting CEO Metropolitan Retail                                   31 December 2017
Andrew Le Roux                  Chief Business Transformation Officer                         1 January 2018             31 August 2018
Nicolaas Kruger                 Group CEO                                                                                15 February 2018
Hillie Meyer                    Group CEO                                                     15 February 2018
Peter Tshiguvho                 CEO Metropolitan Retail                                       26 February 2018
Jeanette Cilliers (Marais)      Deputy CEO and CEO Momentum Investments                       1 March 2018
Mary Vilakazi                   Deputy CEO and CEO Momentum Retail and Metropolitan Retail                               31 March 2018
Johann Le Roux                  CEO Momentum Life                                             1 April 2018

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 2018 that were not in the ordinary course of business other than those disclosed in the 2018 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
- No interim or final dividend has been declared.

Preference shares
- Dividends of R18.5 million (2017: R19.0 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.

Share buy-back programme
- The group will continue to distribute capital to shareholders by means of repurchasing shares, in lieu of paying a dividend. Up to R2 billion will be used
  to buy back shares. At 30 June 2018, 47 million shares (R971 million excluding transaction costs) have been bought back.

Integrated information
The integrated report for 2018 will be posted to shareholders on or about 30 September 2018, and can be viewed online on 7 September 2018 at http://www.mmiholdings.com 
following the results announcement.

Directors' responsibility
The preparation of these results, and the correct extraction thereof from the group's audited 2018 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 2018 annual financial statements, which have been audited by
PricewaterhouseCoopers Inc. and their unqualified audit report, together with the group's audited 2018 annual financial statements, are available for
inspection at the company's registered office and on MMI's website. In addition, the summarised group embedded value information has been extracted from the
2018 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
Hillie Meyer                    Group chief executive officer

Centurion
4 September 2018

DIRECTORS: MJN Njeke (chairman), LL von Zeuner (deputy chairman), HP Meyer (group chief executive officer), JC Cilliers (Marais) (deputy chief executive officer),
           RS Ketola (group finance director), P Cooper, F Daniels (Jakoet), Prof SC Jurisich, Prof JD Krige, PJ Moleketi, SA Muller, V Nkonyeni, KC Shubane, 
           FJC Truter, JC van Reenen
GROUP COMPANY SECRETARY: Maliga Chetty
WEBSITE: http://www.mmiholdings.com

TRANSFER SECRETARIES - SOUTH AFRICA: 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 

TRANSFER SECRETARIES - NAMIBIA: Transfer Secretaries (Pty) Ltd (registration number 93/713) 4 Robert Mugabe Avenue, Windhoek. PO Box 2401, Windhoek 
                                Telephone: +264 61 22 7647 E-mail: info@nsx.com.na 

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 
REGISTRATION NUMBER: 2000/031756/06 
JSE CODE: MMI   NSX CODE: MIM   ISIN NO: ZAE000149902

SENS ISSUE DATE: 5 September 2018

MMI HOLDINGS GROUP - IFRS FINANCIAL INFORMATION

SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
                                                                                                          30.06.2018           30.06.2017
                                                                                                                  Rm                   Rm
ASSETS

Intangible assets                                                                                             10 515               11 260
Owner-occupied properties                                                                                      3 864                4 105
Property and equipment                                                                                           323                  389
Investment properties                                                                                          8 614                7 340
Properties under development                                                                                     136                  111
Investments in associates and joint ventures                                                                     636                  595
Employee benefit assets                                                                                          436                  410
Financial assets designated at fair value through income                                                     395 146              369 205
Investments in associates designated at fair value through income                                             11 383               15 039
Derivative financial assets                                                                                    2 910                2 439
Available-for-sale financial assets                                                                                -                   18
Held-to-maturity financial assets                                                                                437                  397
Loans and receivables                                                                                          5 629                7 293
Reinsurance contract assets                                                                                    4 989                4 495
Deferred income tax                                                                                              290                  249
Insurance and other receivables                                                                                4 962                4 621
Current income tax assets                                                                                        283                  581
Cash and cash equivalents                                                                                     25 812               27 353
Total assets                                                                                                 476 365              455 900

EQUITY
Equity attributable to owners of the parent                                                                   22 328               22 956
Non-controlling interests                                                                                        462                  292
Total equity                                                                                                  22 790               23 248

LIABILITIES
Insurance contract liabilities
  Long-term insurance contracts                                                                              109 203              106 581
  Short-term insurance contracts                                                                               8 728                7 661
Investment contracts                                                                                         272 411              257 772
  - with discretionary participation features (DPF)                                                           24 550               24 338
  - designated at fair value through income                                                                  247 861              233 434
Financial liabilities designated at fair value through income                                                 38 217               37 331
Derivative financial liabilities                                                                               2 255                1 827
Financial liabilities at amortised cost                                                                        2 420                1 229
Reinsurance contract liabilities                                                                               1 685                1 368
Deferred income tax                                                                                            2 874                3 198
Employee benefit obligations                                                                                   1 153                1 334
Other payables                                                                                                14 304               14 128
Provisions                                                                                                        73                   57
Current income tax liabilities                                                                                   252                  166
Total liabilities                                                                                            453 575              432 652

Total equity and liabilities                                                                                 476 365              455 900

SUMMARISED CONSOLIDATED INCOME STATEMENT 
                                                                    12 mths to    12 mths to
                                                                    30.06.2018    30.06.2017
                                                                            Rm            Rm

Net insurance premiums                                                  29 893        28 191
Fee income (1)                                                           7 536         7 411
Investment income                                                       20 084        18 958
Net realised and fair value gains                                       17 786           183
Net income                                                              75 299        54 743

Net insurance benefits and claims                                       27 232        24 441
Change in actuarial liabilities and related reinsurance                  1 794        (2 267)
  Change in long-term insurance contract liabilities                     1 612        (1 437)
  Change in short-term insurance contract liabilities                      (71)          (86)
  Change in investment contracts with DPF liabilities                      285          (855)
  Change in reinsurance assets                                            (322)         (278)
  Change in reinsurance liabilities                                        290           389
Fair value adjustments on investment contract liabilities               17 555         6 650
Fair value adjustments on collective investment scheme liabilities       2 738           688
Depreciation, amortisation and impairment expenses                       1 226         1 665
Employee benefit expenses                                                5 457         5 249
Sales remuneration                                                       5 796         5 283
Other expenses                                                           7 779         7 367
Expenses                                                                69 577        49 076

Results of operations                                                    5 722         5 667
Share of loss of associates and joint ventures                            (213)         (126)
Finance costs (2)                                                       (1 048)       (1 023)
Profit before tax                                                        4 461         4 518
Income tax expense                                                      (3 039)       (2 937)
Earnings for year                                                        1 422         1 581

Attributable to:
  Owners of the parent                                                   1 369         1 536
  Non-controlling interests                                                 53            45
                                                                         1 422         1 581
Basic earnings per ordinary share (cents)                                 88.2          98.4
Diluted earnings per ordinary share (cents)                               88.1          98.1

1. Fee income consists of the following:
   - Investment contracts: R2 384 million (2017: R2 477 million)
   - Trust and fiduciary services: R1 506 million (2017: R1 608 million)
   - Health administration: R1 780 million (2017: R1 764 million)
   - Other fee income: R1 866 million (2017: R1 562 million)

2. Finance costs consist of the following:
   - Preference shares issued by MMI: R110 million (2017: R113 million)
   - Subordinated debt: R397 million (2017: R351 million)
   - Cost of carry positions: R363 million (2017: R408 million)
   - Other: R178 million (2017: R151 million)
 
SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
                                                                            12 mths to         12 mths to
                                                                            30.06.2018         30.06.2017
                                                                                    Rm                 Rm

Earnings for year                                                                1 422              1 581
Other comprehensive income/(loss), net of tax                                      138               (103)
  Items that may subsequently be reclassified to income                             (6)              (224)
    Exchange differences on translating foreign operations                           9               (218)
    Available-for-sale financial assets                                             (7)                (4)
    Share of other comprehensive loss of associates                                 (8)                (2)

  Items that will not be reclassified to income                                    144                121
    Land and building revaluation                                                  131                142
    Remeasurements of post-employee benefit funds                                   14                 11
    Income tax relating to items that will not be reclassified                      (1)               (32)


Total comprehensive income for year                                              1 560              1 478

Total comprehensive income attributable to:
    Owners of the parent                                                         1 507              1 434
    Non-controlling interests                                                       53                 44
                                                                                 1 560              1 478


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
                                                                         30.06.2018    30.06.2017    30.06.2018      30.06.2017
                                                                                 Rm            Rm            Rm              Rm
Earnings                                                                      1 369         1 536         1 369           1 536
Finance costs - convertible preference shares                                                                40              39
Dilutory effect of subsidiaries (1)                                                                         (16)            (14)
Diluted earnings                                                                                          1 393           1 561
Realised gains on available-for-sale financial assets                           (13)            -           (13)              -
Tax on realised gains on available-for-sale financial assets                      2             -             2               -
Intangible assets and other impairments (2)                                      97           417            97             417
Tax on intangible assets and other impairments                                  (16)          (61)          (16)            (61)
Loss/(Gain) on sale of business/subsidiary                                       18           (94)           18             (94)
Tax on loss/(gain) on sale of business/subsidiary                                 -            21             -              21
FCTR reversal on sale of foreign subsidiary                                     (13)            -           (13)              -
Impairment of owner-occupied property below cost                                  -            28             -              28
Headline earnings (3)                                                         1 444         1 847         1 468           1 872
Net realised and fair value losses on excess                                     40            94            40              94
Basis and other changes and investment variances                                651           458           651             458
Adjustments for MMI shares held by policyholder funds                           (32)          (42)          (32)            (42)
Amortisation of intangible assets relating to business combinations             543           577           543             577
Non-recurring items (4)                                                         115           249           115             249
BEE cost                                                                         24             -            24               -
Core headline earnings (5)                                                    2 785         3 183         2 809           3 208

1. MHC is consolidated at 51% (2017: 100%) and the MMI Holdings Namibian group, Metropolitan Kenya and Cannon are consolidated at 96% in earnings. For 
   purposes of diluted earnings, diluted non-controlling interests and investment returns are reinstated. From June 2017, there is no longer a dilutory 
   effect for MHC as all the shares which were held by Kagiso Tiso Holdings (Pty) Ltd (KTH) were purchased by the group in June 2017. The subsequent 
   sale of the 49% shareholding in MHC in the current year does not have a dilutory effect.
2. Current year impairments relate mainly to software in Metropolitan Retail as certain components are no longer used and goodwill in International due to 
   a decline in the directors' valuation relating to a restructure of the UK businesses. The June 2017 period includes impairments relating to:
   - Goodwill, customer relations and internally developed software (R213 million) in the International segment that were recognised on acquisition of
     subsidiaries as the companies are making losses. A risk discount rate of 18.2% 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.
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. It 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, BEE costs, 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
                                                 30.06.2018    30.06.2017
Basic
Core headline earnings                                179.4         203.9
Headline earnings                                      93.0         118.3
Earnings                                               88.2          98.4
Weighted average number of shares (million)           1 552         1 561
Basic number of shares in issue (million)             1 512         1 557
Diluted
Core headline earnings                                176.0         200.0
Weighted average number of shares (million) (1)       1 596         1 604
Headline earnings                                      92.9         117.7
Earnings                                               88.1          98.1
Weighted average number of shares (million) (2)       1 580         1 591


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                                                  2018  2017

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

Share buy-back programme
At 30 June 2018, 47 million shares (R971 million excluding transaction costs) have been bought back as part of the R2 billion share buy-back programme. 

MMI Holdings Ltd convertible redeemable preference shares (issued to KTH)
The A3 MMI Holdings Ltd preference shares are redeemable in June 2019 (after extending it under the same terms by 18 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 2 October 2017, 
1 million preference shares were converted into ordinary shares. 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 2017 (R369 million of the ordinary dividends declared in September 2016)
and R261 million of the ordinary dividends declared in March 2017 were attributed to RMI Holdings Ltd.

A3 MMI Holdings Ltd preference share dividends  2018  2017
                                                  Rm    Rm

KTH
Interim - March                                   19    20
Final - September                                 19    19
Total                                             38    39

SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
                                                                           12 mths to    12 mths to
                                                                           30.06.2018    30.06.2017
                                                                                   Rm            Rm

Changes in share capital
Balance at beginning and end                                                        9             9

Changes in share premium
Balance at beginning                                                           13 737        13 847
Conversion of preference shares                                                     7            14
Decrease/(Increase) in treasury shares held on behalf of contract holders          14          (124)
Balance at end                                                                 13 758        13 737

Changes in other reserves
Balance at beginning                                                            1 788         1 955
Total comprehensive income/(loss)                                                 138          (102)
Employee share schemes - value of services provided                                43           (22)
Change in non-distributable reserves                                               (6)           (3)
Transfer to retained earnings                                                    (196)          (40)
Balance at end (1)                                                              1 767         1 788

Changes in retained earnings
Balance at beginning                                                            7 422         8 298
Total comprehensive income                                                      1 369         1 536
Dividend paid                                                                  (1 442)       (2 456)
Shares repurchased                                                               (974)            -
Transactions with non-controlling interests                                       223             4
Transfer from other reserves                                                      196            40
Balance at end                                                                  6 794         7 422

Equity attributable to owners of the parent                                    22 328        22 956

Changes in non-controlling interests
Balance at beginning                                                              292           290
Total comprehensive income                                                         53            44
Dividend paid                                                                     (32)          (53)
Transactions with owners                                                          133            11
Business combinations                                                              16             -
Balance at end                                                                    462           292

Total equity                                                                   22 790        23 248

1. Other reserves consist of the following:
   - Land and building revaluation reserve: R732 million (2017: R807 million)
   - Foreign currency translation reserve: -R97 million (2017: -R98 million)
   - Revaluation of available-for-sale investments: Rnil (2017: R7 million)
   - Non-distributable reserve: R57 million (2017: R54 million)
   - Employee benefit revaluation reserve: R102 million (2017: R88 million)
   - Fair value adjustment for preference shares issued by MMI Holdings Ltd: R940 million (2017: R940 million)
   - Equity-settled share-based payment arrangements: R33 million (2017: -R10 million)

SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS
                                                                           12 mths to    12 mths to
                                                                           30.06.2018    30.06.2017
                                                                                   Rm            Rm

Cash flow from operating activities
Cash utilised in operations                                                   (12 313)      (12 702)
Interest and dividends received                                                18 936        17 742
Income tax paid                                                                (3 053)       (3 463)
Interest paid                                                                    (920)         (991)
Net cash inflow from operating activities                                       2 650           586

Cash flow from investing activities
Net (acquisition)/disposal of subsidiaries                                        (98)           74
Net acquisition of associates and joint ventures                                 (264)          (55)
Net loan repayments by related parties                                             11            33
Net purchases of owner-occupied properties                                        (47)         (544)
Net purchases of property and equipment                                          (117)         (119)
Net purchases of intangible assets                                                (81)         (163)
Disposal of non-current assets held for sale                                        -           470
Dividends from associates                                                           2            16
Net cash outflow from investing activities                                       (594)         (288)

Cash flow from financing activities
Net (repayments)/proceeds of borrowings                                        (2 275)          547
Dividends paid to equity holders                                               (1 442)       (2 456)
Dividends paid to non-controlling interest shareholders                           (32)          (53)
Increase/(Decrease) in treasury shares held on behalf of contract holders          14          (124)
Transactions with minority shareholders                                           356            15
Other equity transactions                                                           6           (22)
Net issue of subordinated call notes                                              750             -
Shares repurchased                                                               (974)            -
Net cash outflow from financing activities                                     (3 597)       (2 093)

Net cash flow                                                                  (1 541)       (1 795)
Cash resources and funds on deposit at beginning                               27 353        29 148
Cash resources and funds on deposit at end                                     25 812        27 353

NON-CONTROLLING INTERESTS
                                            30.06.2018    30.06.2017
                                                     %             %

Cannon Assurance                                  33.7          33.7
Eris Property Group                               23.9          23.7
Metropolitan Health Ghana                          0.9           0.9
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           9.9
Momentum Mozambique                               33.0          33.0
Momentum Swaziland                                33.0          33.0
Metropolitan Health Corporate                     49.0             -
Quanta Insurance (Namibia)                        30.0             -

BUSINESS COMBINATIONS - JUNE 2018

There were no significant business combinations for the 12 months ended June 2018. Intangibles relating to goodwill (R27 million), customer relationships 
relating to short-term business (R84 million) and health (R23 million), broker network (R71 million), and computer software (R5 million) were recognised 
due to small acquisitions.

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.

RECONCILIATION OF GOODWILL
                            30.06.2018    30.06.2017
                                    Rm            Rm


Balance at beginning             1 128         1 237
Business combinations (1)           27            11
Impairment charges (2)             (31)         (100)
Exchange differences                 -           (20)
Balance at end                   1 124         1 128

1. An acquisition was made in the Guardrisk group for R90 million. This resulted in the recognition of R27 million goodwill in the current year. The
   entity's business is that of underwriting managers.
2. Goodwill relating to the Financial Partners (International segment) acquisition was impaired in the current year due to a decline in the directors'
   valuation relating to a restucture of the UK businesses. In the prior year, goodwill relating to the Cannon (International segment) and Momentum 
   Financial Technology (International segment) acquisitions were fully impaired by R62 million and R38 million respectively due to these companies making
   losses.

MMI HOLDINGS GROUP - SEGMENTAL INFORMATION

                                         Momentum   Metropolitan      Momentum                    Shareholder     Segmental  Reconciling        IFRS
                                           Retail         Retail     Corporate  International (1)     Capital         total    Items (2)       total
12 mths to 30.06.2018                          Rm             Rm            Rm                 Rm          Rm            Rm           Rm          Rm

Revenue
Net insurance premiums                     25 012          7 368        28 562              4 363           -        65 305      (35 412)     29 893
  Recurring premiums                        9 938          6 064        18 642              3 751           -        38 395      (13 152)     25 243
  Single premiums                          15 074          1 304         9 920                612           -        26 910      (22 260)      4 650
Fee income                                  3 330            178         4 654                839          85         9 086       (1 550)      7 536
  Fee income                                2 965            174         4 001                740           -         7 880         (344)      7 536
  Intergroup fee income                       365              4           653                 99          85         1 206       (1 206)          -
Expenses
Net payments to contract holders
  External payments                        25 045          5 660        30 002              2 714           -        63 421      (36 189)     27 232

Other expenses                              6 137          2 652         6 212              2 344         280        17 625        2 633      20 258
  Sales remuneration                        2 065          1 066         2 024                623           -         5 778           18       5 796
  Administration expenses                   3 064          1 392         2 995              1 284         731         9 466           65       9 531
  Amortisation due to business                
    combinations and impairments                -             58            22                 31          46           157          715         872
  Cell captive business                         -              -           153                  -           -           153        2 092       2 245
  Direct property expenses                      -              -             -                  -           -             -          460         460
  Asset management and other                  
    fee expenses                              365             87           258                 46          27           783          489       1 272
  Holding company expenses                      -              -             -                  -          82            82            -          82
  Intergroup expenses                         643             49           760                360        (606)        1 206       (1 206)          -

Diluted core headline earnings                920            570           903                (48)        464         2 809            -       2 809
Operating profit/(loss)                     1 387            809         1 099                (26)       (162)        3 107            -       3 107
Tax on operating profit/(loss)               (525)          (239)         (308)               (48)          6        (1 114)           -      (1 114)
Investment income                              77              -           155                 32         787         1 051            -       1 051
Tax on investment income                      (19)             -           (43)                (6)       (167)         (235)           -        (235)

Covered                                     1 096            611           425                191         538         2 861            -       2 861
Non-covered                                  (176)           (41)          478               (239)        (74)          (52)           -         (52)
                                              920            570           903                (48)        464         2 809            -       2 809

Actuarial liabilities                     205 817         34 903       135 394             14 228           -       390 342            -     390 342

1. The 'International' column includes amounts received/incurred by companies the group has decided to exit: Net insurance premiums R682 million; external
   payments R481 million and administration expenses R103 million.
2. The 'Reconciling items' column includes: investment contract business premiums and claims; intergroup fee income and expenses; 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.

                                         Momentum   Metropolitan      Momentum                    Shareholder     Segmental  Reconciling        IFRS
                                           Retail         Retail     Corporate  International (1)     Capital         total    Items (2)       total
12 mths to 30.06.2017                          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/(loss)               (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 'International' column includes amounts received/incurred by companies the group has decided to exit: Net insurance premiums R524 million; external
   payments R359 million and administration expenses R113 million.
2. The 'Reconciling items' column includes: investment contract business premiums and claims; intergroup fee income and expenses; 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         
                                                             12 mths to               12 mths to 
                                          Change             30.06.2018               30.06.2017
                                               %                     Rm                       Rm

Momentum Retail                              (28)                   920                    1 271
Metropolitan Retail                          (14)                   570                      660
Momentum Corporate                             8                    903                      835
International                                 71                    (48)                    (166)
Operating segments (1)                       (10)                 2 345                    2 600
Shareholder Capital                          (24)                   464                      608
Total diluted core headline earnings         (12)                 2 809                    3 208

1.  Includes investments in four main new initiatives being India, aYo, Money Management and MMI Lending of R322 million (2017: R195 million).

SEGMENT BY CENTRE OF EXCELLENCE  
                                        Momentum      Metropolitan          Momentum                       Shareholder                                 
                                          Retail            Retail         Corporate  International            Capital       Total
                                              Rm                Rm                Rm             Rm                 Rm          Rm 
                                                                                                     
12 mths to 30.06.2018
Covered
Operating profit/(loss)                    1 096               611               425            191                 (8)      2 315
Investment income                              -                 -                 -              -                546         546
Total                                      1 096               611               425            191                538       2 861

Non-covered
Investment and savings                         1                 -                91             99                  -         191
Life insurance                                 -                 -                 -            (69)                 -         (69)
Health                                        19                 -               151           (156)                 -          14
Short-term insurance                         (56)                -               260             (3)                 -         201
Client engagement                           (140)              (29)               (8)           (19)                 9        (187)
Unallocated expenses                           -                 -                 -              -               (104)       (104)
Other operations                               -               (12)              (16)           (91)                21         (98)
Total                                       (176)              (41)              478           (239)               (74)        (52)

Core earnings                                920               570               903            (48)               464       2 809


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



MOMENTUM INVESTMENTS CENTRE OF EXCELLENCE - NON-COVERED BUSINESS
                                                                         Momentum            Momentum  
                                                                           Retail           Corporate     International               Total   
                                                                               Rm                  Rm                Rm                  Rm

12 mths to 30.06.2018
Revenue                                                                       940                 764               479               2 183
Fee income                                                                    872                 713               413               1 998
Performance fees                                                                1                   -                 -                   1
Investment income                                                              66                  52                 2                 120
Fair value gains/(losses)                                                       1                  (1)               64                  64

Expenses and finance costs                                                   (905)               (630)             (378)             (1 913)
Fair value adjustments on investment contracts                                  -                   -               (64)                (64)
Other expenses                                                               (879)               (595)             (314)             (1 788)
Finance costs                                                                 (26)                (35)                -                 (61)
Share of profit of associates                                                   -                   1                 -                   1

Profit before tax                                                              35                 135               101                 271
Income tax expense                                                            (34)                (23)               (2)                (59)
Non-controlling interest                                                        -                 (21)                -                 (21)
Core earnings                                                                   1                  91                99                 191

Operating (loss)/profit before tax                                             (7)                109                98                 200
Tax on operating (loss)/profit                                                (22)                (28)               (1)                (51)
Investment income                                                              40                  14                 2                  56
Tax on investment income                                                      (10)                 (4)                -                 (14)
Diluted core headline earnings                                                  1                  91                99                 191

Assets under management at year-end                                       304 880             117 080            74 951             496 911

Restated
12 mths to 30.06.2017 (1)
Revenue                                                                     1 105                 802               490               2 397
Fee income                                                                  1 041                 656               386               2 083
Performance fees                                                                3                  13                 -                  16
Investment income                                                              61                 121                 1                 183
Fair value gains                                                                -                  12               103                 115

Expenses and finance costs                                                 (1 001)               (626)             (405)             (2 032)
Fair value adjustments on investment contracts                                  -                   -              (103)               (103)
Other expenses                                                               (992)               (577)             (302)             (1 871)
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

Assets under management at year-end                                       306 359             114 454            68 685             489 498 

1. The fee income and other expenses line items were being disclosed gross of intersegmental intercompanies. This is now being eliminated within the
   segment. The prior year has been restated.


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

12 mths to 30.06.2018
Revenue                                                         605               1 861            477       2 943
Net insurance premiums                                          217                 382            274         873
Fee income                                                      370               1 428            181       1 979
Investment income                                                13                  24             22          59
Intergroup fees                                                   5                  27              -          32

Expenses and finance costs                                     (579)             (1 608)          (389)     (2 576)
Net payments to contract holders                               (164)               (260)          (186)       (610)
Other expenses                                                 (413)             (1 347)          (203)     (1 963)
Finance costs                                                    (2)                 (1)             -          (3)

Share of loss of associates                                       -                   -           (188)       (188)
Profit/(Loss) before tax                                         26                 253           (100)        179
Income tax expense                                               (7)                (68)           (31)       (106)
Non-controlling interest                                          -                 (34)           (25)        (59)
Earnings attributable to ordinary shareholders                   19                 151           (156)         14


Operating profit/(loss) before tax                               15                 192           (154)         53
Tax on operating profit/(loss)                                   (4)                (56)           (19)        (79)
Investment income                                                11                  21             18          50
Tax on investment income                                         (3)                 (6)            (1)        (10)
Diluted core headline earnings                                   19                 151           (156)         14


Closed schemes                                                    -                 104             61         165
Open scheme                                                      26                  12           (217)       (179)
Other                                                            (7)                 35              -          28
                                                                 19                 151           (156)         14


                                                       Open schemes      Closed schemes          Total

Momentum Retail principal members                           114 018                   -        114 018
Momentum Corporate principal members                         52 130             818 296        870 426
International lives                                       1 049 726             399 590      1 449 316
                                                          1 215 874           1 217 886      2 433 760



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

Restated
12 mths to 30.06.2017 (1)
Revenue                                                         560               1 884            468       2 912
Net insurance premiums                                          209                 390            259         858
Fee income                                                      340               1 419            191       1 950
Investment income                                                11                  27             18          56
Intergroup fees                                                   -                  48              -          48

Expenses and finance costs                                     (603)             (1 691)          (384)     (2 678)
Net payments to contract holders                               (151)               (279)          (168)       (598)
Other expenses                                                 (450)             (1 411)          (216)     (2 077)
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 (loss)/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

                                                       Open schemes      Closed schemes          Total

Momentum Retail principal members                           108 244                   -        108 244
Momentum Corporate principal members                         50 380             834 061        884 441
International lives                                         207 882             404 756        612 638
                                                            366 506           1 238 817      1 605 323

1. The other expenses line item was being disclosed gross of intersegmental intercompanies. This is now being eliminated within the segment. 
   The prior year has been restated.


SHORT-TERM INSURANCE CENTRE OF EXCELLENCE
                                                         Momentum            Momentum                                  
                                                           Retail           Corporate  International      Total
                                                               Rm                  Rm             Rm         Rm
12 mths to 30.06.2018
Net insurance premiums                                        731                   -              4        735
Fee income                                                      6                 656             15        677
  Management fees                                               -                 456              -        456
  Investment fees                                               -                  73              -         73
  Underwriting fees                                             -                 125              -        125
  Other fee income                                              6                   2             15         23
Investment income                                              41                 117              1        159
Total income                                                  778                 773             20      1 571

Expenses and finance costs                                   (867)               (420)           (24)    (1 311)
Net payments to contract holders                             (486)                  -             (2)      (488)
Acquisition costs (1)                                        (113)                  -             (8)      (121)
Other expenses                                               (268)               (409)           (14)      (691)
Finance costs                                                   -                 (11)             -        (11)

(Loss)/Profit before tax                                      (89)                353             (4)       260
Income tax expense                                             33                 (93)             -        (60)
Non-controlling interest                                        -                   -              1          1
Earnings attributable to ordinary shareholders                (56)                260             (3)       201

Operating (loss)/profit before tax                           (109)                236             (4)       123
Tax on operating (loss)/profit                                 39                 (60)             -        (21)
Investment income                                              20                 116              1        137
Tax on investment income                                       (6)                (32)             -        (38)
Diluted core headline earnings                                (56)                260             (3)       201

Ability                                                         -                   2              -          2
Momentum Short-term Insurance                                   8                   -              -          8
MMI Short-term Insurance Administration                       (64)                  -              -        (64)
Guardrisk Group                                                 -                 258              -        258
Quanta Insurance (Namibia)                                      -                   -             (3)        (3)
                                                              (56)                260             (3)       201

1. The acquisition costs relating to the Momentum Corporate segment are included in underwriting profit.


SHORT-TERM INSURANCE CENTRE OF EXCELLENCE                                             
                                                         Momentum        Metropolitan       Momentum                                  
                                                           Retail              Retail      Corporate    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
Acquisition costs (1)                                        (122)                  -              -              (34)          (156)
Other expenses                                               (213)                 (9)          (367)             (81)          (670)
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 (loss)/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)

1. The acquisition costs relating to the Momentum Corporate segment are included in underwriting profit.

MMI HOLDINGS GROUP - STATUTORY EXCESS

STATUTORY EXCESS
                                                                                                 30.06.2018    30.06.2017
                                                                                                         Rm            Rm

Group excess per reporting basis                                                                     22 328        22 956
Net assets - other businesses                                                                        (3 430)       (2 849)
Fair value adjustments on Metropolitan business acquisition and other consolidation adjustments      (2 684)       (2 946)
Excess - long-term insurance business, net of non-controlling interests (1)                          16 214        17 161
Disregarded assets (2)                                                                               (1 111)         (847)
Difference between statutory and published valuation methods                                         (1 574)         (942)
Write-down of subsidiaries and associates for statutory purposes                                     (1 262)       (1 328)
Unsecured subordinated debt                                                                           4 374         3 602
Consolidation adjustments                                                                               (32)          (33)
Statutory excess - long-term insurance business                                                      16 609        17 613
Capital adequacy requirement (CAR) (Rm) (3)                                                           6 398         6 577
Ratio of long-term insurance business excess to CAR (times)                                             2.6           2.7
Discretionary margins                                                                                12 892        12 407

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 R431 million (2017: R464 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

                                                                                                                      30.06.2018           30.06.2017
EMBEDDED VALUE RESULTS                                                                                                        Rm                   Rm

Covered business
Reporting excess - long-term insurance business                                                                           16 214               17 161
Reclassification to non-covered business                                                                                  (2 766)              (2 206)
                                                                                                                          13 448               14 955
Disregarded assets (1)                                                                                                      (471)                (504)
Difference between statutory and published valuation methods                                                              (1 574)                (942)
Dilutory effect of subsidiaries (2)                                                                                          (52)                 (53)
Consolidation adjustments (3)                                                                                                (15)                 (21)
Value of MMI Group Ltd preference shares issued                                                                             (500)                (500)

Diluted adjusted net worth - covered business                                                                             10 836               12 935
Net value of in-force business                                                                                            21 904               21 130

Diluted embedded value - covered business                                                                                 32 740               34 065

Non-covered business
Net assets - non-covered business within life insurance companies                                                          2 766                2 206
Net assets - non-covered business outside life insurance companies                                                         3 430                2 849
Consolidation adjustments and transfers to covered business (3)                                                           (2 306)              (2 415)
Adjustments for dilution (4)                                                                                                 660                  720

Diluted adjusted net worth - non-covered business                                                                          4 550                3 360
Write-up to directors' value                                                                                               2 311                5 098
  Non-covered business                                                                                                     4 124                5 995
  Holding company expenses (5)                                                                                            (1 232)                (322)
  International holding company expenses (5)                                                                                (581)                (575)

Diluted embedded value - non-covered business                                                                              6 861                8 458

Diluted adjusted net worth                                                                                                15 386               16 295
Net value of in-force business                                                                                            21 904               21 130
Write-up to directors' value                                                                                               2 311                5 098
Diluted embedded value                                                                                                    39 601               42 523

Required capital - covered business (adjusted for qualifying debt) (6)                                                     5 480                6 449
Surplus capital - covered business                                                                                         5 356                6 486
Diluted embedded value per share (cents)                                                                                   2 543                2 651
Diluted adjusted net worth per share (cents)                                                                                 988                1 016
Diluted number of shares in issue (million) (7)                                                                            1 557                1 604

1. Disregarded assets include Sage intangible assets of R431 million (2017: R464 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. 
   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 2): R114 million (2017: R106 million)
   - Treasury shares held on behalf of contract holders: R292 million (2017: R353 million)
   - Liability - MMI Holdings Ltd convertible preference shares issued to KTH: R254 million (2017: R261 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 R9 854 million (2017: R10 051 million) and is adjusted for qualifying debt of 
   R4 374 million (2017: R3 602 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
                                              30.06.2018    30.06.2017
                                                      Rm            Rm

Momentum Retail                                   11 553        11 379
  Gross value of in-force business                13 037        12 865
  Less cost of required capital                   (1 484)       (1 486)
Metropolitan Retail                                4 023         3 758
  Gross value of in-force business                 4 659         4 396
  Less cost of required capital                     (636)         (638)
Momentum Corporate                                 4 250         3 846
  Gross value of in-force business                 5 183         4 743
  Less cost of required capital                     (933)         (897)
International                                      2 078         2 147
  Gross value of in-force business                 2 366         2 403
  Less cost of required capital                     (288)         (256)

Net value of in-force business                    21 904        21 130


EMBEDDED VALUE DETAIL
                                              
                                                        Adjusted  Net value of
                                                       net worth      in-force          30.06.2018           30.06.2017
                                                              Rm            Rm                  Rm                   Rm
Covered business     
Momentum Retail                                            3 977        11 553              15 530               15 716
Metropolitan Retail                                        2 152         4 023               6 175                6 007
Momentum Corporate                                         2 524         4 250               6 774                6 409
International                                              1 755         2 078               3 833                3 913
Shareholder Capital                                          428             -                 428                2 020

Total covered business                                    10 836        21 904              32 740               34 065

                                                                   Write-up to
                                                        Adjusted    directors'   
                                                       net worth         value          30.06.2018           30.06.2017
                                                              Rm            Rm                  Rm                   Rm
Non-covered business
Momentum Retail                                            1 285          (322)                963                2 107
  Investment and savings                                     686           162                 848                1 402   
  Health                                                     (30)          439                 409                  379
  Short-term insurance                                       629          (159)                470                  514
  Client engagement                                            -          (764)               (764)                (188)
Metropolitan Retail                                            -             -                   -                  (78)
  Client engagement                                            -             -                   -                  (78)
Momentum Corporate                                         1 690         3 716               5 406                5 747
  Investment and savings                                     405           797               1 202                1 370
  Health                                                     171         1 016               1 187                1 515
  Short-term insurance                                     1 137         1 903               3 040                2 853
  Client engagement                                            -             -                   -                    9
  Other                                                      (23)            -                 (23)                   -
International                                                601           149                 750                   60
  Investment and savings (1)                                 345           431                 776                  712
  Life insurance                                             358           (77)                281                  279
  Health                                                     488           339                 827                  800
  Short-term insurance                                        60            37                  97                  139
  Client engagement                                            -             -                   -                  (92)
  Other (shared services) (2)                               (650)         (581)             (1 231)              (1 778)
Shareholder Capital                                          974        (1 232)               (258)                 622
  Short-term insurance                                         -             -                   -                  101
  Client engagement                                          388             -                 388                  368
  Other (head office expenses) (2)                           586        (1 232)               (646)                 153

Total non-covered business                                 4 550         2 311               6 861                8 458

Total embedded value                                      15 386        24 215              39 601               42 523
Diluted net asset value - non-covered business            (4 550)
Adjustments to covered business - net asset value          5 378
Reporting excess - long-term insurance business           16 214

1. This includes MMI non-covered subsidiaries domiciled in the United Kingdom and related territories.
2. 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              Covered  Appraisal                   Covered   Appraisal
VALUATION METHOD              methodology      value   30.06.2018  methodology       value   30.06.2017
                                       Rm         Rm           Rm           Rm          Rm           Rm

Non-covered business
Momentum Retail                       444        519          963          955       1 152        2 107
  Investment and savings              444        404          848          576         826        1 402
  Health                                -        409          409          379           -          379
  Short-term insurance                  -        470          470            -         514          514
  Client engagement                     -       (764)        (764)           -        (188)        (188)
Metropolitan Retail                     -          -            -            -         (78)         (78)
  Client engagement                     -          -            -            -         (78)         (78)
Momentum Corporate                  3 040      2 366        5 406        4 388       1 359        5 747
  Investment and savings                -      1 202        1 202            -       1 370        1 370
  Health                                -      1 187        1 187        1 535         (20)       1 515
  Short-term insurance              3 040          -        3 040        2 853           -        2 853
  Client engagement                     -          -            -            -           9            9
  Other                                 -        (23)         (23)           -           -            -
International                       1 064       (314)         750        1 143      (1 083)          60
  Investment and savings              393        383          776          458         254          712
  Life insurance                      204         77          281          242          37          279
  Health                              438        389          827          417         383          800
  Short-term insurance                 29         68           97           26         113          139
  Client engagement                     -          -            -            -         (92)         (92)
  Other (shared services)               -     (1 231)      (1 231)           -      (1 778)      (1 778)
Shareholder Capital                     -       (258)        (258)           -         622          622
  Short-term insurance                  -          -            -            -         101          101
  Client engagement                     -        388          388            -         368          368
  Other (head office expenses)          -       (646)        (646)           -         153          153

Total non-covered business          4 548      2 313        6 861        6 486       1 972        8 458

- Covered methodology refers to APN107 (embedded value methodology) and the risk discount rate of covered business. Momentum Wealth, Guardrisk and selected
  International entities are valued using embedded value methodology.
- 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.
- Appraisal value approach is followed for all remaining businesses. The key assumption used in the model is the distributable cash flow. Other assumptions
  include the risk discount rate (based on the risk free rate plus an assumed equity risk premium) and a calculated perpetuity factor.


ANALYSIS OF CHANGES IN GROUP EMBEDDED VALUE 

                                                                                       Covered business               12 mths to     12 mths to 
                                                                                                                      30.06.2018     30.06.2017
                                                                                         Gross value 
                                                                       Adjusted net      of in-force      Cost of                   
                                                                        worth (ANW)            (VIF)          CAR       Total EV       Total EV
                                                            Notes                Rm               Rm           Rm             Rm             Rm

Profit from new business                                                     (1 658)           2 233         (189)           386            643
  Embedded value from new business                              A            (1 658)           2 148         (189)           301            547
  Expected return to end of period                              B                 -               85            -             85             96
Profit from existing business                                                 2 778           (1 471)         147          1 454          3 123
  Expected return - unwinding of RDR                            B                 -            2 503         (343)         2 160          2 327
  Release from the cost of required capital                     C                 -                -          446            446            442
  Expected (or actual) net of tax profit transfer to net worth  D             3 766           (3 766)           -              -              -
  Operating experience variances                                E                29             (173)          18           (126)            18
  Development expenses                                          F               (51)               -            -            (51)           (67)
  Operating assumption changes                                  G              (966)             (35)          26           (975)           403

Embedded value profit from operations                                         1 120              762          (42)         1 840          3 766

Investment return on adjusted net worth                         H               636                -            -            636            652
Investment variances                                            I               (81)              75          (40)           (46)        (1 354)
Economic assumption changes                                     J                18               (9)          20             29           (164)
Exchange rate movements                                         K                13               10           (2)            21            (36)
Embedded value profit - covered business                                      1 706              838          (64)         2 480          2 864
Transfer of business to non-covered business                    L               (59)               -            -            (59)             -
Other capital transfers                                         M              (552)               -            -           (552)          (700)
Dividend paid                                                                (3 194)               -            -         (3 194)        (3 066)
Change in embedded value - covered business                                  (2 099)             838          (64)        (1 325)          (902)

Non-covered business
Change in directors' valuation and other items                                                                            (2 033)          (749)
Change in holding company expenses                                                                                          (916)           (86)
Embedded value loss - non-covered business                                                                                (2 949)          (835)
Transfer of business from covered business                      L                                                             59              -
Other capital transfers                                         M                                                            552            700
Dividend paid                                                                                                              1 752            610
Shares repurchased                                                                                                          (974)             -
Finance costs - preference shares                                                                                            (37)           (39)
Change in embedded value - non-covered business                                                                           (1 597)           436

Total change in group embedded value                                                                                      (2 922)          (466)

Total embedded value (loss)/profit                                                                                          (469)         2 029

Return on embedded value (%) - internal rate of return                                                                     (1.1%)          4.7%


ANALYSIS OF CHANGES IN ADJUSTED NET WORTH
                                                                            Covered business                                     12 months to 
                                                                                                                                   30.06.2018
                                                         Momentum    Metropolitan      Momentum                  Shareholder 
                                                           Retail          Retail     Corporate   International      Capital            Total
                                                               Rm              Rm            Rm              Rm           Rm               Rm

Embedded value from new business                             (941)           (294)         (182)           (241)           -           (1 658)
Expected (or actual) net of tax profit
  transfer to net worth                                     1 987             822           493             464            -            3 766
Operating experience variances                                (37)            (20)          105              14          (33)              29
Development expenses                                          (20)            (24)           (7)              -            -              (51)
Operating assumption changes                                 (823)           (356)          335            (122)           -             (966)
Embedded value profit/(loss) from operations                  166             128           744             115          (33)           1 120

Investment return on adjusted net worth                       226             115           129             112           54              636
Investment variances                                         (103)             21            19             (18)           -              (81)
Economic assumption changes                                    (3)             25             -              (4)           -               18
Exchange rate movements                                         -               -             -              13            -               13

Embedded value profit - covered business                      286             289           892             218           21            1 706

ANALYSIS OF CHANGES IN GROSS VALUE OF IN-FORCE
                                                                            Covered business                       12 months to 
                                                                                                                     30.06.2018
                                                         Momentum    Metropolitan      Momentum                   
                                                           Retail          Retail     Corporate   International           Total
                                                               Rm              Rm            Rm              Rm              Rm


Embedded value from new business                            1 122             428           342             256           2 148
Expected return - unwinding of RDR                          1 269             434           580             305           2 588
Expected (or actual) net of tax profit
  transfer to net worth                                    (1 987)           (822)         (493)           (464)         (3 766)
Operating experience variances                                (19)            (13)         (137)             (4)           (173)
Operating assumption changes                                 (277)             83           289            (130)            (35)
Embedded value profit/(loss) from operations                  108             110           581             (37)            762

Investment variances                                           28             102           (38)            (17)             75
Economic assumption changes                                    36              51          (103)              7              (9)
Exchange rate movements                                         -               -             -              10              10

Embedded value profit/(loss) - covered business               172             263           440             (37)            838

ANALYSIS OF CHANGES IN COST OF CAR
                                                                            Covered business                       12 months to 
                                                                                                                     30.06.2018
                                                         Momentum    Metropolitan      Momentum                   
                                                           Retail          Retail     Corporate   International           Total
                                                               Rm              Rm            Rm              Rm              Rm


Embedded value from new business                              (83)            (50)          (36)            (20)           (189)
Expected return - unwinding of RDR                           (143)            (62)         (106)            (32)           (343)
Release from the cost of required capital                     218             102           126               -             446
Operating experience variances                                  -               -            18               -              18
Operating assumption changes                                   24               -             -               2              26
Embedded value profit/(loss) from operations                   16             (10)            2             (50)            (42)

Investment variances                                          (14)             12           (38)              -             (40)
Economic assumption changes                                     -               -             -              20              20
Exchange rate movements                                         -               -             -              (2)             (2)
Embedded value profit/(loss) - covered business                 2               2           (36)            (32)            (64)

ANALYSIS OF CHANGES IN GROUP EMBEDDED VALUE
                                                                            Covered business                                     
                                                                                                                                   
                                                         Momentum    Metropolitan      Momentum                  Shareholder 
                                                           Retail          Retail     Corporate   International      Capital            Total
                                                               Rm              Rm            Rm              Rm           Rm               Rm
12 mths to 30.06.2018
Embedded value from new business                               98              84           124              (5)           -              301
Expected return - unwinding of RDR                          1 126             372           474             273            -            2 245
Release from the cost of required capital                     218             102           126               -            -              446
Operating experience variances                                (56)            (33)          (14)             10          (33)            (126)
Development expenses                                          (20)            (24)           (7)              -            -              (51)
Operating assumption changes                               (1 076)           (273)          624            (250)           -             (975)
Embedded value profit/(loss) from operations                  290             228         1 327              28          (33)           1 840

Investment return on adjusted net worth                       226             115           129             112           54              636
Investment variances                                          (89)            135           (57)            (35)           -              (46)
Economic assumption changes                                    33              76          (103)             23            -               29
Exchange rate movements                                         -               -             -              21            -               21
Embedded value profit - covered business                      460             554         1 296             149           21            2 480


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


A. VALUE OF NEW BUSINESS

VALUE OF NEW BUSINESS (1, 2)                          
                                                              Momentum             Metropolitan            Momentum                   
                                                                Retail                   Retail           Corporate   International              Total
                                                                    Rm                       Rm                  Rm              Rm                 Rm
12 mths to 30.06.2018

Value of new business                                               98                       84                 124              (5)               301
  Gross                                                            181                      134                 160              15                490
  Less cost of required capital                                    (83)                     (50)                (36)            (20)              (189)

New business premiums                                           17 890                    2 616               4 319             861             25 686
  Recurring premiums                                             1 152                    1 248                 806             429              3 635
  Single premiums                                               16 738                    1 368               3 513             432             22 051

New business premiums (APE)                                      2 826                    1 385               1 157             472              5 840
New business premiums (PVP)                                     23 531                    5 091              11 218           2 337             42 177
Profitability of new business as a percentage of APE               3.5                      6.1                10.7            (1.1)               5.2
Profitability of new business as a percentage of PVP               0.4                      1.6                 1.1            (0.2)               0.7


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


1. Value of new business and new business premiums are net of non-controlling interests.
2. 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.


ANALYSIS OF NEW BUSINESS PREMIUMS
                                                              Momentum             Metropolitan            Momentum                   
                                                                Retail                   Retail           Corporate   International              Total
12 mths to 30.06.2018                                               Rm                       Rm                  Rm              Rm                 Rm

New business premiums                                           17 890                    2 616               4 319             861             25 686
  Recurring premiums                                             1 152                    1 248                 806             429              3 635
    Risk                                                           517                      822                 271               -              1 610
    Savings/Investments                                            635                      426                 533               -              1 594
    Annuities                                                        -                        -                   2               -                  2
    International                                                    -                        -                   -             429                429
  Single premiums                                               16 738                    1 368               3 513             432             22 051
    Risk                                                             -                        -                  10               -                 10
    Savings/Investments                                         15 841                      631               2 700               -             19 172
    Annuities                                                      897                      737                 803               -              2 437
    International                                                    -                        -                   -             432                432

New business premiums (APE)                                      2 826                    1 385               1 157             472              5 840
  Risk                                                             517                      822                 272               -              1 611
  Savings/Investments                                            2 219                      489                 803               -              3 511
  Annuities                                                         90                       74                  82               -                246
  International                                                      -                        -                   -             472                472

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                      439               2 917               -             18 811
    Annuities                                                    1 034                      666                 969               -              2 669
    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                      453                 734               -              3 336
  Annuities                                                        103                       67                 100               -                270
  International                                                      -                        -                   -             478                478


RECONCILIATION OF LUMP SUM INFLOWS                                        12 mths to           12 mths to
                                                                          30.06.2018           30.06.2017   
                                                                                  Rm                   Rm

Total lump sum inflows                                                        26 910               26 968
Inflows not included in value of new business                                 (6 603)              (6 518)
Term extensions on maturing policies                                             438                  345
Automatically Continued Policies                                               1 318                1 107
Non-controlling interests and other adjustments                                  (12)                 (37)
Single premiums included in value of new business                             22 051               21 865

PRINCIPAL ASSUMPTIONS (South Africa) (1, 4)                               30.06.2018           30.06.2017
                                                                                   %                    %
Pre-tax investment return
  Equities                                                                      13.0                 12.9
  Properties                                                                    10.5                 10.4
  Government stock                                                               9.5                  9.4
  Other fixed-interest stocks                                                   10.0                  9.9
  Cash                                                                           8.5                  8.4
Risk-free return (2)                                                             9.5                  9.4
Risk discount rate (RDR)                                                        11.8                 11.7
Investment return (before tax) - balanced portfolio (2)                         11.7                 11.6
Renewal expense inflation rate (3)                                               6.5                  6.8

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
                                                                                                                    12 mths to 
                                                                                    12 mths to 30.06.2018           30.06.2017
OPERATING EXPERIENCE VARIANCES                                                    ANW      Net VIF          EV              EV
                                                         Notes                     Rm           Rm          Rm              Rm

Momentum Retail                                                                   (37)         (19)        (56)             36
Mortality and morbidity                                      1                    161           20         181             165
Terminations, premium cessations and policy alterations      2                    (18)         (44)        (62)             58
Expense variance                                             3                   (115)           -        (115)             40
Credit risk variance                                                               31            -          31              39
Other                                                        4                    (96)           5         (91)           (266)

Metropolitan Retail                                                               (20)         (13)        (33)             20
Mortality and morbidity                                      1                     85           13          98              83
Terminations, premium cessations and policy alterations      5                   (105)         (36)       (141)            (69)
Expense variance                                                                  (18)           -         (18)            (23)
Credit risk variance                                                               17            -          17              21
Other                                                                               1           10          11               8

Momentum Corporate                                                                105         (137)        (32)           (135)
Mortality and morbidity                                      1                     28            -          28            (152)
Terminations                                                 6                     (2)         (57)        (59)           (191)
Expense variance                                             7                     51            -          51              36
Credit risk variance                                                               48            -          48              57
Other                                                        8                    (20)         (80)       (100)            115

International                                                                      14           (4)         10              65
Mortality and morbidity                                      1                     44            8          52              44
Terminations, premium cessations and policy alterations      9                    (18)         (21)        (39)              4
Expense variance                                                                   (4)           -          (4)             (3)
Other                                                                              (8)           9           1              20

Shareholder Capital                                                               (33)           -         (33)             44
Opportunity cost of required capital                                                -           18          18             (12)
Total operating experience variances                                               29         (155)       (126)             18

Notes
1. Overall, mortality and morbidity experience for the 12 months was better compared to what was allowed for in the valuation basis.
2. Mainly due to a change in the classification of business as alterations versus new business.
3. Due to additional investment in order to improve Momentum Retail's capabilities available to clients and intermediaries.
4. Includes one-off impact arising from reinsurance premium as well as larger than expected premium discounts.
5. Higher than expected terminations at early durations.
6. Terminations in respect of group risk business.
7. The impact of efficiencies achieved in the segment.
8. Mainly due to a reduction in the investment fees of Smooth Bonus business.
9. A bulk lapse was done in Namibia due to correction of a system error.

F. DEVELOPMENT EXPENSES
Business development expenses within segments.

G. OPERATING ASSUMPTION CHANGES
                                                    
OPERATING ASSUMPTION CHANGES
                                                                                                       12 mths to 
                                                                           12 mths to 30.06.2018       30.06.2017
                                                                       ANW      Net VIF          EV            EV
                                              Notes                     Rm           Rm          Rm            Rm

Momentum Retail                                                       (823)        (277)     (1 100)          587
Mortality and morbidity assumptions                                    (98)          92          (6)          410
Termination assumptions                           1                   (369)         102        (267)          (60)
Renewal expense assumptions                       2                   (388)        (370)       (758)          (56)
Modelling, methodology and other changes          3                     32         (101)        (69)          293
                                                                               
Metropolitan Retail                                                   (356)          83        (273)          184
Mortality and morbidity assumptions                                     (7)          10           3           (15)
Termination assumptions                           4                    (39)         (16)        (55)          (15)
Renewal expense assumptions                       2                   (224)           8        (216)          (55)
Modelling, methodology and other changes                               (86)          81          (5)          269
                                                                           
Momentum Corporate                                                     335          289         624          (295)
Mortality and morbidity assumptions               5                     42         (185)       (143)         (358)
Termination assumptions                                                 (6)          15           9           105
Renewal expense assumptions                       2                     86          440         526           (46)
Modelling, methodology and other changes          6                    213           19         232             4
                                                                        
International                                                         (122)        (130)       (252)            3
Mortality and morbidity assumptions               7                     35           14          49           102
Termination assumptions                                                 (5)           3          (2)          (56)
Renewal expense assumptions                       2                    (86)          (1)        (87)           19
Modelling, methodology and other changes          8                    (66)        (146)       (212)          (62)
                                                                                  
Methodology change: cost of required capital                             -           26          26           (76)
Total operating assumption changes                                    (966)          (9)       (975)          403

Notes
1. Strengthening of the basis in line with experience observed in certain product lines.
2. Expense assumptions have been revised based on management's budgeted expenses for the new financial year.
3. Various modelling and methodology changes including refinements in the valuation of risk products offset by allowance for expected pricing reviews
   of Wealth products.
4. Strengthening of the lapse basis as well as splitting the bases by method of payment for certain funeral products.
5. Mainly due to lower expected experience profits from group risk business.
6. Updating of IBNR reserves.
7. Allowance for better than assumed mortality experience on risk business.
8. Various modelling and methodology changes made mainly in Namibia.

H. INVESTMENT RETURN ON ADJUSTED NET WORTH

INVESTMENT RETURN ON ADJUSTED NET WORTH                                        12 mths to    12 mths to
                                                                               30.06.2018    30.06.2017
                                                                                       Rm            Rm

Investment income                                                                     557           620
Capital appreciation and other                                                        114            68
Preference share dividends paid and change in fair value of preference shares         (35)          (36)
Investment return on adjusted net worth                                               636           652


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

Transfer of business between covered and non-covered business.

M. OTHER CAPITAL TRANSFERS

Capital transfers include the alignment of the net asset value of subsidiaries between covered and non-covered business and the recapitalisation of some
International subsidiaries.


COVERED BUSINESS: SENSITIVITIES - 30.06.2018
                                                                               In-force business                   New business written
                                                           Adjusted net                 Gross    Cost of           Net    Gross  Cost of 
                                                                  worth  Net value      value    CAR (3)         value    value  CAR (3)
                                                                     Rm         Rm         Rm         Rm            Rm       Rm       Rm

Base value                                                       10 836     21 904     25 245     (3 341)          301      490     (189)

 1%  increase in risk discount rate                                         20 080     23 724     (3 644)          159      361     (202)
     % change                                                                   (8)        (6)         9           (47)     (26)       7
 1%  reduction in risk discount rate                                        23 986     26 977     (2 991)          467      634     (167)
     % change                                                                   10          7        (10)           55       29      (12)
10%  decrease in future expenses                                            23 292     26 633     (3 341)          431      620     (189)
     % change (1)                                                                6          5          -            43       27        -
10%  decrease in lapse, paid-up and surrender rates                         22 529     25 870     (3 341)          438      635     (197)
     % change                                                                    3          2          -            46       30        4
 5%  decrease in mortality and morbidity for assurance business             24 025     27 397     (3 372)          450      639     (189)
     % change                                                                   10          9          1            50       30        -
 5%  decrease in mortality for annuity business                             21 570     24 883     (3 313)          292      481     (189)
     % change                                                                   (2)        (1)        (1)           (3)      (2)       -
 1%  reduction in gross investment return, inflation rate 
       and risk discount rate                                    10 836     22 532     25 794     (3 262)          370      556     (186)
     % change (2)                                                     -          3          2         (2)           23       13       (2)
 1%  reduction in inflation rate                                            22 713     26 029     (3 316)          376      564     (188)
     % change                                                                    4          3         (1)           25       15       (1)
10%  fall in market value of equities and properties             10 523     21 159     24 442     (3 283)
     % change                                                        (3)        (3)        (3)        (2)
10%  reduction in premium indexation take-up rate                           21 410     24 751     (3 341)          261      450     (189)
     % change                                                                   (2)        (2)         -           (13)      (8)       -
10%  decrease in non-commission related acquisition expenses                                                       427      616     (189)
     % change                                                                                                       42       26        -
 1%  increase in equity/property risk premium                               22 617     25 958     (3 341)          343      532     (189)
     % change                                                                    3          3          -            14        9        -

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
                                                                                                      30.06.2018           30.06.2017
                                                                                                              Rm                   Rm
Managed and/or administered by Investments
Financial assets                                                                                         418 540              414 070
  Momentum Manager of Managers (2)                                                                        88 943               86 757
  Momentum Investment Consultants (2)                                                                      5 850                4 956
  Momentum Collective Investments                                                                         82 157               72 667
  Metropolitan Collective Investments                                                                        120               19 860
  Momentum Asset Management                                                                              152 247              151 241
  Momentum Global Investments                                                                             60 476               55 724
  Momentum Alternative Investments                                                                         6 278                6 390
  Momentum Securities (2)                                                                                 22 469               16 475
Properties - Eris Property Group                                                                          21 859               21 307
  On-balance sheet                                                                                         8 346                8 778
  Off-balance sheet                                                                                       13 513               12 529

Momentum Wealth linked product assets under administration                                               160 839              151 203
  On-balance sheet                                                                                       104 327               97 082
  Off-balance sheet                                                                                       56 512               54 121
Managed internally or by other managers within MMI (on-balance sheet)                                     71 097               67 399
Managed by external managers (on-balance sheet)                                                           16 543               15 144
Properties managed internally or by other managers within MMI or externally                                4 268                2 778
Momentum Corporate - cell captives on-balance sheet                                                       16 575               15 508

Total assets managed and/or administered                                                                 709 721              687 409

Managed and/or administered by Investments
  On-balance sheet                                                                                       231 035              223 792
  Off-balance sheet                                                                                      187 505              190 278
                                                                                                         418 540              414 070

1. Assets managed and/or administered, other than CIS assets, are included where an entity earns a fee on the assets. The total CIS assets are included 
   in Momentum Collective Investments only as this is where the funds are housed. Non-financial assets (except properties) have been excluded.
2. Restatements relate primarily to the inclusion of Momentum Securities, as well as the removal of double-counted CIS assets.


NET FUNDS RECEIVED FROM CLIENTS (1)
                                                                  Gross     Gross
                                                                 single recurring       Gross          Gross Net inflow/ 
                                                                inflows   inflows      inflow        outflow   (outflow)
12 mths to 30.06.2018                                                Rm        Rm          Rm             Rm          Rm

Momentum Retail                                                  15 074     9 938      25 012        (25 045)        (33)
Metropolitan Retail                                               1 304     6 064       7 368         (5 660)      1 708
Momentum Corporate                                                9 920    18 642      28 562        (30 002)     (1 440)
International                                                       612     3 751       4 363         (2 714)      1 649
Long-term insurance business fund flows                          26 910    38 395      65 305        (63 421)      1 884
Off-balance sheet fund flows
Managed and/or administered by Investments                                             70 861        (81 246)    (10 385)
Properties - Eris Property Group                                                        1 819           (835)        984
Momentum Wealth linked product assets under administration                              7 545         (9 280)     (1 735)
Total net funds received from clients                                                 145 530       (154 782)     (9 252)

Restated
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
Momentum Corporate                                               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 (2,3)                                       66 343       (102 076)    (35 733)
Properties - Eris Property Group                                                        2 067         (8 350)     (6 283)
Momentum Wealth linked product assets under administration                              7 368        (10 081)     (2 713)
Momentum Corporate- segregated assets                                                       -           (216)       (216)
Total net funds received from clients                                                 138 713       (179 602)    (40 889)

1. Assets managed and/or administered, other than CIS assets, are included where an entity earns a fee on the assets. The total CIS assets are included 
   in Momentum Collective Investments only as this is where the funds are housed. Non-financial assets (except properties) have been excluded.
2. The Aluwani assets were transferred to Aluwani in the prior year.
3. Restatements relate primarily to the inclusion of Momentum Securities, as well as the removal of double-counted CIS assets.

ANALYSIS OF ASSETS BACKING SHAREHOLDER EXCESS
                                                        30.06.2018                     30.06.2017
                                                        Rm       %                     Rm       %

Equity securities                                      411     1.8                    441     1.9
Preference shares                                    1 456     6.5                  1 325     5.8
Collective investment schemes                          367     1.6                    330     1.4
Debt securities                                      6 833    30.6                  6 762    29.5
Properties                                           3 479    15.6                  3 630    15.8
Owner-occupied properties                            2 426    10.9                  2 374    10.3
Investment properties                                1 053     4.7                  1 256     5.5
Cash and cash equivalents and funds on deposit       5 927    26.5                  6 003    26.2
Intangible assets                                    6 653    29.8                  7 144    31.1
Other net assets                                     2 122     9.5                  1 537     6.7
                                                    27 248   122.0                 27 172   118.4
Redeemable preference shares                          (254)   (1.1)                  (261)   (1.1)
Subordinated redeemable debt                        (4 374)  (19.6)                (3 602)  (15.7)
Treasury shares                                       (292)   (1.3)                  (353)   (1.5)
Shareholder excess per reporting basis              22 328   100.0                 22 956   100.0

NUMBER OF EMPLOYEES
                        30.06.2018         30.06.2017

Indoor staff                 9 350              9 199
  SA                         8 099              7 984
  International              1 251              1 215
Field staff                  7 585              8 031
  Momentum Retail            1 038              1 130
  Metropolitan Retail        4 535              5 395
  International              2 012              1 506

Total                       16 935             17 230

MMI HOLDINGS GROUP - STOCK EXCHANGE PERFORMANCE

STOCK EXCHANGE PERFORMANCE                                                                      30.06.2018           30.06.2017
12 months
 
Value of listed shares traded (rand million)                                                        17 396               20 072
Volume of listed shares traded (million)                                                               853                  863
Shares traded (% of average listed shares in issue)                                                     56                   55
Trade prices
  Highest (cents per share)                                                                          2 424                2 669
  Lowest (cents per share)                                                                           1 673                1 920
  Last sale of year (cents per share)                                                                1 767                2 024
Percentage (%) change during year                                                                      (13)                 (11)
Percentage (%) change - life insurance sector (J857)                                                    10                   (6)
Percentage (%) change - top 40 index (J200)                                                             13                   (1)
30 June
Price/diluted core headline earnings (segmental) ratio                                                10.0                 10.1
Dividend yield % (dividend on listed shares)                                                             -                  7.8
Dividend yield % - top 40 index (J200)                                                                 2.8                  2.8
Total shares issued (million)
  Ordinary shares listed on JSE                                                                      1 529                1 575
  Treasury shares held on behalf of contract holders                                                   (17)                 (18)
  Basic number of shares in issue                                                                    1 512                1 557
  Treasury shares held on behalf of contract holders                                                    17                   18
  Convertible redeemable preference shares                                                              28                   29
  Diluted number of shares in issue (1)                                                              1 557                1 604
Market capitalisation at end (Rbn) (2)                                                                  28                   32

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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