Wrap Text
Operational update for the nine months ended 31 March 2021
MOMENTUM METROPOLITAN HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number: 2000/031756/06
JSE share code: MTM
A2X share code: MTM
NSX share code: MMT
ISIN code: ZAE000269890
("Momentum Metropolitan" or "the Group")
MOMENTUM METROPOLITAN LIFE LIMITED
Incorporated in the Republic of South Africa
Registration number: 1904/002186/06
Company code: MMIG
("Momentum Metropolitan Life")
Operational update for the nine months ended 31 March 2021
Momentum Metropolitan delivers a resilient result and strong new business growth
We are satisfied with Momentum Metropolitan's financial performance over the nine-month period. The Group delivered R1 774 million of normalised headline
earnings over the nine months, 19% higher than the comparative period in the prior year ("prior period"). It should be noted that the prior period was
negatively impacted by unrealised market-related losses observed in March 2020, which were largely reversed in the current period. Growth in operating
profit(1) was 17%, with growth being delivered by Momentum Investments, Metropolitan Life, Momentum Metropolitan Health, the Non-life business unit and
Momentum Metropolitan Africa. Operating profit in the current period includes net mortality losses of R1.2 billion (which consists of a R607 million
additional provision raised in December 2020 and R551 million from negative mortality experience variance) in the South African life insurance businesses.
Investment return for the Group improved by 29%, largely driven by the recovery in investment markets.
The Group continued to record strong growth in new business, despite the lingering impact of the lockdown restrictions and challenging economic environment.
The present value of new business premiums ("PVNBP") increased to R47.0 billion, 22% higher than the prior period. This growth was driven by a strong
performance from Momentum Investments across both the Momentum Wealth investment platform business as well as structured products and annuities. Metropolitan Life
saw strong single premiums new business and continued growing protection new business. Although new business volumes in other business units generally remain
below pre-Covid-19 levels, they continue to improve quarter-on-quarter.
In addition to the strong new business volume growth, the value of new business more than doubled year-on-year, increasing from R250 million to R506 million
for the nine-month period. This was supported by good overall growth in new business volumes, excellent expense management across the Group and a change
in the new business mix towards higher margin lines of business. This resulted in a significant improvement in the new business margin from 0.6% to 1.1%.
Group embedded value per share was R27.28 on 31 March 2021. The return on embedded value per share was an annualised 9.6% for the nine months to 31 March 2021,
assisted by an improvement in investment markets and positive operating variances. The Group's capital position remains strong. Momentum Metropolitan Life's
regulatory solvency cover decreased from 1.95 at 31 December 2020 to 1.81 times the Solvency Capital Requirement ("SCR") at 31 March 2021. The decrease in
SCR cover was mainly attributable to a greater reduction in the yield curve at long durations, higher than expected mortality claims resulting from Covid-19 and
the dividend paid over the quarter. The additional provision established for Covid-19 is also included in the regulatory valuation basis.
1 Operating profit represents the profits (net of tax) that are generated from our operational activities and reflects normalised headline earnings
excluding the investment return on shareholder funds.
Consolidated Group financial performance
The Group delivered normalised headline earnings of R1 774 million for the nine months. Normalised headline earnings by business unit are shown below:
R million 3Q2021 3Q2020 %
Restated*
Momentum Life 208 585 (64)%
Momentum Investments 813 308 164%
Metropolitan Life 509 386 32%
Momentum Corporate(#) (72) 392 <(100%)%
Momentum Metropolitan Health(#) 150 137 9%
Non-life Insurance 361 263 37%
Momentum Metropolitan Africa 333 41 >100%
NHE from operating business units 2 302 2 112 9%
New Initiatives (375) (376) 0%
Shareholders (153) (248) 38%
Normalised headline earnings 1 774 1 488 19%
# From F2021 Momentum Corporate and Momentum Metropolitan Health were reported on separately, and the prior year results were therefore restated.
* Normalised headline earnings for the South African life insurance business units for the nine months to 31 March 2020 have been restated to
be consistent with the reporting in F2021. Investment return on shareholder assets were previously reported in Shareholders but is now included
in business unit earnings. The Group normalised headline earnings were unaffected.
The following table outlines the contribution from operating profit and investment return to normalised headline earnings per business unit:
3Q2021 3Q2020
Normalised Normalised
R million Operating Investment headline Operating Investment headline
profit return earnings profit return earnings
Momentum Life 136 72 208 435 150 585
Momentum Investments 831 (18) 813 297 11 308
Metropolitan Life 472 37 509 310 76 386
Momentum Corporate (102) 30 (72) 331 61 392
Momentum Metropolitan Health 152 (2) 150 139 (2) 137
Non-life Insurance 330 31 361 236 27 263
Momentum Metropolitan Africa 157 176 333 (104) 145 41
Normalised headline earnings
from operating business units 1 976 326 2 302 1 644 468 2 112
New Initiatives (376) 1 (375) (376) - (376)
Shareholders (218) 65 (153) (83) (165) (248)
Normalised headline earnings 1 382 392 1 774 1 185 303 1 488
Impact of the Covid-19 pandemic on the Group
Provision against adverse Covid-19 related experience
At 30 June 2020 Momentum Metropolitan established a provision for possible future Covid-19 related mortality claims, increases in terminations, reduced
return-to-work experience on disability income claims in payment, and business interruption claims, amounting to R983 million (net of tax), with a
further R398 million provision in the value of the in-force ("VIF") component of the embedded value. At 31 December 2020, the provision was increased
further by R655 million (net of tax). The provision for death claims will be reviewed again at 30 June 2021 taking into consideration the latest available
information on the development of the pandemic in South Africa and expected vaccine roll-out. In the Non-life Insurance business, Momentum Insurance
(previously Alexander Forbes Insurance) has established a provision (at 31 March 2021) for business interruption claims, reducing the normalised headline
earnings by R27 million.
The Group released a portion of the provision during the nine months, consistent with a planned release pattern which differs by product type. The mortality
and disability components of the Covid-19 provision are released over two years with a larger portion of the mortality provision being released in the
first year. The release pattern also considers the progression of recorded claims over time. Termination provisions related to policyholder premium relief
options are released as the options expire, while the allowance for a general increase in termination in Metropolitan Life is released over three years.
On 31 March 2021, the remaining Covid-19 provision (on balance sheet, excluding VIF allowance) for future negative experience stood at R667 million.
The Group continues to monitor the impact of Covid-19 on the Group's mortality and disability claims experience, as well as policyholder behaviour around
lapses, surrenders, and withdrawals, and regularly assesses the sufficiency of the remaining Covid-19 provision.
The table below gives a detailed breakdown of the change in provision (net of tax) over the nine-month period ended 31 March 2021:
Value of
Impact of provision release Normalised headline earnings in-force business Embedded value
R million Mortality Morbidity Non-life Termina- Total Terminations
insurance tions
claims Total
Provision at 30 June 2020(2) 751 72 38 122 983 398 1 381
Release of provision during F2021 (858) (27) (35) (78) (998) (109) (1 107)
Momentum Life (258) - - (50) (308) (109) (417)
Metropolitan Life (126) - - (16) (142) - (142)
Momentum Corporate (453) (27) - - (480) - (480)
Momentum Metropolitan Africa (21) - - (12) (33) - (33)
Non-life Insurance - - (35) - (35) - (35)
Additional provision during F2021 607 - 53 22 682 - 682
Momentum Life 70 - - - 70 - 70
Metropolitan Life 84 - - - 84 - 84
Momentum Corporate 453 - - - 453 - 453
Momentum Metropolitan Africa - - - 22 22 - 22
Non-life Insurance - - 53 - 53 - 53
Total change in provision (251) (27) 18 (56) (316) (109) (425)
Provision at 31 March 2021(2) 500 45 56 66 667 289 956
2 To reconcile the change in the provision to the impact on normalised headline earnings, the opening and closing provision, as well as changes
to the provision are reported net of tax in the table above. On the Group's balance sheet, the opening and closing provision are reported on
a gross of tax basis.
Update on mortality claims experience
In South Africa, the second wave of the Covid-19 pandemic reached its peak during the third quarter of F2021. In line with the steep increase in national
experience, the Group experienced very high claims in each of January, February, and March 2021. Over the quarter, the South African life insurance businesses
paid R3.9 billion in mortality claims, representing nearly three times the expected level of mortality claims. In Momentum Life and Momentum Corporate, the
average amount of claims over the quarter was nearly triple the three-year pre-pandemic average, while in Metropolitan Life, the average amount of claims
was just more than double the three-year pre-pandemic average.
This resulted in negative mortality experience variance, net of reinsurance, in the South African life insurance businesses of R551 million (after tax) for
the nine months, after allowing for positive impacts from annuity products of R203 million, and the release of the Covid-19 provisions of R837 million.
Including the additional mortality provision of R607 million that was added at 31 December 2020, the total negative impact of mortality for the nine months
amounted to R1 158 million.
For the nine months ended 31 March 2021, this can be broken down as follows:
R million Momentum Momentum Metropolitan Momentum Total
Life Investments Life Corporate
Mortality experience variance (514) - (344) (733) (1 591)
Annuity experience variance - 19 145 39 203
Covid-19 provision release 258 - 126 453 837
Additional Covid-19 provision (70) - (84) (453) (607)
Net mortality losses (326) 19 (157) (694) (1 158)
Update on business interruption insurance
At 31 March 2021 Guardrisk Insurance held a provision for potential business interruption claims of R30 million, net of tax and reinsurance. Progress
was made during the third quarter of F2021 in finalising the outstanding claims in predominantly the hospitality sector. A small number of additional
claims arose following legal clarity provided by the Supreme Court of Appeal ("SCA") in December 2020. The remaining provision is currently deemed sufficient
to settle all remaining outstanding and potential claims.
As a result of the legal clarity provided by the SCA, and further consultation with our external legal advisers, Momentum Insurance has identified a
gross potential exposure to business interruption claims of R38 million before tax. These claims are excluded from reinsurance treaties and consequently,
a provision was established during the third quarter of F2021, which reduced the normalised headline earnings by R27 million (net of tax).
Group financial performance
The normalised headline earnings in the nine months increased by 19% to R1 774 million and include a 17% increase in operating profit to R1 382 million
and a 29% increase in investment return to R392 million. All businesses continued to show excellent cost control with controllable expenses up 1% over the
past year.
Operating profit benefited from a reversal of largely unrealised market-related losses that were observed in the prior period. These losses primarily impacted
the life insurance businesses in South Africa and Momentum Metropolitan Africa. The impact of the positive investment variances is particularly evident in
profits from our annuity products.
Underlying growth in operating profit of the South African life insurance businesses was, however, offset by net mortality losses of R1.2 billion, after
allowing for changes in Covid-19 related provisions. Earnings at Momentum Investments, Metropolitan Life and Momentum Metropolitan Health benefited from an
improvement in new business revenue over the nine months. Non-life insurance benefited from strong growth in MSTI and the first-time inclusion of Momentum Insurance.
Investment return improved overall by 29%. This includes a substantial improvement in the revaluation gains/losses in venture capital funds. In the prior
period, at the height of the market crisis, we recognised R107 million write-down in our FinTech investments. For the current period we have recognised a
gain of R57 million on the same portfolios. This was partly offset by lower investment return on the Shareholder Investment Portfolio representing the risk
capital of the South African life businesses. The lower returns on this portfolio stem from lower yields on variable rate assets that represent most of the
assets in the portfolio.
Consolidated Group new business performance
Key metrics 3Q2021 3Q2020 %
Recurring premiums (R million) 2 754 2 654 4%
Single premiums (R million) 33 628 25 368 33%
PVNBP (R million) 46 981 38 665 22%
VNB (R million) 506 250 >100%
New business margin 1.1% 0.6%
The PVNBP for the nine months was R47.0 billion, a robust 22% increase from the prior period. Momentum Investments delivered strong growth in both
Momentum Wealth investment platform business as well as structured products and annuities. Metropolitan Life saw good growth in its single premium annuity
new business and continued its recent growth trend in protection new business. Momentum Metropolitan Africa also saw good corporate savings new business in
Lesotho and Botswana, as well as growing retail annuity and protection new business in Namibia. Although new business volumes in some business units were
still below pre-Covid-19 levels, we are encouraged by the continued improvement we observe in monthly new business volumes.
The value of new business more than doubled from the prior period, from R250 million in 3Q2020 to R506 million in 3Q2021. This solid result was driven by
strong new business volumes, a sustained focus on improving the quality of new business written, an improved mix towards higher margin products and excellent
expense management across the Group. This resulted in a significant improvement in new business margins from 0.6% to 1.1%.
Segmental performance
Momentum Life
R million 3Q2021 3Q2020 %
Operating profit 136 435 (69)%
Investment return 72 150 (52)%
Normalised headline earnings 208 585 (64)%
Recurring premiums 778 790 (2)%
Single premiums 1 550 1 587 (2)%
PVNBP 5 527 5 902 (6)%
VNB 55 80 (31)%
New business margin 1.0% 1.4%
Normalised headline earnings
Normalised headline earnings declined by 64% to R208 million which can be explained by a reduction in operating profits of 69% to R136 million, resulting
from net mortality losses of R326 million (net of reinsurance, taxes, and provision movements). This includes more than R1 billion higher mortality claims
relative to the prior nine-month period and was marginally offset by improved lump sum disability profits. Whilst investment variances have improved, they
remain negative despite improved fees on the traditional in-force book resulting from the market recovery impact on the 90/10 book of business. The lower
investment return has been impacted by reduced returns on floating rate instruments.
New business
PVNBP for Momentum Life declined by 6% to R5.5 billion. The absolute level of recurring premiums written on protection business improved, but the present
value of new business volumes was negatively impacted by changes in the yield curve used to discount future premiums. The lower present value of new business
volumes on long-term savings were impacted by lower recurring premium business, combined with a shift in new business mix from retirement annuity business
towards discretionary savings business.
The value of new business was positively supported by lower expenses and distribution costs, but ultimately declined by 31% to R55 million, resulting in a
drop in new business margin to 1.0%
Momentum Investments
R million 3Q2021 3Q2020 %
Operating profit 831 297 >100%
Investment return (18) 11 <(100%)
Normalised headline earnings 813 308 >100%
Recurring premiums 143 106 35%
Single premiums 28 759 20 394 41%
PVNBP 29 307 20 792 41%
VNB 250 97 >100%
New business margin 0.9% 0.5%
Normalised headline earnings
Normalised headline earnings from Momentum Investments more than doubled year-on-year to R831 million as at 31 March 2021. This growth was mainly driven by
strongly improved operating profits from annuities and structured products. These products were severely negatively impacted in the prior period by market-related
losses linked to relative movements in the bond and swap curves during the market volatility observed in March 2020. In the current period, the operating profit
from these products was further boosted by increased new business volumes, investment profits due to yield curve movements, good credit risk experience and
good expense management.
The investment management businesses in South Africa and the UK saw an increase in asset-based fee income, due to the combination of strong new business
inflows and lower outflows, as well as stronger local and offshore investment markets. Momentum Securities delivered pleasing growth from increased brokerage
earned on trading activities.
Expenses were well managed across all businesses within Momentum Investments.
New business
PVNBP for Momentum Investments increased by 41% to R29.3 billion, largely attributable robust growth on guaranteed annuities and the Momentum Wealth investment
platform new business volumes. The offshore investment platform continued its particularly strong performance observed during 1H2021.
The value of new business improved from R97 million to R250 million, bolstered by the solid growth in new business volumes, an improved business mix towards
higher margin annuities as well as good expense management. These contributed to the improvement in new business margin from 0.5% to 0.9%.
Assets under management on the Momentum Wealth investment platform increased by 15%, mainly attributable to equity market recoveries from the prior year, an
increase in new business flows and lower outflows. Institutional and retail assets under management of R439 billion, increased by 25%, mainly due to the
recovery of investment markets and good inflows on the retail assets. The acquisition of Seneca Investment Managers in the UK also contributed R14.2 billion to the
growth in institutional assets under management.
Metropolitan Life
R million 3Q2021 3Q2020 %
Operating profit 472 310 52%
Investment return 37 76 (51)%
Normalised headline earnings 509 386 32%
Recurring premiums 1 018 903 13%
Single premiums 1 026 838 22%
PVNBP 4 133 3 698 12%
VNB 190 88 >100%
New business margin 4.6% 2.4%
Normalised headline earnings
Metropolitan Life's normalised headline earnings increased by 32% to R509 million. This includes an operating profit increase of 52% to R472 million
which benefitted from a reversal in the negative investment variances in the prior period, strongly improved new business revenue, improved persistency
experience and effective cost containment. Growth was somewhat hampered by a net mortality loss of R157 million (net of reinsurance, taxes, and provision
movements). Management actions to improve the persistency continue to yield positive results, driving in an improvement in normalised headline earnings of
R45 million year-on-year.
New business
Metropolitan Life PVNBP increased by 12% to R4.1 billion compared to the prior period. This includes continued improvement in protection new business and
annuity and structured single premiums, which delivered encouraging year-on-year growth of 36% and 34% respectively, offset by lower long-term savings new
business. Adviser productivity continued to improve and by March 2021, exceeded previous record levels set in December 2020. The continued productivity
increase over the quarter can be ascribed to a more experienced sales force and the launch of new product offerings.
The good growth in new business volumes, the change in the new business mix towards more profitable products and good expense management contributed to VNB
more than doubling to R190 million year-on-year. This represents a PVNBP margin of 4.6%, which is approaching to our long-term targeted margin of 5%.
Momentum Corporate
R million 3Q2021 3Q2020 %
Operating profit (102) 331 <(100)%
Investment return 30 61 (51)%
Normalised headline earnings (72) 392 <(100)%
Recurring premiums 511 581 (12)%
Single premiums 1 586 2 000 (21)%
PVNBP 5 898 6 552 (10)%
VNB 9 (9) >100%
New business margin 0.2% (0.1)%
Normalised headline earnings
Momentum Corporate's normalised headline earnings declined to a loss of R72 million. The operating loss of R102 million was mainly due to a net mortality
loss of R694 million (net of reinsurance, taxes, and provision movements. During the last quarter mortality claims increased dramatically in both number
and size, recording increases of 101% and 54% respectively, relative to the average observed in F2020. Larger claim sizes are mainly a result of the higher
mortality impact from Covid-19 experienced in older age groups. The negative impacts were partly offset by a positive contribution from the disability business.
Expenses continued to be well-managed and reduced by 1% year-on-year.
New business
Momentum Corporate's PVNBP declined by 10% to R5.9 billion, reflecting the impact of the lockdown and the weak economic outlook on clients' willingness to
make purchasing decisions. It is encouraging that PVNBP in the third quarter recovered somewhat from the 26% lower year-on-year position reported at 1H2021.
The value of new business recovered to a positive contribution of R9 million. A sustained focus on winning larger new business deals and tilting the new
business mix towards higher margin products within the FundsAtWork portfolio, together with good expense management, resulted in the new business margin
improving to 0.2%.
Momentum Metropolitan Health
R million 3Q2021 3Q2020 %
Operating profit 152 139 9%
Investment return (2) (2) 0%
Normalised headline earnings 150 137 9%
Normalised headline earnings
Normalised headline earnings for Momentum Metropolitan Health improved by 9% against the prior period, to R150 million. This result was mainly driven by
an increase in administration fee income, lower claims on insurance products and effective expense management.
The Health membership increase of 3% quarter-on-quarter is mainly attributable to the on-boarding of a large corporate client during the quarter. This
was further supported by the ongoing growth in the public sector and low-cost products membership, a good result given increased competition for corporate
and mining members and the current strained economic environment.
Non-life Insurance
R million 3Q2021 3Q2020 %
Guardrisk 269 264 2%
MSTI (6) (42) 86%
Momentum Insurance 98 41(3) >100%
Normalised headline earnings 361 263 37%
Operating profit 330 236 40%
Investment return 31 27 15%
Normalised headline earnings
Guardrisk's normalised headline earnings improved by 2% year-on-year to R269 million – a modest increase mainly impacted by an increase of R26 million
in the provision against business interruption claims raised during the first quarter of F2021. Continuing the positive trend seen in recent quarters,
revenue growth in the underwriting managers and Guardrisk Life divisions remained strong.
Guardrisk General Insurance ("GGI") continued its growth trajectory with underwriting profits increasing by 12% year-on-year, this despite the increase
in the provision against business interruption claims. New business growth has slowed but persistency levels across all core divisions remain strong.
MSTI continued its upward trend with net earned premiums growing by 10% on the back of good retention and a growing client base. This positive result was
further supported by prudent expense management. The claims ratio improved from 66.0% to a pleasing 62.1% year-on-year which resulted in an improvement
in underwriting profits. This resulted in a normalised headline loss of R6 million for the nine months, an encouraging improvement from the prior period.
Momentum Insurance reported normalised headline earnings of R98 million for the nine months to 31 March 2021. The results for the current period were negatively
impacted by an "incurred but not reported” claims provision of R27 million (net of tax) for business interruption cover that was raised in March 2021.
The migration and integration of Momentum Insurance into the MSTI business is tracking well against the business plan.
3 Momentum Insurance, formerly known as Alexander Forbes Insurance, was acquired and consolidated into Momentum Metropolitan from 1 February 2020.
Comparative information therefore reflects two months only.
Momentum Metropolitan Africa
R million 3Q2021 3Q2020 %
Namibia 197 21 >100%
Botswana 69 28 >100%
Lesotho 170 78 >100%
Ghana 55 39 41%
Other countries (14) (30) 53%
Centre costs (144) (95) (41)%
Normalised headline earnings 333 41 >100%
Operating profit 157 (104) >100%
Investment return 176 145 21%
Recurring premiums 304 274 11%
Single premiums 707 549 29%
PVNBP 2 116 1 721 23%
Value of new business 2 (6) >100%
New business margin 0.1% (0.3)%
Normalised headline earnings
Normalised headline earnings for Momentum Metropolitan Africa increased significantly to R333 million, up from R41 million in the prior period. This
growth was driven by the reversal of unrealised market related losses, reported in investment variances, that were observed in the prior period. Investment
return increased by 21% to R176 million, driven by a recovery from prior period equity market lows. Momentum Metropolitan Africa has largely completed the
planned exits from countries with loss-making businesses, first announced in F2017. An increase in central costs was seen, mainly driven by a number of
one-off expenses, including wind-down costs incurred in implementing the country exits, and withholding tax on funds remitted to the Group.
New business
PVNBP for Momentum Metropolitan Africa increased by 23% year-on-year to R2.1 billion. This is attributable to good growth in the corporate savings business
in Lesotho and corporate risk business in Botswana, while Namibia showed solid growth on retail annuity and protection business, coupled with an increase
in the corporate risk business.
The value of new business increased to R2 million, mainly driven by the growth in the Lesotho corporate business and annuity sales.
New Initiatives
R million 3Q2021 3Q2020 %
India (JV with Aditya Birla Capital)(4) (202) (214) 6%
aYo (JV with MTN) (98) (80) (23)%
Other(5) (75) (82) 9%
Normalised headline earnings (375) (376) 0%
Aditya Birla Health Insurance (ABHI)
The operational performance of ABHI remains in line with the business plan, with losses narrowing from the prior period. Gross written premiums ("GWP")
have increased by 50% to R2.8 billion year-on-year. Although elevated due to a spike in the number and average size of Covid-19 claims, the claims ratios
are tracking satisfactorily close to the business plan. ABHI's performance benefited from its extensive end-to-end digital capabilities used to support distribution.
aYo
aYo, our joint venture with MTN, is making steady progress in Ghana and Uganda. Following its Zambian launch, aYo achieved a 10 million enrolled customer
milestone. Unique customers enrolled grew 14% to 11.4 million as at 31 March 2021. The higher losses reported in the current period were largely attributable
to the strengthening of the Rand and set up costs incurred for a new country rollout.
Shareholders
R million 3Q2021 3Q2020 %
Operating loss (218) (83) >100%
Investment return 65 (165) <(100)%
Investment income 51 (16) <(100)%
Fair value gains 14 (149) (<(100)%
Normalised headline earnings (153) (248) 38%
The Shareholders segment loss of R153 million for the nine months represents an improvement of 38% on the prior period. Operating losses increased due
to higher operational costs, including initiatives to improve efficiencies across the business, which were funded centrally. This was offset by a
significant improvement in investment return, to R65 million, due to an increase resulting from the revaluation of the Group's investment in venture
capital funds, supported by the recovery of the investment markets and observed valuations in funding rounds.
4 Results for the India joint venture are reported with a three-month lag.
5 "Other" includes Exponential Ventures, Momentum Money and Momentum Consult.
Outlook
The underlying operational performance of the Group continues to improve. This is evident in new business volumes, which speaks about our improved ability
to meet intermediary and client needs, and in new business margins, which speaks of our delivery on efficiency initiatives and successful product and/or
benefit updates. While the operating performance is trending in the right direction, it should be noted that full-year F2021 results will be highly affected
by the severity of the anticipated third wave of Covid-19 infections in South Africa. A severe third wave will not only place pressure on claims experience
in the final quarter of F2021, but it could also lead to a need to increase the mortality provisions to be held at year-end for any claims expected beyond
30 June 2021.
The 'Reset and Grow' strategy, which was the cornerstone of the operational turnaround evident in our results over the past three years, is now coming to
its end. At the Investor Conference we launched the new 'Reinvent and Grow' strategy, which sets out our strategic plans to the end of F2024. The key elements
of the strategy include:
- Significant focus on and investment in digital initiatives to generate efficiencies and to improve the ease of doing business for our clients and our advisers
- Further focus and growth of existing distribution channels, complimented by development of alternative distribution opportunities
- Targeting normalised headline earnings for the Group to grow to R5 billion for F2024
- Dynamic but disciplined management of group capital, with the objective to improve the return on equity of the Group to 20% by F2024.
24 May 2021
CENTURION
The information in this commentary, including the financial information on which the outlook is based, has not been reviewed and reported on by
Momentum Metropolitan's external auditors.
Conference call
The executive management of Momentum Metropolitan will be hosting a conference call for shareholders, investors and analysts on 24 May 2021.
We kindly request callers to pre-register using the following link https://www.diamondpass.net/3382455.
A passcode and pin will be generated following registration. We advise callers to dial in 5 minutes before the conference call starts at 15:00.
Access numbers for participants dialling live from their country:
South Africa 011 535 3600 (Neotel)
010 201 6800 (Telkom)
UK 0 333 300 1418
USA and Canada 1 508 924 4326
Other Countries +27 11 535 3600
Recorded playback will be available for three days after the conference call.
Access Numbers for Recorded Playback:
South Africa 010 500 4108
UK 0 203 608 8021
USA and Canada 1 412 317 0088
Australia 073 911 1378
Other Countries +27 10 500 4108
Access code for recorded playback: 39496
Equity sponsor:
Merrill Lynch South Africa (Pty) Limited
Debt sponsor:
Rand Merchant Bank (a division of FirstRand Bank Limited)
Date: 24-05-2021 08:00:00
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