MMI final results June 2018

Net income rose to R75.3 billion (R54.7 billion) and results from operations came to R5.7 billion (2017: R5.7 billion). Earnings for the year attributable to owners of the parent lowered to R1.4 billion (2017: R1.5 billion). Furthermore, headline earnings per share dipped to 93 cents per share (2017: 118.3 cents per share).

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.

Company 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.

2018-09-05 07:40:35