Wrap Text
Operating Update for the nine months ended 31 March 2026
MOMENTUM GROUP 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 Group" or "the Group")
MOMENTUM METROPOLITAN LIFE LIMITED
Incorporated in the Republic of South Africa
Registration number: 1904/002186/06
LEI: 378900E0A78B7549C212
Bond issuer code: MMIG
("Momentum Metropolitan Life")
OPERATING UPDATE FOR THE NINE MONTHS ENDED 31 MARCH 2026
This update serves to inform stakeholders regarding the Group's operational performance against key metrics and provides guidance and commentary on key
factors influencing the Group's financial outcomes for the nine months ended 31 March 2026.
OVERVIEW OF KEY METRICS
The figures provided in this operating update and the table below set out certain key operational metrics for the nine months ended 31 March 2026 ("3QF2026"
or "the quarter") compared to the nine months ended 31 March 2025 ("3QF2025" or "the prior period") unless otherwise stated:
Key operational metrics 3QF2026 3QF2025 Change
Headline earnings per share (cents) 414 343 20%
Earnings per share (cents) 401 343 17%
Normalised headline earnings per share (cents) 414 346 20%
Normalised headline earnings (NHE(1), R million) 5 540 4 828 15%
Recurring premiums (R million) 3 304 3 102 7%
Single premiums (R million) 50 229 43 661 15%
Present value of new business premiums (PVNBP, R million) 66 885 58 043 15%
Value of new business (VNB, R million) 347 363 (4)%
New business margin (%) 0.5 0.6 (0.1)
Contractual service margin (CSM, R million) 20 989 20 305 3%
(1) NHE adjusts the JSE Limited definition of headline earnings for the impact of treasury shares held by the iSabelo Trust and the amortisation of
intangible assets arising from business combinations. Additionally, the iSabelo special purpose vehicle, which houses preference shares issued as part of
the employee share ownership scheme's funding arrangement, is deemed to be external to the Group, and the discount at which the iSabelo Trust acquired the
Momentum Group Limited's treasury shares is amortised over a period of 10 years and recognised as a reduction to NHE. NHE is the responsibility of the
directors of the Group and is presented for additional information purposes only.
STRONG BUSINESS UNIT PERFORMANCE LIFTS MOMENTUM'S EARNINGS BY 15%
Sales growth offsets new business margin pressure
Momentum Group is pleased to present its operating update for the nine months ended 31 March 2026, following a turbulent economic and political end to the
quarter amid ongoing uncertainty. The Group delivered a strong financial performance, with NHE growing 15% to R5 540 million. NHE per share outpaced this
growth, increasing by 20% to 414 cents from 346 cents, with the additional growth attributable to the reduction in shares in issue following share buyback
activity during the period.
The earnings performance was underpinned by pleasing contributions across all the Group's operating business units. Momentum Investments delivered
outstanding earnings growth, driven by annuity profits and favourable equity market conditions supporting asset-based fee income. Metropolitan Life
continued to grow earnings on the back of disciplined expense management, fewer onerous contracts, and positive mortality experience. Guardrisk and Momentum
Insure's growth benefited from sustained underwriting discipline. Momentum Corporate and Momentum Retail delivered stable earnings contributions off a prior
high earnings base.
New business activity remained robust, with PVNBP supported by healthy investment flows in Momentum Corporate, significant corporate scheme wins in Momentum
Africa and continued growth in Momentum Investments' Wealth platform. Single premiums grew by 15% following favourable equity markets, while recurring
premiums increased by 7%.
Despite the positive sales momentum, Group VNB declined 4% to R347 million, with the new business margin contracting to 0.5%. This decline was primarily
attributable to Momentum Investments, where VNB dropped significantly following an industry-wide shift from life annuities toward living annuities, driven
by lower bond yields making guaranteed annuity income less attractive. This was partially offset by notable VNB recovery in Momentum Retail, supported by
better long-term savings product margins, and Metropolitan Life, which swung to VNB profitability following successful distribution cost rationalisation and
improved funeral business commerciality.
The Group's CSM grew 3% to R20 989 million, up from R20 432 million as at 30 June 2025, reflecting the accumulation of future profits from new business
written and positive investment variances across the portfolio. Growth in CSM over the past nine months was led by Metropolitan Life (+5% to
R4 756 million), Momentum Corporate (+4% to R1 027 million) and Momentum Investments (+3% to R4 479 million). Momentum Retail's CSM grew (+2% to
R8 978 million) despite unfavourable yield curve movements, while Momentum Africa's CSM was relatively flat (+1% to R1 749 million) despite currency
headwinds. The modest pace of overall CSM growth, relative to the strong PVNBP performance, reflects the ongoing margin pressures on new business. The Group
is actively aiming to improve its business mix towards higher-margin products to support future CSM accretion.
South African nominal and real yield curves declined across all durations, delivering stronger bond returns and creating opportunities to optimise debt
raising. South African equity markets returned 25%, exceeding expectations of 9%, while South African government bonds returned 12%. Notwithstanding
increased market volatility driven by global geopolitical tensions, positive equity market performance and favourable credit spread movements contributed to
market variances. Overall, financial earnings outperformed best estimate expectations by R411 million, with contributions from yields, credit and basis
spreads and equity markets.
The Group maintained its cost discipline, with direct expenses of R11 381 million for the nine months, increasing modestly by 1%, well below inflation,
reflecting effective cost containment across the Group. Cost growth remained below inflation, driven by efficiency initiatives across Momentum Retail and
Metropolitan Life. The performance optimisation programme continues to deliver as planned, with cumulative annualised savings of R641 million realised to
date, including R131 million added during the quarter.
The solvency positions of the Group's regulated entities remain within or above their respective target ranges. Momentum Metropolitan Life's solvency cover
improved from 1.64 times on 31 December 2025 to 1.81 times solvency capital requirement (SCR) on 31 March 2026, at the midpoint of the target range of 1.6
to 2.0 times. The improvement was driven by higher yields over the quarter, a moderation in the extrapolation of unobservable rates, and strong statutory
earnings during the quarter, partly offset by the interim dividend payable. The Group's capital management position remains resilient, allowing the Group
strategic flexibility to support execution of strategic objectives.
By 8 April 2026, the Group completed its R1 billion share buyback programme, repurchasing 27 million shares at an average price of R36.54 per share,
representing an 18% discount to the embedded value of R44.55 per share. As part of our balance sheet optimisation, R1.5 billion in subordinated debt was
raised on 19 May 2026.
GROUP FINANCIAL PERFORMANCE
The following table outlines the NHE per business unit:
R million 3QF2026 3QF2025(2) Change %
Momentum Retail 973 967 1%
Momentum Investments 992 647 53%
Metropolitan Life 767 636 21%
Momentum Corporate 1 136 1 127 1%
Momentum Africa 304 190 60%
Guardrisk 693 598 16%
Momentum Insure 366 336 9%
Momentum Health 343 254 35%
India 3 (42) >100%
Normalised headline earnings from operating business units 5 577 4 713 18%
Shareholders segment (37) 115 (<100)%
Normalised headline earnings 5 540 4 828 15%
(2) The comparative information has been realigned to reflect the changes in the Africa operating model and to ensure comparability with the current
period's presentation.
GROUP NEW BUSINESS PERFORMANCE
New business volumes by business unit, as measured by PVNBP, show pleasing growth, driven by strong investment sales in Momentum Corporate and the
acquisition of large group schemes in Africa. However, VNB remains under pressure, although all segments showed improvement, except for Momentum
Investments.
3QF2026 3QF2025 Change %
R million PVNBP VNB VNB PVNBP VNB VNB PVNBP VNB
margin margin
Momentum Retail 7 021 75 1.1% 6 417 42 0.7% 9% 79%
Momentum Investments 40 616 270 0.7% 35 739 396 1.1% 14% (32)%
Metropolitan Life 4 324 52 1.2% 4 949 (9) (0.2)% (13)% >100%
Momentum Corporate 10 892 (27) (0.2)% 8 225 (39) (0.5)% 32% 31%
Momentum Africa 4 032 (23) (0.6)% 2 713 (27) (1.0)% 49% 15%
Total 66 885 347 0.5% 58 043 363 0.6% 15% (4)%
The split of new business volumes between single and recurring premiums is set out below:
3QF2026 3QF2025 Change %
R million Recurring Single Recurring Single Recurring Single
premiums premiums premiums premiums premiums premiums
Momentum Retail 878 2 349 807 1 942 9% 21%
Momentum Investments 258 39 475 212 34 818 22% 13%
Metropolitan Life 1 010 1 189 1 252 1 338 (19)% (11)%
Momentum Corporate 590 5 992 438 4 759 35% 26%
Momentum Africa 568 1 224 393 804 45% 52%
Total New Business Premiums 3 304 50 229 3 102 43 661 7% 15%
SEGMENTAL PERFORMANCE
Momentum Retail
Momentum Retail's NHE increased by 1% to R973 million compared to the prior period. Increased revenue on the long-term savings business and improved
persistency and expense experience variances contributed positively. These were offset by unfavourable yield curve movements relative to the prior period.
Non-covered earnings were supported by the contribution from FinGlobal following its acquisition in F2025.
The CSM increased by 2% over the nine months to R8 978 million (F2025: R8 825 million), driven by new business added, favourable mortality and persistency
experience.
New business volumes remained strong, with PVNBP growing 9% to R7 021 million, driven by a pleasing increase in long-term savings business, buoyed by a few
large deals and the launch following improvements to Investo, which offset the slight decline in protection new business.
The VNB improved 79% to R75 million from R42 million, largely driven by higher Investo new business volumes and improved product economics.
Momentum Investments
Momentum Investments' NHE increased by 53% to R992 million compared to the prior period, benefiting from a higher CSM release from the annuity book and
fewer onerous contracts following the design changes on the back-to-back solution. The favourable equity market performance resulted in higher asset-based
fee income, which moderated in the third quarter.
The CSM for Momentum Investments increased by 3% over the nine months to R4 479 million (F2025: R4 342 million), supported by positive contributions from
the annuity business written.
PVNBP grew 14% to R40.6 billion, driven by a 20% increase in new business volumes on the Momentum Wealth platforms. This was partially offset by a 22%
decline in annuity new business volumes, reflecting the continued industry-wide shift toward living annuities, as lower bond yields reduce the guaranteed
starting pension that can be purchased. VNB consequently declined to R270 million, and the new business margin contracted to 0.7%.
Assets under administration grew 18% to R572 billion (3QF2025: R483 billion), following strong new business inflows into the Momentum Wealth platform and
assets under management increased 9% to R654 billion (3QF2025: R618 billion), reflecting favourable equity market returns. Net inflows recovered to
R1.3 billion (3QF2025: net outflow of R13.5 billion), supported by strengthened distribution channels and the growing contribution of Curate, the Group's
newly established partner-based investment manager.
Metropolitan Life
Metropolitan Life delivered a strong performance, with NHE growing 21% to R767 million compared to the prior period, driven by fewer onerous contracts,
positive mortality experience and disciplined expense management. Favourable market movements further contributed to earnings, although to a lesser extent
than in the prior period.
The CSM for Metropolitan Life grew by 5% over the nine months to R4 756 million (F2025: R4 551 million), driven by positive contributions from the
Protection and Annuity businesses, including new business additions, and improved persistency and mortality experience variances. Metropolitan Life's PVNBP
declined 13% to R4.3 billion. Encouragingly, protection and life annuity volumes outperformed recurring savings business, reflecting a continued improvement
in mix that gained momentum through 3QF2026.
Momentum Corporate
Momentum Corporate's NHE improved 1% to R1 136 million off a high base in the prior period. Earnings continued to benefit from favourable market variances
and continued strong underwriting results, further supported by increased investment income. Mortality and morbidity experience variances contributed
positively, although less than in the prior period. Expense increases were driven by salary inflation, increased costs associated with regulatory compliance
and continued investment in the IT environment. Momentum also achieved good retention results, attributed to focused client engagement, proactive client
management, and lower business turnover across the industry.
The CSM for Momentum Corporate increased by 4% over the nine months to R1 027 million (F2025: R990 million). This increase was a result of positive
longevity experience variance and strong investment returns on with-profit annuities, partly offset by negative longevity experience variance on the
guaranteed annuity business.
Momentum Corporate's PVNBP increased 32% to R10.9 billion, driven by growth in FundsAtWork investment and protection recurring premiums.
VNB improved from a loss of R39 million to a loss of R27 million, owing to a change in new business mix towards higher-margin FundsAtWork protection
business. Although the new business mix improved and expenses are well controlled, pricing pressure on large protection products dampened new business
profitability and new business volumes.
Momentum Africa
Momentum Africa's NHE increased 60% to R304 million compared to the prior period, with earnings supported by solid investment income, improved operating
profits, and positive economic assumptions changes. The life businesses benefited from higher expected profits in Namibia and Lesotho, favourable yield
curve movements in Botswana and Namibia, and higher investment income from fixed deposits in Botswana. The depreciation of the Botswana Pula against the
Rand negatively impacted performance over the period. Earnings from health insurance and asset management were negatively impacted by the disposal of Ghana,
which was effective 9 September 2025.
The Momentum Africa CSM grew by 1% over the nine months to R1 749 million (F2025: R1 725 million), driven by new business growth in Namibia, Botswana and
Lesotho across both the annuity and protection businesses, largely offsetting the impact of the devaluation of the Botswana Pula.
PVNBP grew 49% to R4 032 million, driven by the acquisition of major group risk schemes in Botswana and Lesotho, as well as annuity growth in Botswana.
VNB improved marginally, from a loss of R27 million to a loss of R23 million, reflecting stronger profitable corporate business, partially offset by lower
retail savings volumes and higher expense allocations in Lesotho and Botswana.
Guardrisk
Guardrisk's NHE grew 16% to R693 million compared to the prior period. Net revenue increased by 21%(3), driven by underwriting profit, growth in client
management fees and higher investment income. Guardrisk General Insurance (GGI)'s underwriting profit was supported by strong commercial lines performance
and disciplined underwriting. Investment income benefited from strong equity portfolio returns despite the impact of market volatility in March 2026. The
Namibia business, which recently transitioned from the Africa segment, contributed positively to the period's revenue performance, backed by relatively low
claims ratios in the retail business and good investment fee performance in the cell captive business.
New business momentum remained healthy with a good pipeline in both Guardrisk Life and Guardrisk Insurance. Year to date growth was driven by the scaling of
new and existing cell captive relationships, providing a natural hedge against client attrition. GGI demonstrated similar resilience, driven by strong
broker channel activity contributing meaningfully to underwriting growth.
Momentum Insure
Momentum Insure delivered solid earnings growth with NHE increasing 9% to R366 million. The performance was primarily driven by a disciplined underwriting
result due to an improved claims ratio of 46% compared to 51% in the prior period. This performance is a result of benign weather exposure as well as
continued underwriting and pricing discipline. The combined ratio of 86% is well ahead of longer term expectations.
Insurance revenue declined marginally, with new business volumes remaining under pressure and insufficient to replace policy lapses in a competitive market
for client acquisition. Persistency remains in line with management's targets and industry benchmarks. The overall expense ratio deteriorated year on year,
mainly driven by muted premium growth rather than higher expenses. Expenses are expected to increase into the last quarter as the business invests in
marketing and lead generation initiatives to improve new business volumes.
Momentum Health
Momentum Health's NHE grew 35% to R343 million compared to the prior period, driven by growth in overall membership, favourable underwriting experience in
capitation contracts, and disciplined expense management.
Overall membership grew 5% to 1.36 million members year-on-year, mainly from sustained membership growth in the public segment (2%) and Health4Me (23%),
driven by a growing need for affordable healthcare insurance. Momentum Medical Scheme membership remained stable, while membership remained under pressure
in the corporate segment, reflecting affordability pressures and a lower employee base. Health membership in Africa grew 14%, supported by the onboarding of
a large client in Mozambique and membership gains from new groups following the exit of a competitor in Lesotho.
The Momentum Health team has been preparing to onboard Bonitas Medical Fund, ensuring that people, processes, data and systems are aligned and ready for the
1 June commencement date.
India
India's NHE improved to a profit of R3 million from a loss of R42 million in the prior period. Gross Written Premiums (GWP) grew 24% year on-year (42% on an
Indian local currency basis), supported by the expansion across both retail and group channels. The combined ratio improved to 111% from 116%, with the
claims ratio increasing to 83% from 77% in the prior period, reflecting higher benefit utilisation in group business.
The expense ratio is currently below the regulatory minimum of 35%, driven by the business mix and positive operating leverage from lower expense growth.
(3) The stated percentage increases are based on restated prior year numbers following the Africa operating model changes.
Shareholders segment
The segment reported an NHE loss of R37 million, compared to a profit of R115 million in the prior period. This was largely due to a significant reduction
in investment returns, from a loss of R7 million to a loss of R125 million, because of poor venture capital fund performance and a reduction in investment
returns as more capital was allocated to support the solvency position of the covered business units.
OUTLOOK
The global operating environment remains uncertain, with heightened geopolitical tensions likely to prolong economic uncertainty. South Africa's growth
prospects have weakened as earlier tailwinds have given way to this more challenging global backdrop. Household finances remain under strain and consumer
demand muted, with higher imported fuel costs putting pressure on inflation and dampening economic growth, which will weigh on consumers' ability to
purchase products and services.
The prospect of further rising bond yields, while potentially supportive of guaranteed annuity demand over time, has introduced near-term uncertainty for
consumers and investors alike. These dynamics are not unique to us; industry peers face similar headwinds, and we believe our diversified business model,
disciplined capital management, and robust risk management approach position us competitively to navigate this environment and to continue delivering value
to our clients.
The Group remains well-positioned to sustain its growth trajectory, supported by diversified earnings streams, disciplined capital allocation and strategic
investments in new capabilities, including the onboarding of Bonitas and the continued scaling of its India operations.
The pleasing earnings delivery demonstrates that the Group is successfully executing its Impact strategy and is well placed to meet its strategic
objectives. We look forward to providing further details at the Capital Markets Day, 2 June 2026.
1 June 2026
CENTURION
The information in this commentary, including the financial information on which the outlook is based and any non-IFRS financial measures (which are
presented for additional information purposes only), is the responsibility of the directors and has not been reviewed and reported on by Momentum Group's
external auditors.
Conference call
The executive management of Momentum Group will host a conference call for shareholders, investors and analysts on 1 June 2026.
We kindly request callers to pre-register using the following link: https://www.diamondpass.net/9585996
A passcode and PIN will be generated following registration. We advise callers to dial in five minutes before the conference call starts at 16:00.
The recorded playback will be available for three days after the conference call. Access numbers for the recorded playback:
South Africa 010 500 4108
UK 0 203 608 8021
USA and Canada 1 412 317 0088
Other countries +27 10 500 4108
Access code for the recorded playback: 48525#
Equity sponsor
Tamela Holdings (Pty) Limited
Sponsor in Namibia
Simonis Storm Securities (Pty) Limited
Debt sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 01-06-2026 07:30:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
