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MMI HOLDINGS LIMITED - Unaudited interim results for the six months ended 31 December 2018

Release Date: 08/03/2019 07:05
Code(s): MMI MMIG02 MMIG04 MMIG05 MMIG01 MMIG06 MMIG03 MMIG07     PDF:  
 
Wrap Text
Unaudited interim results for the six months ended 31 December 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 Number: 1904/002186/06
Company code: MMIG

Unaudited interim results for the six months ended 31 December 2018

SUMMARY OF FINANCIAL INFORMATION

Summary of key metrics

Key Metrics                                           1H2019    1H2018   % Change    F2018
Diluted normalised headline earnings (Rm)              1 618     1 594         2%    2 003
Diluted normalised headline earnings per share (c)     105.3      99.4         6%    125.5
New business volumes (PVNBP, Rm)                      28 790    24 194        19%   50 002
Value of new business (Rm) *                             335       299        12%      345
New business margin                                     1.2%      1.2%                0.7%
Diluted embedded value (EV) per share (R)              26.60     27.05               25.43
Return on EV (ROEV - annualised)                        6.8%     11.2%              (1.1)%
Return on EV per share (annualised)                     9.4%     11.2%              (0.6)%
Diluted number of shares in issue (m)                  1 499     1 604       (7)%    1 557
Diluted weighted average number of shares (m)          1 536     1 604       (4)%    1 596

* Momentum Wealth has been reclassified as covered business, with prior period comparatives restated.

We are pleased to report that MMI Holdings (MMI) remains focused on, and is making steady progress with the three-year Reset and Grow strategy announced in
September 2018. The R1.6 billion of normalised headline earnings is in line with the Reset and Grow targets, and we believe this was a pleasing result in
the current operating environment. The satisfactory performance, combined with the impact of the share buy-back programme that was completed in November
2018, resulted in 6% growth in diluted normalised headline earnings per share (to 105.3 cents per share).

Following the successful share buy-back programme, MMI will reinstate dividend payments, with an interim ordinary dividend of 35 cents per share. We are
also proud to be the first major insurance company in South Africa to achieve a level 1 B-BBEE rating, in terms of the revised FSC codes.

The positive results were achieved through tight control of operational expenses, strong underwriting results, and by much improved earnings from our fixed
rate and annuity products. The period also included some favourable items that are not expected to recur, including fair value gains on our venture capital
investments in Exponential Ventures, partly offset by higher investments in new initiatives.

The weak equity markets in late 2018 have had a negative impact on fee income from the Momentum Life closed book and the reduction in assets under
management is likely to place pressure on asset-based fee income during the ensuing six months. Frail equity markets during the last quarter of 2018 also
dampened earnings from MMI's Africa portfolio where, unlike in South Africa, shareholder funds do carry some equity exposure.

The return on embedded value benefitted from an exceptional positive item arising from a new required capital methodology that coincided with the implementation
of the new regulatory framework, as defined in the South African Insurance Act, 18 of 2017, that became effective 1 July 2018. This positive was offset by negative 
investment variances from poor equity returns and by a negative contribution from non-covered business. Operating experience contributed positively to embedded
value earnings.

The embedded value per share gained from the share buy-back programme. The annualised return on embedded value per share was 9.4%.

New business inflows improved materially from the comparative period in 2017, as did the value of new business. Single premium income from Momentum
Corporate significantly contributed to the improvement. However, there was also a pleasing uplift in recurring premium new business, especially from group
life business.

Hillie Meyer joined MMI on a three-year contract as Group CEO in February 2018. The Board of MMI believes that the Group will benefit from his leadership
if his tenure is extended. Mr Meyer has agreed to make himself available for an additional two years, until June 2023.

We are confident that MMI is on course to deliver on the three-year financial targets as communicated at its previous year-end results presentation.

Segmental performance

Earnings by segment
Normalised headline earnings
(R million)                               1H2019  1H2018  % Change    F2018
Momentum Life                                462     343       35%      472
Momentum Investments                         261     253        3%      227
Metropolitan Retail                          333     364      (9)%      201
Momentum Corporate                           319     293        9%      909
Non-life Insurance                           135     105       29%      204
Africa                                        94     165     (43)%      147
Earnings from operating segments           1 604   1 523        5%    2 160
New Initiatives                             (248)   (166)    (49)%     (377)
Shareholders                                 262     237       11%      220
Normalised headline earnings               1 618   1 594        2%    2 003

MMI has changed its primary earnings metric from core headline earnings to normalised headline earnings.

The new metric has fewer adjustments from the prescribed definition of headline earnings and is more in line with primary earnings metrics used in the
South African insurance industry. Unlike core headline earnings, normalised headline earnings include the impact of investment variances, actuarial basis
changes and other one-off items not previously reported under core earnings.

Normalised headline earnings adjust the standard JSE definition of headline earnings for the impact of treasury shares and the amortisation of intangible
assets arising from corporate activity.

A reconciliation between the previous and current primary earnings metrics has been provided in the summary of financial results.

Detailed analyses of each business unit's earnings results have been provided under the segmental discussions below.

New business
Covered New business (R million)    1H2019  1H2018  % Change     F2018
Momentum Life                           44      25       76%        66
Momentum Investments                    43      75     (43)%        76
Metropolitan Retail                     58     130     (55)%        84
Momentum Corporate                     198      44     >100%       124
Africa                                  (8)     25       <0%        (5)
Value of new business                  335     299       12%       345

The table above reflects covered business, which excludes entities like MMI Health and Momentum Asset Management. The year-on-year increase in the value of
new business mostly followed higher sales, although certain segments also experienced an improvement in new business margin, notably Momentum Corporate.

Embedded Value

Embedded value earnings (R million)              1H2019   1H2018    F2018
Embedded value at the start of the period        39 601   42 523   42 523
EV earnings from operations (covered business)    1 921    1 569    1 535
EV earnings attributable to investment markets     (848)   1 029      662
Exceptional items                                   870        -        -
EV profit from non-covered businesses              (613)    (276)  (2 666)
Embedded value before capital flows              40 931   44 845   42 054
Capital flows                                    (1 051)  (1 454)  (2 453)
Embedded value at the end of the period          39 880   43 391   39 601
Return on embedded value (annualised ROEV)         6.8%    11.2%   (1.1)%
ROEV on covered business (annualised)             11.9%    15.4%     6.3%
ROEV on non-covered business (annualised)       (19.0)%   (7.2)%  (35.6)%
ROEV per share (annualised)                        9.4%    11.2%   (0.6)%

The annualised return on embedded value from covered business has been adversely affected by declining equity markets during the last quarter of 2018, both
locally and internationally. The decline in assets under management, unless reversed, is expected to give rise to a lower future revenue stream.

The embedded value result includes a noticeable exceptional item of R870 million. This arose from the impact of a new required capital methodology that coincided
with the implementation of the new regulatory framework that became effective 1 July 2018. For MMI, restricted assets (liabilities and regulatory 
capital) under the new requirements are lower than they were under the previous solvency valuation method, thus resulting in a one-off increase in embedded 
value. This item is limited to the F2019 financial reporting period and is not expected to change over the second half of the financial year.

Negative investment variances and other economic impacts of R891 million and exceptional items aside, embedded value earnings on covered business was aided
by an improvement in the value of new business and by positive operating experience (persistency, expenses and underwriting).

Over the six months, the annualised return on non-covered business was negative 19%. The most significant contributor to the negative return on embedded
value was an increase in the provision for future costs from the Multiply rewards programme, reported within Momentum Life. The positive outcomes from the
programme (better persistency, claims experience etc.) are implicit in the value of new business and return on embedded value of covered business.

Under its share buy-back programme, MMI repurchased R2 billion worth of own shares between March 2018 and November 2018. The average price at which shares
were repurchased represented a c.30% discount to the embedded value per share over the period. The buy-back programme supported the annualised return on
embedded value per share of 9.4% which compares to 6.8% when ignoring the reduction in number of shares.

Momentum Life

Momentum Life provides protection, savings and traditional (closed book) products, focussed on the middle and affluent retail client segments.

Momentum Life (R million)       1H2019  1H2018  % Change
Normalised headline earnings       462     343       35%
Value of new business               44      25       76%
New business volumes (PVNBP)     4 104   3 725       10%

Earnings

Momentum Life experienced good growth in normalised headline earnings on account of favourable risk experience (mainly an improvement in income disability
claims experience) and better than expected take-up of voluntary premium increases by policyholders. A one-off reinsurance provision from the prior period
(loss of R43 million) did not recur and expenses were lower than allowed for in actuarial liabilities, following a strengthening of the expense reserve at
30 June 2018. On the downside, the unfavourable equity market performance during the last quarter of 2018 had a negative impact on the with-profits
component of the Momentum Life closed book portfolios (a loss of R50 million).

New business

New business inflows increased on the back of an expansion in the agency sales force and an increase in agent productivity with particularly strong growth
in savings volumes. The new business margins improved, mainly due to good expense management and updated product pricing.

Embedded value

On covered business, the increase in EV, arising from a new required capital methodology that coincided with the implementation of the new regulatory 
framework, masked the impact of a significantly negative investment variance, which came about from adverse equity market conditions. Operating experience
(underwriting and expense variances) was positive, improving from the negative experience reported in the prior period. The return on embedded value from 
Momentum Life also reduced on account of a higher allowance for future Multiply costs.

Momentum Investments

Momentum Investments represents Momentum Wealth local and offshore business, local and offshore investment management operations, retail annuities and
guaranteed investments. These product lines were previously reported under Momentum Retail and Momentum Corporate.  All Momentum Wealth products are now
reported as covered business (previously only on-balance sheet contracts), and prior year value of new business and present value of new business premiums
(PVNBP) were restated accordingly. Momentum Investments also houses the UK business, which previously formed part of MMI International.

Momentum Investments (R million)    1H2019  1H2018  % Change
Normalised headline earnings           261     253        3%
Value of new business                   43      75     (43)%
New business volumes (PVNBP)        11 312  11 328        0%

Earnings and Assets Under Management

Strong earnings growth was experienced from annuities and structured endowments due to improved credit experience and lower funding cost (R20 million). The
UK operation also experienced satisfactory earnings growth, from higher fee receipts and lower expenses following a business restructure. However, earnings
from investment management and Momentum Wealth business were more subdued, as a result of negative equity market returns as well as some outflows over the
period.

Assets under management (R billion)             1H2019  1H2018  % Change
On-balance sheet Momentum Wealth                  98.2   102.3      (4)%
Off-balance sheet Momentum Wealth                 53.7    55.3      (3)%
Non-covered business (investment management)     414.9   431.5      (4)%
Total                                            566.8   589.1      (4)%

New business

New business flows from covered business remained largely flat compared to the prior year. However, the new business margin declined, partly due to
repricing the Momentum Wealth offering.

Embedded value

Momentum Investments by its nature was negatively affected by investment variances experienced over the reporting period.  Combined with a subdued value of
new business, EV earnings from Momentum Investments were negative over the six months ended 31 December 2018.

Metropolitan Retail

Metropolitan Retail focuses on the lower to middle income retail market in SA. Its offerings include protection, savings and annuity products. There were
no material changes to the Metropolitan Retail reporting segment.

Metropolitan Retail (R million)    1H2019  1H2018  % Change
Normalised headline earnings          333     364      (9)%
Value of new business                  58     130     (55)%
New business volumes (PVNBP)        2 523   2 919     (14)%

Earnings

Revenue increased due to growth in the protection book as well as improved underwriting and credit experience. Losses from poor persistency improved by R68
million since the prior period. However, the increase in revenue was offset by above-inflationary increases in expenses, mainly from upgrading branch
infrastructure, as well as a reduction in expense capitalisation (more conservative accounting for systems development costs).

New business

New business premiums are lower than the prior period, due to lower sales of funeral policies through tele-channels and retirement savings. Protection
business (mainly funeral policies) makes up the bulk of Metropolitan Retail's value of new business.

Metropolitan Retail and African Bank agreed to dissolve the joint venture partnership, following results that failed to meet expectations.

The year-on-year reduction in the value of new business was impacted by lower sales, as well as a decline in margin, following the strengthening in
persistency and expense assumptions.

Embedded value

The negative investment variance experienced by Metropolitan Retail was less pronounced than for Momentum Life, but still significant. It was mitigated by
the one-off impact of a new required capital methodology that coincided with implementing the new regulatory framework, thus resulting in a favourable 
return on embedded value for Metropolitan Retail. Operating experience was positive, following good underwriting and credit experience over the six months.

Momentum Corporate

Momentum Corporate incorporates group risk, annuities and pension savings as well as MMI Health operations. Investment management and Guardrisk have been
moved to Momentum Investments and the Non-life Insurance segment, respectively.

Momentum Corporate (R million)    1H2019  1H2018  % Change
Normalised headline earnings         319     293        9%
Value of new business                198      44     >100%
New business volumes (PVNBP)       9 784   4 855     >100%

Earnings

On corporate business, normalised headline earnings from the first half of F2019 saw a reasonable increase over the prior period. Favourable group life
underwriting experience was partly offset by higher lump sum disability claims. Revenue was also boosted by higher fee income arising from improved new
business inflows. Growth in management expenses has outstripped inflation, due to higher spend on initiatives such as Momentum Consultants and Actuaries,
new products and benefit enhancements, as well as the digitalisation of client services and conversion of corporate members into retail clients.

MMI Health business experienced solid earnings growth, following a modest increase in scheme membership, good underwriting experience from low-cost
products and good cost control (below-inflation expense growth). The earnings reported are net of minorities, and are therefore not fully reflective of the
strong operational performance over the six months. Recall that a portion of the public sector health business has been sold to our empowerment partner.

New business

Single premium inflows to Momentum Corporate were considerably higher than the prior year, mainly due to a multi-billion Rand with-profit annuity
transaction. Recurring premium inflows also improved, driven by an increase in group insurance new business from large corporates.

The value of new business also increased significantly, largely due to the increase in sales, but also because of an increase in margin from a revised
approach to pricing of group insurance business.

Embedded value

Momentum Corporate's strong value of new business, along with good operating experience over the first half of the financial year contributed positively to
the return on embedded value. The positive operating experience was mainly driven by strong persistency and good mortality experience. However, the tough
economic environment continued to negatively affect investment variance and underwriting experience on disability income products.

Non-life Insurance

This new segment includes Guardrisk (cell captive business) and Momentum Short-term Insurance (traditional insurance). Previously, these two entities were
reported under Momentum Corporate and Momentum Retail respectively.

Non-life Insurance (R million)  1H2019   1H2018  % Change
Momentum STI                        (8)     (22)      64%
Guardrisk                          143      127       13%
Normalised headline earnings       135      105       29%

Guardrisk had another satisfactory six months, with earnings up 13% on the prior period. Results from Momentum Short-term Insurance (MSTI) improved
markedly over the prior period. Core operations at MSTI were profitable, but continued to be negatively impacted by a high overhead cost base
(administration and IT systems). As the business grows, the positive impact of scale is expected to continue.

Momentum STI             1H2019  1H2018  % Change
Net earned premium (Rm)     416     350       19%
Claims ratio                61%     71%

Key performance metrics for MSTI progressed satisfactorily. Net earned premium income increased by 19% over the prior period. The claims ratio improved, partly
due to favourable weather patterns over the period from October to December 2018.

Africa

Previously called MMI International, this segment now represents only MMI's African operations (outside SA). The UK business is now reported under Momentum
Investments, while India resides under New Initiatives.  aYo, which offers mobile insurance in partnership with MTN, has also been reported under New
Initiatives.

Africa (R million)              1H2019  1H2018  % Change
Normalised headline earnings        94     165     (43)%
Value of new business               (8)     25       <0%
New business volumes (PVNBP)     1 067   1 367     (22)%

Earnings

Normalised headline earnings (R million)  1H2019  1H2018  % Change     F2018
Namibia                                      110     132     (17)%       171
Botswana                                      (5)     36       <0%        53
Lesotho                                       33      41     (20)%        79
Ghana                                         26      47     (45)%        39
Kenya                                         13     (36)    >100%       (19)
Other countries - ongoing                    (19)      2       <0%        19
Other countries - planned exits              (27)    (13)      <0%       (33)
Centre costs                                 (37)    (44)      16%      (162)
Total                                         94     165     (43)%       147

For the established businesses in Namibia, Botswana and Lesotho, the biggest part of the decline in earnings since the prior period can be explained by a
reduction in investment returns on assets backing shareholder capital (a decline of R68 million before tax). Unlike local South African operations,
shareholder assets in these countries are exposed to equity markets. Losses totalling R27 million were incurred in countries that MMI plans to exit in the
foreseeable future. Earnings were supported by improvements from health and non-life lines of business, as well as a year on year decline in overall
management expenses, including a 16% reduction in centre support costs.

New business

The disappointing new business growth and negative contribution to value of new business for the half year were largely due to a weak contribution from
Namibia, where sales on a PVNBP basis were down 35% on the prior year, due to systems challenges and shrinkage of the sales force.

Embedded value

The embedded value loss for the six months was caused by negative investment variances, a negative value of new business and a write-down in the value of
non-covered businesses on account of earnings losses (sub-scale operations and countries earmarked for exit).

New Initiatives

Included under this new segment are the two international ventures aYo (MTN joint venture) and Aditya Birla Health Insurance (India joint venture), Exponential
Ventures (local and offshore venture capital with a focus on fintech and insuretech start-ups), as well as local start-up operations including
transactional money management.

Normalised headline earnings (R million)  1H2019  1H2018  F2018
India (ABHI)                                (150)   (102)  (218)
aYo (MTN JV)                                 (36)    (28)   (58)
Other *                                      (62)    (36)  (101)

* "Other" includes Exponential Ventures, Money Management and Momentum Consult

Aditya Birla Health Insurance (India joint venture)

Sales and local-currency earnings in Aditya Birla Health Insurance continued to progress according to the business plan. A 4% depreciation of the South
African Rand against the Indian Rupee over the six months somewhat increased the reported loss in Rands.

Satisfactory progress has been made in tilting exposure away from group business to more profitable retail business, following an expansion of retail
distribution capacity, mainly through bank channels. This has been reflected in an improvement to the claims ratio for the six months to December 2018,
compared to the prior period.

aYo

aYo has cemented its presence in Ghana and Uganda, with a customer base of 2.6 million clients as at 31 December 2018. Claims ratios were satisfactory.
However, the venture has not yet reached sufficient scale to cover the overhead cost base (IT and systems support).

Other

The Money Management initiative gained traction, with the roll out of Multiply Visa Cards progressing well, while work continues to integrate the product
offering.

Shareholders

Shareholders (R million)        1H2019  1H2018  F2018
Operating profit                   (36)    (28)  (117)
Tax on operating profit            (42)     11    (58)
Investment income (net of tax)     231     219    451
Fair value gains (net of tax)      109      35    (56)
Total                              262     237    220

This segment represents the shareholder capital of MMI's South African operations and the investment return earned thereon. Investment returns relating to
offshore capital (Africa and India) and non-life operations (Guardrisk and MSTI) are reported as part of earnings within the relevant segments.

Earnings

Investment income benefitted from a higher contribution from Eris properties. Fair value gains include a revaluation of one of the Exponential Ventures
funds.

Embedded value

Embedded value earnings from the shareholder segment were adversely affected by a negative allowance for future maintenance expenses on owner-occupied
properties. This was partly offset by the fair value gain from Exponential Ventures. For embedded value purposes, part of the investment return on
shareholder assets has been allocated to operating segments and part to the shareholder segment.

Solvency and Capital Management

                                                               
Regulatory solvency position        MMI Group Ltd  
(R million)
Eligible own funds (pre dividend)          31 414               
Solvency Capital Requirement (SCR)         15 326             
SCR cover (times)                             2.0                

Regulatory solvency position

The new regulatory framework for the South African insurance industry became effective on 1 July 2018, upon the implementation of the South African
Insurance Act, 18 of 2017. The individual solvency position of MMI Group Limited is shown in the table above, prior to allowance for
foreseeable dividends. Certain methodologies applied in the solvency assessment are subject to approval from the Prudential Authority, which is currently
being sought.

A target range of 1.7 to 2.1 times the SCR has been set for the solvency position of MMI Group Limited. This allows for the capital required to support the
covered business against a range of severe but plausible scenarios, as well the wider strategic deployments of the group.

Capital distribution

The share buy-back programme was completed on 29 November 2018. Shares to the value of R2.0 billion were repurchased, at an average price of R18.94 per
share.

At the 2018 year-end results it was announced that MMI will reinstate dividend payments, at a level that is consistent with our capital deployment plans
and the need to maintain steady capital ratios under the new regulatory framework. We indicated that we would in future target a dividend cover range of
2.0 to 3.0 times normalised headline earnings. For the 6 months ended 31 December 2018, MMI Holdings declared a dividend of 35 cents per share to ordinary
shareholders which is at the upper end of the target range.

Capital deployment

The following strategic investments were made during the period:

Area of capital deployment           R billion
Capital support for subsidiaries           0.4
Exponential, UK & Africa operations        0.1
Aditya Birla Joint Venture                 0.1
Momentum Short Term Insurance              0.2
Total                                      0.8

Credit rating

On 8 November 2018, Moody's confirmed MMI Group Limited's global scale Insurer Financial Strength (IFS) rating of Baa2, with a long-term rating of Baa3.
Moody's also affirmed the national scale IFS rating of the Issuer at Aaa.za with the long-term issuer rating at Aaa.za and the unsecured subordinated notes
rating at Aa2.za. On 16 November 2018 Moody's confirmed the global scale IFS of Baa3 of Guardrisk Insurance, Guardrisk Life and Guardrisk International and
national scale rating of Aaa.za for Guardrisk Insurance and Guardrisk Life. Given the tough economic environment, the affirmation of the credit ratings can
be viewed as positive for MMI Group Limited and Guardrisk.

Outlook

The poor equity market performance during the last quarter of 2018 and muted macro-economic growth made for a challenging operating environment over the
six months. It is heartening that MMI experienced growth despite these challenges. If the negative market impact from late 2018 persists, it will put
pressure on earnings. MMI will continue to focus on financial discipline and on improving distribution and service in pursuit of its Reset and Grow
strategy, with an earnings target of between R3.6 billion and R4.0 billion by F2021.

MMI HOLDINGS GROUP

DIRECTORS' STATEMENT
The directors take pleasure in presenting the unaudited summarised interim results of MMI Holdings financial services group for the period ended
31 December 2018. The preparation of the group's results was supervised by the group finance director, Risto Ketola (FIA, FASSA, CFA).

Corporate events
As part of our plan to exit a number of African countries, we have classified three of these African entities, which we plan on exiting in the next
12 months, as held for sale.

Basis of preparation of financial information
These summarised consolidated interim 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 31 December 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 IFRS 2 Share-based payments, IFRS 4 Insurance contracts, IAS 40 Investment property, and IFRIC 22 Foreign
  currency transactions and advance consideration. IFRS 9 Financial instruments and IFRS 15 Revenue from contracts with customers also became effective
  for the first time in the current period. The effect of these is described below.

- IFRS 15 Revenue from contracts with customers
  IFRS 15 is effective from periods beginning on or after 1 January 2018. The group has implemented IFRS 15 on 1 July 2018, retrospectively without
  restating comparative figures.

  IFRS 15 replaces all existing revenue requirements in IFRS and applies to all revenue arising from contracts with clients, unless the contracts are in the
  scope of the standards on leases, insurance contracts and financial instruments.

  The core principle of the standard is that revenue recognised reflects the consideration to which the company expects to be entitled in exchange for the
  transfer of promised goods or services to the client. The standard incorporates a five-step analysis to determine the amount and timing of revenue
  recognition. The group has assessed the impact of the adoption of IFRS 15 to determine the impact on the opening balance and concluded that there was no
  significant impact for the group. The opening retained earnings as at 1 July 2018 has therefore not been adjusted for any change in revenue recognition.

- IFRS 9 Financial instruments
  The group has implemented IFRS 9 retrospectively without restating comparative figures. Opening retained earnings as at 1 July 2018 has been adjusted for
  any differences in the carrying amounts of financial instruments.

  The standard introduces an approach to the classification of financial instruments that is based on contractual cash flows characteristics and models
  through which financial instruments are managed (business model). The standard amends the previous requirements in three main areas: (a) classification
  and measurement of financial assets, (b) impairment of financial assets, mainly by introducing a forward-looking expected credit loss (ECL) impairment
  model and (c) hedge accounting including removing some of the restrictions on applying hedge accounting in IAS 39 Financial Instruments: Recognition and
  Measurement.

  IFRS 9 contains three principal classification categories for financial assets:
  - Measured at amortised cost
  - Fair value through other comprehensive income
  - Fair value through income

  Even though these measurement categories are similar to IAS 39, the criteria for classification into these categories are significantly different. The
  standard eliminates the existing IAS 39 categories of held-to-maturity, loans and receivables and available-for-sale.

  No significant changes were introduced for the classification and measurement of financial liabilities, except for financial liabilities that are
  designated at fair value where entities will need to recognise the part of the fair value change that is due to changes in their own credit risk in
  other comprehensive income rather than profit or loss.

  The standard has introduced a new ECL impairment model that will require more timely recognition of ECLs than under IAS 39. An impairment loss may now
  be recognised prior to a loss event occurring. This will require considerable judgement about how changes in economic factors affect ECLs, which will be
  determined on a probability-weighted basis.

  The group has elected not to apply the general hedge accounting principles under IFRS 9 and will continue to apply IAS 39 hedge accounting, where
  applicable.

  Impact on adoption of IFRS 9
  Prior to the implementation of IFRS 9, the group designated a significant majority of its financial assets at fair value through income in terms of IAS 39. 
  The application of the classification criteria resulted in the majority of the financial assets being classified mandatorily at fair value through income. 
  In the life companies certain policyholder assets were designated at fair value through income due to accounting mismatch. All equity securities remain
  at fair value through income and assets previously disclosed as held-to-maturity will continue to be carried at amortised cost.

  With majority of the group's financial assets measurement remaining at fair value through income these assets are not subjected to the new impairment
  model. The significant impacts from changes in the measurement basis of impairment provisions are limited to the group's assets that were previously
  classified as held-to-maturity and loans and receivables which are now classified and carried at amortised cost. The impact of applying the ECL model
  resulted in a decrease in equity of R40 million on 1 July 2018 which primarily relates to loans and receivables.

  For the group's financial liabilities that are designated at fair value through income, there were no significant changes in its own credit risk to
  recognise in other comprehensive income.

  The application of IFRS 9 impairment methodology had an insignificant impact on the group's equity accounted associates and joint ventures.

  All insurance and reinsurance receivables are recognised in terms of IFRS 4 and will be included in the IFRS 17 assessment.

  The effects of the adoption of IFRS 9 on the statement of financial position as at 1 July 2018 are shown in the financial instruments section.

- 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
A simplified operating model was announced in June 2018, effective 1 July 2018. The product Centre of Excellence structure was dissolved and a number of
empowered end-to-end value chain business units were created, supported by shared distribution channels and group support functions.

In order to align internal and external reporting to the new operating business unit structures, the reporting units have also changed. The prior periods
have been restated to provide meaningful comparison for these new segments.

The group's reporting view now reflects the following segments:

   Momentum Life: Momentum Life includes protection, savings and life insurance products focused on the middle and affluent client segments.

   Momentum Investments: Momentum Investments consists of the Momentum Wealth platform business, local and offshore asset management operations, retail
   annuities and guaranteed investments, as well as Eris Properties.

   Metropolitan Retail: Metropolitan Retail focusses on the lower and middle income retail market segment, with a range of protection and savings products.

   Momentum Corporate: Momentum Corporate offers group risk, annuities, pension savings and umbrella fund (FundsAtWork) products and includes MMI Health.

   Africa: This segment includes our African operations.

   Non-life Insurance: Non-life Insurance comprises the retail general insurance offering, Momentum Short-term Insurance, and the cell captive insurer,
   Guardrisk.

   New Initiatives: This includes India, aYo, Money Management, Lending, Exponential Ventures and Momentum Consult.

   Shareholders: The Shareholders segment reflects investment income on capital held to support local operations and some costs not allocated to operating
   segments (eg certain holding company expenses).

Embedded Value information

New regulatory framework:
The new regulatory framework, as defined in the South African Insurance Act, 18 of 2017, became effective on 1 July 2018. This meant that the previous 
Statutory Valuation Method (SVM) was no longer recognised as a valid basis for regulatory liabilities. MMI covered businesses elected to adopt the IFRS 
liabilities as reference for determining the Value of In-force business for Embedded Value purposes. This has resulted in a reallocation of value between the
Adjusted Net Worth and Value of In-force due to the liability difference between the previous statutory and IFRS liabilities.

MMIGL Required Capital is derived as the total Restricted Assets less the IFRS liabilities as per the new required capital methodology. Restricted Assets were 
defined in terms of the new regulatory balance sheet as the assets allocated to support the policyholder liabilities and internal capital requirements.

Wealth business:
With changes in the operating model of MMI, a decision was taken to group businesses into segments which are managed together. MMI has also simplified the
valuations between covered and non-covered business (eg expense allocations, etc) and, as a result, now report the off-balance sheet businesses of Momentum
Wealth together with the on-balance sheet businesses as part of Momentum Investments covered business.

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

Changes to the directorate, secretary and directors' shareholding
On 30 September 2018, the group's company secretary, Maliga Chetty, resigned. On the same date, Leon Basson was appointed as acting group company secretary.
On 26 November 2018, Sydney Muller retired from the board having reached retirement age. On 28 February 2019, Louis von Zeuner resigned from the board. On 
1 March 2019, Lisa Chiume, Prof Linda de Beer, Dr Sharron McPherson and Sello Moloko were appointed to the board. Also on that date, CorpStat Governance 
Services (Pty) Ltd was appointed as interim group company secretary. Leon Basson will relinquish his role as acting group company secretary on that date, to 
resume his other duties in the group. 

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

Changes to the group executive committee

Resignations                            Role                                                                            Date
Andrew le Roux                          Chief Business Transformation Officer                                           31 August 2018
Linda Mthenjane                         Head: MMI Human Capital                                                         30 November 2018
Thinus Alsworth-Elvey                   CEO: Momentum Corporate                                                         31 March 2019

Contingent liabilities and capital commitments
The group is party to legal proceedings and appropriate provisions are made when losses are expected to materialise. Met Collective Investments (RF) (Pty) Ltd
has been subjected to a review by the FSCA. MMI is continuing to engage the FSCA on the matter. The group had no material capital commitments at 31 December 2018
that were not in the ordinary course of business.

Events after the reporting period
No material events occurred between the reporting date and the date of approval of these results.

Interim dividend declaration
Ordinary shares
- On 8 March 2019, a gross interim dividend of 35 cents per ordinary share was declared.
- The dividend is payable out of income reserves to all holders of ordinary shares recorded in the register of the company at the close of business on
  Friday, 29 March 2019, and will be paid on Monday, 1 April 2019.
- The dividend will be subject to local dividend withholding tax at a rate of 20% unless the shareholder is exempt from paying dividend tax or is entitled
  to a reduced rate.
- This will result in a net final dividend of 28 cents per ordinary share for those shareholders who are not exempt from paying dividend tax.
- The last day to trade cum dividend will be Tuesday, 26 March 2019.
- The shares will trade ex dividend from the start of business on Wednesday, 27 March 2019.
- Share certificates may not be dematerialised or rematerialised between Wednesday, 27 March 2019 and Friday, 29 March 2019, both days inclusive.
- The number of ordinary shares at the declaration date was 1 497 475 356.
- MMI's income tax number is 975 2050 147.

Preference shares
-  Dividends of R18.5 million (31.12.2017: R18.5 million; 30.06.2018: R18.5 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 has concluded its share buy-back programme. A total of 106 million shares (R2 billion excluding transaction costs) have been bought back.
  27 million shares (R487 million) are held by a subsidiary of the group.

Directors' responsibility
The preparation of these results are the responsibility of the directors. This announcement does not include the information required by paragraph 16A(j) of
IAS 34. The summarised interim results have not been reviewed or audited by the external auditors. 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 SENS announcement is available for
inspection and may be requested from the group company secretary's office, Carien Breytenbach tel: +27 12 673 7479.

Signed on behalf of the board


JJ Njeke                                             Chairman
Hillie Meyer                                         Group chief executive 


Centurion
7 March 2019

DIRECTORS: MJN Njeke (chairman), HP Meyer (group chief executive), JC Cilliers (Marais) (deputy chief executive), RS Ketola (group finance director),
           LM Chiume, P Cooper, F Daniels (Jakoet), Prof L de Beer, Prof SC Jurisich, Prof JD Krige, Dr SL McPherson, PJ Moleketi, MS Moloko, V Nkonyeni, 
           KC Shubane, FJC Truter, JC van Reenen
INTERIM GROUP COMPANY SECRETARY: CorpStat Governance Services (Pty) Ltd
WEBSITE: www.mmiholdings.co.za
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: 8 March 2019

MMI HOLDINGS GROUP - IFRS FINANCIAL INFORMATION

SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

                                                                31.12.2018               31.12.2017               30.06.2018
                                                                        Rm                       Rm                       Rm
ASSETS
Intangible assets                                                   10 133                   11 007                   10 515
Owner-occupied properties                                            3 594                    4 250                    3 864
Property and equipment                                                 411                      365                      323
Investment properties                                                8 930                    7 346                    8 614
Properties under development                                           388                      116                      136
Investments in associates and joint ventures                           636                      626                      636
Employee benefit assets                                                451                      421                      436
Financial assets at fair value through income (1)                  373 686                  394 058                  395 146
Investments in associates at fair value through income (1)          18 893                   11 821                   11 383
Derivative financial assets at fair value through income             2 367                    2 935                    2 910
Available-for-sale financial assets                                      -                        7                        -
Held-to-maturity financial assets                                        -                      396                      437
Loans and receivables                                                    -                    6 453                    5 629
Financial assets at amortised cost                                   3 795                        -                        -
Reinsurance contract assets                                          5 027                    5 216                    4 989
Deferred income tax                                                    286                      258                      290
Insurance and other receivables                                      6 720                    4 781                    4 962
Current income tax assets                                              307                      477                      283
Non-current assets held for sale                                       482                        -                        -
Cash and cash equivalents                                           26 216                   27 275                   25 812
Total assets                                                       462 322                  477 808                  476 365

EQUITY
Equity attributable to owners of the parent                         22 400                   22 763                   22 328
Non-controlling interests                                              493                      299                      462
Total equity                                                        22 893                   23 062                   22 790

LIABILITIES
Insurance contract liabilities
  Long-term insurance contracts                                    110 819                  111 173                  109 203
  Non-life insurance contracts                                       8 583                    8 088                    8 728
Investment contracts                                               259 831                  271 162                  272 411
  - with discretionary participation features (DPF)                 23 100                   25 086                   24 550
  - designated at fair value through income                        236 731                  246 076                  247 861
Financial liabilities at fair value through income (1)              36 118                   41 730                   38 217
Derivative financial liabilities at fair value through income        2 177                    1 854                    2 255
Financial liabilities at amortised cost                              1 908                    1 238                    2 420
Reinsurance contract liabilities                                     1 734                    1 475                    1 685
Deferred income tax                                                  2 994                    3 371                    2 874
Employee benefit obligations                                           957                      998                    1 153
Other payables                                                      13 622                   13 480                   14 304
Provisions                                                              79                       55                       73
Current income tax liabilities                                         155                      122                      252
Non-current liabilities held for sale                                  452                        -                        -
Total liabilities                                                  439 429                  454 746                  453 575

Total equity and liabilities                                       462 322                  477 808                  476 365

1   For prior reporting periods, this line item was classified as designated at fair value through income in terms of IAS 39 and 
    has not been restated.

SUMMARISED CONSOLIDATED INCOME STATEMENT
                                                                    6 mths to              6 mths to             12 mths to
                                                                   31.12.2018             31.12.2017             30.06.2018
                                                                           Rm                     Rm                     Rm

Net insurance premiums                                                 20 411                 14 688                 29 893
Fee income (1)                                                          4 274                  3 852                  7 536
Investment income                                                      10 656                  9 750                 20 084
Net realised and fair value (losses)/gains                            (16 635)                18 689                 17 786
Net income                                                             18 706                 46 979                 75 299

Net insurance benefits and claims                                      13 134                 12 268                 27 232
Change in actuarial liabilities and related reinsurance                   (49)                 4 573                  1 794
  Change in long-term insurance contract liabilities                    1 380                  4 172                  1 612
  Change in non-life insurance contract liabilities                        32                    (25)                   (71)
  Change in investment contracts with DPF liabilities                  (1 449)                   749                    285
  Change in reinsurance assets                                            (79)                  (386)                  (322)
  Change in reinsurance liabilities                                        67                     63                    290
Fair value adjustments on investment contract liabilities              (6 228)                14 986                 17 555
Fair value adjustments on collective investment scheme liabilities     (2 141)                 1 422                  2 738
Depreciation, amortisation and impairment expenses                        687                    614                  1 226
Employee benefit expenses                                               2 992                  2 755                  5 457
Sales remuneration                                                      3 155                  2 923                  5 796
Other expenses                                                          3 791                  3 693                  7 779
Expenses                                                               15 341                 43 234                 69 577

Results of operations                                                   3 365                  3 745                  5 722
Share of loss of associates and joint ventures                           (135)                   (92)                  (213)
Finance costs (2)                                                        (508)                  (539)                (1 048)
Profit before tax                                                       2 722                  3 114                  4 461
Income tax expense                                                     (1 398)                (1 852)                (3 039)
Earnings for the period                                                 1 324                  1 262                  1 422

Attributable to:
  Owners of the parent                                                  1 241                  1 247                  1 369
  Non-controlling interests                                                83                     15                     53
                                                                        1 324                  1 262                  1 422

Basic earnings per ordinary share (cents)                                83.2                   80.0                   88.2
Diluted earnings per ordinary share (cents)                              82.2                   79.4                   88.1

1   Fee income consists of the following:
    Investment contracts                                                1 437                  1 266                  2 384
    Trust and fiduciary services                                          800                    805                  1 506
    Health administration                                                 943                    892                  1 780
    Other fee income                                                    1 094                    889                  1 866
                                                                        4 274                  3 852                  7 536

2   Finance costs consist of the following:
    Preference shares issued by MMI                                        53                     57                    110
    Subordinated debt                                                     210                    190                    397
    Cost of carry positions                                               135                    195                    363
    Other finance costs                                                   110                     97                    178
                                                                          508                    539                  1 048

SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
                                                                    6 mths to              6 mths to             12 mths to
                                                                   31.12.2018             31.12.2017             30.06.2018
                                                                           Rm                     Rm                     Rm

Earnings for the period                                                 1 324                  1 262                  1 422
Other comprehensive (loss)/income, net of tax                             (90)                   (37)                   138
  Items that may subsequently be reclassified to income                    44                    (78)                    (6)
    Exchange differences on translating foreign operations                 60                    (79)                     9
    Available-for-sale financial assets                                     -                     (1)                    (7)
    Share of other comprehensive (loss)/income of associates              (16)                     2                     (8)

  Items that will not be reclassified to income                          (134)                    41                    144
    Land and building revaluation                                        (174)                    49                    131
    Remeasurements of post-employee benefit funds                          (9)                   (11)                    14
    Income tax relating to items that will not be reclassified             49                      3                     (1)


Total comprehensive income for the period                               1 234                  1 225                  1 560

Total comprehensive income attributable to:
  Owners of the parent                                                  1 149                  1 209                  1 507
  Non-controlling interests                                                85                     16                     53
                                                                        1 234                  1 225                  1 560

RECONCILIATION OF HEADLINE EARNINGS
attributable to owners of the parent

                                                                                 Basic earnings                           Diluted earnings
                                                                    6 mths to     6 mths to    12 mths to     6 mths to     6 mths to    12 mths to
                                                                   31.12.2018    31.12.2017    30.06.2018    31.12.2018    31.12.2017    30.06.2018
                                                                           Rm            Rm            Rm            Rm            Rm            Rm

Earnings                                                                1 241         1 247         1 369         1 241         1 247         1 369
Finance costs - convertible preference shares                                                                        19            21            40
Dilutory effect of subsidiaries (1)                                                                                 (10)           (7)          (16)
Diluted earnings                                                                                                  1 250         1 261         1 393
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)                                24            43            97            24            43            97
Tax on intangible assets and other impairments                             (7)          (12)          (16)           (7)          (12)          (16)
Loss on sale of business/subsidiary                                         -             -            18             -             -            18
Impairments relating to held for sale entities                             51             -             -            51             -             -
FCTR reversal on sale of foreign subsidiary                                 -             -           (13)            -             -           (13)
Impairment of owner-occupied property below cost                           60             -             -            60             -             -
Tax on impairment of owner-occupied property below cost                   (13)            -             -           (13)            -             -
Headline earnings (3)                                                   1 356         1 278         1 444         1 365         1 292         1 468
Adjustments for MMI shares held by policyholder funds                      (7)           25           (32)           (7)           25           (32)
Amortisation of intangible assets relating to business combinations       260           277           543           260           277           543
BEE cost                                                                    -             -            24             -             -            24
Normalised headline earnings (4)                                        1 609         1 580         1 979         1 618         1 594         2 003

1   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.
2   Current period impairments relate to customer relationships in Africa due to a decline in the directors' valuation.
    The December 2017 period impairments relate mainly to software in Metropolitan Retail as certain components are no longer used.
    The June 2018 period impairments relate mainly to software in Metropolitan Retail as certain components are no longer used and goodwill in Momentum
    Investments (previously International under the old operating model) due to a decline in the directors' valuation relating to a restructure of the UK
    businesses.
3   Headline earnings consist of operating profit, investment income, net realised and fair value gains, investment variances and basis and other changes.
4   Normalised headline earnings excludes adjustments for MMI shares held by policyholder funds, the amortisation of intangible assets relating to business
    combinations as well as BEE costs. It includes basis changes and investment variances of negative R13 million (31.12.2017: positive R41 million;
    30.06.2018: negative R651 million).


EARNINGS PER SHARE (cents)
attributable to owners of the parent
                                                          6 mths to             6 mths to            12 mths to
                                                         31.12.2018            31.12.2017            30.06.2018
Basic
Normalised headline earnings                                  107.8                 101.3                 127.5
Headline earnings                                              90.9                  82.0                  93.0
Earnings                                                       83.2                  80.0                  88.2
Weighted average number of shares (million)                   1 492                 1 559                 1 552
Basic number of shares in issue (million)                     1 455                 1 560                 1 512
Diluted
Normalised headline earnings                                  105.3                  99.4                 125.5
Weighted average number of shares (million) (1)               1 536                 1 604                 1 596
Headline earnings                                              89.8                  81.4                  92.9
Earnings                                                       82.2                  79.4                  88.1
Weighted average number of shares (million) (2)               1 520                 1 588                 1 580

1   For diluted normalised 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
                                                                                     2019                  2018
Ordinary listed MMI Holdings Ltd shares (cents per share)
Interim - March                                                                        35                     -
Final - September                                                                       -                     -
Total                                                                                  35                     -

Share buy-back programme
At 31 December 2018, a total of 106 million shares (R2 billion excluding transaction costs) have been bought back as part of the share buy-back programme.
The consideration paid has been adjusted for in retained earnings except for the 27 million shares (R487 million) held by a subsidiary of the group which
has been adjusted for in share premium.

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 prior period) 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. 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).

A3 MMI Holdings Ltd preference share dividends
                                                                  2019              2018
                                                                    Rm                Rm
KTH
Interim - March                                                     19                19
Final - September                                                    -                19
Total                                                               19                38

SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                                                                         6 mths to              6 mths to             12 mths to
                                                                        31.12.2018             31.12.2017             30.06.2018
                                                                                Rm                     Rm                     Rm
Changes in share capital
Balance at beginning and end                                                     9                      9                      9

Changes in share premium
Balance at beginning                                                        13 758                 13 737                 13 737
Conversion of preference shares                                                  -                      7                      7
Decrease in treasury shares held on behalf of contract holders                   9                     42                     14
Increase in treasury shares held on behalf of shareholders                    (487)                     -                      -
Balance at end                                                              13 280                 13 786                 13 758

Changes in other reserves
Balance at beginning                                                         1 767                  1 788                  1 788
Total comprehensive (loss)/income                                              (92)                   (38)                   138
Employee share schemes - value of services provided                              -                      3                     43
Change in non-distributable reserves                                            (6)                     -                     (6)
Transfer to retained earnings                                                   (7)                   (50)                  (196)
Balance at end (1)                                                           1 662                  1 703                  1 767

Changes in retained earnings
Balance at beginning                                                         6 794                  7 422                  7 422
IFRS 9 opening adjustment                                                      (40)                     -                      -
Restated opening balance                                                     6 754                  7 422                  7 422
Total comprehensive income                                                   1 241                  1 247                  1 369
Dividend paid                                                                    -                 (1 435)                (1 442)
Shares repurchased                                                            (544)                     -                   (974)
Transactions with non-controlling interests                                     (9)                   (19)                   223
Transfer from other reserves                                                     7                     50                    196
Balance at end                                                               7 449                  7 265                  6 794

Equity attributable to owners of the parent                                 22 400                 22 763                 22 328

Changes in non-controlling interests
Balance at beginning                                                           462                    292                    292
Total comprehensive income                                                      85                     16                     53
Dividend paid                                                                  (55)                   (24)                   (32)
Transactions with owners                                                         1                     (1)                   133
Business combinations                                                            -                     16                     16
Balance at end                                                                 493                    299                    462

Total equity                                                                22 893                 23 062                 22 790

1   Other reserves consist of the following:
    Land and building revaluation reserve                                      564                    802                    732
    Foreign currency translation reserve                                       (33)                  (175)                   (97)
    Revaluation of available-for-sale investments                                -                      6                      -
    Non-distributable reserve                                                   67                     60                     57
    Employee benefit revaluation reserve                                        93                     77                    102
    Fair value adjustment for preference shares issued by MMI Holdings Ltd     940                    940                    940
    Equity-settled share-based payment arrangements                             31                     (7)                    33
                                                                             1 662                  1 703                  1 767


SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS

                                                                  6 mths to             6 mths to             12 mths to
                                                                 31.12.2018            31.12.2017             30.06.2018
                                                                         Rm                    Rm                     Rm

Cash flow from operating activities
Cash utilised in operations                                          (6 418)               (5 499)               (12 313)
Interest and dividends received                                       9 951                 9 194                 18 936
Income tax paid                                                      (1 346)               (1 672)                (3 053)
Interest paid                                                          (485)                 (472)                  (920)
Net cash inflow from operating activities                             1 702                 1 551                  2 650

Cash flow from investing activities
Net acquisition of subsidiaries                                           -                   (97)                   (98)
Net investments in associates and joint ventures                       (174)                 (122)                  (264)
Net loan repayments by related parties                                   46                    95                     11
Net purchases of owner-occupied properties                              (25)                   48                    (47)
Net purchases of property and equipment                                (182)                  (55)                  (117)
Net purchases of intangible assets                                      (46)                  (63)                   (81)
Dividends from associates                                                23                     -                      2
Net cash outflow from investing activities                             (358)                 (194)                  (594)

Cash flow from financing activities
Net repayments of borrowings                                            147                  (753)                (2 275)
Dividends paid to equity holders                                          -                (1 435)                (1 442)
Dividends paid to non-controlling interest shareholders                 (55)                  (24)                   (32)
Decrease of treasury shares held on behalf of contract holders            9                    42                     14
Increase of treasury shares held on behalf of shareholders             (487)                    -                      -
Transactions with minority shareholders                                  (8)                  (20)                   356
Other equity transactions                                                (2)                    5                      6
Net issue of subordinated call notes                                      -                   750                    750
Shares repurchased                                                     (544)                    -                   (974)
Net cash outflow from financing activities                             (940)               (1 435)                (3 597)

Net cash flow                                                           404                   (78)                (1 541)
Cash resources and funds on deposit at beginning                     25 812                27 353                 27 353
Cash resources and funds on deposit at end                           26 216                27 275                 25 812


NON-CONTROLLING INTERESTS
                                               31.12.2018           31.12.2017           30.06.2018
                                                        %                    %                    %

Cannon Assurance                                     33.7                 33.7                 33.7
Eris Property Group                                  23.9                 23.9                 23.9
Metropolitan Health Ghana                             0.9                  0.9                  0.9
Metropolitan Health Namibia Administrators           49.0                 49.0                 49.0
Metropolitan Kenya                                   33.7                 33.7                 33.7
Metropolitan Swaziland                               33.0                 33.0                 33.0
Metropolitan Tanzania                                33.0                 33.0                 33.0
Metropolitan Health Zambia                           35.0                 35.0                 35.0
MMI Holdings Namibia                                  9.9                  9.9                  9.9
Momentum Mozambique                                  33.0                 33.0                 33.0
Momentum Swaziland                                   33.0                 33.0                 33.0
Metropolitan Health Corporate                        49.0                    -                 49.0
Momentum Short-term Insurance (Namibia)              30.0                 30.0                 30.0


BUSINESS COMBINATIONS - DECEMBER 2018
There were no significant business combinations for the 6 months ended December 2018.

BUSINESS COMBINATIONS - DECEMBER 2017
There were no significant business combinations for the 6 months ended December 2017. Goodwill (R27 million), customer relationships relating to non-life
business (R84 million), broker network (R71 million), and computer software (R5 million) were recognised due to small acquisitions.

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 non-life business (R84 million) and health (R23 million), broker network (R71 million), and computer software (R5 million) were recognised due
to small acquisitions.

RECONCILIATION OF GOODWILL
                                31.12.2018       31.12.2017         30.06.2018
                                        Rm               Rm                 Rm

Balance at beginning                 1 124            1 128              1 128
Business combinations (1)                -               27                 27
Impairment charges (2)                   -                -                (31)
Exchange differences                     -               (3)                 -
Balance at end                       1 124            1 152              1 124

1   An acquisition was made in the Guardrisk group for R90 million in the December 2017 period. This resulted in the recognition of R27 million goodwill.
    The entity's business is that of underwriting managers.
2   Goodwill relating to the Financial Partners (Momentum Investments segment) acquisition was impaired in the June 2018 period due to a decline in the
    directors' valuation relating to a restructure of the UK businesses.


MMI HOLDINGS GROUP - SEGMENTAL INFORMATION


6 mths to 31.12.2018
                                        Momentum     Momentum  Metropolitan    Momentum    Non-life                       New    Share-   Segmental   Reconciling      IFRS
                                            Life  Investments        Retail   Corporate   Insurance  Africa (1)   Initiatives   holders       total     items (2)     total
                                              Rm           Rm            Rm          Rm          Rm          Rm            Rm        Rm          Rm            Rm        Rm
Revenue
Net insurance premiums                     4 447       10 257         3 575      12 074       4 759       2 353             -         -      37 465       (17 054)   20 411
    Recurring premiums                     4 313          221         3 072       6 042       4 333       2 006             -         -      19 987        (6 549)   13 438
    Single premiums                          134       10 036           503       6 032         426         347             -         -      17 478       (10 505)    6 973

Fee income                                   661        1 693            73       1 418         669         155            25        54       4 748          (474)    4 274
    Fee income                               644        1 426            73       1 390         669         155            24         7       4 388          (114)    4 274
    Intergroup fee income                     17          267             -          28           -           -             1        47         360          (360)        -

Expenses
Net payments to contract holders
    External payments                      4 756       14 677         2 876       7 361       2 527       1 512             -         -      33 709       (20 575)   13 134

Other expenses                             1 775        1 576         1 289       1 611       1 567         913           130       161       9 022         1 603    10 625
    Sales remuneration                       678          433           536          55       1 110         343             -         -       3 155             -     3 155
    Administration expenses                  836          879           736       1 315         408         477           113       375       5 139         1 386     6 525
    Asset management, direct property
      and other fee expenses                 175          169             -           5           -           1             1        17         368           577       945
    Intergroup expenses                       86           95            17         236          49          92            16      (231)        360          (360)        -

Diluted normalised headline earnings         462          261           333         319         135          94          (248)      262       1 618             -     1 618
Operating profit/(loss)                      630          326           464         433         108          37          (256)      (36)      1 706             -     1 706
Tax on operating profit/(loss)              (176)         (79)         (131)       (125)        (36)        (23)            -       (42)       (612)            -      (612)
Investment income                             11           22             -          16          91         115            10       280         545             -       545
Tax on investment income                      (3)          (6)            -          (4)        (26)        (10)           (2)      (49)       (100)            -      (100)
Fair value (losses)/gains                      -           (1)            -          (1)         (2)        (25)            -       125          96             -        96
Tax on fair value (losses)/gains               -           (1)            -           -           -           -             -       (16)        (17)            -       (17)

Covered                                      496          190           333         275           -         116             -       232       1 642             -     1 642
Non-covered                                  (34)          71             -          44         135         (22)         (248)       30         (24)            -       (24)
                                             462          261           333         319         135          94          (248)      262       1 618             -     1 618

Basis changes and investment variances (3)    10            8             4           -           -         (35)            -         -         (13)            -       (13)

Actuarial liabilities                     71 158      151 278        34 161      89 773      20 088      12 775             -         -     379 233             -   379 233

1   The 'Africa' column includes amounts received/incurred by companies the group has decided to exit: Net insurance premiums R391 million; external payments R274 million
    and administration expenses R169 million.
2   The 'Reconciling items' column includes: investment contract business premiums and claims; intergroup fee income and expenses; direct property
    (R260 million) and asset management fees for all entities (R317 million), 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 (R1 004 million); the
    amortisation of intangibles relating to business combinations (R368 million); expenses relating to consolidated collective investment schemes and other
    minor adjustments to expenses and fee income.
3   Included in diluted normalised headline earnings.

Restated
6 mths to 31.12.2017 (1)
                                         Momentum     Momentum  Metropolitan    Momentum    Non-life                       New    Share-   Segmental   Reconciling      IFRS
                                             Life  Investments        Retail   Corporate   Insurance  Africa (2)   Initiatives   holders       total     items (3)     total
                                               Rm           Rm            Rm          Rm          Rm          Rm            Rm        Rm          Rm            Rm        Rm
Revenue
Net insurance premiums                      4 435       11 226         3 788       7 221       4 036       2 192             -         -      32 898       (18 210)   14 688
    Recurring premiums                      4 288          193         3 120       5 702       3 760       1 872             -         -      18 935        (6 490)   12 445
    Single premiums                           147       11 033           668       1 519         276         320             -         -      13 963       (11 720)    2 243

Fee income                                    558        1 695            45       1 343         472         133            24        39       4 309          (457)    3 852
    Fee income                                543        1 427            45       1 312         471         133            23         -       3 954          (102)    3 852
    Intergroup fee income                      15          268             -          31           1           -             1        39         355          (355)        -

Expenses
Net payments to contract holders
    External payments                       4 992       13 531         2 781       6 604       2 557       1 314             -         -      31 779       (19 511)   12 268

Other expenses                              1 791        1 430         1 217       1 550       1 305         913           102       100       8 408         1 577     9 985
    Sales remuneration                        683          400           541          78         896         355             -         -       2 953           (30)    2 923
    Administration expenses                   897          719           646       1 256         364         455            73       287       4 697         1 418     6 115
    Asset management, direct property
      and other fee expenses                  193          187             -           -           -           1            14         8         403           544       947
    Intergroup expenses                        18          124            30         216          45         102            15      (195)        355          (355)        -

Diluted normalised headline earnings          343          253           364         293         105         165          (166)      237       1 594             -     1 594
Operating profit/(loss)                       504          327           506         404          41          55          (166)      (28)      1 643             -     1 643
Tax on operating profit/(loss)               (172)         (95)         (142)       (122)          9         (25)            -        11        (536)            -      (536)
Investment income                              11           28             -          17          75          80             -       303         514             -       514
Tax on investment income                        -           (6)            -          (2)        (19)         (3)            -       (84)       (114)            -      (114)
Fair value (losses)/gains                       -            -             -          (4)         (2)         52             -        55         101             -       101
Tax on fair value (losses)/gains                -           (1)            -           -           1           6             -       (20)        (14)            -       (14)

Covered                                       423          172           364         250           -         206             -       315       1 730             -     1 730
Non-covered                                   (80)          81             -          43         105         (41)         (166)      (78)       (136)            -      (136)
                                              343          253           364         293         105         165          (166)      237       1 594             -     1 594

Basis changes and investment variances (4)     40          (70)           27           -           -          44             -         -          41             -        41

Actuarial liabilities                      75 571      158 217        34 879      89 782      19 521      12 453             -         -     390 423             -   390 423

1   The table has been restated based on a new operating model adopted by the group. The group has also adopted normalised headline earnings as its primary
    earnings measure and not core headline earnings as previously disclosed. Refer to Appendix A for reconciliations of core headline earnings under the old
    model to normalised headline earnings under the new model.
2   The 'Africa' column includes amounts received/incurred by companies the group has decided to exit: Net insurance premiums R324 million; external payments
    R183 million and administration expenses R171 million.
3   The 'Reconciling items' column includes: investment contract business premiums and claims; intergroup fee income and expenses; direct property
    (R225 million) and asset management fees for all entities (R318 million), 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 (R1 010 million); the
    amortisation of intangibles relating to business combinations (R357 million); expenses relating to consolidated collective investment schemes and other
    minor adjustments to expenses and fee income.
4   Included in diluted normalised headline earnings.

Restated
12 mths to 30.06.2018 (1)
                                         Momentum     Momentum  Metropolitan    Momentum    Non-life                       New    Share-   Segmental   Reconciling      IFRS
                                             Life  Investments        Retail   Corporate   Insurance  Africa (2)   Initiatives   holders       total     items (3)     total
                                               Rm           Rm            Rm          Rm          Rm          Rm            Rm        Rm          Rm            Rm        Rm

Revenue
Net insurance premiums                      8 938       20 894         7 368      15 244       8 609       4 251             -         -      65 304       (35 411)   29 893
    Recurring premiums                      8 587          403         6 064      11 588       8 002       3 751             -         -      38 395       (13 204)   25 191
    Single premiums                           351       20 491         1 304       3 656         607         500             -         -      26 909       (22 207)    4 702

Fee income                                    967        3 531           139       2 859       1 089         372            43        85       9 085        (1 549)    7 536
    Fee income                                948        2 863           139       2 590       1 008         289            42         -       7 879          (343)    7 536
    Intergroup fee income                      19          668             -         269          81          83             1        85       1 206        (1 206)        -

Expenses
Net payments to contract holders
    External payments                       9 494       24 337         5 660      16 329       4 915       2 686              -        -      63 421       (36 189)   27 232

Other expenses                              3 527        2 901         2 518       3 366       2 877       1 826            209      496      17 720         2 538    20 258
    Sales remuneration                      1 348          725         1 060         102       1 946         615              -        -       5 796             -     5 796
    Administration expenses                 1 802        1 410         1 400       2 538         808         900            170      907       9 935         2 849    12 784
    Asset management, direct property
      and other fee expenses                  363          384             -           -           -           3              6       27         783           895     1 678
    Intergroup expenses                        14          382            58         726         123         308             33     (438)      1 206        (1 206)        -

Diluted normalised headline earnings          472          227           201         909         204         147           (377)     220       2 003             -     2 003
Operating profit/(loss)                       716          248           281       1 247         134          33           (380)    (117)      2 162             -     2 162
Tax on operating profit/(loss)               (257)         (70)          (80)       (356)        (23)        (40)             -      (58)       (884)            -      (884)
Investment income                              18           56             -          33         137         169              3      592       1 008             -     1 008
Tax on investment income                       (5)         (14)            -          (9)        (39)        (27)             -     (141)       (235)            -      (235)
Fair value gains/(losses)                       -           11             -          (8)         (6)         11              -      (51)        (43)            -       (43)
Tax on fair value gains/(losses)                -           (4)            -           2           1           1              -       (5)         (5)            -        (5)

Covered                                       628           84           201         731           -         271              -      358       2 273             -     2 273
Non-covered                                  (156)         143             -         178         204        (124)          (377)    (138)       (270)            -      (270)
                                              472          227           201         909         204         147           (377)     220       2 003             -     2 003

Basis changes and investment variances (4)   (276)        (250)         (410)        333           -         (48)             -        -        (651)            -      (651)

Actuarial liabilities                      75 173      159 355        34 903      88 160      19 742      13 009              -        -     390 342             -   390 342

1   The table has been restated based on a new operating model adopted by the group. The group has also adopted normalised headline earnings as its primary
    earnings measure and not core headline earnings as previously disclosed. Refer to Appendix A for reconciliations of core headline earnings under the old
    model to normalised headline earnings under the new model.
2   The 'Africa' 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.
3   The 'Reconciling items' column includes: investment contract business premiums and claims; intergroup fee income and expenses; direct property
    (R460 million) and asset management fees for all entities (R436 million), 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 (R2 092 million); the
    amortisation of intangibles relating to business combinations (R715 million); expenses relating to consolidated collective investment schemes and other
    minor adjustments to expenses and fee income.
4   Included in diluted normalised headline earnings.

CHANGE IN DILUTED NORMALISED HEADLINE EARNINGS
                                                                                   Restated            Restated
                                                              6 mths to           6 mths to          12 mths to
                                             Change          31.12.2018      31.12.2017 (1)      30.06.2018 (1)
                                                  %                  Rm                  Rm                  Rm

Momentum Life                                    35                 462                 343                 472
Momentum Investments                              3                 261                 253                 227
Metropolitan Retail                              (9)                333                 364                 201
Momentum Corporate                                9                 319                 293                 909
Non-life Insurance                               29                 135                 105                 204
Africa                                          (43)                 94                 165                 147
New Initiatives                                 (49)               (248)               (166)               (377)
Operating segments                               (0)              1 356               1 357               1 783
Shareholders                                     11                 262                 237                 220
Total diluted normalised headline earnings        2               1 618               1 594               2 003

1   The table has been restated based on a new operating model adopted by the group. The group has also adopted normalised headline earnings as its primary
    earnings measure and not core headline earnings as previously disclosed. Refer to Appendix A for reconciliations of core headline earnings under the old
    model to normalised headline earnings under the new model.


SEGMENTAL ANALYSIS
                                    Momentum     Momentum  Metropolitan    Momentum    Non-life                       New     Share-
                                        Life  Investments        Retail   Corporate   Insurance      Africa    Initiatives   holders       Total
                                          Rm           Rm            Rm          Rm          Rm          Rm             Rm        Rm          Rm

6 mths to 31.12.2018
Covered
Protection                               221            -           149          74           -           -              -         -         444
Long-term savings                        110           66           108         125           -           -              -         -         409
Annuities and structured products          -          124            64          55           -           -              -         -         243
Traditional                               80            -            13           -           -           -              -         -          93
Other                                     85            -            (1)         21           -          78              -        12         195
Investment income                          -            -             -           -           -          38              -       220         258
Total                                    496          190           333         275           -         116              -       232       1 642

Non-covered
Investment and savings                     -           71             -           -           -           -              -         -          71
Life insurance                             -            -             -           -           -         (36)             -         -         (36)
Health                                     -            -             -          62           -          35              -         -          97
Multiply                                 (34)           -             -           -           -           -              -         -         (34)
Non-life insurance                         -            -             -           -          (8)         19              -         -          11
Cell captives                              -            -             -           -         143           -              -         -         143
Unallocated expenses                       -            -             -           -           -           -              -       (60)        (60)
New initiatives India                      -            -             -           -           -           -           (150)        -        (150)
New initiatives aYo                        -            -             -           -           -           -            (36)        -         (36)
Other                                      -            -             -         (18)          -         (40)           (62)       90         (30)
Total                                    (34)          71             -          44         135         (22)          (248)       30         (24)

Normalised headline earnings             462          261           333         319         135          94           (248)      262       1 618


SEGMENTAL ANALYSIS
                                    Momentum     Momentum  Metropolitan    Momentum    Non-life                       New     Share-
                                        Life  Investments        Retail   Corporate   Insurance      Africa    Initiatives   holders       Total
                                          Rm           Rm            Rm          Rm          Rm          Rm             Rm        Rm          Rm
Restated
6 mths to 31.12.2017 (1)

Covered
Protection                               110            -           154          84           -           -              -         -         348
Long-term savings                         53           79           139         106           -           -              -         -         377
Annuities and structured products          -           93            61          45           -           -              -         -         199
Traditional                              181            -            16           -           -           -              -         -         197
Other                                     79            -            (6)         15           -         175              -        29         292
Investment income                          -            -             -           -           -          31              -       286         317
Total                                    423          172           364         250           -         206              -       315       1 730

Non-covered
Investment and savings                     -           81             -           -           -           -              -         -          81
Life insurance                             -            -             -           -           -          10              -         -          10
Health                                     -            -             -          51           -          20              -         -          71
Multiply                                 (77)           -             -           -           -           -              -         -         (77)
Non-life insurance                         -            -             -           -         (22)        (18)             -         -         (40)
Cell captives                              -            -             -           -         127           -              -         -         127
Unallocated expenses                       -            -             -           -           -           -              -       (45)        (45)
New initiatives India                      -            -             -           -           -           -           (102)        -        (102)
New initiatives aYo                        -            -             -           -           -           -            (28)        -         (28)
Other                                     (3)           -             -          (8)          -         (53)           (36)      (33)       (133)
Total                                    (80)          81             -          43         105         (41)          (166)      (78)       (136)

Normalised headline earnings             343          253           364         293         105         165           (166)      237       1 594

1   The table has been restated based on a new operating model adopted by the group. The group has also adopted normalised headline earnings as its primary
    earnings measure and not core headline earnings as previously disclosed. Refer to Appendix A for reconciliations of core headline earnings under the old
    model to normalised headline earnings under the new model.

SEGMENTAL ANALYSIS
                                    Momentum     Momentum  Metropolitan    Momentum    Non-life                       New     Share-
                                        Life  Investments        Retail   Corporate   Insurance      Africa    Initiatives   holders       Total
                                          Rm           Rm            Rm          Rm          Rm          Rm             Rm        Rm          Rm
Restated
12 mths to 30.06.2018 (1)
Covered
Protection                               (13)           -           150         293           -           -              -         -         430
Long-term savings                        135          109          (118)        196           -           -              -         -         322
Annuities and structured products          -          (25)           75         212           -           -              -         -         262
Traditional                              357            -           108           -           -           -              -         -         465
Other                                    149            -           (14)         30           -         200              -      (116)        249
Investment income                          -            -             -           -           -          71              -       474         545
Total                                    628           84           201         731           -         271              -       358       2 273

Non-covered
Investment and savings                     -          143             -           -           -           -              -         -         143
Life insurance                             -            -             -           -           -         (32)             -         -         (32)
Health                                     -            -             -         195           -          49              -         -         244
Multiply                                (152)           -             -           -           -           -              -         -        (152)
Non-life insurance                         -            -             -           -         (56)         10              -         -         (46)
Cell captives                              -            -             -           -         260           -              -         -         260
Unallocated expenses                       -            -             -           -           -           -              -       (97)        (97)
New initiatives India                      -            -             -           -           -           -           (218)        -        (218)
New initiatives aYo                        -            -             -           -           -           -            (58)        -         (58)
Other                                     (4)           -             -         (17)          -        (151)          (101)      (41)       (314)
Total                                   (156)         143             -         178         204        (124)          (377)     (138)       (270)

Normalised headline earnings             472          227           201         909         204         147           (377)      220       2 003

1   The table has been restated based on a new operating model adopted by the group. The group has also adopted normalised headline earnings as its primary
    earnings measure and not core headline earnings as previously disclosed. Refer to Appendix A for reconciliations of core headline earnings under the old
    model to normalised headline earnings under the new model.



MOMENTUM INVESTMENTS - NON-COVERED BUSINESS

                                                                  Restated              Restated
                                           6 mths to             6 mths to            12 mths to
                                          31.12.2018        31.12.2017 (1)        30.06.2018 (1)
                                                  Rm                    Rm                    Rm

Revenue                                          742                   835                 1 725
Fee income                                       709                   753                 1 558
Performance fees                                   3                     1                     1
Investment income                                 36                    52                   136
Fair value (losses)/gains                         (6)                   29                    30
Expenses and finance costs                      (647)                 (696)               (1 480)
Other expenses                                  (624)                 (673)               (1 393)
Finance costs                                    (23)                  (23)                  (87)

Share of profit/(loss) of associates               2                    (3)                    5
Profit before tax                                 97                   136                   250
Income tax expense                               (21)                  (46)                  (81)
Non-controlling interest                          (5)                   (9)                  (26)
Normalised headline earnings                      71                    81                   143

Operating profit before tax                       84                    89                   155
Tax on operating profit                          (17)                  (36)                  (58)
Investment income                                 13                    20                    47
Tax on investment income                          (4)                   (5)                  (12)
Fair value (losses)/gains                         (6)                   15                    14
Tax on fair value (losses)/gains                   1                    (2)                   (3)
Diluted normalised headline earnings              71                    81                   143

Assets under management at period end        468 604               486 787               496 911

1   The table has been restated based on a new operating model adopted by the group. The group has also adopted normalised headline earnings as its primary
    earnings measure and not core headline earnings as previously disclosed. Refer to Appendix A for reconciliations of core headline earnings under the old
    model to normalised headline earnings under the new model.

HEALTH - NON-COVERED BUSINESS
                                                 Momentum
                                                Corporate         Africa                Total
                                                       Rm             Rm                   Rm
6 mths to 31.12.2018
Revenue                                             1 356            460                1 816
Net insurance premiums                                383            339                  722
Fee income                                            941            102                1 043
Investment income                                      20             19                   39
Intergroup fees                                        12              -                   12

Expenses and finance costs                         (1 216)          (387)              (1 603)
Net payments to contract holders                     (266)          (234)                (500)
Change in actuarial liabilities                        (4)             -                   (4)
Other expenses                                       (944)          (153)              (1 097)
Finance costs                                          (2)             -                   (2)

Profit before tax                                     140             73                  213
Income tax expense                                    (35)           (22)                 (57)
Non-controlling interest                              (43)           (16)                 (59)
Earnings attributable to ordinary shareholders         62             35                   97

Operating profit before tax                            71             37                  108
Tax on operating profit                               (19)           (16)                 (35)
Investment income                                      15             19                   34
Tax on investment income                               (4)             -                   (4)
Fair value losses                                      (1)            (5)                  (6)
Diluted normalised headline earnings                   62             35                   97

Closed schemes                                         13             35                   48
Open scheme                                            30              -                   30
Other                                                  19              -                   19
                                                       62             35                   97

                                        Principal members          Lives
Momentum Corporate principal members              993 753
Africa lives                                                     416 186


HEALTH - NON-COVERED BUSINESS

                                                 Momentum
                                                Corporate         Africa                Total
                                                       Rm             Rm                   Rm
Restated
6 mths to 31.12.2017 (1)
Revenue                                             1 263            360                1 623
Net insurance premiums                                344            255                  599
Fee income                                            895             95                  990
Investment income                                      16             10                   26
Intergroup fees                                         8              -                    8

Expenses and finance costs                         (1 186)          (304)              (1 490)
Net payments to contract holders                     (259)          (182)                (441)
Change in actuarial liabilities                        (5)             -                   (5)
Other expenses                                       (921)          (122)              (1 043)
Finance costs                                          (1)             -                   (1)

Profit before tax                                      77             56                  133
Income tax expense                                    (26)           (21)                 (47)
Non-controlling interest                                -            (15)                 (15)
Earnings attributable to ordinary shareholders         51             20                   71

Operating profit before tax                            62             24                   86
Tax on operating profit                               (24)           (14)                 (38)
Investment income                                      18             11                   29
Tax on investment income                               (2)             -                   (2)
Fair value losses                                      (3)            (1)                  (4)
Diluted normalised headline earnings                   51             20                   71

Closed schemes                                         42             20                   62
Open scheme                                            (3)             -                   (3)
Other                                                  12              -                   12
                                                       51             20                   71

                                               Principal 
                                                 members           Lives
Momentum Corporate principal members             976 683
Africa lives                                                     454 259


1    The table has been restated based on a new operating model adopted by the group. The group has also adopted normalised headline earnings as its primary
     earnings measure and not core headline earnings as previously disclosed. Refer to Appendix A for reconciliations of core headline earnings under the
     old model to normalised headline earnings under the new model.

HEALTH - NON-COVERED BUSINESS
                                                 Momentum
                                                Corporate         Africa                Total
                                                       Rm             Rm                   Rm

Restated
12 mths to 30.06.2018 (1)
Revenue                                             2 553            774                3 327
Net insurance premiums                                694            558                1 252
Fee income                                          1 798            186                1 984
Investment income                                      30             30                   60
Intergroup fees                                        31              -                   31

Expenses and finance costs                         (2 239)          (655)              (2 894)
Net payments to contract holders                     (476)          (394)                (870)
Other expenses                                     (1 760)          (261)              (2 021)
Finance costs                                          (3)             -                   (3)

Profit before tax                                     314            119                  433
Income tax expense                                    (85)           (37)                (122)
Non-controlling interests                             (34)           (33)                 (67)
Earnings attributable to ordinary shareholders        195             49                  244

Operating profit before tax                           249             47                  296
Tax on operating profit                               (72)           (23)                 (95)
Investment income                                      32             28                   60
Tax on investment income                               (9)             -                   (9)
Fair value losses                                      (7)            (3)                 (10)
Tax on fair value losses                                2              -                    2
Diluted normalised headline earnings                  195             49                  244

Closed schemes                                        102             49                  151
Open scheme                                            37              -                   37
Other                                                  56              -                   56
                                                      195             49                  244

                                                Principal 
                                                  members          Lives
Momentum Corporate principal members              978 555
Africa lives                                                     440 981


1   The table has been restated based on a new operating model adopted by the group. The group has also adopted normalised headline earnings as its primary
    earnings measure and not core headline earnings as previously disclosed. Refer to Appendix A for reconciliations of core headline earnings under the old
    model to normalised headline earnings under the new model.


NON-LIFE INSURANCE

                                                     Non-life      Cell captive
                                                     business          business         Africa          Total
                                                           Rm                Rm             Rm             Rm
6 mths to 31.12.2018

Net insurance premiums                                    416                 -             89            505
Fee income                                                  2               350             21            373
    Management fees                                         -               217              -            217
    Investment fees                                         -                41              -             41
    Underwriting fees                                       -                92              -             92
    Other fee income                                        2                 -             21             23
Investment income                                          29                75             13            117

Total income                                              447               425            123            995

Expenses and finance costs                               (448)             (228)          (105)          (781)
Net payments to contract holders                         (255)                -            (42)          (297)
Change in actuarial liabilities                             -                 -              9              9
Acquisition costs 1                                       (52)                -            (21)           (73)
Other expenses                                           (141)             (221)           (51)          (413)
Finance costs                                               -                (7)             -             (7)

(Loss)/Profit before tax                                   (1)              197             18            214
Income tax expense                                         (7)              (54)             5            (56)
Non-controlling interest                                    -                 -             (4)            (4)
Earnings attributable to ordinary shareholders             (8)              143             19            154

Operating (loss)/profit before tax                        (23)              129              1            107
Tax on operating (loss)/profit                             (1)              (35)             5            (31)
Investment income                                          22                69             14            105
Tax on investment income                                   (6)              (19)             -            (25)
Fair value losses                                           -                (1)            (1)            (2)
Diluted normalised headline earnings                       (8)              143             19            154

Ability                                                     -                 2              -              2
Momentum Short-term Insurance                              19                 -              -             19
MMI Short-term Insurance Administration                   (27)                -              -            (27)
Guardrisk Group                                             -               141              -            141
Swaziland                                                   -                 -              2              2
Tanzania                                                    -                 -             (1)            (1)
Momentum Short-term Insurance (Namibia)                     -                 -              7              7
Cannon Short-term                                           -                 -             11             11
                                                           (8)              143             19            154

1   The acquisition costs relating to the cell captive business are included in underwriting profit.

NON-LIFE INSURANCE

                                                     Non-life      Cell captive
                                                     business          business         Africa          Total
                                                           Rm                Rm             Rm             Rm

Restated
6 mths to 31.12.2017 (1)
Net insurance premiums                                    350                 -             83            433
Fee income                                                  3               321             11            335
    Management fees                                         -               233              -            233
    Investment fees                                         -                42              -             42
    Underwriting fees                                       -                46              -             46
    Other fee income                                        3                 -             11             14
Investment income                                          19                65              7             91

Total income                                              372               386            101            859

Expenses and finance costs                               (427)             (213)          (122)          (762)
Net payments to contract holders                         (250)                -            (59)          (309)
Change in actuarial liabilities                             -                 -              7              7
Acquisition costs 2                                       (50)                -            (18)           (68)
Other expenses                                           (127)             (207)           (52)          (386)
Finance costs                                               -                (6)             -             (6)

(Loss)/Profit before tax                                  (55)              173            (21)            97
Income tax expense                                         33               (46)             1            (12)
Non-controlling interest                                    -                 -              2              2

Earnings attributable to ordinary shareholders            (22)              127            (18)            87

Operating (loss)/profit before tax                        (58)              113            (26)            29
Tax on operating (loss)/profit                             34               (28)             1              7
Investment income                                           2                61              8             71
Tax on investment income                                    -               (18)             -            (18)
Fair value losses                                           -                (2)            (1)            (3)
Tax on fair value losses                                    -                 1              -              1
Diluted normalised headline earnings                      (22)              127            (18)            87

Ability                                                     -                 3              -              3
Momentum Short-term Insurance                               9                 -              -              9
MMI Short-term Insurance Administration                   (31)                -              -            (31)
Guardrisk Group                                             -               124              -            124
Swaziland                                                   -                 -             (1)            (1)
Tanzania                                                    -                 -             (1)            (1)
Momentum Short-term Insurance (Namibia)                     -                 -             (1)            (1)
Cannon Short-term                                           -                 -            (15)           (15)
                                                          (22)              127            (18)            87

1   The table has been restated based on a new operating model adopted by the group. The group has also adopted normalised headline earnings as its primary
    earnings measure and not core headline earnings as previously disclosed. Refer to Appendix A for reconciliations of core headline earnings under the
    old model to normalised headline earnings under the new model.
2   The acquisition costs relating to the cell captive business are included in underwriting profit.

NON-LIFE INSURANCE

                                                     Non-life      Cell captive
                                                     business          business         Africa          Total
                                                           Rm                Rm             Rm             Rm

Restated
12 mths to 30.06.2018 (1)
Net insurance premiums                                    731                 -            164            895
Fee income                                                  6               656             31            693
    Management fees                                         -               456              -            456
    Investment fees                                         -                73              -             73
    Underwriting fees                                       -               125              -            125
    Other fee income                                        6                 2             31             39
Investment income                                          41               117             16            174

Total income                                              778               773            211          1 762

Expenses and finance costs                               (867)             (420)          (201)        (1 488)
Net payments to contract holders                         (486)                -            (88)          (574)
Change in actuarial liabilities                             -                 -             11             11
Acquisition costs (2)                                    (113)                -            (34)          (147)
Other expenses                                           (268)             (409)           (90)          (767)
Finance costs                                               -               (11)             -            (11)

(Loss)/Profit before tax                                  (89)              353             10            274
Income tax expense                                         33               (93)             1            (59)
Non-controlling interest                                    -                 -             (1)            (1)
Earnings attributable to ordinary shareholders            (56)              260             10            214

Operating (loss)/profit before tax                       (109)              236             (5)           122
Tax on operating (loss)/profit                             39               (60)             1            (20)
Investment income                                          20               118             17            155
Tax on investment income                                   (6)              (32)             -            (38)
Fair value losses                                           -                (3)            (3)            (6)
Tax on fair value losses                                    -                 1              -              1
Diluted normalised headline earnings                      (56)              260             10            214

Ability                                                     -                 2              -              2
Momentum Short-term Insurance                               8                 -              -              8
MMI Short-term Insurance Administration                   (64)                -              -            (64)
Guardrisk Group                                             -               258              -            258
Swaziland                                                   -                 -              2              2
Tanzania                                                    -                 -              3              3
Momentum Short-term Insurance (Namibia)                     -                 -             (3)            (3)
Cannon Short-term                                           -                 -              8              8
                                                          (56)              260             10            214

1   The table has been restated based on a new operating model adopted by the group. The group has also adopted normalised headline earnings as its primary
    earnings measure and not core headline earnings as previously disclosed. Refer to Appendix A for reconciliations of core headline earnings under the old
    model to normalised headline earnings under the new model.
2   The acquisition costs relating to the cell captive business are included in underwriting profit.

INDIA - NON-COVERED BUSINESS (1)
                                                      6 mths to             6 mths to            12 mths to
                                                     31.12.2018            31.12.2017            30.06.2018
                                                             Rm                    Rm                    Rm

Net written premiums                                        332                   187                   451

Net earned premiums                                         257                   122                   307
Fee income                                                    7                     1                     4
Net incurred claims                                        (162)                 (122)                 (268)
Total management expenses                                  (368)                 (177)                 (425)
Net commission expenses                                     (33)                  (14)                  (37)
Underwriting loss                                          (299)                 (190)                 (419)
Investment income                                            15                    10                    20
Operating loss                                             (284)                 (180)                 (399)
Investment income on excess                                   7                     9                    15

Loss before and after tax                                  (277)                 (171)                 (384)

MMI share of results (49%)                                 (136)                  (84)                 (188)
MMI support costs                                           (14)                  (18)                  (30)
Normalised headline earnings                               (150)                 (102)                 (218)


1   The India results have been reported with a three month lag.

SEGMENT IFRS 15 REVENUE FROM CONTRACTS WITH CUSTOMERS (1)

                                                              Total revenue in scope of IFRS 15
                                     Contract            Trust and             Health        Other fee       Total fee
                               administration   fiduciary services     administration           income          income
                                           Rm                   Rm                 Rm               Rm              Rm

6 mths to 31.12.2018
Momentum Life                             424                    6                  -              214             644
Momentum Investments                      704                  675                  -               47           1 426
Metropolitan Retail                        34                    -                  -               39              73
Momentum Corporate                        216                  219                936               19           1 390
Non-life Insurance                         34                    -                  -              635             669
Africa                                     25                    7                  7              116             155
New Initiatives                             -                    -                  -               24              24
Shareholders                                -                    7                  -                -               7
Segmental total                         1 437                  914                943            1 094           4 388
Reconciling items                           -                 (114)                 -                -            (114)
IFRS total                              1 437                  800                943            1 094           4 274

1   Comparative information not required in terms of IFRS 15.


EMBEDDED VALUE INFORMATION

EMBEDDED VALUE RESULTS
                                                                                 Restated           Restated
                                                          31.12.2018           31.12.2017         30.06.2018
                                                                  Rm                   Rm                 Rm

Covered business
Equity attributable to owners of the parent                   22 400               22 763             22 328
Fair value adjustments on Metropolitan business
  acquisition and other consolidation adjustments             (3 022)              (3 310)            (3 170)
Difference between statutory and published valuation
  methods (1)                                                      -               (1 048)            (1 574)
Net assets - non-covered business within life
  insurance companies                                         (2 593)              (2 199)            (2 269)
Net assets - non-covered business outside life
  insurance companies                                         (3 026)              (3 203)            (3 430)
Dilutory effect of subsidiaries (2)                              (81)                 (56)               (52)
Value of MMI Group Ltd preference shares issued                 (500)                (500)              (500)

Diluted adjusted net worth - covered business                 13 178               12 447             11 333
Net value of in-force business                                21 140               22 694             22 133

Diluted embedded value - covered business                     34 318               35 141             33 466

Non-covered business
Net assets - non-covered business within life
  insurance companies                                          2 593                2 199              2 269
Net assets - non-covered business outside life
  insurance companies                                          3 026                3 203              3 430
Consolidation adjustments and transfers to covered
  business (3)                                                (2 093)              (2 438)            (2 306)
Adjustments for dilution (4)                                     648                  686                660

Diluted adjusted net worth - non-covered business              4 174                3 650              4 053
Write-up to directors' value                                   1 388                4 600              2 082
  Non-covered business                                         3 204                5 520              3 895
  Holding company expenses (5)                                (1 232)                (333)            (1 232)
  International holding company expenses (5)                    (584)                (587)              (581)

Diluted embedded value - non-covered business                  5 562                8 250              6 135

Diluted adjusted net worth                                    17 352               16 097             15 386
Net value of in-force business                                21 140               22 694             22 133
Write-up to directors' value                                   1 388                4 600              2 082

Diluted embedded value                                        39 880               43 391             39 601

Required capital - covered business (adjusted for
  qualifying debt) (6)                                         2 707                5 448              5 699
Free surplus - covered business                               10 471                6 999              5 634
Diluted embedded value per share (cents)                       2 660                2 705              2 543
Diluted adjusted net worth per share (cents)                   1 158                1 004                988
Diluted number of shares in issue (million) (7)                1 499                1 604              1 557


1   The new regulatory framework for the South African insurance industry became effective on 1 July 2018, upon the implementation of the South African
    Insurance Act, 18 of 2017. This meant that the previous Statutory Valuation Method was no longer recognised as a valid basis for regulatory liabilities.
    MMI elected to adopt the IFRS liabilities as reference for determining the Value of In-force business for Embedded Value purposes. The remaining
    difference between the statutory and published valuation method is no longer applicable to the embedded value statement from 1 July 2018, but remain
    applicable to prior reporting periods.
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): R117 million (31.12.2017: R109 million; 30.06.2018: R114 million)
    - Treasury shares held on behalf of contract holders: R277 million (31.12.2017: R323 million; 30.06.2018: R292 million)
    - Liability - MMI Holdings Ltd convertible preference shares issued to KTH: R254 million (31.12.2017: R254 million; 30.06.2018: R254 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 in-force covered business amounts to R7 098 million (31.12.2017: R9 829 million; 30.06.2018: R10 073 million) and is adjusted
    for qualifying debt of R4 391 million (31.12.2017: R4 381 million; 30.06.2018: R4 374 million). With the implementation of the new regulatory framework
    as of 1 July 2018, MMIGL has adopted a target range for Solvency Cover of 1.7 to 2.1 times the SCR. This makes allowance for the capital required to
    support the covered business as well as the wider strategic deployments of the group. The required capital allocated to the South African in-force
    covered business represents the IFRS shareholder assets required to provide resilience against a range of severe but plausible scenarios, based on
    stress testing of the new regulatory balance sheet. For the international covered business, required capital is determined as a multiple of the
    statutory capital adequacy requirements.
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 (1)
                                                                      Restated                Restated
                                            31.12.2018              31.12.2017              30.06.2018
                                                    Rm                      Rm                      Rm

Momentum Life                                    8 973                   9 377                   9 834
  Gross value of in-force business               9 848                  10 715                  11 182
  Less cost of required capital                   (875)                 (1 338)                 (1 348)

Momentum Investments (2)                         1 654                   3 034                   1 948
  Gross value of in-force business               1 844                   3 222                   2 111
  Less cost of required capital                   (190)                   (188)                   (163)

Metropolitan Retail                              4 295                   4 003                   4 023
  Gross value of in-force business               4 589                   4 688                   4 659
  Less cost of required capital                   (294)                   (685)                   (636)

Momentum Corporate                               4 508                   4 045                   4 250
  Gross value of in-force business               5 435                   4 886                   5 183
  Less cost of required capital                   (927)                   (841)                   (933)

Africa                                           1 710                   2 235                   2 078
  Gross value of in-force business               2 058                   2 496                   2 366
  Less cost of required capital                   (348)                   (261)                   (288)

Net value of in-force business                  21 140                   22 694                 22 133

1   With the adoption of the new regulatory framework for South African insurers, MMI elected to adopt the IFRS liabilities as reference for determining
    the Value of In-force business for Embedded Value purposes. For purposes of determining the Cost of Required Capital, total Restricted Assets were
    defined in terms of the new regulatory balance sheet by referencing the regulatory technical provisions and SCR. Required Capital is derived as the
    total Restricted Assets less the IFRS liabilities.
2   Prior periods have been restated to include Wealth business in the Momentum Investments segment.


EMBEDDED VALUE DETAIL

                                           Adjusted          Net value                          Restated          Restated
                                          net worth        of in-force       31.12.2018       31.12.2017        30.06.2018
                                                 Rm                 Rm               Rm               Rm                Rm

Covered business
Momentum Life                                 1 375              8 973           10 348           12 460            13 480
Momentum Investments (1, 2)                   1 034              1 654            2 688            4 356             2 888
Metropolitan Retail                           1 216              4 295            5 511            6 374             6 175
Momentum Corporate                            2 766              4 508            7 274            6 383             6 730
Africa                                        2 167              1 710            3 877            4 033             3 833
Shareholders                                  4 620                  -            4 620            1 535               360

Total covered business                       13 178             21 140           34 318           35 141            33 466

                                           Adjusted        Write-up to                          Restated          Restated
                                          net worth   directors' value       31.12.2018       31.12.2017        30.06.2018
                                                 Rm                 Rm               Rm               Rm                Rm

Non-covered business
Momentum Life                                   637             (1 198)            (561)              33              (376)
    Multiply                                    637             (1 198)            (561)              33              (376)
Momentum Investments                            917              1 011            1 928            2 110             1 744
    Investment and savings (1)                  749                910            1 659            2 087             1 726
    Other                                       168                101              269               23                18
Momentum Corporate                              188              1 415            1 603            1 864             1 572
    Health                                      228              1 415            1 643            1 879             1 595
    Other                                       (40)                 -              (40)             (15)              (23)
Non-life Insurance                            2 225              1 658            3 883            3 845             3 553
    Non-life insurance                          893               (313)             580              616               470
    Cell captives                             1 332              1 971            3 303            3 229             3 083
Africa                                         (155)              (534)            (689)            (773)             (530)
    Life insurance                              318               (221)              97              184               204
    Health                                      114                250              364              310               358
    Non-life insurance                           78                  -               78              115               102
    Other                                      (665)                21             (644)            (795)             (613)
    International holding company expenses (3)    -               (584)            (584)            (587)             (581)
New Initiatives                                 507                268              775              629               577
    New initiatives India                       395                226              621              528               453
    New initiatives aYo                          60                 42              102               53                77
    Other                                        52                  -               52               48                47
Shareholders                                   (145)            (1 232)          (1 377)             542              (405)
    Other                                      (145)                 -             (145)             875               827
    Holding company expenses (3)                  -             (1 232)          (1 232)            (333)           (1 232)

Total non-covered business                    4 174              1 388            5 562            8 250             6 135

Total embedded value                         17 352             22 528           39 880           43 391            39 601


1   Prior periods have been restated to reflect the transfer of Wealth to covered business.
2   Included in covered business is Wealth business not deemed to be long-term insurance business with an adjusted net worth of R436 million
    (31.12.2017: R432 million; 30.06.2018: R582 million) and value of in-force of R171 million (31.12.2017: R573 million; 30.06.2018: R229 million).
3   The international holding company expenses reflect the allowance for support services to the international life assurance and health businesses. The
    holding company expenses reflect the present value of projected recurring head office expenses.

ANALYSIS OF CHANGES IN GROUP EMBEDDED VALUE

                                                                                      Covered business
                                                                                                                    Restated       Restated
                                                         Adjusted   Gross value       Cost of       6 mths to      6 mths to     12 mths to
                                                        net worth   of in-force      required      31.12.2018     31.12.2017     30.06.2018
                                                            (ANW)         (VIF)       capital        Total EV       Total EV       Total EV
                                                 Notes         Rm            Rm            Rm              Rm             Rm             Rm

Profit from new business                                     (542)        1 042          (141)            359            318            433
    Embedded value from new business                 A       (542)        1 018          (141)            335            299            345
    Expected return to end of period                 B          -            24             -              24             19             88
Profit from existing business                               1 919          (395)           38           1 562          1 251          1 102
    Expected return - unwinding of RDR               B          -         1 221          (163)          1 058          1 096          2 198
    Release from the cost of required capital        C          -             -           196             196            200            452
    Expected (or actual) net of tax profit
      transfer to net worth                          D      1 657        (1 657)            -               -              -              -
    Operating experience variances                   E        277            41             5             323             39           (181)
    Development expenses                             F        (15)            -             -             (15)           (13)           (51)
    Operating assumption changes                     G          -             -             -               -            (71)        (1 316)

Embedded value profit/(loss) from operations                1 377           647          (103)          1 921          1 569          1 535

Investment return on adjusted net worth              H         43             -             -              43            409            695
Investment variances                                 I        (25)         (972)           95            (902)           472            (82)
Economic assumption changes                          J         (2)            -            (1)             (3)           160             28
Exchange rate movements                              K          9             7            (2)             14            (12)            21
Exceptional items                                    L      1 534        (1 409)          745             870              -              -

Embedded value profit/(loss) - covered business             2 936        (1 727)          734           1 943          2 598          2 197

Transfer of business to non-covered business         M          -             -             -               -            (59)           (59)
Other capital transfers                              N       (346)            -             -            (346)          (374)          (455)
Dividend (paid)/received                                     (745)            -             -            (745)        (1 979)        (3 194)

Change in embedded value - covered business                 1 845        (1 727)          734             852            186         (1 511)

Non-covered business

Change in directors' valuation and other items                                                           (610)          (253)        (1 750)
Change in holding company expenses                                                                         (3)           (23)          (916)

Embedded value profit/(loss) - non-covered business                                                      (613)          (276)        (2 666)

Transfer of business from covered business           M                                                      -             59             59
Other capital transfers                              N                                                    346            374            455
Dividend received/(paid)                                                                                  744            544          1 752
Shares repurchased                                                                                     (1 031)             -           (974)
Finance costs - preference shares                                                                         (19)           (19)           (37)
 
Change in embedded value - non-covered business                                                          (573)           682         (1 411)

Total change in group embedded value                                                                      279            868         (2 922)

Total embedded value profit/(loss)                                                                      1 330          2 322           (469)

Return on embedded value (%) - internal rate of
  return                                                                                                 6.8%          11.2%          -1.1%
Return on embedded value excluding Exceptional
  items (%) - internal rate of return                                                                    2.3%          11.2%          -1.1%



A. VALUE OF NEW BUSINESS

VALUE OF NEW BUSINESS (1, 2)
                                          Momentum            Momentum   Metropolitan     Momentum
                                              Life   Investments (3, 4)        Retail    Corporate     Africa     Total
                                                Rm                   Rm            Rm           Rm         Rm        Rm

6 mths to 31.12.2018
Value of new business                           44                   43            58          198         (8)      335
  Gross                                         92                   50            83          250          1       476
  Less cost of required capital                (48)                  (7)          (25)         (52)        (9)     (141)

New business premiums                        1 493               11 007         1 187        6 377        473    20 537
  Recurring premiums                           509                  109           653          493        176     1 940
    Protection                                 256                    -           427          299         47     1 029
    Long-term savings                          253                  108           224          194        129       908
    Annuities and structured products            -                    1             2            -          -         3
  Single premiums                              984               10 898           534        5 884        297    18 597
    Protection                                   -                    -             -            -        105       105
    Long-term savings                          984                9 290           217        5 869         80    16 440
    Annuities and structured products            -                1 608           317           15        112     2 052

New business premiums (APE)                    607                1 199           707        1 082        206     3 801
    Protection                                 256                    -           427          299         58     1 040
    Long-term savings                          351                1 037           246          781        137     2 552
    Annuities and structured products            -                  162            34            2         11       209

New business premiums (PVP)                  4 104               11 312         2 523        9 784      1 067    28 790
Profitability of new business as a
  percentage of APE                            7.2                  3.6           8.2         18.3       (3.9)      8.8
Profitability of new business as a
  percentage of PVP                            1.1                  0.4           2.3          2.0       (0.7)      1.2


Restated
6 mths to 31.12.2017
Value of new business                           25                   75           130           44         25       299
  Gross                                         54                   89           160           57         37       397
  Less cost of required capital                (29)                 (14)          (30)         (13)       (12)      (98)

New business premiums                        1 383               11 028         1 391        1 750        473    16 025
  Recurring premiums                           491                  102           675          327        232     1 827
    Protection                                 276                    -           447           68         86       877
    Long-term savings                          215                  101           226          259        146       947
    Annuities and structured products            -                    1             2            -          -         3
  Single premiums                              892               10 926           716        1 423        241    14 198
    Protection                                   -                    -             -            1        143       144
    Long-term savings                          892                9 803           362        1 412         80    12 549
    Annuities and structured products            -                1 123           354           10         18     1 505

New business premiums (APE)                    580                1 194           747          469        256     3 246
    Protection                                 276                    -           447           68        100       891
    Long-term savings                          304                1 081           263          400        154     2 202
    Annuities and structured products            -                  113            37            1          2       153

New business premiums (PVP)                  3 725               11 328         2 919        4 855      1 367    24 194
Profitability of new business as a
  percentage of APE                            4.3                  6.3          17.4          9.4        9.8       9.2
Profitability of new business as a
  percentage of PVP                            0.7                  0.7           4.5          0.9        1.8       1.2


Restated
12 mths to 30.06.2018
Value of new business                           66                   76            84          124          (5)     345
  Gross                                        120                  105           134          160          15      534
  Less cost of required capital                (54)                 (29)          (50)         (36)        (20)    (189)

New business premiums                        2 963               22 650         2 618        4 319         861   33 411
  Recurring premiums                           995                  206         1 249          806         429    3 685
    Protection                                 517                    -           816          271         114    1 718
    Long-term savings                          478                  205           429          533         315    1 960
    Annuities and structured products            -                    1             4            2           -        7
  Single premiums                            1 968               22 444         1 369        3 513         432   29 726
    Protection                                   -                    -             -           10         244      254
    Long-term savings                        1 968               19 955           631        3 482         152   26 188
    Annuities and structured products            -                2 489           738           21          36    3 284

New business premiums (APE)                  1 192                2 451         1 386        1 157         472    6 658
    Protection                                 517                    -           816          272         138    1 743
    Long-term savings                          675                2 201           492          881         330    4 579
    Annuities and structured products            -                  250            78            4           4      336

New business premiums (PVP)                  8 089               23 267         5 091       11 218       2 337   50 002
Profitability of new business as a
  percentage of APE                            5.5                  3.1           6.1         10.7        (1.1)     5.2
Profitability of new business as a
  percentage of PVP                            0.8                  0.3           1.6          1.1        (0.2)     0.7


1   Value of new business and new business premiums are net of non-controlling interests.
2   MMI typically does not include any basis changes for interim reporting, i.e. the value of new business has been calculated on opening demographic
    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. MMI does not allow for marginal diversification benefits to be allocated to the value of new
    business for purposes of deriving the cost of required capital.
3   Prior periods have been restated to include Wealth that was transferred to covered business.
4   Included in covered business is Wealth business not deemed to be long-term insurance business with value of new business of R2 million
    (31.12.2017: R9 million; 30.06.2018: R39 million).


RECONCILIATION OF LUMP SUM INFLOWS

                                                                     Restated        Restated
                                                     6 mths to      6 mths to      12 mths to
                                                    31.12.2018     31.12.2017      30.06.2018
                                                            Rm             Rm              Rm

Total lump sum inflows                                  17 564         13 966          26 942
Inflows not included in value of new business           (3 174)        (4 348)         (6 635)
Wealth off-balance sheet business                        3 318          3 777           7 674
Term extensions on maturing policies                       725            262             438
Automatically Continued Policies                           178            553           1 318
Non-controlling interests and other adjustments            (14)           (12)            (11)

Single premiums included in value of new business       18 597         14 198          29 726


PRINCIPAL ASSUMPTIONS (South Africa) (1, 2)                  31.12.2018      31.12.2017       30.06.2018
                                                                      %               %                %

Pre-tax investment return
  Equities                                                         13.2            12.9             13.0
  Properties                                                       10.7            10.4             10.5
  Government stock                                                  9.7             9.4              9.5
  Other fixed-interest stocks                                      10.2             9.9             10.0
  Cash                                                              8.7             8.4              8.5
Risk-free return (3)                                                9.7             9.4              9.5
Risk discount rate (RDR)                                           12.0            11.6             11.8
Investment return (before tax) - balanced portfolio (3)            11.9            11.5             11.7
Renewal expense inflation rate (4)                                  6.5             6.7              6.5


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   The assumptions quoted in the table are representative rates derived at the 10-year point of the yield curves.
3   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.
4   For the retail businesses 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 addition to the expense inflation is
    allowed for in some divisions to reflect the impact of closed books that are in run-off. For Momentum Corporate a fixed real return of 2.4% is
    projected. The 6.5% above represents 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

OPERATING EXPERIENCE VARIANCES
                                                                                                      Restated      Restated
                                                                           Cost of     6 mths to     6 mths to    12 mths to
                                                                          required    31.12.2018    31.12.2017    30.06.2018
                                        Notes       ANW     Gross VIF      capital            EV            EV            EV
                                                     Rm            Rm           Rm            Rm            Rm            Rm

Momentum Life                                       100           (27)           -            73           (55)           78
  Mortality and morbidity                   1        83            18            -           101            69           157
  Terminations, premium cessations
    and policy alterations                  2        20           (70)           -           (50)           10           (33)
  Expense variance                                    3             -            -             3           (12)          (15)
  Other                                              (6)           25            -            19          (122)          (31)

Momentum Investments                                 47           (14)           -            33           (19)          (96)
  Mortality and morbidity                             3             -            -             3             1            24
  Terminations, premium cessations
    and policy alterations                            7           (19)           -           (12)            9           (29)
  Expense variance                                   (5)            -            -            (5)          (46)         (158)
  Credit risk variance                               22             -            -            22            14            31
  Other                                     3        20             5            -            25             3            36

Metropolitan Retail                                  44            14            -            58             3           (33)
  Mortality and morbidity                   1        37             1            -            38            50            98
  Terminations, premium cessations
    and policy alterations                          (16)           11            -            (5)          (63)         (141)
  Expense variance                                   (5)            -            -            (5)           (5)          (18)
  Credit risk variance                               16             -            -            16             8            17
  Other                                              12             2            -            14            13            11

Momentum Corporate                                   72            70            5           147           124           (34)
  Mortality and morbidity                   1        32             -            -            32            27            11
  Terminations, premium cessations
    and policy alterations                  4         2            70            -            72            12           (59)
  Expense variance                                   11             -            -            11            47            51
  Credit risk variance                                6             -            -             6            22            48
  Other                                     5        21             -            5            26            16           (85)

Africa                                               28            (2)           -            26            (7)           10
  Mortality and morbidity                   6        25             2            -            27            24            52
  Terminations, premium cessations
    and policy alterations                  7       (23)            -            -           (23)           (4)          (39)
  Expense variance                                   14             -            -            14            (7)           (4)
  Other                                              12            (4)           -             8           (20)            1

Shareholders                                        (14)            -            -           (14)           (7)         (106)

Total operating experience variances                277            41            5           323            39          (181)

Notes
1.  Overall, mortality and morbidity experience for the 6 months were better compared to what was allowed for in the valuation basis.
2.  Positive alteration experience due to better than expected take-up of premium increases were offset by negative termination experience and larger
    than expected premium discounts.
3.  Lower commission payments than expected.
4.  Good retention on risk business.
5.  Profits earned on administration only business.
6.  Mainly due to a correction relating to reinsurance premiums.
7.  Mainly due to a correction relating to claw back commission.

F. DEVELOPMENT EXPENSES

Business development expenses within segments.

G. OPERATING ASSUMPTION CHANGES
                                                                                                       Restated      Restated
                                                                            Cost of     6 mths to     6 mths to    12 mths to
                                                                           required    31.12.2018    31.12.2017    30.06.2018
                                             Notes  ANW     Gross VIF       capital            EV            EV            EV
                                                     Rm            Rm            Rm            Rm            Rm            Rm

Momentum Life                                         -             -             -             -           (14)         (137)
  Mortality and morbidity assumptions                 -             -             -             -             -           (10)
  Termination assumptions                             -             -             -             -             -          (182)
  Renewal expense assumptions                         -             -             -             -             -          (256)
  Modelling, methodology and other changes            -             -             -             -           (14)          311

Momentum Investments                                  -             -             -             -            13        (1 270)
  Mortality and morbidity assumptions                 -             -             -             -             -             5
  Termination assumptions                             -             -             -             -             -           (75)
  Renewal expense assumptions                         -             -             -             -             -          (775)
  Modelling, methodology and other changes            -             -             -             -            13          (425)

Metropolitan Retail                                   -             -             -             -             -          (273)
  Mortality and morbidity assumptions                 -             -             -             -             -             3
  Termination assumptions                             -             -             -             -             -           (55)
  Renewal expense assumptions                         -             -             -             -             -          (216)
  Modelling, methodology and other changes            -             -             -             -             -            (5)

Momentum Corporate                                    -             -             -             -           (70)          614
  Mortality and morbidity assumptions                 -             -             -             -             -          (143)
  Termination assumptions                             -             -             -             -             -             9
  Renewal expense assumptions                         -             -             -             -           (70)          526
  Modelling, methodology and other changes            -             -             -             -             -           222

Africa                                                -             -             -             -             -          (250)
  Mortality and morbidity assumptions                 -             -             -             -             -            49
  Termination assumptions                             -             -             -             -             -            (2)
  Renewal expense assumptions                         -             -             -             -             -           (87)
  Modelling, methodology and other changes            -             -             -             -             -          (210)

Total operating assumption changes                    -             -             -             -           (71)       (1 316)

H. INVESTMENT RETURN ON ADJUSTED NET WORTH
                                                                                               Restated        Restated
                                                                              6 mths to       6 mths to      12 mths to
                                                                             31.12.2018      31.12.2017      30.06.2018
                                                                                     Rm              Rm              Rm

Investment income                                                                   305             276             559
Capital appreciation and other                                                     (245)            151             171
Preference share dividends paid and change in fair value of preference shares       (17)            (18)            (35)

Investment return on adjusted net worth                                              43             409             695

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. EXCEPTIONAL ITEMS

With the adoption of the new regulatory framework for South African insurers, MMI elected to adopt the IFRS liabilities as reference for determining the
Value of In-force business for Embedded Value purposes. This has resulted in a reallocation of value between the Adjusted Net Worth and Value of In-force
due to the liability difference between the previous statutory and IFRS liabilities. For purposes of determining the Cost of Required Capital, total
Restricted Assets were defined in terms of the new regulatory balance sheet by referencing the regulatory technical provisions and SCR. Differences in the
nature of the Required Capital between the new and the previous basis (which referenced Capital Adequacy Requirement) has resulted in a positive impact on
the embedded value.

M. TRANSFER OF BUSINESS FROM/TO NON-COVERED BUSINESS

Transfer of business between covered and non-covered business.

N. 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 - 31.12.2018

                                                                        In-force business                             New business written
                                                                                          Cost of                                          Cost of
                                             Adjusted          Net           Gross       required             Net           Gross         required
                                            net worth        value           value     capital (3)          value           value       capital (3)
                                                   Rm           Rm              Rm             Rm              Rm              Rm               Rm

Base value                                     13 178       21 140          23 774         (2 634)            335             476             (141)

 1% increase in risk discount rate                          19 495          22 402         (2 907)            259             410             (151)
    % change                                                    (8)             (6)            10             (23)            (14)               7
 1% reduction in risk discount rate                         23 119          25 443         (2 324)            411             541             (130)
    % change                                                     9               7            (12)             23              14               (8)
10% decrease in future expenses                             22 792          25 360         (2 568)            413             550             (137)
    % change (1)                                                 8               7             (3)             23              16               (3)
10% decrease in lapse, paid-up and
      surrender rates                                       21 897          24 487         (2 590)            402             549             (147)
    % change                                                     4               3             (2)             20              15                4
 5% decrease in mortality and morbidity
      for assurance business                                23 553          26 121         (2 568)            414             555             (141)
    % change                                                    11              10             (3)             24              17                -
 5% decrease in mortality for annuity
      business                                              20 677          23 410         (2 733)            315             467             (152)
    % change                                                    (2)             (2)             4              (6)             (2)               8
 1% reduction in gross investment return,
      inflation rate and risk discount rate    13 178       21 446          24 482         (3 036)            367             521             (154)
    % change (2)                                    -            1               3             15              10               9                9
 1% reduction in inflation rate                             22 195          24 706         (2 511)            377             514             (137)
    % change                                                     5               4             (5)             13               8               (3)
10% fall in market value of equities and
      properties                               12 878       20 252          22 851         (2 599)
    % change                                       (2)          (4)             (4)            (1)
10% reduction in premium indexation
      take-up rate                                          20 779          23 380         (2 601)            309             451             (142)
    % change                                                    (2)             (2)            (1)             (8)             (5)               1
10% decrease in non-commission-related
      acquisition expenses                                                                                    390             531             (141)
    % change                                                                                                   16              12                -
 1% increase in equity/property risk premium                21 816          24 521         (2 705)            348             489             (141)
    % change                                                     3               3              3               4               3                -


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.

ADDITIONAL INFORMATION

ANALYSIS OF CHANGES IN GROUP EMBEDDED VALUE
                                                                                               Cost of                      Restated       Restated
                                                           Adjusted net  Gross value of       required      6 mths to      6 mths to     12 mths to
                                                            worth (ANW)  in-force (VIF)        capital     31.12.2018     31.12.2017     30.06.2018
                                                                     Rm              Rm             Rm             Rm             Rm             Rm

Momentum Life
  Embedded value from new business                                 (148)            240            (48)            44             25             66
  Expected return - unwinding of RDR                                  -             470            (43)           427            440            897
  Release from the cost of required capital                           -               -             48             48             73            198
  Expected (or actual) net of tax profit transfer 
    to net worth                                                    571            (571)             -              -             -               -
  Operating experience variances                                    100             (27)             -             73            (55)            78
  Development expenses                                               (8)              -              -             (8)            (3)           (17)
  Operating assumption changes                                        -               -              -              -            (14)          (137)

  Embedded value profit/(loss) from operations                      515             112            (43)           584            466          1 085

  Investment return on adjusted net worth                            47               -              -             47             83            203
  Investment variances                                              (18)           (446)           105           (359)           214           (132)
  Economic assumption changes                                         -              44              -             44             41             24
  Exceptional items                                               1 167          (1 045)           415            537              -              -

  Embedded value profit/(loss) - covered business                 1 711          (1 335)           477            853            804          1 180

Momentum Investments
  Embedded value from new business                                  (86)            136             (7)            43             75             76
  Expected return - unwinding of RDR                                  -             104            (11)            93            133            270
  Release from the cost of required capital                           -               -             22             22             11             26
  Expected (or actual) net of tax profit transfer 
    to net worth                                                    211            (211)             -              -              -              -
  Operating experience variances                                     47             (14)             -             33            (19)           (96)
  Development expenses                                               (3)              -              -             (3)            (1)            (3)
  Operating assumption changes                                        -               -              -              -             13         (1 270)

  Embedded value profit/(loss) from operations                      169              15              4            188            212           (997)

  Investment return on adjusted net worth                            34               -              -             34             74             84
  Investment variances                                                9            (262)            33           (220)            32              7
  Economic assumption changes                                         -               9              -              9             (3)             8
  Exceptional items                                                  11             (27)           (67)           (83)             -              -

  Embedded value profit/(loss) - covered business                   223            (265)           (30)           (72)           315           (898)

Metropolitan Retail
  Embedded value from new business                                 (137)            220            (25)            58            130             84
  Expected return - unwinding of RDR                                  -             227            (38)           189            174            372
  Release from the cost of required capital                           -               -             55             55             53            102
  Expected (or actual) net of tax profit transfer 
    to net worth                                                    432            (432)             -              -              -              -
  Operating experience variances                                     44              14              -             58              3            (33)
  Development expenses                                               (3)              -              -             (3)            (3)           (24)
  Operating assumption changes                                        -               -              -              -              -           (273)

  Embedded value profit/(loss) from operations                      336              29             (8)           357            357            228
  
  Investment return on adjusted net worth                            55               -              -             55             58            115
  Investment variances                                                2            (109)           (41)          (148)           139            135
  Economic assumption changes                                         -              25             11             36             89             76
  Exceptional items                                                  16             (16)           379            379              -              -

  Embedded value profit/(loss) - covered business                   409             (71)            341           679            643            554


ANALYSIS OF CHANGES IN GROUP EMBEDDED VALUE

                                                                                                     Cost of                      Restated       Restated
                                                                Adjusted net  Gross value of        required      6 mths to      6 mths to     12 mths to
                                                                 worth (ANW)  in-force (VIF)         capital     31.12.2018     31.12.2017     30.06.2018
                                                                          Rm              Rm              Rm             Rm             Rm             Rm
Momentum Corporate
  Embedded value from new business                                       (77)            327             (52)           198             44            124
  Expected return - unwinding of RDR                                       -             312             (54)           258            227            474
  Release from the cost of required capital                                -               -              71             71             63            126
  Expected (or actual) net of tax profit transfer to net worth           270            (270)              -              -              -              -
  Operating experience variances                                          72              70               5            147            124            (34)
  Development expenses                                                    (1)             -                -             (1)            (6)            (7)
  Operating assumption changes                                             -              -                -              -            (70)           614

  Embedded value profit/(loss) from operations                           264            439              (30)           673            382          1 297

  Investment return on adjusted net worth                                 64              -                -             64             64            127
  Investment variances                                                    11           (111)              (2)          (102)            71            (57)
  Economic assumption changes                                              -            (76)               -            (76)            (3)          (103)
  Exceptional items                                                        -              -               37             37              -              -

  Embedded value profit - covered business                               339            252                5            596            514          1 264

Africa
  Embedded value from new business                                       (94)            95               (9)            (8)            25             (5)
  Expected return - unwinding of RDR                                       -            132              (17)           115            141            273
  Expected (or actual) net of tax profit transfer to net worth           173           (173)               -              -              -              -
  Operating experience variances                                          28             (2)               -             26             (7)            10
  Operating assumption changes                                             -              -                -              -              -           (250)

  Embedded value profit/(loss) from operations                           107             52              (26)           133            159             28

  Investment return on adjusted net worth                                 38              -                -             38             79            112
  Investment variances                                                   (29)           (44)               -            (73)            16            (35)
  Economic assumption changes                                             (2)            (2)             (12)           (16)            36             23
  Exchange rate movements                                                  9              7               (2)            14            (12)            21
  Exceptional items                                                      340           (321)             (19)             -              -              -

  Embedded value profit/(loss) - covered business                        463           (308)             (59)            96            278            149

Shareholders
  Operating experience variances                                         (14)             -                -            (14)            (7)          (106)
  Embedded value loss from operations                                    (14)             -                -            (14)            (7)          (106)
  Investment return on adjusted net worth                               (195)             -                -           (195)            51             54

  Embedded value (loss)/profit - covered business                       (209)             -                -           (209)            44            (52)



ANALYSIS OF ASSETS MANAGED AND/OR ADMINISTERED (1)
                                                                             31.12.2018          31.12.2017          30.06.2018
                                                                                     Rm                  Rm                  Rm
Managed and/or administered by Investments
Financial assets                                                                392 802             410 228             418 540
  Momentum Manager of Managers                                                   78 138              89 396              88 943
  Momentum Investment Consultants                                                 5 294               5 153               5 850
  Momentum Collective Investments                                                80 058              80 296              82 157
  Metropolitan Collective Investments                                               122                 875                 120
  Momentum Asset Management                                                     146 816             154 113             152 247
  Momentum Global Investments                                                    54 334              54 328              60 476
  Momentum Alternative Investments                                                6 319               6 154               6 278
  Momentum Securities                                                            21 721              19 913              22 469

Properties - Eris Property Group                                                 22 077              21 260              21 859
  On-balance sheet                                                                8 674               8 147               8 346
  Off-balance sheet                                                              13 403              13 113              13 513

Momentum Wealth linked product assets under administration                      151 968             157 694             160 839
  On-balance sheet                                                               98 243             102 395             104 327
  Off-balance sheet                                                              53 725              55 299              56 512

Managed internally or by other managers within MMI (on-balance sheet)            78 712              72 129              71 097
Managed by external managers (on-balance sheet)                                  18 318              16 307              16 543
Properties managed internally or by other managers within MMI or externally       4 238               3 565               4 268
Momentum Corporate - cell captives on-balance sheet                              16 834              15 745              16 575

Total assets managed and/or administered                                        684 949             696 928             709 721

Managed and/or administered by Investments
  On-balance sheet                                                              216 746             230 207             231 035
  Off-balance sheet                                                             176 056             180 021             187 505
                                                                                392 802             410 228             418 540

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.


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

6 mths to 31.12.2018
Momentum Life                                                       134             4 313              4 447             (4 756)            (309)
Momentum Investments                                             10 036               221             10 257            (14 677)          (4 420)
Metropolitan Retail                                                 503             3 072              3 575             (2 876)             699
Momentum Corporate                                                6 032             6 042             12 074             (7 361)           4 713
Non-life Insurance                                                  426             4 333              4 759             (2 527)           2 232
Africa                                                              347             2 006              2 353             (1 512)             841
Long-term insurance business fund flows                          17 478            19 987             37 465            (33 709)           3 756
Off-balance sheet fund flows
Managed and/or administered by Investments                                                            38 233            (44 772)          (6 539)
Properties - Eris Property Group                                                                         334               (444)            (110)
Momentum Wealth linked product assets under administration                                             3 325             (4 314)            (989)
Total net funds received from clients                                                                 79 357            (83 239)          (3 882)

Restated
6 mths to 31.12.2017 (2)
Momentum Life                                                       147             4 288              4 435             (4 992)            (557)
Momentum Investments                                             11 033               193             11 226            (13 531)          (2 305)
Metropolitan Retail                                                 668             3 120              3 788             (2 781)           1 007
Momentum Corporate                                                1 519             5 702              7 221             (6 604)             617
Non-life Insurance                                                  276             3 760              4 036             (2 557)           1 479
Africa                                                              320             1 872              2 192             (1 314)             878
Long-term insurance business fund flows                          13 963            18 935             32 898            (31 779)           1 119
Off-balance sheet fund flows
Managed and/or administered by Investments                                                            40 901            (61 572)         (20 671)
Properties - Eris Property Group                                                                         705               (121)             584
Momentum Wealth linked product assets under administration                                             3 659             (4 877)          (1 218)

Total net funds received from clients                                                                 78 163            (98 349)         (20 186)

Restated
12 mths to 30.06.2018 (2)
Momentum Life                                                       351             8 587              8 938             (9 494)            (556)
Momentum Investments                                             20 491               403             20 894            (24 337)          (3 443)
Metropolitan Retail                                               1 304             6 064              7 368             (5 660)           1 708
Momentum Corporate                                                3 656            11 588             15 244            (16 329)          (1 085)
Non-life Insurance                                                  607             8 002              8 609             (4 915)           3 694
Africa                                                              500             3 751              4 251             (2 686)           1 565
Long-term insurance business fund flows                          26 909            38 395             65 304            (63 421)           1 883
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                                                                145 529           (154 782)          (9 253)

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 table has been restated based on a new operating model adopted by the group.


ANALYSIS OF ASSETS BACKING SHAREHOLDER EXCESS

                                                             31.12.2018                      31.12.2017                        30.06.2018
                                                         Rm               %              Rm              %                 Rm               %

Equity securities                                       374             1.7             344             1.5               411             1.8
Preference shares                                     1 400             6.3           1 216             5.3             1 456             6.5
Collective investment schemes                           606             2.7             465             2.0               367             1.6
Debt securities                                       6 658            29.7           7 061            31.0             6 833            30.6
Properties                                            3 260            14.6           3 625            15.9             3 479            15.6
Owner-occupied properties                             2 152             9.6           2 775            12.2             2 426            10.9
Investment properties                                 1 108             4.9             850             3.7             1 053             4.7
Cash and cash equivalents and funds on deposit        7 189            32.1           6 084            26.7             5 927            26.5
Intangible assets                                     6 338            28.3           7 005            30.8             6 653            29.8
Other net assets                                      1 497             6.7           1 921             8.4             2 122             9.5
                                                     27 322           122.0          27 721           121.8            27 248           122.0
Redeemable preference shares                           (254)           (1.1)           (254)           (1.1)             (254)           (1.1)
Subordinated redeemable debt                         (4 391)          (19.6)         (4 381)          (19.2)           (4 374)          (19.6)
Treasury shares held on behalf of contract holders     (277)           (1.2)           (323)           (1.4)             (292)           (1.3)
Shareholder excess per reporting basis               22 400           100.0          22 763           100.0            22 328           100.0


NUMBER OF EMPLOYEES                      31.12.2018                   31.12.2017                   30.06.2018

Indoor staff                                  9 419                        9 248                        9 350
  SA                                          8 138                        7 985                        8 099
  International                               1 281                        1 263                        1 251
Field staff                                   6 722                        7 698                        7 585
  Momentum Retail                             1 110                        1 134                        1 038
  Metropolitan Retail                         4 092                        5 012                        4 535
  International                               1 520                        1 552                        2 012
Total                                        16 141                       16 946                       16 935

FINANCIAL INSTRUMENTS SUMMARISED BY MEASUREMENT CATEGORY IN TERMS OF IFRS 9 (1)

                                                                                           Fair value through income
                                                                                                                                                      Other
                                                                                                                          Total     Amortised   measurement
                                                                              Mandatorily         Designated         fair value      cost (2)     basis (2)               Total
                                                                                       Rm                 Rm                 Rm            Rm            Rm                  Rm
31.12.2018
Equity securities                                                                  92 145                  -             92 145             -             -              92 145
Debt securities                                                                    30 382             89 496            119 878            20             -             119 898
Funds on deposit and other money market instruments                                10 030             14 269             24 299           430             -              24 729
Unit-linked investments                                                           137 364                  -            137 364             -             -             137 364
Investments in associates at fair value through income                             18 893                  -             18 893             -             -              18 893
Derivative financial instruments                                                    2 367                  -              2 367             -             -               2 367
Loans and receivables                                                                   -                  -                  -         3 345             -               3 345
Insurance and other receivables (excl prepayments and accelerated rental) (3)           -                  -                  -             -         6 181               6 181
Cash and cash equivalents                                                               -                  -                  -        26 216             -              26 216
Total financial assets                                                            291 181            103 765            394 946        30 011         6 181             431 138

Investment contracts with DPF (4)                                                      -                   -                  -             -        23 100              23 100
Investment contracts designated at fair value through income                           -             236 731            236 731             -             -             236 731
Derivative financial instruments                                                   2 177                   -              2 177             -             -               2 177
Collective investment scheme liabilities                                          25 644                   -             25 644             -             -              25 644
Subordinated call notes                                                                -               4 391              4 391             -             -               4 391
Carry positions                                                                        -               4 947              4 947             -             -               4 947
Preference shares                                                                      5               1 017              1 022             -             -               1 022
Borrowings                                                                             -                   -                  -         1 908             -               1 908
Other payables (excl premiums in advance and deferred revenue liability)               -                   -                  -         6 491         5 585              12 076
Other liabilities                                                                    114                   -                114             -             -                 114

Total financial liabilities                                                       27 940             247 086            275 026         8 399        28 685             312 110

1   Comparative information not required in terms of IFRS 9.
2   The carrying value of financial assets carried at amortised cost and insurance and other receivables approximates fair value. The fair value of borrowings at amortised cost is R2 168 million and the
    carrying value of other payables approximates fair value due to their short-term nature.
3   With the adoption of IFRS 9 policy loans have been reallocated to insurance and other receivables on the balance sheet. Policy loans are not within the scope of IFRS 9.
4   The value of investment contracts with discretionary participation features (DPF) is the retrospective accumulation of the fair value of the underlying assets, which has been used as an approximation
    for the fair value of this financial liability as the fair value cannot be measured reliably. There is no intention to dispose of these financial instruments.

FINANCIAL ASSETS SUMMARISED BY MEASUREMENT CATEGORY IN TERMS OF IAS 39

                                                                       31.12.2017       30.06.2018
                                                                               Rm               Rm

Financial assets designated at fair value through income                  408 821          409 439
  Securities designated at fair value through income                      394 058          395 146
  Investments in associates designated at fair value through income        11 821           11 383
  Derivative financial instruments                                          2 935            2 910
  Available-for-sale                                                            7                -
Financial assets carried at amortised cost                                 38 314           36 392
  Held-to-maturity                                                            396              437
  Loans and receivables                                                     6 115            5 433
  Insurance and other receivables                                           4 528            4 710
  Cash and cash equivalents                                                27 275           25 812

Total financial assets                                                    447 135          445 831

The carrying value of financial assets carried at amortised cost approximates fair value.

FINANCIAL LIABILITIES SUMMARISED BY MEASUREMENT CATEGORY IN TERMS OF IAS 39  

                                                                       31.12.2017      30.06.2018
                                                                               Rm              Rm

Investment contracts with DPF (1)                                          25 086          24 550
Financial liabilities designated at fair value through income             289 660         288 333
  Investment contracts designated at fair value through income            246 076         247 861
  Liabilities designated at fair value through income                      41 730          38 217
  Derivative financial instruments                                          1 854           2 255

Financial liabilities carried at amortised cost                            13 244          15 242
  Financial liabilities (2)                                                 1 238           2 420
  Other payables (2)                                                       12 006          12 822

Total financial liabilities                                               327 990         328 125

1   The value of investment contracts with DPF is the retrospective accumulation of the fair value of the underlying assets, which has been used as an
    approximation for the fair value of this financial liability as the fair value cannot be measured reliably. There is no intention to dispose of these
    financial instruments.
2   The fair value of financial liabilities at amortised cost was R1 597 million as at 31.12.2017 and R2 680 million as at 30.06.2018 and the carrying
    value of other payables approximated fair value due to their short-term nature.

ADOPTION OF NEW STANDARDS 
IFRS 9 TRANSITIONAL ADJUSTMENTS

Statement of financial position

                                                                         30.06.2018            IFRS 9           IFRS 9        01.07.2018
                                                                      as per IAS 39    classification   ECL adjustment     as per IFRS 9
                                                                                 Rm                Rm               Rm                Rm

ASSETS
Investments in associates and joint ventures                                    636                 -                -               636
Financial assets designated at fair value through income                    395 146          (395 146)               -                 -
Financial assets at fair value through income                                     -           395 146                -           395 146
Investments in associates designated at fair value through income            11 383           (11 383)               -                 -
Investments in associates at fair value through income                            -            11 383                -            11 383
Derivative financial assets                                                   2 910                 -                -             2 910
Held-to-maturity financial assets                                               437              (437)               -                 -
Loans and receivables                                                         5 629            (5 629)               -                 -
Financial assets at amortised cost                                                -             6 066              (46)            6 020
Cash and cash equivalents                                                    25 812                 -                -            25 812
Other assets                                                                 34 412                 -                -            34 412

Total assets                                                                476 365                 -              (46)          476 319

EQUITY AND LIABILITIES
Equity attributable to owners of the parent                                  22 328                 -              (40)           22 288
Non-controlling interests                                                       462                 -                -               462
Total equity                                                                 22 790                 -              (40)           22 750

Financial liabilities designated at fair value through income                38 217           (38 217)               -                 -
Financial liabilities at fair value through income                                -            38 217                -            38 217
Other liabilities (1)                                                       415 358                 -               (6)          415 352
Total liabilities                                                           453 575                 -               (6)          453 569

Total equity and liabilities                                                476 365                 -              (46)          476 319

1   The liability ECL adjustment relates to tax on the impairment provision increase.

STOCK EXCHANGE PERFORMANCE

                                                                            31.12.2018            30.06.2018        31.12.2017         30.06.2017
6 month period
Value of listed shares traded (rand million)                                     6 971                 9 236             8 160             10 392
Volume of listed shares traded (million)                                           404                   433               420                449
Shares traded (% of average listed shares in issue) (1)                             55                    57                54                 58
Trade prices
  Highest (cents per share)                                                      1 895                 2 424             2 242              2 669
  Lowest (cents per share)                                                       1 578                 1 673             1 709              1 920
  Last sale of period (cents per share)                                          1 713                 1 767             2 100              2 024
Annualised percentage (%) change during period                                      (6)                  (29)                8                (26)
Annualised percentage (%) change - life insurance sector (J857)                     25                   (22)               55                 (2)
Annualised percentage (%) change - top 40 index (J200)                             (18)                   (4)               34                  7
31 December/30 June
Price/diluted normalised headline earnings (segmental) ratio (2)                   8.1                   7.0              10.6                6.8
Dividend yield % (dividend on listed shares) (1)                                   2.0                     -                 -                7.8
Dividend yield % - top 40 index (J200) (1)                                         3.3                   2.8               2.7                2.8
Total shares issued (million)
  Ordinary shares listed on JSE                                                  1 498                 1 529             1 576              1 575
  Treasury shares held by subsidiary                                               (27)                    -                 -                  -
  Treasury shares held on behalf of contract holders                               (16)                  (17)              (16)               (18)
  Basic number of shares in issue                                                1 455                 1 512             1 560              1 557
  Treasury shares held on behalf of contract holders                                16                    17                16                 18
  Convertible redeemable preference shares                                          28                    28                28                 29
  Diluted number of shares in issue (3)                                          1 499                 1 557             1 604              1 604
Market capitalisation at end (Rbn) (4)                                              26                    28                34                 32

1   Percentages have been annualised.
2   Comparatives have been restated for normalised headline earnings.
3   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.
4   The market capitalisation is calculated on the fully diluted number of shares in issue.


APPENDIX A

CHANGES TO PRIMARY EARNINGS METRIC AND SEGMENTAL REPORTING

As communicated at the last annual results announcement, MMI Holdings Ltd (MMI) has changed its primary earnings metric from core headline earnings to normalised 
headline earnings, in order to align closer to earnings metrics used by the South African insurance industry. Furthermore, following a revision to its internal 
operating structure, MMI has changed its reporting segments, to align to its current operating model.

These changes have been applied to the reporting period ended 31 December 2018. For illustrative purposes, this disclosure supplement provides segmental earnings for the
comparative reporting periods 31 December 2017 and 30 June 2018 and because of their nature, they do not fairly present MMI's financial position, changes in equity, results
of operations or cash flows. Please take note that the historical information contained in this supplementary information has not been reviewed by the auditors of MMI.
This supplementary financial information is the responsibility of the directors of MMI.

Primary earnings metric
MMI has changed its primary earnings metric from core headline earnings to normalised headline earnings. Compared to core headline earnings, normalised headline earnings
has fewer adjustments to the definition of headline earnings and is more comparable to primary earnings metrics used by the South African insurance industry.

Normalised headline earnings include the impact of investment variances, actuarial basis changes and other non-recurring items that were previously not reported as part
of core headline earnings. However, normalised headline earnings still adjust the standard definition of headline earnings for treasury shares and for the amortisation of
intangible assets from business combinations. MMI is of the opinion that these adjustments present a more realistic picture of underlying performance and remove distortions
that might arise from elimination of treasury shares (potential distortions that are peculiar to financial institutions that invest in their own securities on behalf of clients).

New reporting segments
To more meaningfully report on earnings and growth, MMI has aligned its reporting segments to its revised internal operating structure.

The historic segment of Momentum Retail has been split into Momentum Life and Momentum Investments. Momentum Life includes protection, savings and traditional products focused
on the middle and affluent client segments. Momentum Investments consists of Momentum Wealth platform business, local and offshore asset management operations, retail annuities
and guaranteed investments, as well as Eris Properties. All Momentum Wealth products are now reported as covered business, and prior year value of new business and present value
of new business premiums have been restated accordingly.

There are no material changes to the Metropolitan Retail reporting segment. Metropolitan Retail focusses on the lower to mid-income retail market segment, with a range of
protection and savings products.

Momentum Corporate offers group risk, annuities, pensions savings and umbrella funds (FundsAtWork) and includes MMI Health.

Non-life Insurance is a new reporting segment, comprising the retail general insurance offering, Momentum Short-term Insurance (MSTI) and the cell captive insurer, Guardrisk.

The former international segment has been split: Africa (excluding South Africa) will be shown separately, with India and aYo now reported under New Initiatives, alongside
Money Management and other smaller initiatives.

The Shareholder segment reflects investment income on capital held to support local operations and some costs not allocated to operating segments (eg certain holding
company expenses).

Earnings for the six months ending 31 December 2017 - New primary earnings metric with old segment reporting

SEGMENTAL ANALYSIS
                                                                        Momentum                Metropolitan       Momentum                                            Shareholder
                                                                          Retail                      Retail      Corporate              International                     Capital         Total
                                                                              Rm                          Rm             Rm                         Rm                          Rm            Rm
Published
6 mths to 31.12.2017
Covered
Operating profit                                                             600                         337            256                         97                          (8)        1 282
Investment income                                                              -                           -              -                          -                         260           260
Total                                                                        600                         337            256                         97                         252         1 542

Non-covered
Investment and savings                                                        48                           -             33                         52                           -           133
Life insurance                                                                 -                           -              -                        (38)                          -           (38)
Health                                                                        (2)                          -             50                        (77)                          -           (29)
Non-life insurance                                                           (22)                          -            132                         (1)                          -           109
Client engagement                                                            (57)                        (20)            (8)                       (10)                          3           (92)
Unallocated expenses                                                           -                           -              -                          -                         (41)          (41)
Other operations                                                               -                           -             (8)                       (50)                         30           (28)
Total                                                                        (33)                        (20)           199                       (124)                         (8)           14

Core headline earnings                                                       567                         317            455                        (27)                        244         1 556

Reconciliation to normalised headline earnings
Fair value gains/(losses)                                                      1                           -             (8)                        64                          53           110
Basis changes and investment variances                                       (30)                         27              -                         44                           -            41
Non-recurring items                                                          (15)                          -              -                        (92)                         (6)         (113)
Total reconciling items                                                      (44)                         27             (8)                        16                          47            38

Normalised headline earnings                                                 523                         344            447                        (11)                        291         1 594

Restated
6 mths to 31.12.2017
Covered
Operating profit                                                             556                         364            254                        175                         (60)        1 289
Investment income                                                              -                           -              -                          -                         403           403
Total                                                                        556                         364            254                        175                         343         1 692

Non-covered   
Investment and savings                                                        48                           -             33                         26                           -           107
Life insurance                                                                 -                           -              -                        (27)                          -           (27)
Health                                                                        (2)                          -             49                        (86)                          -           (39)
Non-life insurance                                                           (22)                          -            127                        (17)                          -            88
Client engagement                                                            (57)                        (20)            (8)                       (10)                          3           (92)
Unallocated expenses                                                           -                           -              -                         (5)                        (46)          (51)
Other operations                                                               -                           -             (8)                       (67)                         (9)          (84)
Total                                                                        (33)                        (20)           193                       (186)                        (52)          (98)

Normalised headline earnings                                                 523                         344            447                        (11)                        291         1 594


Earnings for the six months ending 31 December 2017 - New primary earnings metric with new segment reporting

SEGMENTAL ANALYSIS
                                                                        Momentum      Momentum  Metropolitan      Momentum     Non-life                          New
                                                                            Life   Investments        Retail     Corporate    Insurance         Africa   Initiatives  Shareholders         Total
                                                                              Rm            Rm            Rm            Rm           Rm             Rm            Rm            Rm            Rm

Normalised headline earnings - old model                                     523                         344           447                         (11)                        291         1 594
Items to restate into new segments
Split of annuities from Momentum Retail to Momentum Investments             (118)          118             -             -             -             -             -             -             -
Move of investment business to Momentum Investments                          (48)          107             -           (33)            -           (26)            -             -             -
Health business allocated to Momentum Corporate only                           2             -             -            (2)            -             -             -             -             -
Non-life business, including Guardrisk, disclosed as new segment              22             -             -          (127)          105             -             -             -             -
Split out new initiatives into separate segment                               25             -             -             -             -           130          (166)           11             -
Multiply (excluding money management) moved to Momentum Life                 (35)            -            20             8             -            10             -            (3)            -
Wealth on-balance sheet moved to Momentum Investments                        (28)           28             -             -             -             -             -             -             -
African life insurance investment income reallocated from Shareholders         -             -             -             -             -            62             -           (62)            -
                                                                             343           253           364           293           105           165          (166)          237         1 594

Covered
Protection                                                                   110             -           154            84             -             -             -             -           348
Long-term savings                                                             53            79           139           106             -             -             -             -           377
Annuities and structured products                                              -            93            61            45             -             -             -             -           199
Traditional                                                                  181             -            16             -             -             -             -             -           197
Other                                                                         79             -            (6)           15             -           175             -            29           292
Investment income                                                              -             -             -             -             -            31             -           286           317
Total                                                                        423           172           364           250             -           206             -           315         1 730

Non-covered
Investment and savings                                                         -            81             -             -             -             -             -             -            81
Life insurance                                                                 -             -             -             -             -            10             -             -            10
Health                                                                         -             -             -            51             -            20             -             -            71
Multiply                                                                     (77)            -             -             -             -             -             -             -           (77)
Non-life insurance                                                             -             -             -             -           (22)          (18)            -             -           (40)
Cell captives                                                                  -             -             -             -           127             -             -             -           127
Unallocated expenses                                                           -             -             -             -             -             -             -           (45)          (45)
New initiatives India                                                          -             -             -             -             -             -          (102)            -          (102)
New initiatives aYo                                                            -             -             -             -             -             -           (28)            -           (28)
Other                                                                         (3)            -             -            (8)            -           (53)          (36)          (33)         (133)
Total                                                                        (80)           81             -            43           105           (41)         (166)          (78)         (136)

Normalised headline earnings                                                 343           253           364           293           105           165          (166)          237         1 594



Earnings for the 12 months ending 30 June 2018 - New primary earnings metric with old segment reporting

SEGMENTAL ANALYSIS

                                                                        Momentum                Metropolitan      Momentum                                             Shareholder
                                                                          Retail                      Retail     Corporate               International                     Capital         Total
                                                                              Rm                          Rm            Rm                          Rm                          Rm            Rm
Published
12 mths to 30.06.2018
Covered
Operating profit                                                           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
Non-life 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 headline earnings                                                       920                         570           903                         (48)                        464         2 809

Reconciliation to normalised headline earnings
Fair value gains/(losses)                                                      7                           -             6                          14                         (67)          (40)
Basis changes and investment variances                                      (526)                       (410)          333                         (48)                          -          (651)
Non-recurring items                                                            -                           -             -                        (100)                        (15)         (115)
Total reconciling items                                                     (519)                       (410)          339                        (134)                        (82)         (806)

Normalised headline earnings                                                 401                         160         1 242                        (182)                        382         2 003

Restated
12 mths to 30.06.2018
Covered
Operating profit                                                             571                         201           758                         200                         (46)        1 684
Investment income                                                              -                           -             -                           -                         553           553
Total                                                                        571                         201           758                         200                         507         2 237

Non-covered
Investment and savings                                                         9                           -           100                          78                           -           187
Life insurance                                                                 -                           -             -                         (90)                          -           (90)
Health                                                                        19                           -           149                        (169)                          -            (1)
Non-life insurance                                                           (56)                          -           260                          10                           -           214
Client engagement                                                           (142)                        (29)           (8)                        (19)                          9          (189)
Unallocated expenses                                                           -                           -             -                          (5)                       (116)         (121)
Net investment income                                                          -                           -             -                           -                          (4)           (4)
Other operations                                                               -                         (12)          (17)                       (187)                        (14)         (230)
Total                                                                       (170)                        (41)          484                        (382)                       (125)         (234)

Normalised headline earnings                                                 401                         160         1 242                        (182)                        382         2 003

Earnings for the 12 months ending 30 June 2018 - New primary earnings metric with new segment reporting

SEGMENTAL ANALYSIS
                                                                        Momentum      Momentum  Metropolitan      Momentum      Non-life                         New
                                                                            Life   Investments        Retail     Corporate     Insurance        Africa   Initiatives  Shareholders         Total
                                                                              Rm            Rm            Rm            Rm            Rm            Rm            Rm            Rm            Rm

Normalised headline earnings - old model                                     401                         160         1 242                        (182)                        382         2 003
Items to restate into new segments
Split of annuities from Momentum Retail to Momentum Investments                4            (4)            -             -             -             -             -             -             -
Move of investment business to Momentum Investments                           (9)          187             -          (100)            -           (78)            -             -             -
Health business allocated to Momentum Corporate only                         (19)            -             -            19             -             -             -             -             -
Non-life business, including Guardrisk, disclosed as new segment              56             -             -          (260)          204             -             -             -             -
Split out new initiatives into separate segment                               68             -            12             -             -           278          (377)           19             -
Multiply (excluding money management) moved to Momentum Life                 (47)            -            29             8             -            19             -            (9)            -
Wealth on-balance sheet moved to Momentum Investments                        (52)           52             -             -             -             -             -             -             -
African life insurance investment income reallocated from Shareholders         -             -             -             -             -           110             -          (110)            -
Tax reallocation from Momentum Retail to shareholders and other               70            (8)            -             -             -             -             -           (62)            -
                                                                             472           227           201           909           204           147          (377)          220         2 003

Covered
Protection                                                                   (13)            -           150           293             -             -             -             -           430
Long-term savings                                                            135           109          (118)          196             -             -             -             -           322
Annuities and structured products                                              -           (25)           75           212             -             -             -             -           262
Traditional                                                                  357             -           108             -             -             -             -             -           465
Other                                                                        149             -           (14)           30             -           200             -          (116)          249
Investment income                                                              -             -             -             -             -            71             -           474           545
Total                                                                        628            84           201           731             -           271             -           358         2 273

Non-covered
Investment and savings                                                         -           143             -             -             -             -             -             -           143
Life insurance                                                                 -             -             -             -             -           (32)            -             -           (32)
Health                                                                         -             -             -           195             -            49             -             -           244
Multiply                                                                    (152)            -             -             -             -             -             -             -          (152)
Non-life insurance                                                             -             -             -             -           (56)           10             -             -           (46)
Cell captives                                                                  -             -             -             -           260             -             -             -           260
Unallocated expenses                                                           -             -             -             -             -             -             -           (97)          (97)
New initiatives India                                                          -             -             -             -             -             -          (218)            -          (218)
New initiatives aYo                                                            -             -             -             -             -             -           (58)            -           (58)
Other                                                                         (4)            -             -           (17)            -          (151)         (101)          (41)         (314)
Total                                                                       (156)          143             -           178           204          (124)         (377)         (138)         (270)

Normalised headline earnings                                                 472           227           201           909           204           147          (377)          220         2 003

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