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MMH's Strong Q3 2024: Rising Premiums, Robust New Business, and Improved Solvency | Rateweb
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MMH’s Strong Q3 2024: Rising Premiums, Robust New Business, and Improved Solvency

Key Financial Metrics

Momentum Metropolitan Holdings (MMH) has shown resilience over the nine months ending March 31, 2024. Key financial metrics indicate a positive trajectory.

Metric3QF20243QF2023Δ%
Recurring premiums (R million)2,9553,465(15)%
Single premiums (R million)46,97235,57232%
New business (PVNBP, R million)60,26750,08720%
Total direct expenses (R million)9,3468,6738%
AUM on Momentum Wealth investment platform (R billion)26523214%
Health members under administration (‘000)1,2521,2252%
Momentum Insure claims ratio68.0%77.6%

Performance Highlights

The group’s robust earnings were supported by favorable mortality experience and good investment income. Positive investment variances were recorded due to a reduction in the yield curve.

Business Units Performance

Momentum Retail

Momentum Retail saw a 13% increase in PVNBP, driven by growth in protection new business.

Metric3QF20243QF2023Δ%
Recurring premiums (R million)795801(1)%
Single premiums (R million)1,9231,8116%

Momentum Investments

Momentum Investments benefited from strong growth in annuity new business volumes.

Metric3QF20243QF2023Δ%
Recurring premiums (R million)19115424%
Single premiums (R million)34,46828,64220%

Metropolitan Life

Metropolitan Life’s earnings improved due to better persistency experience and lower expenses.

Metric3QF20243QF2023Δ%
Recurring premiums (R million)1,2261,283(4)%
Single premiums (R million)1,5271,4217%

Momentum Corporate

Momentum Corporate’s PVNBP improved significantly, driven by strong single premium structured investment inflows.

Metric3QF20243QF2023Δ%
Recurring premiums (R million)439877(50)%
Single premiums (R million)8,2583,013>100%

Momentum Metropolitan Africa

Momentum Metropolitan Africa saw a 6% decrease in PVNBP due to lower retail and corporate sales in Lesotho and Botswana.

Metric3QF20243QF2023Δ%
Recurring premiums (R million)304350(13)%
Single premiums (R million)79668516%

Operational Highlights

The Group’s resilience is reflected in its strong operational performance. Direct expenses growth was slightly above inflation, driven by investments into capabilities and service improvements.

New Business Performance

Momentum Retail saw a 13% growth in PVNBP, reflecting year-on-year growth in protection and long-term savings new business.

Momentum Investments recorded a 21% increase in PVNBP, supported by a change in business mix towards higher margin annuities.

Business Unit3QF20243QF2023Δ%
Momentum Retail6,2805,58013%
Momentum Investments35,31929,26521%
Metropolitan Life4,9875,359(7)%
Momentum Corporate11,5867,65751%
Momentum Metropolitan Africa2,0952,226(6)%
Total PVNBP60,26750,08720%

Solvency and Share Repurchase

Momentum Metropolitan Life’s solvency cover ratio improved from 2.11 times the SCR to 2.21 times. The share repurchase program is ongoing, with 20 million shares bought back, of which 18 million have been cancelled.

Outlook

The Group’s robust capital position and product diversification remain key strengths. MMH is focused on driving new business volumes, improving sales mix and margin, and reducing the cost base.

The operating environment is expected to remain under pressure due to weak economic growth and inflationary pressures. However, MMH remains committed to delivering on its objectives and adapting to the evolving needs of clients.

Conclusion

Momentum Metropolitan Holdings continues to show positive performance, driven by strong new business volumes and operational efficiency. The Group is well-positioned to navigate economic challenges and deliver value to its stakeholders.