MMI HOLDINGS expected diluted earnings a share and diluted headline earnings a share for the year to June to be between 20 percent and 30 percent higher than in the comparative period last year, while diluted core headline earnings were expected to be up by between 10 percent and 15 percent, the listed insurance-based financial services group said yesterday. MMI, the result of a merger between Metropolitan Holdings and the Momentum Group in 2010, said the increase in earnings and headline earnings exceeded the increase in core headline earnings largely because of increased fair value movements on shareholder investment assets, lower actuarial basis changes and higher investment variances. In a leadership interview recently, chief executive Nicolaas Kruger said in spite of commentators’ pessimism at the merger, it had been able to achieve a high success rate. “One objective was to save R500 million in costs, and that we have accomplished ahead of schedule.” MMI will release annual results on September 10.
The shares rose 0.93 percent to R27.25 yesterday. – Staff Reporter