MMI Holdings’ financial first-half profit dropped 33 percent after the stock market declined, the country’s third-largest insurer said. Net income fell to R1.35 billion in the six months to December from R1.8bn a year earlier, the company said yesterday. Profits from operating divisions increased 13 percent to R1.5bn. The broad all share index dropped by 2 percent during the six months to December, compared with an increase of 17 percent a year earlier. MMI was formed in 2010 by the merger of Metropolitan Group and Momentum Group. Total earnings “were negatively impacted by the declining local equity market”, MMI said. “The group will increase focus on efficiencies, having identified specific cost-savings initiatives, while continuing to pursue top-line growth.”
MMI increased its first-half dividend 11 percent to 63 cents a share. It closed up 0.62 percent at R32.30 yesterday. – Bloomberg