JOHANNESBURG - Financial services group MMI Holdings said on Wednesday its diluted headline earnings per share were down 21 percent to 93c in the 12 months to June, from 118c last year.
The company said while the continued challenging macro-economic environment negatively impacted its performance, operational shortcomings also played a part in what it called a disappointing set of results.
It said the positive investment variances seen during the first half of the year reversed due to the low investment market returns and a downward move in the yield curve between December 31 last year and June 30.
"It is not easy to turn around a comprehensive financial services company like MMI," MMI Holdings said. "The maturity of the South African insurance markets and modest short-term macro-economic growth prospects continues to put pressure on our revenue growth expectations."
Given these factors, combined with increased losses expected in the financial year ending 2019 from new initiatives, the company said it expected only a modest increase in earnings for F2019.
"We will continue to focus on financial discipline, cost efficiencies and streamlining infrastructure to restore annual earnings to a level of R3.6 billion – R4.0 billion by F2021," it said.
"Leading up to F2021, we will be working hard to build the foundation for longer-term prosperity, which will depend on a strong distribution and service culture, and relevant digital enablement."