Johannesburg - MMI Holdings, a South African insurer, said fiscal full-year profit dropped 25 percent after underwriting slumped and investment returns declined.
Net income fell to R2.14 billion ($153 million) in the 12 months through June, from R2.86 billion a year earlier, the Johannesburg-based company said in a statement on Wednesday.
So-called core earnings per share, which exclude one-time items and other adjustments, fell to R2.03 from R2.44 a year earlier, missing the R2.24 median estimate of four analysts surveyed by Bloomberg.
MMI, formed by the merger of Metropolitan Group and Momentum Group in 2010, is involved in life insurance, property and casualty cover, savings, investment, healthcare administration, health-risk management and employee benefits. Rivals Sanlam and Liberty have also struggled to boost earnings in the past year amid an economic slowdown in South Africa and political wrangling that has shaken markets and dented consumer sentiment.
Growth in new business volumes and profits will “be impacted by many factors in the South African economy, including employment levels and disposable income”, MMI said in the statement. “Taking into account the economic outlook, the group has increased the focus on efficiencies.”
BLOOMBERG