Three years into its “Reset and Grow” turnaround strategy, Momentum Metropolitan Holdings (MMH), finally came closer to its targeted earnings after putting a lid on costs and taking back some market share it lost over the past years. Last week they reported full-year earnings to June, almost two thirds higher than the previous year.
Awe-inspiring results, diluted normalised headline earnings grew by 53 percent to R3.1 billion, albeit from a low base. The last year it was impacted by a once-off charges, and if these are excluded, growth is still an impressive 21 percent. Due to the share buyback programme, the per-share headline earnings increased by 61 percent. According to chief executive Hillie Meyer, the improvement in their earnings is the result of financial discipline, a focus on their core activities and working smarter with their money without negatively impacting their market presence.
They are moving into the next phase of their strategy and will continue to focus on growing revenue through advancing distribution capabilities and visibility of their brands, as well as through continuous improvement of product solutions and the client experience. The figures are quite impressive; pre-tax profit rose 23 percent to R5.5bn, and investment income rose 10 percent to R22bn.
Growth in new business volumes in specific areas boosted their performance. Momentum Corporate saw strong flows of new business from a range of clients, including a proper increase in recurring premium inflows for group insurance, as well as several large annuity deals in the first and fourth quarters.