South Africa · Delayed Price · Currency is ZAR · Price in ZAc Momentum Group Earnings Call Transcripts
Fiscal Year 2026
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The group is on track to achieve its Impact Strategy targets by FY2027, with strong financial performance, robust capital management, and significant progress in digital transformation and cost optimization. Strategic business unit initiatives, international expansion, and a federated operating model are driving sustainable growth and positioning the group for long-term success.
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Normalized headline earnings rose 15% year-on-year to ZAR 5.5 billion, with strong segment contributions and ROE at 23.3%. Cost optimization and the Bonitas onboarding were key highlights, while VNB margin remains a challenge amid industry shifts.
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Normalized headline earnings rose 8% to ZAR 3.7 billion, with strong operational profit growth and sales up 11%. ROE remains high at 24%, while VNB declined 15% year-on-year. The Bonitas contract will significantly expand health administration, and capital is being retained to strengthen solvency.
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Normalized headline earnings reached ZAR 1.76 billion, with strong operational performance and 8% sales growth, though VNB declined due to lower annuity sales. SCR ratio remains within target, and cost savings continue to support margins. F2027 targets for earnings and ROE remain on track.
Fiscal Year 2025
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Record normalized headline earnings rose 41% to ZAR 6.26 billion, with ROE at 21.2% and a 40% dividend increase. Group VNB declined 20%, but strong cash generation and strategic execution support future growth ambitions.
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Momentum Group delivered strong progress on profitability, digital transformation, and distribution expansion, with capital now allocated for growth. Strategic focus remains on digital innovation, operational efficiency, and market expansion, supporting ambitious financial and market share targets.
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Normalized headline earnings reached ZAR 4.8 billion for the nine months, with strong performance across business units and successful turnarounds in key segments. Recurring premiums rose 5%, while single premiums and new business premiums declined. Strategic targets for 2027 remain on track.
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Normalized headline earnings rose 44% to ZAR 3.4 billion, with all business units contributing positively and strong VNB and ROE improvements. Dividend and share buybacks increased, while digital innovation and cost optimization drove efficiency gains.
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Earnings rose to ZAR 1.3–1.4 billion, driven by strong investment and risk results, with new business premiums up 5% year-over-year. VNB and margins improved, capital ratios strengthened, and cost savings are expected to materialize later in the year.
Fiscal Year 2024
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Normalized headline earnings rose 27% to ZAR 4.4 billion, with record sales volumes and strong segment performance despite economic headwinds. The group completed its Reinvent and Grow strategy, launched an ambitious Impact strategy, and announced a ZAR 1 billion share buyback.
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A new three-year Impact Strategy was launched, focusing on leveraging a federated model, cost optimization, and advice-led growth. Ambitious financial targets include ZAR 7 billion earnings and 20% ROE by 2027, with disciplined capital allocation and transformation as key enablers. Business units have clear, measurable goals and are held accountable for delivery.
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New business premiums grew 20% year-over-year, with strong annuity sales and improved claims ratios. Earnings were solid but slightly below the first half, and solvency remains robust. Management is focused on cost control and will launch a new strategy in July.