Business

Momentum sees post-Covid earnings boost

Luke Fraser

 ·24 Aug 2023

Momentum Metropolitan says its earnings and profits have increased following the conclusion of the Covid-19 pandemic.

In a trading statement for the year ended 30 June 2023, the group benefitted from improved mortality due to the modest impact of Covid-19 during the period.

Earnings were also furthered by a strong improvement in investment variances, which saw strong yield curves.

However, earnings were partially dampened by a deterioration in lapse experience in Metropolitan Life, Momentum Insure underwriting and a decline in investment in the group’s venture capital funds.

Furthermore, the group’s earnings also included positive adjustments to the carrying amount of the group’s remaining interest in Aditya Birla Health Insurance (ABHI) after the dilution of the group’s investment, offset by the impairment of goodwill in Momentum Insure.

Overall, the group’s earnings per share are expected to increase by 15% to 25% from 260.6 cents in FY2022 to 300 to 325 cents in FY2023.

Headline earnings per share also jumped between 2% and 7% from 297.3 cents in FY2022 to 303 and 318 in FY2023.

The group will release its full financial and operating results for the period on 13 September 2023.

The group’s expectations are as follows:

New CEO

The group also has a new CEO, Jeanette Marais, who took over the role at the start of this month.

Marais joined in 2018 as Deputy CEO, leading Momentum Investments, Momentum Distribution Services, Consult by Momentum and Momentum Mone.

The normalised headline earnings of Momentum Investments increased from R271 in FY2018 to R940 million in FY2022 under her leadership.

She replaced Hillie Meyer, who was appointed CEO in 2018 for a five-year fixed term. Meyer will retire at the end of September this year after a short handover period.

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