End of an era for one of the biggest medical aids in South Africa after 43 years
Momentum Health will take over the administration of Bonitas Medical Fund in June this year, which will mark the biggest transfer of a medical scheme from one administrator to another in South Africa’s history.
Under the deal, Momentum Health will oversee a comprehensive suite of administrative services, taking over from 1 June 2026.
Bonitas’ contract with its current administrator, Medscheme, will end on 31 May 2026, marking the end of a 43-year-old partnership.
“Being selected as the preferred healthcare administration partner for Bonitas Medical Fund affirms our leadership in the health administration market,” said Momentum Group CEO Jeanette Marais.
“It results in the biggest transfer of a medical scheme from one provider to another in the history of South Africa.”
The transaction adds over 750,000 beneficiaries under Momentum’s administration and shifts its market share from 22% to 30%.
This makes Momentum Health the second-largest medical scheme administrator in South Africa after Discovery.
The latest comments from Momentum come from its interim results for the six months ended December 2025, where the group saw normalised headline earnings (NHE) growth of 8% to R3.7 billion.
The group said that the rise in NHE demonstrated the disciplined execution of its impact strategy across all business units and the resilience of its diversified portfolio.
The group’s dividend increased by 29% to 110 cents per share, with notable contributions to earnings coming from
- Life annuity profits in Momentum Investments,
- Improved new business profitability in Metropolitan Life,
- Higher earnings from group risk in Momentum Corporate,
- Continued strong underwriting performance in Momentum Insure and
- Excellent results from Guardrisk.
Earnings at Momentum Retail were lower due to large movements in the yield curve. The group’s headline earnings per share rose by 13% to 274.4 cents, and basic earnings per share grew 6% to 259.9 cents.
By March 2026, the group had repurchased 21.7 million shares at an average price of R36.73 per share for a total consideration of R796 million, including costs.
This represented an average discount of 17.5% to the embedded value of R44.55 per share on 31 December 2025.
| Metric | Basic 1HF2026 | Basic 1HF2025 | Basic Change | Diluted 1HF2026 | Diluted 1HF2025 | Diluted Change |
| Earnings (R million) | 3,376 | 3,320 | 2% | 3,376 | 3,320 | 2% |
| Headline earnings (R million) | 3,564 | 3,311 | 8% | 3,564 | 3,311 | 8% |
| Normalised headline earnings (NHE) | – | – | – | 3,695 | 3,437 | 8% |
| Operating profit (R million) | – | – | – | 3,127 | 2,842 | 10% |
| Investment return (R million) | – | – | – | 568 | 595 | (5)% |
| Earnings per share (cents) | 259.9 | 244.3 | 6% | 251.9 | 239.9 | 5% |
| Headline earnings per share (HEPS) | 274.4 | 243.6 | 13% | 266.0 | 239.2 | 11% |
| Normalised HEPS (cents) | – | – | – | 274.9 | 244.8 | 12% |
| Dividend per share (cents) | – | – | – | 110 | 85 | 29% |
Outlook
Momentum said that the latest outlook for South Africa signals a modest yet improving growth momentum, which is supported by a lower inflation target, improved energy supply, and strengthened investor sentiment.
The country’s successful removal from the Financial Action Task Force grey list and a recent credit rating upgrade are also positive developments.
“However, despite these gains, the operating environment remains constrained by high unemployment, ongoing logistical constraints and elevated cost of living, all of which continue to weigh on new business growth and margins.”
“Globally, economic volatility is expected to persist amid heightened geopolitical tensions, which have resulted in risk-sensitive market conditions, including higher energy prices and inflationary pressures.”
Momentum said that its financial ambitions for F2027, including NHE of R7 billion, a 20% ROE, and a Value of New Business margin of 1% to 2%, remain on track.
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