Momentum Group (MTM) investor relations material

Strategic progress and future direction

• Entering the final year of the Impact Strategy, all six strategic objectives are on track, with strong momentum in cost optimization, digital transformation, and market share growth.

• Major structural changes include splitting Momentum Retail into Momentum Life and Momentum Advice & Distribution to accelerate growth in the advice space and enhance executive focus.

• The Impact Strategy has driven a cultural transformation, embedding client-centricity, accountability, and a federated model that balances empowered business units with group-wide collaboration.

• Advice ecosystem investments have strengthened market leadership in IFA distribution, with new synergies and channel optimizations delivering sustained results.

• Expansion remains disciplined, focusing on markets with a right to win, as seen in Aditya Birla Health Insurance's long-term growth and digital-only product launches.

Financial performance and capital management

• Earnings for the nine months reached ZAR 5.5 billion, with ROE at 23.3%, already exceeding the FY2027 target; VNB margin remains a challenge, targeted between 1% and 2%.

• Cumulative cost savings of ZAR 641 million have been achieved, with a goal to reach ZAR 1 billion, driven by digitalization and AI adoption.

• The solvency ratio improved to 1.81x by March, supported by higher yields and retained earnings, with MML's SCR cover ratio rising from 1.64 to 1.81.

• Cash generation remains robust, with R13.8bn generated over three years and a 70% cash-to-earnings ratio projected for the next three years, supporting dividends, buybacks, and reinvestment.

• Majority of Own Funds are held in high-quality liquid assets, supporting policyholder protection, dividends, and strategic flexibility.

Technology, innovation, and digital transformation

• Over 70 digital and AI initiatives are underway, including adviser query automation, intelligent document processing, biometric screening, and AI-augmented development, delivering measurable efficiency gains.

• Digital transformation is prioritized to enhance client, adviser, and employee experiences, with investments in AI, automation, and data-driven solutions across the value chain.

• The federated model enables scalable innovation, with four of six AI focus areas already in production and a disciplined approach to technology investment.

• Curate, the investment ecosystem business, reached ZAR 56 billion in AUM in under three years, supporting adviser growth and sustained inflows.

• Metropolitan launched a first-to-market digital funeral policy for clients without regular income, designed to never lapse and improve persistency.