Momentum Group (MTM) CMD 2025 summary

Strategic progress and business performance

• Achieved significant milestones across all business units, including break-even in India, strong profitability in corporate and retail, and a completed turnaround in short-term insurance.

• Digital transformation and platform modernization have enabled cost savings, improved client experience, and operational efficiency, with major system migrations and new digital platforms implemented in retail and Metropolitan.

• Distribution strength and advice-led models are driving growth, with agency and IFA channels expanding, and new digital and omnichannel capabilities supporting higher productivity.

• Product innovation and vertical integration, including health, insurance, and investment solutions, are enhancing value propositions and supporting market share gains.

• Collaboration across business units and with external partners is unlocking new revenue streams, especially in SME, public sector, and affinity group markets.

Strategic direction and impact strategy

• The group is executing its Impact Strategy for F2025–F2027, focusing on growth, digital transformation, cost optimisation, and capital efficiency.

• Key pillars include empowering business units, leveraging collaboration, expanding addressable markets, and differentiating through advice-led approaches.

• Progress is measured by ROE, new business, earnings margin, and NHE, with targets on track except for VNB, which remains a challenge.

• The group is embedding a federated operating model to unlock synergies and drive vertical integration across business lines.

• Strategic enablers include people, transformation, digital, sustainability, and disciplined capital deployment.

Financial guidance and capital management

• Group targets include normalized headline earnings growth, cost optimization (ZAR 1 billion savings), and improved value of new business (VNB) margins across segments.

• Cash generation guidance for F2025–F2027 revised upward to R12–13 billion, with dividend payments of R7–8 billion expected over three years.

• Capital allocation is now focused on growth rather than loss funding, with India and select business units prioritized for investment based on superior unit economics.

• The group maintains a strong solvency position, with an SCR cover ratio of 2.15x as of Dec 2024 and a target range of 1.6x–2.0x reaffirmed.

• Ongoing review of dividend policy, capital allocation, and optimisation activities to maximise shareholder value.