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 accelerated, with major platform migrations, AI-driven process automation, and increased digital engagement across client and advisor channels.

• Distribution strength enhanced through omnichannel strategies, advisor network expansion, and deepened partnerships, driving growth in both SME and retail segments.

• Cost optimization and operational efficiency initiatives delivered substantial savings, with further targets set for the next two years and R1 billion in savings targeted over F2025–F2027.

• Product innovation and diversification, including new health, savings, and risk products, as well as expanded cell captive and structured solutions, supported market share gains and resilience.

Strategic direction and impact strategy

• Executing the 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 advice-led approaches.

• Progress measured by ROE, new business, earnings margin, and NHE, with VNB growth remaining a challenge.

• 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 allocation

• Capital allocation is now focused on growth rather than loss funding, with disciplined deployment, limited capital calls, and ongoing share buybacks.

• Earnings growth targets reaffirmed across business units, with ROE and cost-to-income ratio improvements expected through continued digitalization and scale.

• Value of new business (VNB) remains a focus, with mix and cost optimization strategies underway to address segment-specific challenges.

• Dividend contributions resumed from previously loss-making units, with dividend payments of R7–8 billion expected over three years.

• 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.