Momentum Group (MTM) Q3 2025 earnings summary

Executive summary

• Normalized headline earnings reached ZAR 4.8 billion for the nine months ended 31 March 2025, maintaining a positive trajectory despite challenging macroeconomic and geopolitical conditions.

• All business units are operating strongly, with particular improvement in Metropolitan Life and a successful turnaround at Momentum Insure, now sustainably profitable.

• Disciplined execution, focus on profitable growth, and cost efficiencies supported results, with positive contributions from most business units.

• Health members and administration grew by 4%, reflecting steady operational progress.

• The group remains focused on driving sustainable earnings and long-term value.

Financial highlights

• Normalized headline earnings of ZAR 4.8 billion for the nine months, with third quarter run rate in line with previous quarters, excluding a ZAR 500 million positive market-related variance in the first half.

• Recurring premiums increased by 5% year-over-year to ZAR 3.1 billion; single premiums declined by 7% to ZAR 43.7 billion.

• Present value of new business premiums (PVNBP) decreased by 4% to ZAR 58 billion year-over-year.

• Total direct expenses rose 5% to ZAR 9.8 billion, mainly due to long-term incentive awards and regulatory compliance costs.

• Regulatory solvency positions remain strong; solvency cover ratio at main life entity decreased from 2.15x to 2.02x SCR.

Outlook and guidance

• Targeting normalized headline earnings of ZAR 7 billion, return on equity of 20%, and new business margin of 1-2% by 2027.

• Earnings expected to track at current levels for the remainder of the year, barring dramatic changes.

• Robust financial position and diversified product offering expected to support sustainable earnings and sales growth.

• Initial market losses in April reversed, highlighting portfolio resilience.

• Resilient investment portfolio and robust balance sheet position the group well to achieve strategic goals.