Momentum Group (MTM) Q3 2026 earnings summary

Executive summary

• Normalized headline earnings grew 15% year-on-year to ZAR 5.54 billion, with NHE per share up 20% to 414 cents, supported by share buybacks and strong contributions across all business units.

• Africa segment delivered positive earnings year-to-date, with new business sales up 15% and single premiums also up 15% due to favorable equity markets.

• ROE stands at 23.3%, exceeding the 20% target set for F2027 and remaining the highest in the industry.

• Major milestone achieved with Momentum Health starting administration of the Bonitas scheme, increasing annual claims processed from ZAR 70 billion to ZAR 100 billion.

• Cost discipline maintained, with direct expenses up only 1%, well below inflation, and cumulative annualised savings of ZAR 641 million.

Financial highlights

• Normalized headline earnings reached ZAR 5.54 billion, up 15% year-on-year for the nine months.

• Headline earnings per share increased 20% to 414 cents; recurring premiums up 7% to ZAR 3.3 billion; single premiums up 15% to ZAR 50.2 billion.

• PVNBP up 15% to ZAR 66.9 billion; VNB declined 4% to ZAR 347 million, with margin contracting to 0.5%.

• Financial earnings outperformed expectations by ZAR 411 million, driven by yields, credit spreads, and equity markets.

• Cost optimization led to direct cost growth of just 1% and a 4% reduction in costs for the January-March quarter compared to last year.

Outlook and guidance

• The group remains on track to meet its ZAR 6 billion earnings target for the year.

• Management expects continued improvement in VNB margin and further cost containment, with next year’s cost growth budgeted at 2%.

• Global and South African economic uncertainty persists, with muted consumer demand and inflationary pressures.

• Diversified business model and disciplined capital management position the group to navigate headwinds.

• Share buybacks may resume if surplus capital is available after reassessment of required high-quality liquid assets at year-end.