Positive earnings trajectory for Momentum Group continues into 2026

Momentum Group’s 2025 positive earnings trajectory continued into the first quarter of its 2026 financial year, the insurance and financial services group said in an operational update.

A strong operational performance in the three months to September 30 resulted in normalised headline earnings (NHE) of R1.76 billion. These results were underpinned by the focus on profitable growth across the group's business units, its management reported Wednesday.

On the JSE, Momentum’s share price nudged up 0.94% to R36.35 in the afternoon.

The earnings were also supported by positive market variances (R201m), although these contributed less than in the prior period (R570m). Short-term insurance underwriting experience also remained “excellent,” management said.

Group sales improved by 8% to R22.4bn. The value of new business fell to R146m from R197m, predominantly impacted by lower life annuity sales in Momentum Investments that was only partially mitigated by the value of new business improvement in all the other segments.

The new business margin reduced to 0.7% from 1% in the prior period. Health members under administration increased 6% to 1 350,

Benefits from a group-wide performance optimisation project would become more pronounced toward the end of the 2026 financial year. “To date, savings of R389m has been realised, while a further R500m has been identified,” management said.

The CSM (contractual service margin) for Momentum Retail increased for the quarter, aided by new business and positive experience variances. Momentum Retail's PVNBP (present value of new business premiums) improved by 11% to R2.4bn. The protection business saw a 3% decline in new business volumes.

Momentum Retail's R254m normalised headline earnings (NHE) were largely supported by the CSM release, positive mortality experience in the protection and traditional businesses, and a positive contribution from recently acquired FinGlobal.

Momentum Investments achieved R310m of NHE, largely due to the CSM release from the life annuity book, increased contributions from the wealth management, asset management, and multi-management businesses, and less onerous contracts following product design changes.

The CSM for Momentum Investments grew marginally over the quarter, mainly due to new business written. Momentum Investments' PVNBP increased by 9% to R13.7bn, primarily aided by higher new business volumes in the Momentum Wealth investment platform.

Life annuity new business volumes were lower. Assets under administration increased by 20% year-on-year, owing to growth in both the local and offshore Momentum Wealth investment platforms. Assets under management improved by 7%, mainly due to good market growth.

Metropolitan Life's R248m NHE was largely aided by the release of the CSM and risk adjustment, positive mortality experience variance on the funeral book, and improved persistency in the protection business following continued improvements in observed lapse experience.

NHE was further supported by positive market variances and investment income. PVNBP declined by 9% to R1.6bn, attributable to lower sales volumes across all products.

Momentum Health delivered NHE of R101m, supported by fee income growth of 14% following membership growth across most schemes, annual administration and managed care fee increases, as well as improved performance from capitation contracts. 

Guardrisk reported NHE of R252m was aided by underwriting profit growth in Guardrisk General Insurance and Guardrisk Life, increased management fee income, primarily from the mining rehabilitation guarantee business, and higher investment income.

Momentum Insure delivered NHE of R157m driven by strong underwriting performance and an increase in investment income. Gross written premium (GWP) growth remained under pressure and declined marginally.

Momentum Africa saw NHE of R192m. Earnings were supported by the CSM release in the life business, premium growth, and lower claims ratios in the Namibia and Ghana health businesses, as well as positive market variances of R35m from Namibia and Botswana.

India reported an NHE loss of R108m. The earnings loss of R32m was an improvement on the R48m loss in the prior period. The group remained “optimistic” about the growth potential of its health insurance business in India.

BUSINESS REPORT