Momentum Metropolitan FY HEPS up 5%

Momentum Metropolitan, a leading financial services group, recently reported a five per cent jump in headline earnings per share, showcasing improvements across all business units for the year, with the exception of Momentum Investments. The Group CEO, Jeanette Marais, discussed the company's record earnings and the 20% increase in dividends during an interview with CNBC Africa. Marais expressed optimism about the company's future, emphasizing the sustainability of their results amidst challenging economic conditions in South Africa. She highlighted three key factors that contributed to their success in the past year. Firstly, an improved mortality experience post-COVID allowed them to release reserves and boost earnings. Secondly, a positive investment variance due to high interest rates positively impacted their financial performance. Lastly, Marais emphasized the strength of their diversified portfolio, with the majority of their business units exceeding expectations. While some units faced challenges, such as Metropolitan Life and Momentum Insure, Marais outlined strategic plans to address these issues and drive future growth. Marais also addressed the impact of low consumer confidence in South African asset classes on their business, noting a shift towards safer, low-risk investments among clients approaching retirement. This trend towards guaranteed annuities has been beneficial for Momentum Metropolitan, with record sales in this product category over the past three years. Looking ahead, Marais expressed confidence in the company's ability to navigate economic uncertainties and deliver results for their clients and shareholders. While certain segments of their business pose challenges, Marais remains hopeful about implementing strategic initiatives to address these concerns and drive sustainable growth. The company's focus on managing internal operations and adapting to changing consumer preferences positions them well for future success, despite prevailing economic challenges in the market.