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Cape Town – MMI Holdings [JSE:MMI] on Thursday reported a 9% decrease in half-year earnings to end-December compared to the previous half-year, due to the economic environment and because it received more claims than expected.
The life assurance company reported a 14% increase in new business flows, an increase in total diluted earnings of 14% to R1.5bn and an annualised return on embedded value of 7%.
Shares were trading 1.45% lower at R23.87 on the JSE at 09:30 on Thursday.
Momentum Retail was the company’s biggest contributor of profits, bringing in R705m. Metropolitan Retail increased its profit contribution to the group by 14% to R311m.
“MMI’s performance demonstrates resilience given the difficult operating environment,” said MMI CEO Nicolaas Kruger on Thursday.
“We understand the pressure on households’ disposable income and remain committed to working with our clients to ensure they continue to enhance their lifetime financial wellness.”
MMI’s client-facing segments reported strong performance, with growth in new business increasing by 14% to R27bn. The value of new business amounted to R361m.
MMI’s international division, which has a presence in 16 countries, saw new business volumes in the rest of Africa increase by 30%. Plans for expanding in India through the launch of a health and wellness solution remain on track.
“MMI’s strategic focus areas remain growth, client centricity and excellence,” said Kruger. “We will continue to be driven by these focus areas, with the ultimate aim of enhancing the lifetime financial wellness of our clients.”
