Momentum set to soar

Momentum expects its earnings to increase by as much as 46% due to a strong performance in its life insurance division.

Momentum released a trading statement on Friday that told shareholders to expect a significant increase in the insurer’s earnings for the year through June 2024.

The insurer expects its earnings per share to increase by as much as 35% to 288 cents per share.

Headline earnings per share increased by between 41% and 46% to at most 304 cents per share.

Normalised earnings per share are set to grow by between 33% and 38% to around 315 cents per share.

The company said its improved performance in the 2024 financial year was aided by strong profits from life annuities in Momentum Investments, a significant improvement in persistency experience in Metropolitan Life, growth in fee income and underwriting profits in Guardrisk, and a recovery in Momentum Insure’s earnings. 

In addition, its normalised headline earnings were supported by higher investment income following a favourable interest rate environment. 

However, this performance was slightly dampened by fair value losses on the company’s investment in venture capital funds.

The increase in earnings per share was lower than the increase in normalised headline earnings per share mainly due to a goodwill impairment recognised in Momentum Investments in respect of the Momentum Global Investment Management business.

Momentum expects to release its results for the 2024 financial year on 27 September 2024.

Below is an overview of Momentum’s expected earnings for 2024: