Momentum on a roll

Momentum’s share price is up 13% after the company released its earnings expectations for the first half of its 2025 financial year.

In a trading update released on Wednesday, 26 February 2025, Momentum informed shareholders that its earnings are projected to grow by up to 55% in its upcoming results.

Momentum’s earnings per share for the six months ended 31 December 2024 are expected to grow between 50% and 55%.

The company’s headline earnings per share are projected to grow by a similar range, while normalised headline earnings per share are expected to grow between 43% and 48%.

Momentum said its strong operational performance delivered robust earnings across all business units. 

The company’s earnings benefited from good performance on the existing book of business, bolstered by improved persistency experience variance in most of its South African life insurance businesses. 

The company’s mortality and morbidity claims variance remains positive, although less positive than in recent periods. 

In addition, it said strong underwriting discipline and favourable weather conditions resulted in a solid recovery in Momentum Insure’s earnings. 

Guardrisk also saw notable growth in underwriting profits and management fee income. 

“The group’s results were further aided by higher market returns and favourable yield curve shifts over the period,” it said.

“Strong cash generation supported the group’s capital and liquidity position.”

This positive trading update landed well with investors, as the company’s share price grew by as much as 13% following its release.

Momentum will release its interim results on Thursday, 20 March 2025.

These results are set to continue Momentum’s winning streak, as the insurer has been on a positive trajectory recently.

In its last full-year results for the 2024 financial year, Momentum reaped the rewards of its three-year Reinvent and Grow strategy, reporting a 30% surge in profit and earnings per share.

This strategy was based on Momentum’s decision to focus internally on some of its business units that had come under pressure in the prior years.

CEO Jeanette Marais credited the strong results to the company’s internal focus on underperforming business units.

The company said that looking ahead, Momentum’s new Impact strategy will guide its growth until 2027, focusing on financial advice, product simplification, technology, and disciplined capital management.