One of South Africa’s biggest insurers on a hot streak

Momentum continues to go from strength to strength as a combination of operational improvements, strategic initiatives, and favourable market conditions worked in the insurer’s favour.

Momentum is one of South Africa’s largest life insurers and integrated financial services companies, operating through brands like Momentum, Metropolitan, Guardrisk, and Eris Properties.

The insurer released its interim results for the six months through December 2024 – the first half of its 2025 financial year – on Thursday, 20 March 2025.

The results showed a strong performance for Momentum, which reported that its earnings per share increased by 55% to 244.3 cents.

The insurer’s return on equity improved to 24.6% from 17.4% the prior year. 

Its net insurance and investment result rose to R9.06 billion, up 32.36%.

Momentum’s operating profit rose by 33% to R2.84 billion, while its total comprehensive income for the period grew to R3.47 billion.

The company’s investment return more than doubled to R595 million.

Momentum Investments and Metropolitan Life saw strong contributions, but the insurer’s Africa division saw its operating profit decline.

The company explained that this decline follows lower market variances, driven by unfavourable yield curve shifts in Namibia, Botswana and Lesotho.

However, Momentum’s new businesses performed well, with the company reporting that its Value of New Business increased by 40% to R279 million.

Momentum Insure also turned around its performance, with its claims ratio improving to 52.1% from 69.7%.

Momentum’s Guardrisk business also recorded a strong underwriting performance with a 39% increase in profits. 

The insurer explained that digital investment positioned it well for the two-pot retirement system implemented in September 2024.

Momentum processed over 260,000 withdrawal applications totalling R4.5 billion.

Looking forward, the insurer said it remains optimistic despite market volatility, with plans to focus on new business growth and improving its value metrics.

Momentum’s management said it remains committed to cost optimisation, technology-driven client engagement, and expanding its advisory services.

The latter objective will be aided by Momentum’s acquisition of FinGlobal, which is currently still subject to regulatory approval, that will enhance the company’s financial planning and advisory services.

Momentum declared an interim dividend of 85 cents per share, up 42% from its previous interim dividend.

The company also announced that a R1 billion share buyback programme was approved.