Full Year 2024 Momentum Group Ltd Earnings Call Transcript
Key Points
- Momentum Group Ltd (NAM:MMT) reported exceptionally strong earnings of ZAR5.1 billion for the year, surpassing their earnings target for 2024.
- The company has successfully rebased its business to a higher level of performance, with a significant improvement in underlying earnings even during challenging periods like COVID.
- Momentum Investments has become the single biggest contributor to the group's value of new business, accounting for 78% of the group's VNB.
- The company has made significant progress in digital transformation, positioning itself as a disruptor in the industry with innovative projects like biometric mobile screening.
- Momentum Group Ltd (NAM:MMT) has a strong balance sheet, enabling a 20% increase in dividends and a ZAR500 million share buyback, reflecting robust cash generation and shareholder returns.
- The present value of new business premiums decreased by 5% to ZAR69 billion, indicating a decline in new sales.
- Metropolitan Life faced challenges with high lapse rates, negatively impacting normalized headline earnings and value of new business.
- Momentum Insure experienced a ZAR300 million loss due to severe claims and service challenges, exacerbated by weather-related claims and integration issues.
- The South African operating environment continues to present challenges and uncertainties, putting financial pressure on clients and affecting savings and insurance levels.
- Expense variances in the embedded value deteriorated in the second half of 2023 due to accelerated spending on projects and increased investment in systems.
Good morning, ladies and gentlemen. Welcome to the presentation of the annual financial results of Momentum Metropolitan Holdings for the period ended June 30 this year. My name is Dan Moyane. Now, just a short while ago before we started, I was outside to this room. And Hillie Meyer told me that among us today, we've got the big five. Actually, it was Hillie Meyer's wife who said he's got the big five. Hillie is here with four of his brother's. Let's welcome them with a round of applause, and Mrs. Smith is here as well on this day.
I guess the reason will become clear to those who may not know why I'm mentioning this a little bit later on. We are coming to you live from the company's offices here in Central Johannesburg, welcoming everyone who is joining us today, the analysts, the investors, the shareholders, journalists, and of course, the employees of the company who are watching us live either on impulse, which is our company's Internet or on BDTV Channel 412 on DSTV or they can you can also follow our presentation of these results on via
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