Strength of our businesses drives growth

Momentum Group delivered an exceptional set of results for the year ending 30 June 2025, with record normalised headline earnings (NHE) of R6.26 billion, up 41% on the prior financial year which was already a record year. Operating profit increased by 52% from R3.6 billion to R5.48 billion.

According to Momentum Group CEO, Jeanette Marais: “I am satisfied that our results reflect the strength of the Group’s diversified portfolio and disciplined execution of our Impact strategy. Solid operational performance across business units underpinned these results, with notable contributions coming from:

-          annuity profits in Momentum Investments,

-          improved new business profitability in Metropolitan Life, 

-          higher earnings from the group risk business in Momentum Corporate, 

-          a significantly improved underwriting result in Momentum Insure, and

-          strong underwriting performance and stable earnings growth in Guardrisk.

Earnings were further supported by positive actuarial assumption changes and investment market returns.”

The Group’s new business sales, as measured by the present value of new business premiums (PVNBP), remained broadly flat with a 3% decrease to R79.8 billion. Value of new business (VNB) declined from R589 million to R469 million.

Said Marais: “I am proud of the significant progress we made on our strategic objectives to invest aggressively in advice to drive growth, and to harness the synergies of collaboration in our federated operating model. We are undisputedly the market leader when it comes to independent financial adviser distribution, and through collaboration between businesses we have created new solutions for our clients that are unique in the employee benefits and estate planning space. In addition, we successfully completed a massive systems migration involving three of our biggest businesses, namely Momentum Retail, Metropolitan and Africa. This project not only saves us more than R100 million per year, but it is also a building block towards minimising risk and improving client experience.”

Risto Ketola, Group Finance Director, shared that NHE per share increased by 46% from 309.7 cents to 451.0 cents, reflecting the positive impact of the share buyback programme. “I am happy to announce that the Group declared a final dividend of 90 cents per ordinary share, resulting in a full-year dividend of 175 cents per share, an increase of 40% on the prior full year dividend of 125 cents per ordinary share.”

The R1 billion share buyback programme communicated to investors at the interim results announcement, has been completed. “Given the Group’s strong capital and liquidity position, the Board has approved a further R1 billion for the buyback programme of the Group’s ordinary shares, subject to Prudential Authority approval, bringing total buybacks approved in F2025 to R2 billion,” said Ketola. This decision is underpinned by the prevailing discount to embedded value.

Future outlook

Marais is encouraged by the record earnings delivered by Momentum Group, despite the persisting subdued economic conditions in South Africa. “Although the pressure on our clients’ disposable income is expected to continue, affecting new business volumes which place pressure on margins, our Impact strategy strongly anchors our disciplined execution, operational excellence, and robust financial position. We remain focused on our purpose of building and protecting our clients’ financial dreams, while unlocking further growth opportunities across our suite of empowered businesses,” concludes Marais.

The Group stated that, given current assumptions, they believe their ambitious impact strategy targets for F2027 are achievable, while continuing to deliver sustainable value to shareholders, clients, and their partners in financial advice.