The devastation wrought by Covid-19 and the ensuing market rally was also apparent in Momentum Metropolitan’s interim results for the six months to December 2021.
Normalized overall profit jumped 51% to R1.5 billion driven by new business value, up 20% from the prior period to R400 million. The recovery was driven by strong new business volumes and good expense management. The group also saw a 23% increase in the value of new business premiums to R37 billion.
Operating profit fell 12% to 785 million rand, which CEO Hillie Meyer said was largely attributable to net mortality losses of 378 million rand in the life insurance sector.
Across all businesses, the claims experience of the Omicron wave was significantly less severe than the third wave.
Meyer says that for the second quarter of financial year 2022, South African life insurance companies paid R2.4 billion in gross mortality claims. Momentum Metropolitan recorded net mortality losses of R51 million in this quarter alone.
“I am particularly pleased that we achieved double-digit growth in new business value and volumes. Our teams delivered what they could control, and we maintained a proactive external focus on advisors and clients” , Meyer said.
Momentum Metropolitan has declared an interim ordinary dividend…