Momentum Group Ltd. (JSE: MTM) reported a strong fiscal 2026 performance, surpassing its R7 billion normalized headline earnings target by a full year, with normalized headline earnings of R7.06 billion—a 13% increase from R6.26 billion in FY2025 and double the earnings of FY2023. The company also exceeded its return on equity (ROE) target, reaching 21.7% at year-end, up from 12.7% in FY2023, and surpassing its previously set FY2027 target of 20%.
Total sales volumes grew 18% year-over-year to R93.8 billion, while dividends declared rose to 120 cents per share for the final quarter and 230 cents per share for the full year—a 31% increase from FY2025. Embedded value per share climbed 19% to R50.60, marking the first time it exceeded R50 per share, and non-covered businesses delivered a 5-year return on embedded value of 35.4%. The company also achieved a R1 billion performance optimization target, comprising R510 million in previously banked savings, R300 million in new savings, and R231 million in active initiatives.
Momentum Group’s business units performed variably. Metropolitan Life, which had targeted R750 million, delivered R1.1 billion—a 85% increase from R595 million in FY2024. Momentum Investments, with a R1 billion target, achieved R1.2 billion, expanding assets under management to R1.2 trillion (up from R934 billion) and wealth assets under administration from R277 billion to R362 billion. Guardrisk, acquired in 2014, surpassed its R1 billion target with R1.04 billion in earnings, a 26% year-over-year rise, and saw its valuation increase from R1.6 billion to R9.2 billion. Sales growth was notable in Momentum Africa, which surged 45% and saw normalized headline earnings rise 79% to R387 million.
Momentum Corporate’s earnings declined 12% to R1.417 billion, though agent productivity improved, and digital adoption in Metropolitan Life rose from 7% to 32%, with manual work reduced by 50% and client satisfaction climbing from 79% to 94%. Momentum Health’s earnings grew 15% to R367 million, while India operations shifted from a loss of R67 million in FY2025 to a profit of R22 million, with gross written premiums rising 21% and combined ratios improving to 103%. Momentum Securities turned profitable, moving from a loss of R8 million to a profit of R31 million.
Solvency ratios strengthened significantly: the Solvency Capital Requirement (SCR) cover ratio for the group rose from 139% to 150%, and for Momentum Metropolitan Life (MML), it climbed from 164% to 192%. Surplus capital held was approximately R2.5 billion, with the SCR actual increase limited to R1.2 billion, mitigating a potential R3.9 billion rise. Jeanette Marais, CEO, highlighted the alignment of purpose, strategy, and culture as key drivers of the results.
At the time of the presentation, Momentum Group’s share price was trading at approximately $0.355, up 2.9% from the previous close of $0.345, though it remained below its 52-week high of $1.485, equivalent to around R6.50 at current exchange rates.
