Momentum Group, a South African insurer and financial services conglomerate, reported a full-year 2026 (FY26) performance that surpassed its R7 billion normalized headline earnings target by hitting R7.06 billion—a 13% year-on-year increase and more than double the R3.5 billion recorded in FY23. Normalized headline earnings per share rose 18% to 530 cents, with return on equity (ROE) exceeding its FY27 target of 20% at 21.7%. Embedded value per share climbed 19% to R50.60, with a five-year return on embedded value of 16%, including 13% for covered businesses and 35.4% for non-covered units over the same period.
The group’s full-year dividend reached 230 cents per share, marking a 31% year-on-year growth and a payout ratio of 43% of normalized headline earnings. Solvency ratios improved significantly: Momentum Metropolitan Life’s SCR coverage ratio reached 1.92 times (above its 1.6 target), while the group’s ratio stood at 1.50 times (against a 1.35 target). Surplus capital available stood at R2.5 billion, following a mitigated solvency capital requirement increase of R1.2 billion, down from an otherwise projected R3.9 billion rise due to declining yield curves.
Sales growth accelerated to 18% year-on-year, with the present value of new business premiums reaching R93.8 billion. Total assets under management (AUM) for Momentum Investments grew from R934 billion to R1.2 trillion, with wealth division assets under administration rising from R277 billion to R362 billion. The Curate platform’s AUM stood at R52 billion. Momentum Africa saw a 45% increase in earnings to R387 million, while Momentum Corporate’s earnings declined 12% to R1.4 billion due to lower IBNR releases and stronger mortality assumptions.
Metropolitan Life reported normalized headline earnings of R1.1 billion, a 32% increase, driven by digital transformation—adoption of self-service rose from 7% to 32%, manual work decreased by 50%, and client satisfaction improved to 94%. The No-Lapse Funeral Growth Plan exceeded its proof-of-concept, with over 1,000 policies sold and 8,000+ engagements. Guardrisk’s underwriting profit grew 53% to R1.09 billion, with Zestlife and Admed generating R303 million in net revenue (up 54%), achieving a combined internal rate of return of 31.4%. Momentum Health’s earnings rose 15% to R367 million, with membership increasing by 27%. India Health Insurance operations swung from a loss to a profit, with gross written premium growth of 39% in local currency and a combined ratio improving to 103%.
Momentum Retail’s earnings declined 26% to R1 billion, impacted by negative market variances of R320 million, while Momentum Insure’s earnings grew 8% to R474 million, with a claims ratio of 47%. Momentum Securities turned a profit of R31 million after an R8 million loss in FY23. Momentum Investments’ earnings rose 24% to R1.2 billion, with 23% of wealth assets managed in-house.
The group’s share price closed at $0.355, up 2.9% following the announcement. With a 52-week range of $0.258 to $1.485, Momentum Group’s performance underscores its ability to deliver strong profitability across its diverse business units, including life insurance, health insurance, investment management, and retail financial services. The company plans to deploy surplus capital within three to six months, with a share buyback program review expected after first-half FY27 results. The Metropolitan Life No-Lapse Funeral Growth Plan is set to accelerate sales starting October 2026.
