Momentum Group Limited · JSE:MTM
Momentum — Investor Day (2025)
21 slides from Momentum's investor day presentation, 2025
Slide 1: Performance optimisation and capital management
Performance optimisation and capital management Risto Ketola
Slide 2: Overview
Overview 1 Cost optimisation 2 Cash generation and capital deployment 3 Capital optimisation activities 2
Slide 3: Why did we initiate this project?
Why did we initiate this project? Independent Problem statement Process Desired outcome assessment • High costs one of the • Proactively initiated an • Project Management headwinds for VNB independent review of Office set up in Group R1 billion cost • Industry growth rates Group efficiency FD’s offi
Slide 4: Optimising the cost base
Optimising the cost base Four workstreams Timing • Savings staggered over strategic planning • Business unit: primarily focused period on process automation, • Large-scale technology changes, productivity enhancements, and occurring towards the end of the three- optimising spans of control year peri
Slide 5: Progress to date
Progress to date Heading R1bn target Actively working on • Policy administration system consolidation • Momentum Digital Connect unit rewire • Negotiating payment terms, travel and learning and development Banked savings since December 812 841 • Negotiating call rates inbound and outbound • MDS bran
Slide 6: Banked savings by workstream
Banked savings by workstream Metropolitan Procurement (R13m) • Market access costs • Service channel optimisation Metropolitan Group Momentum Investments (R38m) Technology (R17m) • Global operating model Banked savings of Momentum Retail R116 million • Myriad underwriting and service productivity •
Slide 7: What does this mean for our valuation basis?
What does this mean for our valuation basis? 1 Not all savings go to the life insurance businesses 2 Due to book shrinkage, we cannot afford to increase expenses by more than 3 - 4% per year 3 While achieving savings, spending on compliance and regulatory changes are growing 4 We are careful not to
Slide 8: Cash generation and capital deployment
Overview 1 2 Cash generation and capital deployment 3 8
Slide 9: Strong cash generation over the last 3 years
Cash generation R’million 2022* 2023* 2024* Cumulative* SA Life businesses 2 941 3 601 2 990 9 532 Guardrisk 248 311 386 945 Momentum Investments 206 281 263 750 Health 151 218 179 548 Momentum Insure - - 315 315 Other 154 465 (84) 535 Strong cash generation over the last 3 years Dividend inflow to
Slide 10: Continuation of cash generation
Cash generation Original Revised R’million Cumulative to 2024* F2025 – F2027 F2025 – F2027 Dividend inflow to Momentum Group 12 625 11 000 – 12 000 12 000 – 13 000 No further support required (858) - +500 Momentum Insure (561) Momentum Money (297) Significant reduction in support (1 639) <1 000 <1 0
Slide 11: Capital deployment
Capital deployment Investment in the business to be guided by Last 3 years' cash generation and utilisation strategic growth ambitions: Under current dividend policy expect 1 payments of around R7 – R8bn over 17% the 3 years 4% 2 Modest capital commitments 45% F2027 projected ? F2025 – F2027 R12.6 b
Slide 12: Capital optimisation activities
Overview 1 2 3 Capital optimisation activities 12
Slide 13: Capital optimisation levers
Capital optimisation levers 1 Optimal deployment of available capital 2 Regular review of target solvency metrics (SCR cover & required capital) 3 Regular review of dividend policy 4 Reviewing and defining our optimal capital structure 5 Judicious distribution of surplus capital 13
Slide 14: MML SAM solvency on Dec 2024
MML SAM solvency on 31 Dec 2024 Our ‘Solvency Capital Required (SCR) cover ratio' was 2.15x on 31 Strong cash generation over the last 3 years Dec 2024. 36 380 Our Board confirmed earlier in 2025 that we will retain our SCR cover ratio target range at 1.6x to 2.0x. 16 890 Risk Committee has ratified
Slide 15: Internal view of MML solvency on Dec 2024
Internal view of MML solvency on 31 Dec 2024 Own Funds includes margins 13 180 inherent in the in-force book (“VIF”) and illiquid assets (e.g. NAV in subsidiaries and owner- Strong cash generation over the last 3 years occupied properties). 5 020 We estimate that we need R11.4bn of high-quality liqu
Slide 16: Internal view of MML solvency on Dec 2024
Internal view of MML solvency on 31 Dec 2024 4 470 Surplus (pre-dividend) Discretionary Strong cash generation over the last 3 years 2 000 Minimum required high quality assets 17 870 11 400 Risk Committee has ratified the proposal to retain MML SCR targethigh Available range quality assets Internal
Slide 17: Retrospective view of MML solvency on Dec 2024
Retrospective view of MML solvency on 31 Dec 2024 Higher discretionary buffer deemed more realistic - but 4 470 with more urgency on surplus 3 870 2 000 3 000 Strong cash generation over the last 3 years Less volatility in SAM balance sheet as per latest modelling 11 400 11 000 Risk Committee has ra
Slide 18: MML discretionary and surplus capital
MML discretionary and surplus capital Movement in discretionary and surplus capital (pre dividend) R’ million Change in IFRS NAV -7 775 3 040 -2 800 13 697 900 -2 223 Change in required capital 6 468 1 630 Opening IFRS profit Dividend IFRS17 Required capital Required capital - BAU Increase in strate
Slide 19: Update on dividend policy review
Update on dividend policy review MML SCR cover Momentum Group SCR cover Pre-foreseeable dividend Pre-foreseeable dividend 2.15 2.17 2.11 2.06 2.11 2.08 2.0 1.66 1.67 1.72 2.03 2.01 1.7 1.63 1.69 1.65 1.63 1.63 1.6 1.4 Dec 24 Jun 25 Jun 26 Jun 27 Dec 24 Jun 25 Jun 26 Jun 27 Subs 1.5 div (1.5div times
Slide 20: Next steps
Next steps 1 Finalise work on revised dividend policy 2 MML solvency target reaffirmed, scope to review Group solvency target 3 Buyback programme commenced on 14 May 2025 4 Ongoing work on Africa optimisation 5 Continue to review how we allocate capital across the Group to support ROE outcomes 6 Our
Slide 21: Thank you
Thank you The information in this presentation, including the financial information on which the outlook is based and any non-IFRS financial measures (which are presented for additional information purposes only), is the responsibility of the directors of Momentum Group and has not been reviewed and