Momentum Group Limited · JSE:MTM
Momentum — Momentum Metropolitan — FY2023 Earnings Presentation
19 slides from Momentum's earnings presentation
Slide 1: Momentum Metropolitan post-results roadshow
Momentum Metropolitan post-results roadshow
Slide 2: Roadshow slides
Roadshow slides 1 Metropolitan Life 2 Momentum Life 3 Momentum Insure
Slide 3: Metropolitan Life
Metropolitan Life 1 Financial results measures 2 Metropolitan 5-point plan
Slide 4: Key financial measures: normalised headline earnings
Normalised headline earnings Normalised headline earnings (R'million) 800 -54% Expenses outgrew policy growth and resulted in 668 700 610 strengthening of the renewal expense basis 600 500 433 Persistency basis was strengthened but was 393 400 338 305 offset by aligning mortality basis to experience
Slide 5: Key financial measures: VNB and VNB margin
VNB F22 F23 300 VNB and VNB Margin 5.0% Irrecoverable 253 -37% 4.5% 4.3% 244 distribution 250 4.0% expenses 3.4% 3.5% Expense growth Funeral 200 Other 3.0% more than re-price 154 150 2.5% revenue 2.3% 89 110 2.1% 2.0% 100 83 1.8% Key financial measures 1.6% 1.5% 1.0% 50 0.5% - 0.0% F18 F19 F20 F21 F
Slide 6: 5-point plan
5-point Plan 1. Product commerciality 2. Sales: Workforce management 5% PVP MARGIN 3. Improve business quality F25 4. 5-point plan Align cost base to revenue 5. Migration and Automation R600m NHE IFRS17
Slide 7: Supporting initiatives
Supporting initiatives Historically product pricing not done regularly commerciality Product Lack of comprehensive product management resulting in certain components of product being lossmaking management Advisor churn and associated high recruitment workforce Channel Market access and activity mana
Slide 8: Momentum Insure
Momentum Insure
Slide 9: Momentum Insure results summary
momentum insure Results summary
Slide 10: Difficult period but turnaround on track
Momentum Insure Difficult period but turnaround on track 1. AFI integration successfully completed 3 500 90.0% Client retention rates exceeded expectation 3 000 80.0% 76.70% Strategic distribution partnerships retained 70.0% 70.0% 2 500 63.7% 62.6% Management capacity released to focus on 57.7
Slide 11: Claims ratio - key developments
Claims ratio - key developments
Slide 12: Key developments
Claims ratio What happened? F2023-Q1 F2023-Q2 F2023-Q3 F2023-Q4 • Lower claim volumes due • Increase in weather- • Late notification (Q2 • Spike in weather-related to benign weather related claims claims spillover) claims (Western Cape and Key developments • Power surge claim • Motor accident claim
Slide 13: Claims frequency over time
Claims ratio Key developments Claims frequency over time Industry wide increase in claims frequency KZN floods Claims inflation Summer wet weather WC floods Motor Accident Natural
Slide 14: Vehicle theft claims frequency over time
Claims ratio Key developments Vehicle theft claims frequency over time Industry wide increase in claims frequency Claims inflation
Slide 15: Annual policy renewal success
Claims ratio Key developments Annual policy renewal success Industry wide increase in claims frequency Claims inflation Catch-up gap Targeted Achieved PPI
Slide 16: Claims ratio – corrective actions
Claims ratio – corrective actions
Slide 17: Corrective action – New business & Existing Book
Claims Ratio Corrective action – New business & Existing Book 1 New business • Multiple new business rate adjustments • Exclusion of high-risk segments and profiles 2 Existing book • Ongoing higher renewal increases • Other underwriting actions • Segmented premium increases and policy cancellations
Slide 18: Momentum Life
Momentum Life
Slide 19: VNB Attribution Summary
VNB Attribution Summary 80 60 40 20 2021 VNB Sales Impact Expense Growth Economic Assumptions Other 2023 VNB