Momentum Group Limited · JSE:MTM
Momentum — FY2025 Earnings Presentation
55 slides from Momentum's earnings presentation, June 2025
Slide 1: Momentum Group delivers record earnings
Momentum Group delivers record earnings Strength of our businesses drives growth F2025 Jeanette Marais
Slide 2: Overview
Overview Key takeouts Impact strategy highlights Closing 2
Slide 3: Record normalised headline earnings
Key takeouts Record normalised headline earnings +41% R’m Strong performance across all businesses 6 260 Momentum Insure: Successfully executed turnaround, sustainable profitability, contributed R438m NHE 4 438 Metropolitan: Delivered on 5-point plan, solid foundation for Impact strategy, R868m NHE
Slide 4: Value of new business requires enhanced focus
Key takeouts Value of new business requires enhanced focus -20% R’m Requires enhanced focus Good VNB improvements in Momentum Retail, Metropolitan & Africa 600 Momentum Investments biggest VNB 589 contributor; remain market leader in life 469 annuities VNB impacted by market shift from guaranteed to
Slide 5: New business sales remain stable
Key takeouts New business sales remain stable -3% PVNBP* R’bn Sales remained broadly flat 82.1 79.8 Increased sales volumes in: ▪ Momentum Retail: +3% 68.9 ▪ Momentum Investments: +2% ▪ Africa: +27% Wealth management net inflows more than doubled to R10.1bn, driven by strong collaboration with MFP a
Slide 6: Returning value to shareholders
Key takeouts Returning value to shareholders +40% Cents Final dividend declared: 90 cents per ordinary 175 share Full-year dividend of 175 cents, up 40% from 125 cents in F24 120 125 90 Further R1 billion share buyback programme approved Despite share price gains, the discount to EV remains 15 to 20
Slide 7: Return on equity exceeds F27 target
Key takeouts Return on equity exceeds F27 target +5.7 % Consistent growth in ROE, above the F27 target of 20% ROE ranks among the highest in the industry 21.2 for the full year Reinforces the Group’s strong financial 15.5 performance and capital efficiency 12.7 F23 F24 F25 7
Slide 8: Overview
Overview Key takeouts Impact strategy highlights Closing 8
Slide 9: Invest aggressively in advice to drive growth
Invest aggressively in advice to drive growth Market leader in IFA distribution 9
Slide 10: Market leader in IFA distribution
Impact strategy highlights Market leader in IFA distribution Invest aggressively in advice to drive growth Key component to ensure future growth and compete in retail advice space Combination of our distribution strength and our advice-led approach continue to differentiate us in the market Leveragi
Slide 11: Independent adviser distribution sustains strong growth
Impact strategy highlights Independent adviser distribution sustains strong growth Consistent sales growth MDS product dashboard Total APE F2025 year-on-year growth R’m +13.4% CAGR +10.8% Investments 10% 5 427 4 896 3 984 Myriad 9% 3963 3 822 Investo 3% 2 555 2 330 Health 13% 2 245 FundsAtWork 10% F
Slide 12: Showing up in a competitive market
Impact strategy highlights Showing up in a competitive market IFA market share Investments Life Risk New inflows for LISP and Life Annuities Myriad gross new business R'bn R'm 17.80% 18.10% 18.40% 17.80% 16.7% 17.1% 17.5% 16.1% 41 45 309 327 36 34 284 303 F22 F23 F24 F25 F22 F23 F24 F25 12 *NMG mark
Slide 13: Why are we more successful with IFAs?
Impact strategy highlights Why are we more successful with IFAs? Our people and Our products Our strategic approach relationships Part of our DNA, we Our products are Specialisation champion IFAs and competitive, highly rated distinguishes us have great relationships Strong MDS product BU Consult as
Slide 14: Harness synergies of collaboration within our federated operating model
Harness synergies of collaboration within our federated operating model Excellent collaboration creates benefits for clients and Group 14
Slide 15: The power of collaboration in a federated model
Impact strategy highlights The power of collaboration in a federated model Harness synergies of collaboration within our federated operating model Leveraging the benefits of our federated operating model while we also unlock synergies and growth opportunities through the power of collaboration Types
Slide 16: Hunting together
Impact strategy highlights Hunting together Integrated health and employee benefits offering: First for retailers Momentum Health + Momentum Exceptional value for our clients Corporate + Guardrisk = + Deeply integrated client Woolworths had employee benefits for 26 500 employees, only 5 500 had heal
Slide 17: Joint product development
Impact strategy highlights Joint product development New features + Control for FAs, simplification + Momentum life insurance + Momentum Trust = Partnership + New Market + Clients protected against erosion of estate WILLS • Custom wills with simplified legal jargon • Quick process for signing and pl
Slide 18: Successfully completed massive systems migration
Impact strategy highlights Successfully completed massive systems migration Momentum Retail Minimising risk + Cost optimisation + + Metropolitan = Product rationalisation + Improved + Momentum Africa client experience + Future-proofing + Several support teams One of the largest legacy system migrati
Slide 19: Overview
Overview Key takeouts Impact strategy highlights Closing 19
Slide 20: A year of strategic focus and delivering results
Closing A year of strategic focus and delivering results Anchored by strategic clarity, disciplined execution, operational excellence, and 1 a robust financial position Implemented turn-around plans. Our focus is on VNB, continued sales growth, 2 Africa operating model and client experience 3 Contin
Slide 21: Financial Results
Financial Results Financial overview Capital management Other topical matters Conclusion Risto Ketola
Slide 22: Key financial measures
Financial overview Key financial measures Normalised headline Normalised headline Total dividend per Return on earnings earnings per share share equity R’million cents cents % +41% +46% +40% +5.7 451 175 21.2 6 260 15.5 4 438 310 125 F24 F25 F24 F25 F24 F25 F24 F25 22
Slide 23: Key financial measures
Financial overview Key financial measures Diluted embedded Present value of Value of New business value per share new business premiums new business margin Rands R’million R’million % +15% -3% -20% -0.1 42.51 82 141 79 793 589 36.94 469 0.7 0.6 F24 F25 F24 F25 F24 F25 F24 F25 23
Slide 24: Core life operations
Financial overview Core life operations Normalised headline earnings (R’million) +22% +81% +46% +37% -23% 1 618 1 356 229 1 182 1 109 46 42 75 963 868 198 119 595 1 310 533 1 389 43 1 140 1 034 53 376 765 749 288 480 552 379 311 (3) (23) Momentum Momentum Metropolitan Life Momentum Momentum Africa R
Slide 25: Core life operations – Momentum Retail
Financial overview Core life operations – Momentum Retail Normalised headline earnings (R’million) +22% 1 356 46 1 109 Momentum Retail 75 Positive Myriad mortality experience variances 1 310 Favourable assumption changes 1 034 Improved new business earnings Momentum Retail F24 (earnings ex markets)
Slide 26: Core life operations – Momentum Investments
Financial overview Core life operations – Momentum Investments Normalised headline earnings (R’million) +81% 963 198 Momentum Investments 533 Higher CSM release from life annuity book 53 Strong investment performance on annuity book 765 Increased earnings from the Wealth platform 480 Momentum Invest
Slide 27: Core life operations – Metropolitan Life
Financial overview Core life operations – Metropolitan Life Normalised headline earnings (R’million) +46% 868 119 Metropolitan Life 595 43 Positive persistency, mortality and morbidity experience variances 749 Strong annuity portfolio market variances 552 Release of data reserves following system mi
Slide 28: Core life operations – Momentum Corporate
Financial overview Core life operations – Momentum Corporate Normalised headline earnings (R’million) +37% 1 618 229 1 182 42 Momentum Corporate Strong mortality and morbidity experience 1 389 Favourable IBNR reserve releases 1 140 Benefited from strong investment returns and ALM profits Momentum Co
Slide 29: Core life operations – Momentum Africa
Financial overview Core life operations – Momentum Africa Normalised headline earnings (R’million) -23% Momentum Africa Increased earnings from Namibia, lower earnings from Botswana and Lesotho 376 288 Negative expense assumption changes in Botswana and Lesotho 379 311 Higher centre costs to support
Slide 30: Non-life operations
Financial overview Non-life operations Normalised headline earnings (R’million) +16% +19% +>100% +76% -50% 775 653 438 255 295 192 (67) (183) (274) (274) Momentum Guardrisk Momentum India Shareholders Health Insure F24 F25 30
Slide 31: Non-life operations – Momentum Health
Financial overview Non-life operations – Momentum Health Normalised headline earnings (R’million) +16% Momentum Health Annual increases in administration and 295 managed care fees 255 4% growth in membership Good claims experience on capitation contracts Momentum Health F24 F25 31
Slide 32: Non-life operations – Guardrisk
Financial overview Non-life operations – Guardrisk Normalised headline earnings (R’million) +19% 775 653 Guardrisk Strong GGI underwriting profits (+18%) Higher management fee income from cell captive business (+8%) Contributions from recent acquisitions Guardrisk F24 F25 32
Slide 33: Non-life operations – Momentum Insure
Financial overview Non-life operations – Momentum Insure Normalised headline earnings (R’million) +>100% Momentum Insure 438 Excellent claims ratio (51%) Renewal strategy and new business pricing 192 both supportive Modest GWP growth Momentum Insure F24 F25 33
Slide 34: Non-life operations – India
Financial overview Non-life operations – India Normalised headline earnings (R’million) +76% India Small profit under Indian GAAP IFRS17 results show the same trend (274) (67) Business growth remains excellent India F24 F25 34
Slide 35: Non-life operations – Shareholders
Financial overview Non-life operations – Shareholders Normalised headline earnings (R’million) -50% Shareholders Strategic investment in optimisation initiative (c.R100m) FV losses on VC funds (R231m) (183) (274) Higher tax expense Shareholders F24 F25 35
Slide 36: New business volumes
Financial overview New business volumes R’billion Present value of new business premiums (PVNBP) -3% 82.1 79.8 +3% +2% -6% -24% +27% 48.5 49.3 15.4 8.5 8.7 11.7 6.9 6.5 2.8 3.6 Momentum Momentum Metropolitan Momentum Momentum Momentum Retail Investments Life Corporate Africa Group F24 F25 36
Slide 37: New business margin
Financial overview New business margin New business margin (%) 1.5 1.0 0.7 0.6 0.5 0.1 (0.2) (0.4) (0.6) (0.6) (1.0) (1.8) Momentum Momentum Metropolitan Momentum Momentum Momentum Retail Investments Life Corporate Africa Group F24 F25 37
Slide 38: New business CSM to VNB
Financial overview New business CSM to VNB R’million 1 322 (789) 34 51 82 (190) 469 (41) New business Onerous Loss recovery IFRS 17 out IFRS 9 Tax Cost of capital VNB CSM contracts component of standard business (LoRC) cash flows 38
Slide 39: In-force book embedded profit
Financial overview In-force book embedded profit R’billion +6% 0.7 2.4 (3.4) 24.4 18.5 23.1 1.6 17.9 10.9 11.2 Momentum Retail Momentum Investments 4.7 Metropolitan Life Momentum Corporate 4.0 Momentum Africa 5.7 4.8 1.2 1.1 1.9 2.0 June 2024 New Expected Change in Release June 2025 business growth
Slide 40: Embedded profit by operating segment and product
Financial overview Embedded profit by operating segment and product 0.8 0.8 R’billion 0.1 Traditional Protection 10.3 0.1 2.1 10.0 Long-term savings 2.0 Annuities 1.2 4.7 0.9 4.0 0.7 0.7 2.3 0.3 0.3 1.8 0.7 0.8 0.1 0.1 0.8 0.8 0.4 0.5 F24 F25 F24 F25 F24 F25 F24 F25 F24 F25 F25 Momentum Momentum Met
Slide 41: Performance optimisation progress
Financial overview Performance optimisation progress R1bn target R’million +54 Actively working on • Policy administration system consolidation • Momentum Digital Connect unit rewire • Optimise spans of control within Momentum Insure New banked savings 709 • Momentum Health contact centre optimisati
Slide 42: Financial Results
Financial Results Financial overview Capital management Other topical matters Conclusion Risto Ketola
Slide 43: Strong cash generation
Capital management Strong cash generation R’million F23 F24 F25 SA Life businesses 3 545 2 461 3 273 Momentum Insure (580) - 575 Guardrisk 297 417 411 Momentum Africa 477 (155) 377 Momentum Investments 287 277 347 Momentum Health 207 178 213 Other - - 50 Dividend inflow to Momentum Group 4 233 3 178
Slide 44: Strong ROEs in mature businesses
Capital management Strong ROEs in mature businesses 50% - 55% 40% - 45% Return on equity (%) Metropolitan Life 35% – 40% Momentum Corporate 30% - 35% 25% - 30% Momentum Momentum Momentum Health Retail Investments 20% - 25% Health Guardrisk Momentum Insure 5% - 10% Africa (3.9%) (6.0%) Shareholders 3
Slide 45: Updated dividend target payout of 40 to 60%
Capital management Updated dividend target payout of 40 to 60% Final dividend payout ratio EV uplift from share buybacks 44% of 2HF25 NHE Cents # of shares Tranche EV bought Value 90 R’million acquired value back created 85 1HF23 45 750 1 334 584 70 65 2HF23 28 500 876 376 60 50 1HF24 24 500 813 313
Slide 46: Financial Results
Financial Results Financial overview Capital management Other topical matters Conclusion Risto Ketola
Slide 47: F25 returns on major asset classes
Other topical matters F25 returns on major asset classes Asset return performance 24.1% Equity market 18.3% outperformance 17.1% Good relative performance 12.8% 12.8% 13.1% 11.5% 9.3% 8.7% SA government bonds 8.1% outperformance as also reflected in the lower nominal yield curve SA Equity Global Equ
Slide 48: Deeper look into market variances
Other topical matters Deeper look into market variances Momentum Retail Momentum Investments R’million R’billion R’million R’billion 65 204 198 46 41 - (19) - (8) (6) Attribution of market impact IFRS liabilities per product IFRS liabilities per product Attribution of market impact Metropolitan Life
Slide 49: Financial Results
Financial Results Financial overview Capital management Other topical matters Conclusion Risto Ketola
Slide 50: In conclusion
Conclusion In conclusion 1 Excellent earnings in F2025 2 Well-positioned to take advantage of favourable underwriting environment 3 Strong cash generation and new dividend policy 4 Growth (VNB, GWP and membership) remains area of intense focus 5 Congratulations to our employees and thank you to our
Slide 51: Appendix
Appendix The information in this results announcement and any non-IFRS financial measures (which are presented for additional information purposes only), is the responsibility of the directors and, has not been reviewed and reported on by Momentum Group Limited’s external auditors. 51
Slide 52: IFRS 17 and IFRS 9 earnings
Appendix IFRS 17 and IFRS 9 earnings IFRS 17 IFRS 9 R’million F24 F25 Δ F24 F25 Δ New business (506) (520) (3)% (352) (356) (1)% Existing business 3 283 4 438 35% 512 698 36% Expected profit 3 097 3 285 6% 555 690 24% Operating experience variances 253 361 43% (153) (13) 92% Operating assumption cha
Slide 53: Onerous contracts
Appendix Onerous contracts R’million (Net of reinsurance and tax) F24 F25 Momentum Retail 31 25 Momentum Investments 137 109 Metropolitan Life 195 185 Momentum Corporate 58 59 Momentum Africa (193) 168 192 589 570 53
Slide 54: Composition of shareholder balance sheet
Appendix Composition of shareholder balance sheet Intangible and other assets VC funds Return to SH Return on Surplus capital excess to SH Discretionary capital High quality assets Return on backing covered business Strategic assets capital Required capital allocated to segments MML Shareholder Segm
Slide 55: Shareholder segment earnings
Appendix Shareholder segment earnings R’million F24 F25 Shareholders Intangible Venture capital funds (329) (260) & other assets VC funds Venture capital fund returns exhibit weak Other strategic assets (25) 16 VC market conditions Discretionary & surplus capital Strong returns on portfolios represe