The share price of life insurer MMI fell 4% to R25.09 on Monday morning after it warned shareholders it expected to report its interim headline earnings per share (HEPS) declined by up to 35%. The group, created through the merger of Momentum and Metropolitan, said on Monday that it expected to report on March 2 that HEPS for the six months to end-December fell to between 59c and 68c from the comparable period’s 91.3c. Basic earnings per share (EPS) declined by between 30% and 40%. The company said that weak underwriting experience in its group disability business and a decline in health administration’s operating earnings following the loss of two large clients had hurt core HEPS, which were expected to decline in a more moderate range of zero to 10%. The "weak underwriting experience" loss is estimated at about R60m and the loss of two large health administration clients at about R70m
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