MMI’s Monday trading update, indicating a decline in core headline earnings of up to 10% and a drop of 20% in headline earnings for the six months to December, showed insurers could expect weaker results this reporting season, which kicks off this week. The insurer reported core headline earnings of R1.7bn, or 106.6c per share, in the six months to December 2016. Headline earnings per share came in at 91.3c. This time around, its group disability business recorded underwriting profits about R60m lower than the previous period, while the loss of two health administration clients — Bankmed and Polmed — in the first half of last year saw operating earnings in this business line decline by R70m. MMI also suffered weak returns on its policyholder investment portfolio.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now