INSURANCE WOES
MMI posts sharp fall in interim profit
Insurer MMI plans to invest in two joint ventures and its short-term insurance offering in a bid for growth after reporting its first half-year decline in core headline earnings since the Metropolitan and Momentum merger in 2010. On Thursday, the company reported a 5% decline to R1.6bn in diluted core headline earnings for the half-year to December, the result of losing two major healthcare administration contracts and losses on its group disability book. It had earlier warned that earnings could drop as much as 10%, with the loss of the Bankmed and Polmed administration licences taking R70m out of earnings, coupled with an extra loss of R57m from higher disability claims. After the presentation of the company’s results, MMI CEO Nicolaas Kruger said the higher disability claims were a result of the weak economic environment. "A number of employee benefits include the disability benefit. The economy in its current state makes working conditions more stressful. You have back pain, or ...
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