Turnaround growth still in pipeline, MMI warns
MMI has delivered disappointing returns to shareholders in recent years, with its largest business units bleeding market share
Insurance and investment group MMI has warned shareholders that its turnaround strategy is yet to translate into an improved financial performance, but analysts are upbeat. Increased investment in client activities, higher technology spending and the persistent weakness of Metropolitan Retail weighed on results in the year to end-June, with the group on track to report its third consecutive year of earnings declines. MMI, however, appeared to be quite far down the track in improving capital discipline and focusing on core operations in SA, and results appeared encouraging even if not yet reflected in the numbers, said Coronation analyst Nic Stein. MMI has delivered disappointing returns to shareholders in recent years, with its largest business units bleeding market share. In January, it announced the return of former CEO Hillie Meyer. The group’s share of losses in new ventures, including in India, also increased. This was, however, in line with its business plans. "We have reset t...