Insurer Momentum Metropolitan Investments (MMH) said on Thursday it had notched up double-digit growth in business volumes in most of its operations in its first quarter to end-September, boding well for its turnaround plan.
Diluted normalised headline earnings per share (heps) increased 13% during the quarter, with the company saying star performers included Guardrisk and Momentum Investments.
Diluted normalised heps excludes the effect of treasury shares, amortisation of intangible assets due to transaction costs, and BEE costs, with the company believing it is a more reliable measure of underlying performance.
The value of new business at Momentum Investments surged to R30m from R4m previously, with the company reporting positive net flows into Momentum Wealth’s offshore platform. This was partially offset by lower asset-based fee income, due to weak market conditions.
Across the group new business volumes were down 24% relative to the prior comparative period, but MMH said this was due to the exceptional new business volumes recorded by Momentum Corporate seen in the first quarter of 2019.
“If we exclude Momentum Corporate, new business volumes were up 12% across the other business units. We believe that the 12% growth rate is indicative of the progress we are making in the various retail segments,” the statement said.