Picture: SUPPLIED/MOMENTUM METROPOLITAN HOLDINGS
Picture: SUPPLIED/MOMENTUM METROPOLITAN HOLDINGS

Insurance and financial services group Momentum Metropolitan Holdings warned on Monday that profits could fall almost two-thirds in the year to end-June as it battles with the fallout from Covid-19.

Momentum said in a trading update the estimated after-tax effect of Covid-19 on economic activity, claims, and policyholder behaviour is estimated at R1bn, with the group also writing down its properties due to pressure on valuations.

Headline earnings per share (HEPS) are expected to fall 45%-65% from the prior period’s 168c. HEPS are a widely used profit measure in SA that excludes certain one-off items to give a better indication of the underlying performance of a business.

The group is due to release its results on September 9.

In morning trade on Monday, Momentum’s share was down 1.73% to R15.86, having earlier fallen as much as 4.5%.

Update: August 17 2020

This article has been updated with share price information.

gernetzkyk@businesslive.co.za

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