Third wave may force Momentum Metropolitan to raise provisions again
The financial services group will need to raise virus provisions if excess deaths in an expected third Covid-19 wave match those of the second wave
Momentum Metropolitan Holdings, which came about as a result of a merger between Metropolitan Holdings and Momentum Group in December 2010, is bracing for a third wave of Covid-19 infections this winter and says it may need to increase provisions again if a third spike in infections exceeds its expectations or if SA experiences a fourth wave in its next fiscal year.
The insurance and financial services group increased Covid-19 provisions by R655m net of tax for the six months to end-December, adding to the R983m in provisions announced in its results for the 12 months to end-June 2020. That combined provision amount of R1.638bn should be sufficient to cover it for “three waves”, provided the third expected spike in infections and deaths does not exceed levels experienced in the first wave, Momentum Metropolitan CEO Hillie Meyer said...
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