MMI issues three month trading update

28 November 2013 MMI

MMI Holdings Limited (MMI) today released a positive three month trading update to September 2013. The group has reported an overall increase of 26% in recurring premium business and a 12% increase in single premium business as compared to the same quarter in 2012, both ahead of market expectations.

These positive results were achieved in an environment that continues to be highly competitive with on-going pressure on the disposable income of clients. Metropolitan and Momentum however, managed to retain clients through continued implementation of long-term and sustainable sales practices.

Momentum Retail reported a 9% increase in recurring premium and 45% increase in single premium as compared to the same period in 2012. Metropolitan Retail reported a 12% increase in recurring premium and a 24% increase in single premium business.

Momentum Employee Benefits continues to report exceptional performance with recurring premium business in the umbrella funds space increasing by more than 100%. Following the record levels of new single premium business in the first quarter of 2012, single premium business continues to be strong at R1.2 billion for 2013.

Metropolitan International reported a 3% increase in recurring premium and a 39% increase in single premium business as compared to the first quarter of 2012. The division continues to make significant strides as a player in Africa. The division recently announced a strategic partnership with Bharti Airtel Limited to promote large-scale access to Metropolitan insurance and micro savings products in East and West Africa.

Momentum Investments’ cost-to-income ratio improved for the quarter on the back of increased market levels, performance fees and controlled costs. The division’s core growth strategy remains building a competitive investment management capability for MMI as a group and other third parties.

Metropolitan Health continues to position itself for industry consolidation and health reform. The recent acquisition of Port Elizabeth-based Providence Healthcare Risk Managers, is a move which strengthens its position as the country’s largest healthcare administrator. Providence delivers administration and managed care services to approximately 140 000 beneficiaries for restricted membership schemes.

MMI remains a well-diversified financial services group with scale in all the established operations. Growth in new business volumes will, however, remain dependant on the economic environment, including a recovery in employment and stronger disposable income levels.

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