Momentum Metropolitan Namibia, a subsidiary of Momentum Metropolitan Holdings has announced robust earnings for the interim results six months ending 31st December 2023.
The company said despite challenges, the group’s performance reflects resilience and adaptability, with solid contributions from Namibia.
The results showed that the Momentum Metropolitan Africa experienced a notable increase in normalised headline earnings, reaching R284 million, a testament to the group’s robust performance.
This growth was particularly bolstered by enhanced investment income from Namibia, showcasing the significant contribution of the Namibian market to the group’s overall success, the company said.
Sakaria Nghikembua, CEO of Momentum Metropolitan Namibia, expressed satisfaction with the financial results, stating: “Our commitment to empowering local businesses and individuals has contributed to our resilience in the face of challenges. We are proud of the solid financial performance, which underscores our dedication to serving our clients in Namibia.”
Jeanette Marais, the Group CEO of Momentum Metropolitan Holdings expressed satisfaction with Momentum Metropolitan’s financial performance, emphasising the resilience and agility of their empowered and accountable business model. This approach has consistently delivered robust earnings and solid financial results, even amidst a challenging operating environment, she said.
Marais acknowledged the persistent pressure on the value of new business, despite the overall improvement in earnings.
She highlighted the importance of addressing factors such as new business pricing, cost of acquisition, and sales mix to alleviate the strain on new business margins, despite increased sales volumes.
Marais said normalised headline earnings were R2.4 billion, marking a 42% increase from the previous period. Operating profit surged by 69% to R2 billion while value of new business (VNB) declined by 38% to R200 million, she said.
She added that momentum retail saw an improvement in normalized headline earnings to R709 million.
“Momentum Investments achieved record new business sales volumes, contributing to normalised headline earnings of R268 million. Momentum corporate experienced an increase in normalized headline earnings to R624 million, driven by improved claims experience and refined reinsurance strategies. Momentum Insure made significant progress, turning a loss of R70 million into a profit of R31 million.”
Momentum Metropolitan is a financial services group that consists of Momentum Metropolitan Life, Momentum Asset Management, Momentum Collective Investments, Momentum Wealth, Momentum Short-term Insurance Group, and Methealth Namibia Administrators.
