Momentum Metropolitan Namibia, a subsidiary of Momentum Metropolitan Holdings has announced the Group’s robust earnings for the six months ending 31st December 2023 (Interim Results). Despite challenges, the Group’s performance reflects resilience and adaptability, with solid contributions from Namibia.
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.
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.”
Momentum Metropolitan Namibia was also recently recognised at the 2023 Namibia Premier Business Awards. The company was awarded the titles of ‘Long Term Insurer of the Year’ and ‘Short Term Insurer of the Year.’ Additionally, Group CEO, Sakaria Nghikembua, was a nominee for the ‘Corporate Turnaround Champion.’ These accolades serve as a testament to the company’s commitment to excellence and innovation within the Namibian insurance industry.
Jeanette Marais, the Group CEO, 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. 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.
“Our three-year Reinvent and Grow strategy remains on track, and we are preparing to share our vision for the future with investors in the upcoming financial year,” Marais concluded.
Key points from the Group’s performance:
- Normalized headline earnings of R2.4 billion, marking a 42% increase from the previous period.
- Operating profit surged by 69% to R2 billion.
- Momentum Metropolitan’s present value of new business premiums (PVNBP) rose by 18% to R39.1 billion, indicating strong sales momentum.
- However, the value of new business (VNB) declined by 38% to R200 million.
- Momentum Retail saw an improvement in normalized headline earnings to R709 million.
- Momentum Investments achieved record new business sales volumes, contributing to normalized 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 Africa’s normalized headline earnings increased to R284 million, supported by enhanced investment income from Namibia.
Momentum Metropolitan Namibia is proud to contribute to the Group’s success and looks forward to continued growth and service excellence in the Namibian market.