New MMI Insurance Group Pays out Dividends

March 11 - The merged Metropolitan and Momentum entity, MMI Holdings, reported its first interim results this week.

The group showed pro forma diluted core headline earnings of 77ca share and was able to declare an interim dividend of 63c a share.

Embedded value of the group was reported to be R31.1 billion.

MMI reported a growth in principle members to 1.1 million people, while profit before tax was posted at R1.75 billion.

According to the Chief Executive of MMI, Nicolaas Kruger, the merger gave MMI the opportunity to focus on lower to middle income earners, who, it was hoped would push new business.

MMI would also focus on expanding its African footprint over the next few years.

The group has exposure in twelve African countries at present.

"We've seen so much growth in the health portfolio but as we expand our market, there is a lot of room to add other products to the countries we've made our footprint in and establish a presence throughout Africa," said Kruger.

Kruger said that Momentum and Metropolitan had distinct brands and therefore allowed the group to "focus on our new target areas and be more specific."

MMI Holdings is offering the 1,500 employees it wanted to retrench after the merger, the chance to deploy to different areas in the businesses.

However, this may prove to be very challenging for those involved.