South Africa: Insurer Momentum’s Annual Profit Up 39%

South African insurer Momentum Group (MTMJ.J), opens new tab posted on Friday a 39% rise in full-year earnings, driven by higher investment income in an elevated interest rate environment.

Its headline earnings per share (HEPS), an important profit measure in South Africa, rose to 298.6 cents in the year to June. 30, from 215.5 cents a year earlier.

The insurance and financial services group said many of its business units benefited from increased investment income due to high interest rates, driving operating profit 31% higher to 3.6 billion rand ($209.1 million).

Like other South African insurers, Momentum has gained from higher interest rates, which provide better returns on investment of premiums collected from clients.
The group declared a final dividend of 65 cents per share, taking the total payout for the year to 125 cents per share.
($1 = 17.2187 rand)

Reuters/Patience Ameh