MMI's headline earnings up 13% to 105.4c a share

MMI's new business has grown by 23% to R378m in the six months to December. Image: 3D mask Fotolia

The value of new business was up 23% to R378m in what MMI called "an economically challenging" and highly competitive" market. The group declared an interim dividend of 57c a share‚ up 12% from 51c previously.

Momentum Retail‚ Metropolitan Retail‚ Momentum Employee Benefits and Metropolitan International managed to grow new business over the six months.

The company said Momentum Investments showed "satisfactory improvement" in its equity and balanced fund performance.

Metropolitan Health was affected by slower growth in the Government Employees Medical Scheme‚ though this division's operating profit was up 7% to R75m.

MMI said the future growth in new business volumes was dependent on the economic environment‚ including a recovery in employment and improved disposable income levels.

The group has a capital buffer of R3.5bn after allowing for the Guardrisk acquisition‚ other growth plans and the interim dividend.

MMI bought Guardrisk from Alexander Forbes for R1.6bn‚ with the sale coming into effect on Tuesday (4 March) after the deal cleared competition authority hurdles.

Guardrisk operates in the cell captive insurance market. Cell captive insurers enable corporations‚ such as retailers or telecommunications companies‚ to offer short- and long-term insurance products without a licence.

MMI said it had allocated R500m for expansion into the rest of Africa. It recently spent R300m of this kitty on acquiring a majority stake in Kenyan short-term insurance company Cannon Assurance to expand its offering in East Africa.