Chamwe Kaira
Momentum Africa recorded normalised headline earnings (NHE) of N$192 million for the quarter ending 30 September.
The company said the result was driven by the release of the contractual service margin in the life business, premium growth, and lower claims ratios in the Namibia and Ghana health portfolios.
Positive market variances of N$35 million from Namibia and Botswana also supported earnings.
Investment income strengthened the result through bond returns and capital gains on bond assets after a reduction in Namibia’s yield curve.
“This result was partially dampened by increased new business strain in Lesotho and Botswana, driven by higher expenses. Mortality experience variance was positive; however, Namibia saw elevated protection claims during the quarter, while Lesotho and Botswana experienced an increase in policy surrenders driven by economic pressures,” the company said.
Momentum Africa exited the Ghanaian market on 9 September after selling its interest in three entities to emPLE Group. Earnings for the quarter include NHE of N$46 million from these entities up to the date of sale.
Africa’s present value of new business premiums (PVNBP) rose to N$1.4 billion. The company said this was due to strong growth in corporate new business in Lesotho and Namibia, higher retail volumes in Namibia and increased annuity volumes in Botswana and Lesotho.
Value of new business (VNB) improved to N$9 million from a loss of N$7 million in the prior period.
The change was driven by better VNB in Namibia due to strong retail and corporate risk business and stronger corporate risk volumes in Lesotho.
Momentum Africa’s operating model review has been completed, with changes effective from 1 July.
Namibia’s short-term insurance business is now reported under Guardrisk, while the health insurance businesses in Lesotho, Botswana, and Mozambique fall under Momentum Health. Momentum Africa now consists of life insurance and asset management operations in Namibia, Lesotho and Botswana, as well as Namibia’s health administration business and Ghana up to the sale.
Guardrisk reported NHE of N$252 million for the quarter. The result was supported by underwriting profit growth in Guardrisk General Insurance and Guardrisk Life, higher management fees from the mining rehabilitation guarantee business, and increased investment income.
Guardrisk earnings for the quarter include N$13 million from Namibia’s short-term insurance business after the operating model change.
The group reported N$1.7 billion in normalised headline earnings for the three months ended 30 September.
The company said the performance reflects strong strategic execution and a focus on profitable growth across its units. Positive market variances contributed N$201 million, compared to N$570 million in the prior period.
The group said the solvency positions of its main insurance entities remain healthy and within targeted ranges.
Caption
Momentum Africa achieved normalised headline earnings (NHE) of N$192 million for the quarter ended 30 September.
