The markets cheered the upbeat trading statement of Momentum Group on the back of a strong operational performance, which powered its shares 10% higher on Wednesday.
At 5pm on Wednesday the share of the JSE-listed financial services giant, formerly known as Momentum Metropolitan Holdings, was at R30.60 on the JSE.
In a trading statement for the six months ended December 31, 2024, the group said that headline earnings per share (heps) are set to hit 240 to 248 cents, up 50% to 55% from 159.9 cents a year ago - a gain of 80.1 to 88.1 cents.
Earnings per share matches that range. Diluted normalised Heps, their adjusted go-to figure, is pegged at 241 to 249 cents - up 43% to 48% from 168 cents last time.
Momentum Group said its strong operational performance delivered robust earnings across all business units.
Earnings benefited from good performance on the existing book of business, bolstered by improved persistency experience variance in most of its South African life insurance businesses.
"Mortality and morbidity claims variance remains positive, although less positive than recent periods. Strong underwriting discipline and favourable weather conditions resulted in a solid recovery in Momentum Insure's earnings.
"Guardrisk saw notable growth in underwriting profits and management fee income. The Group's results were further aided by higher market returns and favourable yield curve shifts over the period. Strong cash generation supported the Group's capital and liquidity position," it said.
Momentum flagged that it expects to release its full financial and operating results for the six-month period ending December 31, 2024 before the market opens on Thursday, March 20, 2025.
BUSINESS REPORT