Momentum Group, the South African financial services and insurance group led by Jeanette Marais, exceeded its long-term profit target a year ahead of schedule after earnings climbed 13 percent in the year ended June 30, 2026. Strong operating results across its retail, life and corporate businesses, combined with higher investment returns, supported the increase.

The group reported normalized headline earnings of R7.06 billion ($435 million), compared with R6.26 billion ($385.5 million) a year earlier, according to its annual results. Operating profit rose 9 percent to R5.97 billion ($367.6 million), while investment returns surged 40 percent to R1.09 billion ($67.1 million) from R779 million ($48 million).

Dividend rises with earnings

The stronger results gave Momentum Group’s board room to raise its final dividend to R1.20 ($0.07) per share, taking the full-year payout to R2.30 ($0.14). That compares with R1.75 ($0.10) in 2025 and represents a 31 percent increase, with the payout ratio at 43 percent of normalized headline earnings per share.

Normalized headline earnings per share increased 18 percent to R5.30 ($0.32) from R4.50 ($0.27), helped by the completion of a R1 billion ($62 million) share repurchase program during the year. The payout remains within Momentum Group’s revised target range of 40 percent to 60 percent of normalized headline earnings, leaving room for future distributions.

Five units top R1 billion

Earnings growth extended across much of the group, with five divisions each generating more than R1 billion ($62 million) in normalized headline earnings. Momentum Corporate remained the largest contributor at R1.42 billion ($87.45 million), despite lower operating profit, supported by large single-premium structured investment and living annuity transactions.

Momentum Investments generated R1.19 billion ($73.3 million), up 24 percent from R963 million ($59.3 million), as stronger equity markets lifted asset-based fee income. Metropolitan Life followed with R1.15 billion ($71 million), a 32 percent increase from R868 million ($53.5 million), helped by favorable mortality experience, tighter salesforce management and fewer onerous contracts.

Guardrisk delivered R1.04 billion ($64 million), up 26 percent on stronger underwriting results, while Momentum Retail produced R1.01 billion ($62.2 million) despite pressure from lower long-term yields and higher reinsurance costs. Momentum Insure increased 8 percent to R474 million ($29.2 million), while Momentum Africa jumped 79 percent to R387 million ($23.8 million).

New business gathers pace

Momentum Health contributed R367 million ($22.6 million), while the group’s health venture in India returned to profitability under IFRS 17, reporting R22 million ($1.35 million). Across the group, new business sales measured by present value of new business premiums rose 18% to R93.8 billion ($5.77 billion), from R79.79 billion ($4.91 billion).

The increase was driven by sustained demand for retail savings products and corporate umbrella funds. Value of new business rose 5 percent to R491 million ($30.24 million) from R469 million ($29 million), while the group’s composite margin increased 5 percent to R25.68 billion ($1.6 billion), reflecting higher expected future profits from existing contracts under IFRS 17.

Balance sheet gains ground

Momentum Group’s balance sheet also expanded during the 12 months. Total assets rose 14 percent to R917.89 billion ($56.5 billion) at June 30, 2026, from restated assets of R802.34 billion ($49.41 billion) a year earlier. Total equity increased 6 percent to R34.92 billion ($2.15 billion) from R32.95 billion ($2.02 billion).

Diluted embedded value per share climbed 19 percent to R50.60 ($3.11), while the group reported a 21.7 percent return on equity. The results give Momentum Group a stronger capital position after a year of higher earnings, increased new business and improved investment returns, even as market volatility and consumer affordability pressures continue to weigh on financial services.