Momentum Health has formally assumed responsibility for administering Bonitas Medical Fund, completing what is being described as the largest transfer of a medical scheme in South Africa’s history.

The move ends Bonitas’ 43-year administration partnership with Medscheme and brings about 750,000 members onto Momentum Health’s platform.

The transition marks a significant shift in South Africa’s healthcare administration sector, where scale and efficiency have become increasingly important.

The addition of Bonitas strengthens Momentum Health’s position in a market dominated by a handful of major players.

Its share of the medical scheme administration market has increased from 22 percent to 30 percent, placing it second behind Discovery.

The transfer also comes at a time when many South Africans are looking for affordable healthcare options as households and employers grapple with rising costs.

Jeanette Marais, CEO of Momentum Group, previously said Bonitas’ decision to appoint Momentum Health reflected confidence in the company’s administrative capabilities and healthcare expertise.

Preparing for a smooth transition

In its operating update for the nine months ended March 31, 2026, Momentum Group said teams had spent months preparing for the June 1 handover.

The work included aligning systems, data, processes and staff to ensure minimal disruption for members.

The company said the transition was one of the most significant operational projects undertaken by its health division, requiring close coordination across multiple business units before the official transfer date.

Health business delivers strong growth

The health division reported normalized headline earnings of $21 million during the nine-month period, a 35 percent increase from a year earlier.

Membership rose 5 percent to 1.36 million, supported by growth in the public sector and Health4Me, the group’s affordable healthcare product.

Momentum said demand for lower-cost healthcare solutions continued to support growth, although pressure on household budgets and employment levels remained a challenge in the corporate market.

Broader group earnings rise

Outside South Africa, the company’s health operations recorded a 14 percent increase in membership, helped by a major client onboarding in Mozambique and new business in Lesotho.

At group level, normalized headline earnings increased 15 percent to $340 million. While new business volumes remained healthy, the value of new business fell 4 percent to $21 million as lower bond yields prompted many investors to favor living annuities over traditional life annuities.