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Momentum unveils new strategy to take it to 2024

Through Sandile Mchunu 15 min ago

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MOMENTUM Metropolitan Holdings unveiled its new strategy during yesterday’s investor conference presentation that will take the financial services group into fiscal 2024, with an expected surge in normalized earnings despite the disruption caused by Covid-19 in financial markets. results from last year.

The new strategy, ‘Reinvent and Grow’, will run from 2022 to 2024 and the group aims to achieve normalized total profit growth of R5 billion by 2024 and has aimed for return on equity (RoE ) by 20%.

Addressing the investor conference yesterday, Managing Director Hillie Meyer said the new strategy will focus on growing existing channels, establishing new channels, accelerating digital growth and also focusing on product and service leadership. .

“The goal for FY2024 is to achieve normalized overall profit of R5 billion, which will reflect 39% growth over FY2021, with normalized overall profit expected to be between 3, 2 and 3.6 billion rand.

The group will achieve growth by accelerating our digital channels, moving from a business focused on contacts to a business fully focused on digital services, ”said Meyer.

In the fiscal year ending June 2020, the group declared a RoE of 7% and this rate is expected to rise to between 15% and 17% for fiscal year 2021 before reaching the 20% target in 2024.

The new strategy replaces the ‘Reset and Grow’ implemented in 2018 which aimed to achieve between R3.6 billion and R4 billion in normalized profits by 2021.

However, the Covid-19 outbreak in March last year derailed the group’s progress as it reported a 51% drop to R 1.52 billion for the year ending June 2020, injured by a loss of R 251 million on additional provisions that have been made, and a net negative impact of R 983 million for potentially unwanted claims and lapses and withdrawals of policyholders linked to the Covid-19 pandemic.

However, the group rebounded strongly in the first quarter of FY2021, reporting an 18% increase in overall profit normalized to 1.04 billion rand, with operating profit up 61% to 846. million Rand and new business value up 6%. at R106m.

For the future, the group had set growth targets for various divisions that would enable it to achieve the 2024 results targets.

In the Momentum Investments segment, profits are expected to increase by 7% and the non-life business had grown by 50% by 2024.

The group has other divisions such as Momentum Life, Metropolitan Life, Momentum Corporate, Momentum Metropolitan Health and Momentum Metropolitan Africa.

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Momentum unveils new strategy to take it to 2024

Source link Momentum unveils new strategy to take it to 2024

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