South Africa Insurance Group MMI report sharp fall in interim profit

Insurance group MMI’s aftertax profit fell by a third to R1bn in the six months to end December, from R1.5bn in the matching period.

Net income for the group was R20bn for the period, its interim results released on Thursday morning showed.


MMI said it was struggling due to lower morbidity profits, lower health administration revenue, and weak growth in asset-based fee income as a result of weak investment markets.
The group said group disability claims remained high, and resulted in a R57m reduction in earnings compared with the year before.

Its new business margin remained stable at 1.4%.
MMI said that while the overall group strategy remained the same, it had identified client engagement solutions and growing the group’s wellness rewards programme Multiply as areas of strategic importance to set itself apart from its competitors.
An interim dividend of 65c per share was declared, the same as the interim dividend declared the year before.

MMI said its health insurance joint venture in India was likely to be its largest ongoing investment initiative outside SA in the near future.