PERFORMANCE HIGHLIGHTS

+27%

Diluted headline earnings R3 245m

+12%

Diluted core headline earnings R3 621m

+14%

Value of new business R779m

+19%

Return on embedded value 2 474cps

+12%

Total dividend per share 142cps

I believe that the merger between Metropolitan and Momentum was very successful. The success of the merger is the result of contributions from all our stakeholders, who demonstrated their commitment from the date the merger was announced on 30 March 2010. The way in which the MMI board, our leaders, management team and employees implemented the merger integration was remarkable and ensured the creation of an organisation poised for growth. We have a debt of gratitude to everyone who has contributed to the building of MMI over the past three years.

MMI’s strong financial results for 2014 are evidence of the success of the merger. Our return on embedded value for the 2014 financial year was 19% and diluted core headline earnings increased by 12% to R3.6 billion. Our total dividends of R3 billion (including the special dividend of R0.8 billion) represents an increase of 51%.

JJ Njeke

Chairman

MMI’s results for 2014 confirm that the group has continued on its path of reshaping itself to meet the challenges facing the industry and at the same time live up to its defined purpose of “enhancing the lifetime financial wellness of people, their communities and their businesses”.

Despite uncertain economic indicators and market volatility the group performed well, with exceptional expense management across divisions and a healthy increase in operating profits from all divisions.

All these factors contributed handsomely to the group’s ability to deliver quality earnings and embedded value growth from all its divisions which has also become a key and recognised metric amongst shareholders.

Preston Speckmann

Group finance director

In our chairman’s letter to shareholders he refers to the successful completion of the MMI merger. The merger integration has been an exciting journey of three years, culminating in the creation of a much stronger entity than its individual component parts. I am very pleased that the merger integration is complete and that we achieved our annual merger-related expense savings of R522 million (R22 million above target). The MMI management team is equally as excited about the opportunity to focus on the stronger new entity’s future prospects.

A merger integration with the complexity and size of MMI inevitably has an opportunity cost in respect of management time and focus. Our efforts have been rewarded by a strong foundation for growth and the ability to move beyond the integration phase is in itself something to look forward to. During the past year, we have already been able to spend more time considering the future environment and MMI’s strategic response, which resulted in the formulation of a new client-centric strategy, supporting operating model and new operating structure.

Nicolaas Kruger

Group chief executive officer

DIVISIONAL REVIEWS