+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

DILUTED CORE HEADLINE EARNINGS

30 June 2014

June
2014
Rm

Restated
June
2013
Rm

Change

Momentum Retail

1 372

1 158

18%

Metropolitan Retail

587

509

15%

Momentum Employee Benefits

516

341

51%

Metropolitan International

122

108

13%

Momentum Investments

197

175

13%

Metropolitan Health

171

140

22%

Operating divisions

2 965

2 431

22%

Shareholder capital

656

810

(19%)

Total

3 621

3 241

12%

Embedded value (EV) analysis (Rm)

EV-Analysis

CAPITAL STRENGTH

Economic capital

Rbn

Net asset value as per embedded value statement

17.0

Qualifying debt

3.0

Less: net asset value of strategic subsidiaries

(2.1)

Less: required capital

(10.1)

Capital buffer before deployment

7.8

 

Deployed

(4.6)

Final dividend

(1.4)

Special dividend

(0.8)

Debt redemption

(0.5)

Strategic growth initiatives

(1.9)

 

Capital buffer after deployment

3.2

MMI AND THE JSE

2014

2013

Listed ordinary shares

1.6

1.6

bn

Preference shares

34

34

m

Total shares in issue

1.6

1.6

bn

Share price at year-end

2 625

2 217

cents

Fully diluted headline earnings per share

204.0

160.2

cps

Market capitalisation at year-end

42

36

bn

Guardrisk

MMI Holdings acquired the Guardrisk business in March 2014. This acquisition reflects MMI’s strategic intent to diversify its business in South Africa and selected international markets, with a primary focus on Africa. Guardrisk brings with it a comprehensive suite of alternative risk transfer solutions, along with a considerable degree of intellectual capital in this arena and strong client relationships in the corporate sector.

Having operated according to a client-centric business model for many years, Guardrisk’s ethos dovetails perfectly with the client-centric model which will be adopted by MMI, on a phased-in basis, from July 2014. MMI will align Guardrisk’s expertise and product development skills to enhance the client value proposition especially within its corporate and public sector segment.

Several synergies have been earmarked to be unlocked between Guardrisk and other MMI divisions which are expected to deliver healthy growth to MMI.

TRANSFORMATION

BEE_mask

MMI has a level 2 broad-based black economic empowerment (B-BBEE) contributor status