MMI makes R1,5bn in six months

This translated into core headline earnings per share of 94 cents.

The group declared an interim dividend of 51 cents a share‚ 16% higher than the previous half year.

The company remains on a growth path‚ with its embedded value having increased to R33.4bn and having delivered an annualised return on embedded value of 20% over the six months. The return on embedded value was boosted by strong operating performance across the group‚ as well as the positive impact of the growth in the investment markets during the six months.

Nicolaas Kruger‚ chief executive of MMI said that he was pleased with the strong set of results‚ particularly the healthy contributions made by all six operating divisions.

He said MMI was on track to meet its R500m annual merger-savings target‚ having thus far realised merger savings of R256m.

MMI divisions continue to focus on securing good quality new business. The value of new business increased by 18% to R340m‚ supported by an improvement in the overall new business margin from 1.9% to 2.0%.

"Three strategic investments - the acquisition of a controlling stake in Eris Property Group; the remaining 50% of Momentum Short-term Insurance and the remaining stake in Momentum Namibia - have already started to show benefits and are contributing positively to the earnings of MMI‚" said Kruger.

"Africa remains a very important market to fast-track the growth of the group‚" said Kruger. MMI has earmarked R500m for further investments in the 12 African countries outside South Africa. MMI's capital buffer remained at R3.8bn.

MMI is in the process of applying for the amalgamation of its main long-term insurance licences‚ Momentum Group and Metropolitan Life‚ into MMI. This process is due to be finalised in May and will add further efficiencies to the group's operating model.

"The Metropolitan and Momentum brands will remain intact and continue to service its respective groups of policyholders‚ who will not be impacted by the amalgamation of our insurance licences‚" said Kruger.