Momentum Group has delivered an encouraging opening quarter to its 2026 financial year, extending the upward earnings momentum built throughout 2025 despite persistent economic headwinds.
Normalised headline earnings rose to R1.76 billion for the three months ended 30 September 2025, supported by disciplined execution across its South African and international operations and favourable market movements of R201 million. According to the group’s latest trading update published on Wednesday, sales measured by the present value of new business premiums climbed 8% to R22.4 billion, reflecting resilient demand for protection and savings products.
The value of new business, however, fell 26% to R146 million, largely because of softer life annuity volumes within Momentum Investments. This dragged the new business margin down from 1% to 0.7%. Management indicated that other segments partly offset the decline and expressed confidence that margin recovery remains a near-term priority.
Operating costs increased by 5%, driven by inflation-linked salary adjustments, regulatory compliance spending and continued investment in technology platforms. A group-wide efficiency programme has already delivered R389 million in savings, with an additional R500 million identified for extraction during the remainder of the year. As reported by Business Day, these initiatives are expected to gain further traction in the second half of 2026.
Structural changes in the African footprint were finalised during the quarter. The short-term insurance operation in Namibia has been transferred to Guardrisk, while health insurance activities in Lesotho, Botswana and Mozambique now fall under Momentum Health. Momentum completed its long-planned exit from Ghana on 9 September through the sale of its stakes to local player emPLE Group.
In India, the health insurance joint venture continued to invest heavily for growth and recorded a normalised headline loss of R108 million. Encouragingly, the operation remains on course to reach breakeven under local accounting standards before the end of the current financial year, buoyed by India’s rapidly expanding private health coverage market.
Looking ahead, Momentum highlighted improving domestic conditions – including better electricity supply of electricity, falling interest rates and South Africa’s removal from the Financial Action Task Force greylist – as supportive of modest economic expansion. Yet competition remains intense and household budgets are still squeezed by elevated living costs.
The group reiterated its medium-term targets of R7 billion in normalised headline earnings, a 20% return on equity return and a new business margin of between 1% and 2% by the 2027 financial year. According to analysts at Moneyweb, achieving these goals will hinge on a sustained recovery in annuity sales and successful scaling of the Indian platform.
Shares in Momentum Metropolitan Holdings closed 1.4% higher at R28.45 on Wednesday, taking year-to-date gains to nearly 28% and reflecting growing investor confidence in the group’s strategic direction.

