Momentum outperforms key 2027 targets

Momentum Group, the JSE-listed insurer, is a case study of strategic execution after delivering on its “unreasonable” targets — a year ahead of schedule.

Led by CEO Jeanette Marais, who launched the three-year Impact strategy in 2024, the group on Thursday announced the delivery of the game plan — to become a leading South African insurer.

The strategy focused on profitability, improving the operating model, enhancing the client experience, and growing new business volumes.

Momentum reported that for the year ended June 2026, normalised headline earnings jumped 13% to a record R7.06bn — a year ahead of target. The group’s operating profit increased 9% to R5.97bn. Marais said at the time of setting the strategy, the group was told it was overpromising and that it was going to be impossible to achieve the R7bn earnings target by 2027.

“For us to have reached what was called an unreasonable, impossible target an entire year at a time is just absolutely phenomenal. I couldn’t be prouder. I couldn’t be happier,” Marais told Business Times after the release of the group’s financial results.

Momentum said achieving the return on equity (ROE) target — a measure of how effectively a company uses shareholder money — was another feat for the insurance group. During the year under review, the group’s ROE increased further to 21.7%. “So, we’ve smashed that [ROE] target, but actually last year already. The excellent earnings growth is driving that and, you know, we’ve done much, much better on ROE as well,” she said.

Doing it the Jeanette Marais way (Nolo Moima) The group’s value of new business has increased 5% to R491m for the year, which means it is a target that has not been reached as part of the strategy.

Marais said there is still some work to do in order to ensure the target is met. The value of new business is challenging because of the move from high-margin guaranteed annuities towards low-margin, high-volume living annuities. This is beyond the group’s control, she said.

Momentum’s results reflected the first time ever in the year that every business unit was profitable and also that five of the businesses had each delivered earnings exceeding R1bn for the year.

While Momentum Retail and Momentum Corporate delivered R1bn previously, Metropolitan Life, Momentum Investments and Guardrisk achieved the R1bn earlier than planned.

Guardrisk, which expanded through underwriting and bolt-on transactions, was boosted by the acquisition of Zestlife and Admed to provide medical gap cover. “I can’t say Guardrisk growth is infinite, but I can tell you there are so many opportunities,” said Marais.

“At any point in time, their prospect list of clients who would actually like to do business with us is probably around 100, and there are at all times about five or six that they are seriously investigating for growth. And, simply because in the very onerous regulatory environment, it’s far easier if you want to enter this space to come to a business like Guardrisk; they then run the licence for you, and you know, you get the profit.”

We believe that if it should ever happen that we see health reform in South Africa, we think that the government will do it in partnership with private health providers like ourselves—  Jeanette Marais, Momentum Group CEO

The group’s growth includes being the new administrator for the Bonitas Medical Fund, which adds momentum, as it is already the main administrator for the Government Employee Medical Scheme, a contract that was extended for another five years.

“We believe that if it should ever happen that we see health reform in South Africa, we think that the government will do it in partnership with private health providers like ourselves,” she said.

The Bonitas deal makes Momentum the second-largest medical fund administrator and a substantial player in the sector.

As part of diversification, Momentum has been in India for the past decade through a joint venture with partner Aditya Birla, which was also profitable. Over the last 10 years the group invested R3.4bn, reflecting patience with capital.

“India is completely diversified away from whatever happens in South Africa. It is a massive underpenetrated market with 1.2-billion people and is a fast-growing business.”

Momentum already has 24-million clients in India, and it is adding just more than 100,000 new policies per month to the Indian business.

“The scale there is just quite phenomenal. That’s definitely a business where we’re very excited to keep on investing in growth. At the same time, we know the upside is just incredible.”