A change in accouting methodology has benefitted Momentums earnings for the final six months of 2023.
In a trading update for the six months ended 31 December 2023 , the group said it applied the IFRS 17—Insurance Contracts standard from 1 July 2023 and restated its financials for the six months ended 31 December 2022 for comparative purposes.
Headline earnings per share are expected to increase by between 46% and 51% to 158 to 163 cents per share. When using IFRS 4, there is still a profit of between 18% and 21%. Earnings per share get a strong boost by the switch in accounting methodology, with earnings per share increasing by between 8% and 13% when restated, while there is a drop of between 5% and 9% when using IFRS 4:Momentum said that its strong performance over the period was driven by improved investment income as many of its business units benefitted from the higher interest rates.
“Earnings were further positively impacted by a favourable change in the shape of the yield curve in Momentum Life and Momentum Metropolitan Africa, improved persistency experience in Metropolitan Life, robust life annuity sales volumes in Momentum Investments and strong underwriting experience in Momentum Corporate,” the group said.
“Mortality and morbidity claims experience was positive and improved further compared to the prior period.”HEINEKEN Director Millicent Maroga unpacks the company’s sustainability projects