MMI interim profit drops 9%

MMI Holdings reports a 9 percent drop in half-year earnings on Thursday after higher-than-expected claims hit underwriting profit.

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Johannesburg - MMI Holdings, South Africa's 3rd largest insurer, reported a 9 percent drop in half-year earnings on Thursday after higher-than-expected claims hit underwriting profit.

MMI, which sells life and short term insurance, posted diluted core headline earnings per share (EPS) of 104.7 cents for the six months to end-December, compared to 115.5 cents a year earlier.

Headline EPS is the main profit gauge in South Africa and excludes certain one-off items.

MMI said weak growth in its home market led to fierce competition for clients among insurers but the firm expects underwriting profits to recover over the medium term.

Read also: MMI’s profit falls

“Momentum Retail continued to be the biggest contributor to group profit. This business experienced higher than usual mortality claims in the first quarter,” the company said.

 

REUTERS