Momentum Metropolitan : post-results roadshow

Momentum Metropolitan post-results roadshow

Roadshow slides

1. Metropolitan Life
2. Momentum Life

3 Momentum Insure

Metropolitan Life

1 Financial results measures

2 Metropolitan 5-point plan

Normalised headline earnings

		Normalised headline earnings (R'million)
	800					-54%
	700		610			668
	600
	500			393	433
	400	338
					305
	300
	200
measuresfinancialKey	100
-	F18	F19	F20	F21	F22	F23

Expenses outgrew policy growth and resulted in strengthening of the renewal expense basis

Persistency basis was strengthened but was offset by aligning mortality basis to experience and release of data reserves

Claims experience still slightly elevated, but positive experience emerging

New business strain deteriorated due to expenses outgrowing revenue and unrecovered distribution expenses following high NTUs

Persistency experience deteriorated. Deterioration most on savings products where clients require access to savings - pressures on clients

measures

VNB

300		VNB and VNB Margin		5.0%	F22		F23
				2534.3%	244	-37%	4.5%	Irrecoverable
250				distribution
						4.0%	expenses
200					3.4%		3.5%	Expense growth	Funeral	Other
					3.0%	re-price
						154	more than
150						2.5%	revenue
		1102.3%
	83	89				2.1% 2.0%
100		1.8%				1.5%
	1.6%
50							1.0%
						0.5%
-	F18	F19	F20	F21	F22	F23	0.0%

Key financial

Present Value of premiums (R'million)

8 000						1%
				7 160	7 202
7 000
			5 885
6 000
5 091	4 897
5 000	4 701
4 000
3 000
2 000
1 000
0	F18	F19	F20	F21	F22	F23

R101m decline from unrecovered distribution expenses following deterioration in NTUs (business quality)

Expenses outgrowing revenue

Funeral re-pricing impacted Q3 and Q4 funeral margin and increased VNB by R32.5m

PVNBP grew by 1% following strong growth in annuity solutions via the broker channel - positively impacting VNB.