MOMENTUM METROPOLITAN (MTM) Stocks
ABOUT MOMENTUM METROPOLITAN
? Momentum Metropolitan Holdings Ltd is a South African based financial services group with a history dating back to 1898 with the founding of Homes Trust Limited. The Group as it exists today was formed through a series of mergers, starting with its acquisition by Sanlam in 1918.
? This was followed by the merger of Homes Trust Limited with another of Sanlam’s subsidiaries, Metropolitan Life Insurance Company Limited, to form Metropolitan Homes Trust Life Limited in 1979.
? In 2010 Momentum Metropolitan became a wholly owned subsidiary of Metropolitan, which transferred its insurance business to Momentum. The Group was renamed MMI Holdings with FirstRand as its largest shareholder. The Group changed its name to Momentum Metropolitan Holdings in order to benefit from the brand identity of two of its largest groups.
? The Group operates a diversified financial portfolio consisting of long and short-term insurance, asset management, savings, investment and employee benefits through its various divisions. The Group is one of South Africa’s leading life insurers and integrated financial services companies, boasting a market capitalisation of R28 billion and an embedded value of R39.6 billion.
? The Group works to differentiate itself in the market by generating superior shareholder returns through leading products, valuable distribution partnerships and excellent client experiences. So far Momentum has managed to deliver on these expectations, with data from its 2019 financial analysis showing headline earnings of R3.1 billion, representing an increase of 53% from 2018. Diluted normalised headline earnings increased by 61% on a per share basis, reflecting the impact of the share buy-back programme completed in November 2018.
? The present value of new business premiums increased by 12% year-on-year, while the value of new business improved by 57% on the prior year.
HISTORY OF MOMENTUM METROPOLITAN
- In 2018 Momentum Metropolitan implemented its Reset and Grow strategy, which involved enhancing performance by scaling down its geographic footprint in Africa and the United Kingdom, increasing its focus on successfully growing its core businesses in South Africa and narrowing the number of longer-term strategic growth initiatives.
- This emphasis on maximizing the Group’s client-centric approach in key areas where it has already reported strong growth allows it to capitalize on its strengths for a fast-paced acceleration of returns.
- This further allows the Group to focus on tools and techniques which will position it at the forefront of investor relationship management as it works to deliver value-driven returns to all its target audiences.
MARKET PERFORMANCE OF MOMENTUM METROPOLITAN
- Momentum Metropolitan Holdings Ltd currently trades on the Johannesburg Stock Exchange (JSE), where investors can purchase shares under the stock symbol -MTM.
- The Group’s strong performance has already delivered a steadily growing share price which is set deliver good dividends in the long-term.
- The Group has worked on a solid operating model to deliver growth, and the restructuring of its strategic approach has already yielded positive results. This allows the Group to proceed with a clarified approach and capitalize on its strongest market segments while no longer being tied down by sectors showing slow progress.
- This refined approach is set to provide strong long-term buy-in for investors going forward.