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.

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.

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“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