Momentum Group has reported higher earnings as new business activity remained robust and as the group’s operating units, notably Momentum Investments and Metropolitan Life, delivered strong contributions.The group said on Monday that normalised headline earnings for the nine months to end-March grew 15% to R5.54bn. Normalised HEPS increased by 20% to 414c, with the additional growth attributable to the reduction in shares in issue following its share buybacks during the period, it said.New business activity remained robust, with the present value of new business premiums (PVNBP) up 15% at R66.88bn, supported by healthy investment flows in Momentum Corporate, significant corporate scheme wins in Momentum Africa and continued growth in Momentum Investments’ Wealth platform.Single premiums grew by 15% thanks to favourable equity markets, while recurring premiums increased by 7%. New business margin was 0.5% from 0.6% before.The group said Momentum Investments delivered “outstanding earnings growth”, driven by annuity profits and favourable equity market conditions supporting asset-based fee income. Metropolitan Life continued to grow earnings on the back of disciplined expense management, fewer onerous contracts, and positive mortality experience.Guardrisk and Momentum Insure’s growth benefited from sustained underwriting discipline. Momentum Corporate and Momentum Retail delivered stable earnings contributions off a prior high earnings base, it added.Momentum said despite the positive sales momentum, group value of new business (VNB) declined 4% to R347m, mainly due to Momentum Investments, where VNB dropped significantly following an industry-wide shift from life annuities towards living annuities, driven by lower bond yields making guaranteed annuity income less attractive.“This was partially offset by notable VNB recovery in Momentum Retail, supported by better long-term savings product margins, and Metropolitan Life, which swung to VNB profitability following successful distribution cost rationalisation and improved funeral business commerciality,” it said.The group’s Indian business reported normalised headline earnings of R3m from a loss of R42m a year ago. Gross written premiums for the unit grew 24% year on year, supported by the expansion across both retail and group channels.The group said despite an uncertain global operating environment, it is well positioned to sustain its growth trajectory, supported by diversified earnings streams, disciplined capital allocation and strategic investments in new capabilities, including the onboarding of Bonitas and the continued scaling of its India operations.However, it warns that South Africa’s growth prospects have weakened as earlier tailwinds have given way to a challenging global backdrop.It added that household finances remain under strain and consumer demand is muted, with higher imported fuel costs putting pressure on inflation and dampening economic growth, which will weigh on consumers’ ability to purchase products and services.“The prospect of further rising bond yields, while potentially supportive of guaranteed annuity demand over time, has introduced near-term uncertainty for consumers and investors alike,” it said.Business Day