The group announced in a statement for the three months ending 30 September 2014 that new business recurring premiums increased by 22 per cent compared to the same quarter in 2013, mainly due to good growth in employee benefits.
(READ MORE: MMI Holdings limited core headline earnings up 13%)
“The MMI group had a good quarter from a new business perspective, with the total present value of premiums (PVP) increasing 30 per cent on the prior year, primarily on the back of continued good employee benefits production,” said the group.
MMI said overall, satisfactory client retention was experienced across the group.
“This growth in a very difficult operating environment reflects the strength of the diverse distribution channels and the alignment of the comprehensive product offerings in the group with their respective target markets,” added MMI.
“Good progress has been made in implementing the client-centric operating model and the group will continue to invest in the initiatives required to achieve its long-term strategic goals.”
However, the company expressed concern over slowed growth in South Africa during the period under review.
“Growth in the South African economy slowed significantly and this will put pressure on the disposable income of our clients,” said the company
“During this quarter the investment market volatility continued with the JSE all-share index falling about four per cent. The absolute levels, however, remained higher than the previous year.”
[DATA MMI:MMI Holdings Limited] also said progress has been made with the strategic initiatives to diversify the group’s earnings streams.
The company said acquisitions of Cannon Assurance in Kenya and Carecross have become unconditional.
“During October MMI announced that it had entered into a Memorandum of Understanding with Aditya Birla Financial Services Group, the financial services arm of India’s leading conglomerate, Aditya Birla Group.”
MMI and ABFSG intend setting up a joint venture, which will enter the health insurance market in India.
MMI is investing in a number of growth initiatives across the group, including the middle market and Momentum Short-term Insurance businesses.
The group said it was pursuing cross-selling and other new business opportunities across the group.
“Growth in new business volumes will, however, remain dependent on the economic environment, including a recovery in employment and stronger disposable income levels.”