Chief executive officer
MMI was formed from the merger of Momentum and Metropolitan. The core businesses of MMI are long-term insurance, asset management, investment, healthcare administration and employee benefits. Product solutions are provided to all market segments. MMI operates in 12 countries outside of South Africa. It provides for the insurance needs of individuals in the lower, middle and upper income markets, principally under the Momentum and Metropolitan brand names.
The merger integration has been successfully completed. A merger with the complexity and size of MMI inevitably has an opportunity cost in respect of management time and focus. MMI’s efforts have been rewarded by a strong foundation for growth. During the past year, MMI has already been able to spend more time considering the strategic response to the future environment, which resulted in the formulation of a new clientcentric strategy, supporting operating model and new operating structure.
MMI’s client-centric strategy comprises the following principles to achieve growth:
MMI’s vision is to be the preferred lifetime financial wellness partner, with a reputation for innovation and trustworthiness. Its strategic focus areas are growth, client-centricity and excellence. All its strategic objectives and the initiatives required to realise these objectives are linked to one of the three strategic focus areas.
MMI’s strategic diversification initiatives to drive growth include:
Transformation is both a business imperative and an important part of MMI’s duty to be a responsible corporate citizen. MMI is pleased with its current level 2 contributor level. The revised future Department of Trade and Industry targets will reduce the contributor levels across the financial services industry and MMI is embracing this challenge with a number of projects already underway to improve MMI’s contributor level in the future.
MMI has established the MMI Foundation to provide strategic oversight and governance as well as play an advisory role regarding all CSI initiatives. Metropolitan and Momentum ensure the implementation of their respective CSI strategies and distribute funds allocated to each towards addressing the various social challenges of our country. The Foundation’s mission is to create a society where strong leadership and collaboration help bring about sustained behavioural changes and development in the fields of health, disability, education and sport development.
MMI’s target for socio-economic development through the Foundation is 0.7% of net profit after tax. A total of R27 million was spent on qualifying initiatives, which equates to 1.03% of the net profit after tax in the previous financial year.
Momentum and Metropolitan each has various sponsorships to enhance the brand and support each brand’s focus on creating prosperity and ensuring financial wellness. Momentum’s sponsorships include one-day international cricket, the 94.7 cycle challenge, the financial wellness index with Unisa, the Momentum household net wealth report and in partnership with Pick n Pay the Cape Argus and various other events. Metropolitan has various soccer sponsorships in place.
MMI delivered strong financial results for the year under review:
MMI invested or committed in excess of R2.5 billion in growth initiatives during the year. Each of its business segments is implementing plans to grow the group through client-centricity. MMI believes that the group has identified and is implementing innovative strategies to unlock value and generate the required return on capital for shareholders over time.
RMI Holdings included R899 million of MMI’s earnings in its normalised earnings (2013: R803 million).
For an in-depth review of MMI’s performance, RMI Holdings’ shareholders are referred to www.mmiholdings.com.