COMPANY NEWS IN BRIEF

Momentum Metropolitan books record earnings

Insurer Momentum Metropolitan Holdings (MMH) has delivered double-digit profit growth thanks to a continued drop in Covid-19 mortality claims and the positive effect of higher interest rates on the cash reserves.

The Centurion-headquartered insurance and investment group reported a more than 16% rise in attributable profit to R4.4 billion in the year to end-June on Wednesday, with the group upping its total dividend a fifth to 120c per share.

"I am proud of the solid earnings we achieved," outgoing group CEO, Hillie Meyer, who retires at the end of this month, said in a statement.

"Our business model of empowered, accountable business units has demonstrated its resilience and agility, assisting the group in coping with the multiple headwinds South Africa faced in the last year."

The group, valued at about R28 billion on the JSE, said its financial results were supported by an improved mortality experience driven by what it termed "modest" Covid-19-related mortality claims. The group also booked a positive investment variance of R1.1 billion, up from R353 million the previous financial year, driven by rising interest rates in South Africa.-Fin24

Old Mutual warns of client pressure

Old Mutual has painted a mixed picture of its upcoming interim results, in part thanks to a change in accounting methods, but while it has benefitted from a rise in interest rates, it is seeing pressure on its client base.

The Cape Town-headquartered insurance and investment group said in a voluntary trading statement on Wednesday that its results from operations will range from a fall of 7% to a rise of 13% in the six months to end-June compared to R4.25 billion previously. Adjusted headline earnings could rise by about a third.

A good operational performance was dampened by continued adverse persistency, the group said, referring to client retention. There was also an increase in shareholder investment return as a result of increased interest rates and a recovery in equity markets.

Adjusted headline earnings exclude "accounting mismatches" and the results from its Zimbabwe operations, with the group saying headline earnings could fall as much as 18%.

The group is switching to International Financial Reporting Standards (IFRS) 17 from 4. These standards, billed as the first truly global standards for insurers, among other things look to ensure comparability by ensuring that companies cannot present deposits from customers as revenue, which has been the practice for some.-Fin24

BP boss quits

BP chief executive Bernard Looney has resigned after admitting to not being "fully transparent" about past relationships with colleagues, the British energy giant has said.

Looney’s resignation follows recent allegations of personal relationships with company colleagues, prompting BP to launch an investigation, the company said in a statement on Tuesday.

The company said its board investigated similar allegations in May 2022 involving "a small number" of past relationships between Looney and colleagues prior to his becoming CEO.

"Further allegations of a similar nature were received recently, and the company immediately began investigating with the support of external legal counsel," the company said in a statement.

"Mr Looney has today informed the company that he now accepts that he was not fully transparent in his previous disclosures," BP said.

"He did not provide details of all relationships and accepts he was obligated to make more complete disclosure."-Fin24

H&M to sell second-hand clothes

H&M plans to sell second-hand clothes and accessories at its flagship store in London from 5 October, as pressure increases on fast fashion companies to curb their environmental impact by encouraging the reuse and recycling of garments.

With the European Union planning new regulation to crack down on textile waste in the bloc, H&M has said it is "part of the problem" and that the way fashion is produced and consumed needs to change.

The "PRE-LOVED" womenswear collection, at H&M's Regent Street store, will include garments from several other brands and designers as well as H&M group brands, which include Arket, Cos, Monki, and Weekday.

The autumn-winter 2023 collection of the second-hand offerings will include metallic dresses and shirts, trench coats, and "trendy knits", H&M said, with new items added every day.-Fin24