This is a bold step that could change the company's position in the African insurance market.
Momentum Group's ambitious goal signals a strong commitment to growth and innovation in the African insurance market.
Momentum Group Ltd. has announced an ambitious plan to increase its annual profit from operations in the rest of Africa by 60% by mid-2027. The strategy focuses on reviewing the insurer's activities and modernizing its divisions.
In a recent interview, CEO Janette Mare emphasized that the target profit range of 500 million to 600 million rand (approximately $27 million) per year is a pivotal goal for the company. Achieving this target will help strengthen the company’s market position and enhance its reputation as a reliable insurer.
Based in Pretoria, South Africa, Momentum Group reported a normalized profit of 238 million rand for the six months ending in December and 376 million rand for the fiscal year that concluded in June.
With these results in mind, the company aims to achieve:
Increased normalized profits through the active adoption of new technologies;
Optimization of its multi-faceted business to improve efficiency.
A comprehensive analysis of the financial metrics indicates that Momentum Group has the capacity to significantly scale its operations in key regions.
The African segment of the company’s business spans five countries: Mozambique, Namibia, Botswana, Ghana, and Lesotho. In these markets, Momentum holds a 65% market share, highlighting its strength in the region. However, in recent years, the company has made strategic decisions to reduce its presence in other areas, such as Nigeria and Kenya.
The reduction of operations in certain countries was part of a broader strategy aimed at concentrating efforts in more profitable business segments, with the goal of increasing the group's overall profit to 7 billion rand by the fiscal year 2027.
Key Growth Areas
Investment in technology;
Optimization of business processes;
Expansion of customer offerings;
Strengthening of positions in existing markets.
In summary, Momentum Group Ltd. is focused on strategically expanding its footprint in the African market. This plan involves revamping current services and improving customer propositions, which will allow the company not only to boost profits but also to solidify its reputation in a rapidly evolving market segment.
