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S. Africa’s MMI Says Profit Rose 41%, Pays Special Dividend

Sept. 12 (Bloomberg) -- MMI Holdings Ltd., a South African insurer, said fiscal full-year profit rose 41 percent as it cut costs after the merger that created the company two years ago.

Net income climbed to 2.4 billion rand ($293 million) in the 12 months through September from 1.7 billion rand in the year-earlier period, the company said in a statement today. Profit excluding one-time items, the Johannesburg-based insurer’s preferred benchmark, climbed 12 percent to 2.96 billion rand.

MMI, formed out of the merger of Metropolitan Group Ltd. and Momentum Group Ltd. in 2010, said it reaped 201 million rand of cost savings from the transaction, allowing it to pay a 65 cent special dividend in addition to its 69 cent final dividend.

“We are on track in meeting the target of recurring cost savings of 500 million rand per annum that will ultimately make us a more cost-effective and competitive player,” Chief Executive Officer Nicolaas Kruger said in the statement.

MMI rose 1.6 percent to 20.20 rand by the 5 p.m. close in Johannesburg trading, its biggest gain since Aug. 3.

To contact the reporter on this story: Sikonathi Mantshantsha in Johannesburg at sikonathim@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net

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