MMI Holdings Ltd., South Africa’s third-largest insurer by market value, said fiscal full-year profit dropped 9.8 percent amid volatility in equity markets, a slowing economy and rising inflation.

Net income declined to 2.98 billion rand ($219 million) in the 12 months through June, from 3.3 billion rand a year earlier, the Cape Town-based company said in a statement on Wednesday. Earnings per share excluding one-time items fell 11 percent to 1.81 rand.

MMI, with operating units including Metropolitan, Momentum, Guardrisk, and Eris Properties, is involved in casualty and life insurance, property, asset management and healthcare. Returns from insurance policy income invested on the Johannesburg’s stock exchange during the 12 months would have been muted as the benchmark index rose just 0.6 percent.

MMI has increased its focus on efficiencies, “having identified specific cost-saving initiatives, whilst continuing to pursue top-line growth,” the insurer said in the statement. “Growth in new business volumes and profits will, however, be impacted by many factors in the South African economy, including employment levels and disposable income.”

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