Momentum Group Limited ($MTM)

Morning, everybody. Welcome. My name is Dan Moyane, It's pleasure and a privilege to welcome all of you to the presentation of the interim financial results of the Momentum Group for the period ended 31 December 2025. We're coming to you live from the company's offices in Centurion in Swan. We welcome every joining us, especially online as well. The analysts, the investors, the shareholders, generalists as well and, of course, employees of the group who are -- who can watch and watch us live on BDTV, Channel 412, that's on DSTV. We're also live on -- we have a live webcast for coken.com MG1903, which is today's days, the 19th, of course, of March 2026, that's MG1903-2026. Also live streaming to our employers on our MPS platform. The full results already available since this morning on the group's website, which is women Group LTD.co.za . Shortly, the Momentum Group CEO, that's Jeanette Marais; and the Group Finance Director, Risto Ketola, will present this set of results. Covering how the focused implementation of the group strategy is progressing and delivering you'll hear about how this disciplined execution of the strategy has produced a solid set of results. A brilliant performance for the period that's under review. And as usual, at the end of the presentation after they've concluded, we will have time to answer some questions from our analysts. Let's welcome Jeanette Marais with a warm round of applause.

Good morning, everyone. And as a stake, a very warm welcome to our interim results presentation and as we said, I would now say live from Arista's office in our Centurion head office for Arista as have to vacate this office for about a week, so that we can get this ready. It really is a good day for the Momentum Group, we are presenting a strong set of results, and it has been made possible by very disciplined execution of our impact strategy across all of our business units and the resilience of our diversified portfolio. In my presentation, I will start by highlighting some of the key financial takeouts from the interim results, after which, as always, I will zoom in on some of the delivery highlights from our impact strategy. And then, of course, as always, Arista will spend quite a bit more time delving into the intricacy, the interesting numbers and the higher grade ones that is far beyond our ability to explain to anybody. To start off, we delivered normalized headline earnings of ZAR 3.7 billion, up 8% on the prior period. This performance is the result of strong contributions across the group. Three trends really boosted our performance. Firstly, underwriting activities remained at very high levels of profitability. Every business involved in insurance underwriting performed really well, including short term, life insurance and health insurance. Secondly, rising markets and solid investment performance from our investment teams increased our assets under management and our asset-based fee income across savings and investment products. And then lastly, good persistency further aided profits across all of our businesses. VNB declined by 15% to ZAR 238 million year-on-year. Now improving VNB remains a key focus area for us across all of our business units. It is the one area where we are falling short of the targets that we have set for ourselves. But we are seeing some positives increased by 25% from the previous 6 months and it improved in all businesses. Except momentum investments where VNB was negatively affected by the market shift from guarantee to living annuities. However, we remain leaders in the IFA market for guaranteed annuities, and we maintained our position overall and our market share position overall in this space. So as the VNB contribution from guaranteed annuities keeps on reducing as sales volumes decrease. Other businesses are starting to compensate. It is worth mentioning that Metropolitan made a significant turnaround from negative ZAR 31 million positive ZAR 16 million Interesting to note that the VNB peak that you see on the slide there of ZAR 389 million 2 years ago was also at the peak of life annuity new business sales. I need to do a household thing. I don't have a time and it's going to be a problem if I take up all those times. If you could switch the time, and I'd appreciate that. Our sales continue to increase, up by 11% to ZAR 43.3 billion. Momentum Africa delivered the strongest increase of 28% supported by good corporate protection business in Visuta Namibia and Botswana and increased retail flows in Namibia. This shows that the implementation of our new Africa operating model starting to deliver. Momentum Corporate delivered 23% growth in sales driven by Finset Work Protection business. Momentum Investments increased their new business sales by 12%, driven by higher volumes on the Momentum Wealth Platform. Momentum Retail grew sales by 6%, supported by strong long-term savings business. The only business where we saw a decrease was in Metropolitan where sales decreased by 13%. But this is aligned to the restructure of our distribution area that we've spoken about before. And I will talk specifically about metropolitan distribution in a later slide. We are pleased to declare an interim dividend of [ ZAR 0.110 ] per ordinary share. This is an increase of 29% on the interim dividend in the prior year. And we are completing the current share buyback program. And at the moment, no further capital has been allocated towards further share buybacks. And then again, a highlight at this stage, at 24%, we are already above the ROE target of 20%. Our high ROE is the result of good product mix and very disciplined capital allocation. At 24%, our ROE remains one of the highest in the industry. And as I said, Risto will shed more light on these numbers. So I'm now going to share some highlights on the progress that we've made with the execution of our impact strategy. You are very familiar by now with the 6 strategic objectives of our impact strategy. So over the next slides, I will zoom in on unlocking the full potential of our businesses and on investing aggressively in advice to drive growth. And then I will also just spend decided to on updating you on our progress on our digital and our people, strategic enablers. We will provide a full strategy update for our business and for all of our business units at our Capital Markets Day on the second of June, so please make a note of that invitations will follow very soon. full potential of our businesses means that we boost our successful business units with more investment, and we fix our underperforming businesses through turnaround strategies. And I am delighted to say that if you look back 1.5 years ago, the businesses that we identified, Metropolitan, Momentum Insure and Momentum in Africa where we wanted to implement our new operating model. are all in great shape. Risto will talk about that a little bit more. But I can honestly say this morning in my first interview, the journalist asked me, what is your greatest focus area? What are you most worried about in your businesses, and I have to say, not much except maybe for VNB. So I think that is really something that we can be very proud of. So sorry, let me just go back. So I think I'd like to highlight some of the developments and some of the positioning of our non-life businesses. So this morning, I'm going to focus on guard risk and Momentum Insure as well as Momentum Health. But it is time that we demonstrate the scale and the strength of our combined nonlife insurance businesses, guide risk and Momentum share. If you look at the graph, viewed together, Momentum Group is the third largest player with a 10.2% share of total non-life insurance revenue. And this shows that we rank firmly as a top-tier player in this space. These 2 businesses operate in complementary areas of the non-life market, which gives the group broad and diversified exposure across client segments and distribution channels. Our portfolio is intentionally diversified from traditional personal and commercial insurance to more specialists, highly customized product solutions. We also benefit from a diversified margin mix. That combines our traditional profits with fee-based administration income and investment income. But rather than consolidating these 2 businesses and these 2 capabilities under 1 brand, we made a deliberate strategic choice to run each business as a focused and distinct model. This sharpens our execution, and it keeps both our units and both our CEOs of those businesses performing at what they do best. Through our structure, I think we have the best of both worlds. Momentum Insure provides a strong traditional nonlife foundation, while Guardrisk extends the group's reach into the fast-growing demand for partner-led structured and embedded insurance where we expect to see further long-term growth. Now for the other good news, you would have seen the news that momentum half has been selected as the preferred health care administration partner for Bonitas Medical Fund and our implementation date is the first of June 2026. Now this deal represents a significant milestone for us. that strategically and operationally reinforces our position as a credible trusted partner in South Africa's evolving health care ecosystem. But to give you an idea of the size of this deal in numbers. So firstly, this is the biggest transfer of a medical scheme from one provider to another in the history of South Africa. It adds 370,000 families and 750,000 beneficiaries under our administration. The addition of Bonitas makes Momentum Health, the second largest medical scheme underwriter and administration, administrator in South Africa. The group's wealth families in South Africa have grown to 1.7 million and our beneficiaries to ZAR 3.6 million when we include our other non-scheme members like our leading health some insurance solution. Now if we add the numbers and the members that we manage in the rest of Africa, our Health business looks after more than 4 million beneficiaries. And then we touch the lives of more than 25 million beneficiaries when we include our partnership with additive Birla in India. This slide reside gives you an idea of the impact of the deal on the South African health administration landscape. Note these numbers are the audited health industry numbers from 2024, and it excludes the health insurance market. But you'll see how we shifted into second place, growing our market share from 22% to 30% for lives under administration. The South African medical scheme administration market remains highly concentrated with 3 administrators accounting for almost 90% of beneficiaries. And we are really excited to welcome the Bonitas Medical Scheme members to our family, and this deal really aligns with momentum helps purpose to provide more health for more people for less. Then just switch to advice. Our focus on advice is one of the ways in which we drive future growth and differentiation for the group. As part of the strategic initiative, we invest in expanding our advice capability and our footprint while using technology to empower advisers, improve the client experience and strengthen our competitiveness across the full retail advice market. We have now successfully implemented our momentum advice ecosystem from where we statically guide the advice businesses of Momentum financial planning, outside agency force and consult, supplier sponsored IFA network, and these are complemented by FinGlobal, by financial immigration specialists. Now although these businesses have different FCs, different brands and different value propositions, they share the same advice culture -- and business principles of vertical integration and quality advice outcomes. This does not only increase our efficiencies and efficiencies, but it also improves the sustainability of our advice model -- sorry, let me just take a -- the combined adviser base between these 3 businesses now close to 1,000, if you add that up, but I think it's important to note that if you also add Metropolitan and Momentum Insure, the group's combined retail adviser base is now closer to 3,000. To focus on NSP, NSP have spent the last 2 years implemented their strengthened operating model and moving from the culture of the tight brokerage to that of a tight agency model over the last 6 months, 89 new advisers, and they were also mostly new to industry, have joined us. The focus now shifts to acquiring experienced advisers over the next 6 months. Advisers meeting the minimum production criteria improved from 29% a year ago to 52% over the last year. And this is really due to strengthened adviser accreditation and quality standards. And the new vertical integration strategy in NSP starting to gain traction, totaling ZAR 1.2 billion in net flows into Momentum Solutions for the last 6 months which is 9x more than a year ago at ZAR 150.7 million. Consult has continued its positive trajectory in both footprint and revenue. Console ended the half year on 476 advisers, and this includes 110 specialist short-term insurance advisers. This does make consult the second biggest independent short-term advisory force in the country. Their focus remains on organic growth, which is complemented with a targeted inorganic growth strategy through the acquisition of larger advice firms in both the life insurance and investment segments. Consult's focus is on growing their own fund solutions managed by equilibrium while also accelerating growth in the employee benefits and health businesses. Consult Fund Solutions increased its assets by 36%, and the total assets under administration increased by 25% to ZAR 60 billion. Momentum distribution services delivered another strong 6-month performance, achieving 10% APE growth year-on-year. and they have maintained our position as the market leader in independent financial adviser distribution. In MDS, we segment our distribution strategy to meet the different needs of third-party networks, investment specialist advisers and smaller IFAs. Now these investment specialists and small IFAs are central to our strategy, and they generate most of our new business. They are resilient entrepreneurial businesses, but industry pressures are putting them under strain. So to help them stay independent and continue to grow. We launched Momentum Adviser partnerships 2 years ago. We support their businesses by giving them access to a full suite of corporate level services such as practice management support, compliance, skills development, professional indemnity insurance and a lot more as part of the value proposition. Adoption has been strong. We have grown from 164 advisers in December 24 to 350 in December 2025. a 113% increase in partnering advisers. And by the way, they pay for these services. These advisers have also grown the support for Momentum products delivering a 47% year-on-year APE growth. And this really is a strategy that is working very, very well for us. And the Metropolitan as promised. So last year, we mentioned that as part of Metropolitan's Five-Point Plan, the channel optimization and rationalization program at that point, still required to work. And this has now been embedded and we are seeing strong sustained results that I'd like to share with you. So as part of rationalization, we deliberately reduced the given numbers to around 1,700 where optimization led to a more efficient and better managed tunnel, which is also led to better quality business. Productivity remains strong with advisers consistently writing more than 4 policies per week since the start of the financial year. And this was a direct result of the disciplined for workforce management practices that we've now embedded. Persistency improved with premium collection rates rising to 80%, up from 77%. And these gains reflect the impact of our AI-driven risk analytics and the broader adoption of flexible payment options for our clients. Adviser retention remains stable post rationalization at 67% compared to about a budget or a target of 65%. Stronger recruitment improved adviser vesting and consistent leadership focus on workforce management disciplines have supported this outcome. And I think importantly, Metropolitan sustained these improvements even as the recruitment started to resume. And this demonstrates that the foundations in place are robust and scalable as the channels start to grow again. And then, of course, the cost of distribution has also reduced as a result of these efficiencies. I will now share with you some of the progress that we've made on our digital enabler. And I know this is the one topic that everyone talks about all the time. But for us, AI is no longer an emerging capability for the group. It is already delivering measurable bank value for us. We currently have 60 active AI initiatives across the group. But these are focused mostly on risk mitigation, cost efficiency and adviser enablement at scale. These are not just experiments. Let me tell you about some of the successes that we've seen already. In Metropolitan, we use machine learning, which is built on 37 behavioral and credit-related data indicators to identify clients who are at risk of not paying their first premium. This improves our premium collection rates and it avoids commission being paid on policies that then go and materialize. In Marriott, AI improves quality assurance and risk control by transcribing and reviewing 100% of sales goals for Maria Direct. When we did that manually, we only managed to screen about 10% of those schools due to the capacity that we had. In health, AI reduced workload by automating the processing of more than 365 pages per month of hundreds in forms. We also use AI capabilities for our clients, fitness assessments, monitoring or minimizing nurse and BioConnectus' cost for our healthier clients. In Namibia, we've automated new business applications and we're also working towards starting to expand the solution to claims and to other processes. In Momentum Investments, we use machine learning to extract and digitize data from handwritten forms automating and validating the downstream capture of information. And in Momentum Retail, an AI-powered adviser assistant helps financial advisers quickly respond and resolve complex queries, thereby improving the response time to clients, and it's already freed up more than 1,400 hours of advisers time. And as you can see in ourselves numbers, let's use it widely to sell more products. So I've highlighted 7 of the 60 initiatives through which we are -- we're already removing repetitive workload from our service teams. And this also unlocks meaningful capacity for higher value client support by our people. In total, these 7 initiatives have already given us ZAR 40 million in savings with further savings to be unlocked as the other initiatives come on stream and, of course, also through these as we start to scale them. So this is a real shift that we've seen in the value that we get from digital and but it didn't happen by chance. It's the result of a very deliberate approach that we have in 4 ways. Firstly, every AI initiative must be anchored in clear commercial and operational value, not big projects. We tracked the tangible financial impact of each case. We built reusable capabilities that can serve several areas in the group and that can scale, and we prioritized rapid proof of value, often within a single quarter. We will start a new initiative and kill it if we don't see that it has the value that we want. So I think in summary, we have proof, we have capability and we have a strategy that is already delivering results. The next step for us would be to continue scaling what works and to embed AI and intelligent automation as a compounding structural advantage for us as a group and in people. As AI and digital advance, I'm constantly reminded that our power lies in being human. Connecting with our clients to build and protect their financial dreams, and we can only do that through our people. And it really is when the why, the what and the how come together and align that incredible energy is unleashed. I believe that our culture behaviors enable employees to live our purpose and to execute and deliver on our strategy. As we've seen the tangible results of this already, our client metrics in most of our businesses have improved since the start of -- sorry, that was a distraction and have improved since it started the impact strategy. And I mentioned just 2 highlights, and I can assure you there are many. Metropolitan has consistently been winning as Africa awards for the last 5 years in a row. And just last week, Momenta Medical Scheme received the news 24 Business Award for Scheme of the Year for the second year in a row. And it's not just because client outcomes is a competitive advantage, which I do believe it is. It's also because I have a personal obsession with how we show up for our clients every day. And getting this right becomes the real power and energy behind our business, optimizing every single action of every single employee through culture is not the soft stuff. It's actually the hard stuff. And I believe that is also critical for our success. Because in the end, the numbers are what we're able to show you, but we are because of the culture that drives the behaviors that we need in our business. So to end off, we are very proud of our excellent earnings as well as the quality of the earnings that we achieved. Our great sales numbers confirm that our advice strategy is working across the group. The power of our federated business model was again demonstrated as each of our empowered and accountable businesses contribute as planned or better. I've seen the incredible difference. Our deeply embedded purpose and culture behaviors can make to our ability to keep on delivering. Even a strict focus on delivery and execution is multiplied with purpose, strategy and culture behaviors come together. So the thank yous. I want to thank our employees for the unstoppable energy drives and tenacity. And of course, for how much you care about how you make our clients feel. Also, thank you to my executive team -- we accepted unreasonable target and you are delivering on them. And then lastly, to our Board, thank you for all your support and wisdom, especially over the last year. And then lastly, our financial advisers and our clients, thank you for trusting us with your financial dreams. Thank you to all of you. I hand over to Risto.

Thank you, Jeanette. So I've got the privilege of talking about our results. As per usual, we'll start with the key financial indicators. Headline earnings up 8% to ZAR 3.7 billion. I think the reason why we're so excited about that is the actual underlying growth is better than 8% in my view. So in the current period, there's about ZAR 200 million of positive market variances. Previous period, that number was probably closer to ZAR 600 million. The underlying operational profit growth is probably closer to 25% year-on-year. And that 25% growth maybe explains why we saw part of the set of results. On a per share basis, the 8% becomes 12%, just reflecting the ongoing benefit of the buybacks. We are actually busy with the buyback store of the last ZAR 1 billion tranche announced last year. Dividend per share, up 29%. That's a combination of the 12% growth in EPS and the increase in the tab ratio from 33% to 40%. So last year, we updated our dividend policy to target a slightly higher payout ratio. I'm sure that's a welcome dividend by shareholders. And then ROE, as Jeanette indicated, 24%, slightly down from last year, but still well above our internal target of 20%. Embedded value per share, up 13% to ZAR 44, ZAR 55 over that 12-month period, we also paid quite generous dividends. So I think the ROEV, sort of 1 Jan, December is probably in the high teens, again, a very good number over that 12-month period. Sales volumes are good at 11%. As Jeanette indicated, VNB did decline by 15%. So that 11% growth, a lot of it is coming out of some of the lower-margin areas of our wealth platform some corporate investment-only business. So the 11% growth has maybe not been we will take it, for sure. But in terms of product mix, it was not optimal in terms of and that resulted in new business margin declining to 0.5%. I will now talk about the Life businesses a little bit more. When I talk about the each of them individually. I'll illustrate that all of them actually had good operating profit growth. The reason why Momentum Retail is down for the period is that, that's the one business that was quite heavily impacted by the sharp reduction in yields at the long end of the curve. Now you must realize that in Momentum Retail Myriad, the sort of the -- market protection product is the main source of profits and cash flows. And a significant part of those cash flows are actually beyond year '25, makes it very difficult to hedge those cash flows. And as the yields came down, that liability increased without being able to hold hedging assets against them. that impact would have taken about ZAR 150 million to ZAR 200 million of Momentum retail earnings. There's a small negative impact in Metropolitan Life, also Life businesses. Remember, the book runs a lot quicker. So there's a lot less cash flows sort of beyond year 2025, so the impact is proportionately smaller. Momentum Investments, began to book -- that would have also been hedged by the lower yield but we had exceptionally strong credit spreads, but the credit spreads basically funded the loss we saw on the long-term yields. So there was a net positive variance in investments. And when I get to corporate, I'll talk about that there because it's a bit of a unique business. Okay. So starting with Momentum Retail, you will see approximately 10% to see a 10% growth in operating profit. Some of the features in there are good persistency. In fact, good persistency is a theme across all our businesses. And secondly, we continue to see very good alterations experience. So this is where our existing clients buy up additional benefits of Momentum Retail. I think in Metropolitan, we also saw that. So generally, once we get the clients in, we do get quite good. I wouldn't call it cross-selling, but upselling to our existing clients in terms of additional cover, additional benefits, higher cover and so on. We also have mortality variance. If you look at our overall risk variance, I saw one of the analysts wrote that it was a bit lower than in the past. I think on the mobility side, it remains very strong. our disability experience was a bit weaker. Critical illness and disability was a bit lower than in the past. But good operating results. And there, you can see the big swing from positive investment returns to negatives, and that is really the yield curve. Momentum Investments, nearly a doubling of operating profits. Big part of that is the annuity book. There's a little interesting story in the new to book where we continue to see good mortality variance on annuity book. And this period was actually higher than the last year. And there's 2 parts there. One of the structural, we are just not seeing the mortality improvements at the advanced ages we thought maybe 10 years ago. So in force annuity book mortality seems to be pretty static over time rather than improving as expected years ago. And then the second one is a bit of a technicality, but is up to the earlier slides by Jeanette on technology and AI. Some of you might recall that home affairs dropped a bit of a bomb a year ago with the tenfold increase to roof life checks. So we actually stood back a little bit, took a bit of a slower approach to that. We have subsequently found a solution, leveraging off one of the 60 AI projects to do those proof-of-life checks. So we're actually doing more frequent checks on the liveliness of our clients, which is beneficial for the annuity profits. Rising markets pretty obvious, but both the wealth platform and the asset management businesses. Revenues are AUM driven. So those are both up sharply. There was also a one-off, let's call it, expense reversal in the investments business. We terminated a major technology project, which resulted in a reversal of some of the expenses incurred, and that had a one-off benefit to earnings in the current period. And lastly, we communicated about 1.5 years ago that we're going to discontinue momentum money, that process is now largely complete. There was about a ZAR 1 million loss in the current period from Momentum money. It was ZAR 25 million in the previous 6 months. Okay, Metropolitan Life do need to speak nicely on this business, but I think I need to do the same again. If I look at the improvement in operating profit here, very substantial, what I like about it is it's an every line item. So when I look at new business strain, sharply down, why is it down? It's because we're actually selling better quality business. In other words, we are not wasting commissions or new business capacity on issuing poor quality business never receive premiums. So that's one reason. The other one is as we run a more efficient, leaner sales force, management cost of that channel comes down quite significantly as well. So there's a number of factors that are leading to an instant earnings impact from the decision to actually focus that distribution force. It was a difficult decision 18 months ago when we decided to do that, but I think it's in a roaring success. It's played out even better in terms of the trade-off and quality versus volume than we thought. We also continue to see good persistency here, a good mortality conducibility experience. So every variance line item is also a positive. I can't back my life on it, but because of the good quality of new business we're writing now, I do expect the operational variance to remain positive for the time being, so I think the impact of the better quality will be visible in the in-force profits in the coming years as well. And there was a very substantial migration after what you called the mainframe platform onto what we call, PDS, substantial cost savings are starting to become in metropolitan for that. Okay. Momentum Corporate earnings up slightly, but at a very high base. This is the one business that we've been saying that we're not sure if we can maintain the current level of stability or why these grow from it going forward. Yet again, there's some growth here. At the operating level, it is down maybe, I don't know, 6%, 7% to 8% -- but last year, I did have quite a large IBNR incurred but not reported reserve release. If I look through that technicality risk profitability is probably quite similar to last year, continues to be robust, both on disability and on group risk. And I think by picking a disability, People often think of group risk as quite a commoditized market. I do think the disability space has got a lot of unique features to it. And I think our disability management is market leading, which explains the very good market share and stickiness of that book. Okay. And here, you'll see a little bit different investment variances are actually up. Now our ALM activities in corporate. Most of it actually relates to the claims and payment book. These are people planning disability benefits. That book tends to run off in sort of 7, 8 years. It's not like the life that runs over 40, 50 years. So in -- business, we have a lot less cash flows that are exposed to the very long end of the yield curve. It's more the short and the medium part of the yield curve. Secondly, those benefits are inflation linked to the lower inflation actually is positive for the outflows that we modeled. So Duma had a positive investment variance unlike the other South African businesses. Then Africa, we now report Africa as part of life insurance -- you might recall that maybe short term has been moved to Guardrisk because there's quite a big alternative business in there. And health operations in Mozambique -- and Botswana now reported a spot of health. So Africa is almost just life. So it makes sense to report it as part of our core life operations. Earnings up sharply. Also operating profit is up nicely here. I think the country do you want to give a big shoutout is Namibia and we went through quite a difficult time a few years ago and the last 2 years, we're seeing the actual client counseling to grow after a number of years of shrinking. And that has big benefits for things like unit costs and margins on the business I listed to. I was there last week Friday. -- had some very nice hard body chicken. Thank you. And that business, we continue to dominate the list to market, and they have landed some very good corporate business there. So I think both Namibia and the suit to sort of give them a tick. Botswana is a lot harder. I mean, most of us know that the macro environment in Botswana is under pressure because of the diamond industry, and we've been exposed to that as well. Botswana is probably I would describe it as close to a breakeven business at this stage, whereas the other 2 markets are making substantial profits Embedded profit, this is really the sum of the contractual service margin and the risk adjustment. So this is where Jeanette probably says we start moving on to the second year, of course. I think the easiest way of thinking of that ZAR 25.8 billion on the right there is -- it's really the amount of profit that we could have released if we had perfect fair value accounting. But because of accounting rules and allowance for risk, we have to hold back some of the profit rather than releasing it all upfront. So that ZAR 25.8 billion is like a store of future earnings. We call it embedded value. Somebody might call it composite margin, as an example -- good growth, 6% for the 6 months. So if you annualize it, our embedded profits are growing well above inflation, a good outcome. I think any mature life can be come that can grow at, let's say, 8% to 10% here is doing well. In terms of the components, new business linked to the VNB, VNB is not at the levels we want to. It means our business is also not contributing enough to this to compare to our own desires or expectations. However, again, for the fifth time in a row, we have a very positive contribution of ZAR 1.4 billion from our in-force business. So we tend to extract more value out of our in-force business than our trial assumptions. And that's been a consistent period after period, probably talks a little bit to that persistency and client satisfaction. So we would like to get more clients in at better margins. But once they're here, they seem to stick and we're able to offer them an offering of value, and it works for us as well. Okay. So it's really a good in-force story, offsetting a little bit of a disappointing new business story. This gives you a little bit more detail. As much as I would love to be here for another hour, I can't get into all of the blocks. But what you will notice that every business unit and every product line in every business unit showed growth here. So the story about managing better outcomes on the in-force clients is a consistent feature across the group. Now -- might say, we're just conservative. I would say maybe a little bit, but it's really about operational delivery more than anything else. Maybe a few other things to note here. I mean Myriad remains the biggest store of future profit in my group, very important product line for us. Momentum Investments, that's their duty book. Despite lower sales, and net CSM is still growing well above inflation, which sort of gives a reasonably good feeling about the future earnings from that business. and then make Metropolitan life that recovery in all the operational metrics also comes through as growth in CSM in all the product areas. Okay. A bit of a similar story, but a different lens. This is the embedded value experience variances. And each of those bars is the different business units. Every business unit had a small positive mortality and mobility profit. That's good news. Persistency on durations, everybody positive, except for investments and investments that was actually a reduction on fees to existing clients. So it was effectively a fee cut rather than clients leaving. Also note a very large momentum corporate number. This is something that I sort of talked to Dumo about once in a while that I don't think there's that much movement in the industry. The schemes seem to be quite sticky. So we're not getting that much MB in. But I think our client exit levels are probably half of we expect on a normal environment. So I don't know, is it 2 part? Is it something else? Not much movement, and it's coming through nicely on the variance line for corporate. Expenses are managed below at budget. We noted in the results announcement that our expenses are up 3% for the year, which slightly below inflation. And then other obviously includes a number of different items. But if you add it all up, every business unit had a noticeable, some of them quite meaningful positive variances. I sort of joked yesterday with Janet that if I had to draw a picture to show what a good light company looks like. If we look a bit like this, it's very well managed compared to our own internal expectations and sort of operational metrics. On a theme of delivery, onerous contracts. When we published IFRS results first time 2.5 years ago, I believe when was it, 2 years ago, 2.5 years ago, 1 of the first things people ask us is like why do you have so much onerous contracts and it was maybe a fair comment. It actually was a fair comment at the time. Our new business mix has always been a mixture of some very profitable business and some loss-making business. 1 way of saying it is that maybe the level of cross subsidization was too high. We took note of that. We told investors we will work on it. And as you can see, we have made quite good headway in the last 12 months. Momentum investments, they redesigned their back to back annuity product. And Metropolitan Life is obviously through the focus on the distribution efficiency, also reduced their onerous contracts meaningfully. I mean a 40% reduction in 12 months is meaningful. And it does illustrate that when we say we're going to do something, we think to do it. And lastly, I do think it brings our mix of onerous and non-onerous a bit more in line with what 1 would expect. Sales, up to 11%. A big part of our sales comes from Momentum Investments, and those are up 12. A lot of that is the platform sales. So unfortunately, in the next slide, it doesn't quite have the same impact on VNB. Beyond that, decent growth in the other businesses, only 1 that's down year-on-year metropolitan life. Like Janet mentioned, we're very happy with that outcome because the average number of agents, which also means your running costs are down by 4%, but the productivity for the remaining agent improved by 1/3. In fact, the sales impact is a bit less than we heard when we moved to this decision to rightsize the sales force. So definitely a good outcome. Just on VNB, we're not going to pretend that the 23 is a good number because we don't think so. But this slide gives you a little bit of a flavor of just how big that impact of annuities is. So if you look at Momentum Investments, the VNB is down ZAR 100 million, and that is explained almost solely by the annuity volumes being down 2%, something like that. That ZAR 100 million is then offset by about ZAR 60 million of gains in other areas, particularly Metropolitan Life is showing a good trend in VNB, and that upward slope should continue and also small improvements in some of the other areas. So the reduction in VNB is really a story of a single product line, and we have seen industry-wide decline in sales of those products. Okay. Let's talk about nonlife. I mentioned like 5 minutes ago that I think we are a well-run life company, but were in line to make ZAR 1.5 billion in short term this year. So we also got a meaningful short-term plan. Both guides and momentum ensure very high levels of profitability. Part of it is the industry cycle. But I do think there's a bit more to it. Obviously, on health, we are #2 player in this industry at this stage, and profitability continues to grow. I'll go into each of these 1 by one. Starting with Guardrisk. All 3 lines of revenue are ahead of our internal expectations, that's for sure. Our fee income, this is still the majority of Guardrisk's revenues. So majority of guards activity is still running so captive facilities for their clients. Fee income is up 11%. That's a good outcome considering that our biggest client in Capitec left during the period. So the underlying growth is strong. Underwriting profit is up 31%. Obviously, helped in motor and property by the same claims trends in terms of weather and severity as on momentum insurer. But I do want to point out that particularly on the property book, we actually did a lot of work ourselves to improve the quality of that book. And then the gap cover business is an area where we have invested in over the last few years, and we've seen good profits coming through. So it's not only motor, it's also the commercial and corporate property and GAAP cover. And it was agreed by the group to move Namibia to Guardrisk because there's a big alternative risk business there. And Lawrence plan that he could actually do something with it. And so far, 71% yes, okay. I agree with you. Okay. Momentum in sure. Like the other players I reported so far, the claims environment has been favorable. So a claims ratio of 48%. It's an exceptional ratio. People forget that just 2, 3 years ago, this industry is under pressure. And when this cycle has gone from very weak or very strong, very quickly and usually quickly. The only negative I can mention on this business particularly now that they pay very good dividends 3x in a row is the expense ratio is too high 39%. The gross written premium shrunk by 2% as part of the focus on quality of business. And that has left the expense ratio a couple of percent above where we think it's realistic on a sustainable basis. Good news here is that December, January, February, we're starting to see the book size stabilize at about 135,000 contracts or so. So the number of new clients coming in is roughly the same as the number of clients going out. So that is starting to enable us to probably grow this business going forward at top line. Momentum Health. This business is quite highly operationally geared. So that growth of membership and revenue does that come through quite strongly on the bottom line. 5% growth in members, I think is a good outcome if I look at my general feel about what's happening in the medical scheme market. We look after the government in place medical scheme. We're seeing a bit of growth in that scheme that's helping. We're also seeing very good growth in demand for products that are targeting kind of basic benefits of the lower income products. and our own branded Momentum Health Scheme, I think is also doing a little bit better than the average scene. So 5%. I don't know if it's market leading, but it must be close in terms of membership growth. Earnings are also added. I mentioned operational gearing earlier, but Health or me margins continue to be good. So the insurance component of the business is profitable. network about Bonitas coming on June. We are going to incur quite a heavy investment before that. In the next 3 months, we need to recruit and train 700-odd people. We are busy refurbishing a major office building of our own luckily in Santen. We are rolling out a number of walk-in centers across the country. There's a substantial investment before June. So that will impact half earnings in the second half. It's a bit of a heads up on that. That said, we do think we can run beneath those profitably going forward. So it's the investment be more than happy to make but just don't expect 2017 to double. I mean, if it does, I'll be very pleased. Okay. India, incurred a small loss is FY '17. So slightly different to the India GAP numbers you'll see from our partner. The trends continue similar to the previous period, very strong top line growth. That 20% is in rands in Indian rupees is closer to 40% growth. Combined ratio improved a little bit, 113% to 112%. It could have improved a little bit more. But during the period, we had a couple of interesting developments. I mentioned 1 of them here. And there are others, I know some of the competitors also spoke about the new labor laws and things like that. But the change of the general sales tax quite a big impact because a number of our expenses are taxable and not been able to claim input credits, put pressure on our expenses and our combined ratio. Obviously, we will take that into account in our products and pricing going forward, but we -- it's impossible to pass that cost retrospectively to clients. So it was a difficulty during the period. Mentioning Momentum services on this podium for the first time. This is a business we have in Mumbai. It's our global capability center. That's what I like to call them sales. Now we have 250 people in Mumbai, who work is they provide largely technology support for our group. It makes a small profit because we have to have a transfer pricing by Indian law. But more importantly, it gives us access to an almost unlimited pool of software and technology talent. Often in India, you're talking about days to find a skill, not months. So I think the value of this setup to our group is create this strategically than it is on the 13 million bottom line. I thought I'd just mention it because I think most people don't know of this angle in our business. Shareholders. Shareholders is we have a combination of returns on investments that don't belong to regulatory capital, offset by head office costs, which are always good value for money. Now the decline in shareholders' results for the period, there was a substantial increase, ZAR 126 million increase in VC fund losses. Last 6 months, we had almost like a 0 result in VC funds this time over ZAR 100 million loss. It's a combination of some revaluations downwards. But also remember, a lot of these are denominated in dollars and euros. So there was quite a big FX impact on the VC portfolios. In terms of the shareholder costs themselves, they're down quite sharply year-on-year. Last year, the consulting costs were elevated because of the performance optimization project that I'll talk about a little bit later. Okay. Now that's the less technical part done. Now we get to capital management. I want to talk about this a bit more than normal. This shows the prudential authority yield curve. We have seen long yields according to the pencil authority declined by 700, 800 basis points. These are massive changes. I mean these are in the quantum of 1 in 200, 500. These are big, big changes in yields. The reason why I make a big deal of it here is remember that the premise of a required capital amount for insurance company is effectively a series of stress tests. And some of those stress tests like equities is instantaneous to some degree, but many of them are projected 30, 40 years forward. So we will have to assume claims are higher for 30 years. People live longer for like the next 40 years, expenses are higher forever. All these stress tests have to be PV back today. So these very low long-term yields in the PA curve increases the amount of the stress test substantially okay? So what actually happens is this. So on the left-hand side, you can see our solvency capital requirement. This is the legal minimum capital you could think that we need to hold. It tends to grow very steadily in line with our business. It jumped this time by 20%. And it really got with the fact that the yields came down. So all those stress tests, the PV of the Xinca in year 12 is now significantly higher than it would have been under the previous yield regime. And that ZAR 3.6 billion increase, remember that's 1x SCR. Now we would never want to be at 1 time. I mean our Chief Risk Officer would probably prefer a bit more than that. So let's say, you take 3.65, that's ZAR 5 billion. These are big jumps in required capital. I also, for the first time, giving you a bit more detail on the right-hand side there about the composition of our SCR Cock. You'll see that the majority of our risk is underwriting risk, not market risk. It might have come through in our presentation a few times today, I think personally that we're a little bit more exposed to income streams leading to death claims, visibility claims, short-term insurance, longevity. I think some of our competitors are maybe a little bit more market driven, whereas our capital requirements and our earnings are largely coming from insurance activities. And remember, in those activities, the test tends to be 30, 40-year stress test. So maybe that also explains why our SCR might have jumped a bit more than we've seen on average in the industry. Although I think everybody has gone up quite a bit. Okay. Just to give you a bit of a flavor of that discounting. We're disclosing for the first time a little bit more of a breakdown of our required capital. So our mortality required capital went from ZAR 1.7 billion to ZAR 2.6 billion. That growth is split as to do with the lower yield, i.e. discounting and half is actually growth in our risk business. If I look at longevity, I remember our new to book, does not grow as much in the period. But oligos risk in annuities is people living very extended ages. So here, we discounting cash flows like 30, 40 years away. Almost all of that increases is discounting. Okay. Very little backfill business growth. similar expenses, probably 80% of the expense was increase is just a discounting effect. That ZAR 3.6 billion I showed you earlier, I would say 75% of the increase is yield related and a quarter is related to our business growth, okay? So there's lower yields. They're not a big thing for our earnings because we actually run a very tight and active ALM. It's a big thing for our solvency capital because in the stress test, a lot of the cash flows are beyond the yield curve where you can actually actively hedge. Secondly, and this is maybe for the course. We actively hedge our IFRS balance sheet on our solvency balance sheet. So we're going to take a bit more volatility in the solvency than we do on earnings Okay. equity stress test. I suppose our equity stress at ZAR 1.7 billion is much smaller compared to our market cap and our other factors. But here again, illustrating that at the moment, we are stress testing for a 52% decline in equity markets over 1 year. Now the PA quite correctly, I think, as there's anticyclical philosophy where once markets have run, maybe the market cash will be bigger than us, they're falling already. Okay. So it makes sense. But at 52%, we're at the highest stress possible actually. Now in group finance, sometimes we have a bit of energy to do things. And I had guys look yesterday, the biggest fall we've ever seen in the Sofia they see on a calendar year was in '19, '20, 30% decline, okay? So at 52. And then somebody was even more ambitious and look at daily data, the biggest drawdown ever not calendar year, but point-to-point is 41% in the -- so 52% is quite a big stress test that we were using. Okay. What does this all mean? The reason I've given you a bit of a long story on capital is because our required capital went up, we agree actually with that view we believe we want to hold more capital to back our solvency requirements going forward. We have updated our required capital level from ZAR 11.6 billion to ZAR 16 billion. Now if you go through the details, you'll see that our available capital on the regulatory basis is in excess of ZAR 30 billion. But remember in that, we always want to have a certain level of high-quality liquid assets. not investments in subsidiaries, not future profit, not receivables. So this high-quality asset pool, we have assessed our view of what we want to hold upwards. We think it's a prudent and the right thing to do at this time in the market. This also explains -- or you could work it other ways is that we have reallocated our surplus capital into required capital also explains why we're not doing further buybacks at this stage. You will rather strengthen our CI ratio and balance sheet at this point in time. Okay. This is cash flows. Consistent with the previous view of strengthening the life company balance sheet. We have paid a dividend of ZAR 825 million. That's a lot of money, is ZAR 1 billion less than a year ago. And the ZAR 1 billion less coming to the holdco means that the cash flows coming into the head office is equal to the dividend requirement under the ordinary shares, there is no excess cash. So I think the decision not to do a buyback is consistent with both our desire to hold more capital and the fact that following from that, the dividends extracted from the subsidiaries is also not in excess of the dividend we're paying out. Okay. Dividend is good, but I'll talk a bit more about the right-hand table, which is the buybacks. So by December, we have done ZAR 439 million yesterday, it was just under ZAR 800 million. We are going to complete ZAR 1 billion buyback we announced last year. It's gone a little bit slower because we're doing a structured program to optimize the price we're paying for the shares. We will obviously then reassess any further buybacks at the next results like we do every 6 months. This shows you where our capital is deployed and the returns it generates. Most businesses improved their return on capital over the time period, particularly Metropolitan Life and mom investments. I would also highlight for income insure used to be well below -- well just be slightly below the target level of 20%. It's now above it, so that's great. Also, Africa is seen by improving. I think the last time I looked a year ago, it was like a normalized ROE of 12%. Now we have like 18%. So are we getting very close to the 20% hurdle rate. Yes. And Momentum Retail is the only business where ROE is a bit down. Consistent with the increase in required capital, we have also changed the view of where the capital goes. Now with the lower yields, the business with the most increase is, I mean to retail, the Merian book, so that has a bit of a negative impact on ROE. It's still good. It's just not as high as it used to be. Okay. Other topical matters, I think the yield curve in capital was the topical matter. So I'll just talk about only 1 thing here. This is performance optimization program. You'll see that we have roughly doubled the amount of bank savings. Remember, a definition of a bank saving for us is a savings are in place for 3 months continuously. The big items to come through here, the biggest 1 was the metropolitan policy system transfer, substantial savings going forward from that. Another meaningful 1 is the human capital restructuring. So we have relooked at things that are done centrally versus in the business units, leading to savings. And then there's a broad range of business unit delivery. Looking forward to this next 6 months, I think we'll deliver quite a big chunk of the 452 million. All 4 items mentioned there are very close to done or I actually know are done. We may be just waiting for the 3-month proof period to finish. Maybe I'll just mention that AP and optimization, that's next week for data cost, mobile data costs, prepaid not go. But yes, it's interesting. I start with rubber yesterday, are we going to save militant by just renegotiating rebuying our data for our staff. And part of that decision is that we're getting more and more people back in the office. It's actually having a noticeable impact on our data cost. So we always want people back in the office, largely for cultural and delivery reasons, but there are some interesting second order benefits in terms of like data costs and so on. Okay. And then just in conclusion, it's always good that me and Janet have a good overlap on conclusion. So we don't see things differently. It is an excellent earnings for 6 months. I mentioned earlier, Abaris 25% rather than 8% sort of operational level. The strong liquidity and market risk management has been a big feature, maybe more since year-end, through this Iran situation in the last couple of weeks, we've been making and receiving daily sort of collateral payments of GBP 1 billion. I mean, the market volatility on the fixed income book equity book has been among those -- but this in well, old machine running across Royce. Yes. Okay. So I'm very comfortable with what we're doing there, but it's been great comfort the way the things have been run. We continue to be well positioned. So I mentioned a few times now that I think we're proportionately a bit more exposed to mortality and short-term underwriting well positioned there. Profitable growth remains a area of intense focus. Sometimes joke, but it's easy to grow fast, and out ZAR 20 bills or ZAR 10. That's not the game we want to be in. We want to show profitable growth, and this is really VNB growth. And then similar to Janet, I do want to congratulate all the employees. I have the privilege to talk about our results. I can act like the mine. In reality, the 15,000 oaks and ladies out there to actually make it happen. So thank you very much for the massive commitment and effort over the last 6 months again. And also thank you to our clients who entrust us with their money and their financial affairs and the advisers who are our biggest partners. Thank you, and I'll hand back to Dan.

Thank you very much, Risto. Please don't go too far. There's a lot of questions there around solvency-related questions, which we'll get to you. Can I ask you? And do you need to come to the front as we begin the questions, Risto. And Jeanette, I've got a couple of questions for you. Maybe we'll start with you and then you can have a seat, ma'am. Thank you very much. A beautiful set of result, give them another round of applause. Very good set of results. Firstly, we have a question from Marius Strydom from Austrian Lawrence guidance saying, Jeanette, what is the potential impact of the Bonitas net scheme got action?

We can't say that we didn't anticipate a question like that. Marie, thank you for the question. Look, we know that we participated in a proper procurement process. We know the process we were being put through very detailed RFP submissions, supporting documentation, several presentations and engagements with the scheme as well as a very comprehensive due diligence process. I think what is maybe a little bit confusing about this is that it should be noted that this court case originates from concerns from its team regarding 2 completely unrelated contracts that were awarded to other providers in 2022 and 2024. So it's not actually directly related to the scheme being awarded to us. But what makes it tricky is that they now argue that since CMA, the Council of Medical Schemes is investigating this, that Punita should be prevented from awarding any other contract. So not absolutely directly related, but you know it is out there. So I think what is interesting at the moment is that Medscheme had to remove the application from the urgent court role due to the Judge President feeling that the case wasn't ready for hearing. And all I can say, we have a little bit of time, associate that with you. We are going full steam here to make sure that on the first of June, we are ready to take on Bonitas and the Marius members.

Thank you very much, Jeanette. The second question for you now, it's about the wealth platform, given that the termination of the wealth platform contract with FNZ, what is the plan now for the wealth platform?

We have planned. I think we couldn't really ever share that openly, but we weren't entirely surprised about this ending up where it is because over time, we got increasingly worried about late and sometimes lack of delivery. So on the 1 hand, in order to remain competitive, and you saw that our wealth platform is still doing really, really well in terms of sales. We kept on developing new capabilities and especially market-facing capabilities for our advisers and our clients. So that has actually helped us quite a bit in this case. This transformation will continue very interesting a system that 5 years ago when we started the project, we thought was end of life. That software provider has now done a whole lot of things and it now seems that it's not debt. It's maybe Lazarus. It's like gotten out of the grade. But I think what is important is that we had to rethink on how to do this. We're now going to go for far more agile development, where we will have both focus on internal development. As -- on top of that, as well as also sourcing the best providers for the best services from outside of the group. It's almost a trend that changed in the last 4 years that it no longer makes sense to be completely dependent on only 1 provider. So I think from that perspective, we actually -- the team feels that they're in a better space than where they were. All of the energy can now be spent on the development of our own platform. And in a way, we kind of miss of our own destiny, which we believe, in the end, was actually a really good outcome for us.

Nothing more for you, the rest is all about solvency this, solvency that for Risto. That question there about the wealth platform was flow Matthew Pouncett at Laurium. Thank you very much Matthew Pouncett. Baron Nkomo from JPMorgan, this start of the couple of solvency related questions, Risto. Please bear with us with the time that we have. Baron wants to know, given the broad drag from lower nominal yields and yield cap shifts, what actions are you taking the next to 12 months to reduce earnings and capital sensitivity to rates and what milestones should they be expecting or track into what management actions might you be taking?

Yes. So I think on the earnings, we'll do quite a little. I think we're comfortable with our earnings sensitivity. You would have noticed that the ZAR 3.7 billion, we still had a positive market variance. And within that market variance, the actual nominal yield movement was a negative ZAR 170 million, ZAR 180 million. So the loss we took from nominal yields down is very modest in earnings and it has to my earlier point that we hedge earnings risk of interest rates. We do not hedge the additional risk related to solvency. However, never waste crisis. Okay. That's a strong word. Never waste a lower than once solvency ratio. So there's a few things we're doing already. I remember historically, we have always a quite high capital ratios. So we have now decided to look at 1 or 2 things that we could have always done that we haven't done. So 1 of them is that historically, we never allowed for a creation of a deferred tax asset in the stress scenarios. We have made a very small ad hoc adjustment now, but I think the reality is that the DTA we could create in a stress scenario is larger than like for. And it is quite common in the industry. I would say most people allow for a DTA in the stress calculation. We're also looking at things like is our calculation methodology optimal. You might have heard everything called iterative risk margin where you can calculate your risk margin requirement as iteration of the scenario. We have never done that because we like to keep things simple and cheap in terms of calculations. But if there's a substantial capital benefit from having an iterative approach, we'll look at doing it. And then there's other things such as asset liability management, where -- many of you will know that we don't -- we like to hold our shareholder capital at reasonably stable value assets or cash and floating rate assets. We might want to buy more bonds in our net asset value. that will then increase our interest rate exposure in the right direction to the solvency. We think the impact on earnings volatility will be quite modest. But in the stressed scenarios of substantial yield reductions that additional NAV will actually be quite nice against the increase in SCR. So as you can hear, there is already a project on the go. And yes, I mean, it will lead to some benefits going forward.

Okay. I just want to get rid of some of the solvency related or is important. It's very important year. I mean Matthew Pouncett from Laurium Capital, Risto, says, thank you for the presentation. Congrats on the results. what impact to the bond and equity movements during March have on your solvency?

Yes. Good question. So we have done some testing and point-in-time stuff over the last few weeks. Obviously, the decline in equity markets will have a small negative impact. But as I mentioned earlier, our equity exposure is quite small. We're not that equity exposed. Probably talking about limited investment guarantees in our book. Rates increase is actually positive. So the similar way that the sharp decline in your long bonds, the fact that the bonds have sold out during the risk -- increased risk environment. Net-net, we believe our solvency ratio is actually up through the wall period. Yes.

Okay. Warwick Bam next from RMB Morgan Stanley says, are you comfortable with your ALM matching dynamics? And do you have the ability to reprice your products if yields stay this low?

Yes. Okay. That's a very topical question. The 1 thing I want to add to Matthew, before I forget is, I was thinking about it. One thing I was also remember, this is our 6-month results. So when you do a balance sheet stress test, you get the full impact there we only had 6 months of retained earnings. So I think if we were reporting 12-month results, the reduction in solvency ratio would have been probably 0.0, 5.1% less, okay. So Matthew just think about that a little bit. ALM, I keep saying that we're very happy with the ALM outcomes on the things we want to match. I mean sometimes we choose not to hedge, and I don't think we're changing that. In terms of the ability of the reprice, we definitely have a contractual right to reprice. Those decisions are very difficult because you need to take policyholder fairness, market reaction, everything in the account. I mean we did an interesting exercise recently with Myriad, yields have fallen sharply, but they're not that much lower than 10 years ago, 15 years ago. So even though we have a contractual right to do so, we're debating a little bit like how far would it be to reprice, I mean the yield has been higher for 5, 10 years and now they come back for 5, 10 years. Obviously, the guys who were sold business, let's say, 3, 4 years ago when yields we might have a stronger case in 5 or 10 years with them, but that's in the future. So we have a legal right to reprice. I think historically, we have chosen not to use it right unless it's like iron glad I think it also talks to our -- maybe our attitude towards clients first in most cases. Well, in every we have to take holders into account as well. I mean with the shareholders.

Risto, just bear with me for a couple of more questions. Saul Miller from Truffle Asset Management says, cash generation from the SA line was depressed versus the past. Please elaborate. Is it SCR relates or will it repeat back? What is sustainable?

Yes. Sustainable is sort of closer to 1.5% every 6 months. So the dividend we paid out of the life company was really the minimum we felt feasible to pay the desired group dividend. So we wanted to retain as much money in the Lifeco as possible. Now obviously, we will have retained earnings and a bit of relief in terms of the capital project by June. So I would expect at year-end, we can revert back to a normal level of dividends from the life company.

A couple of questions about India, 1 from Michael Christelis at UBS. The other 1 from [indiscernible] from SBG Securities. I'll just give them both to you at once, and you could address them. Can you confirm if India is expected to be profitable from next year? And what further capital will be required from the group for this business. And as Namila wants to know the operating loss in India have widened aside from the one-off gain in the client period are the headwinds in the Indian market, preventing a breakeven scenario?

Yes. Okay. So in fact, our partner, I think, expect breakeven in the current year on the India got basis. So I think next year, confidence levels are high. Now obviously, India cap is not exactly the same as IFRS 17. If the business grows and matures a little bit. The gap between IFRS 7 in India gap will close. So I do think that this year, there is a good chance to be profitable also in IFRS 17. And next year, I would say it's highly likely we are profitable under IFRS 17. Yes. So that's a short answer to that. In terms of the other one-offs, I sort of mentioned the impact of not being able to plan the input GST because of the tax changes. We also had some changes to labor laws in India. There's also quite a bit of talk in India at the moment about cost of distribution and maybe regulations might change around that. So I think in the coming year, possible changes to commission levels is probably the biggest thing for investors to look because if commissions are sapped again, they were cap a couple of years ago, if they bring commission caps back, it might be beneficial long term, in my view, not everybody agrees. But in the short term, it will cause other distraction because some of the channels might actually get them or decide to not distribute. So I think like India is a very the Indian regulator is really active, and they're very policy of the protection focused. And neither of them is a bad thing, but it does mean that industry participants need to be on their toes. Every year, there's quite a few things that change. But I think the 2 big ones last year was from a regulatory perspective was labor laws and tax. Also, medical inflation, like in most of the world is high. I think behind, I think it's 12%, 14% is the medical inflation in India over the last year. which is clearly higher than what we priced in when we sold the business.

We've got a couple of less...

By the way the capital, so...

The capital, yes.

It's obviously dynamic, and it's a function of how much we're growing. I would say my best estimate for further capital injection over the next 2 years is about ZAR 700 million.

A couple of last questions from Marius Strydom. Just to note, Harry has asked a very technical question, which I won't put to you now. I'm sure that can be addressed [indiscernible].

Break my heart.

That can be addressed later on, Risto. Marius Strydom from Austin Laurence, has got some interesting questions. But first, he's giving you and the team flowers. He says congratulations on a strong set of results, especially your industry-leading ROE, and thank you for your clean and useful disclosure, okay? He wants to know, can you please speak to the likely impact of Bonitas on how fee growth? Will this exceed 28% increase in membership? And will this be delivered at a higher margin, near term and long term?

Yes. I mean it's a bit of a noisy question because we would never disclose commercial matters at an individual client level. I think particularly Bonitas and James will be such big clients that it will be very dangerous to talk about commercial. What I would say, Marius, is we would not have bid unless we thought we could do it profitably. I also mentioned that we're going to invest probably over ZAR 100 million over the next 3 months to set up a Bonitas. We think the payback on that will be a very acceptable link. So yes, we -- I think it's going to be a profitable contract. I just can't -- it's not right to disclose what we think the profits will be.

Okay. Final question from us Risto. Yes, what will the impact of negative imported inflation vehicles and parts B on the insured motor book? And are you using strong underwriting performance to price more aggressively in past of new business. Is this not a clear opportunity to grow your book?

Yes. Okay. So obviously, the likelihood of inflation picking up has increased substantially and both cars and home electronics are largely imported. So we will definitely keep an eye on it. I mean, the current underwriting margins are so high, but I'm guessing that brunt not here, unfortunately. I think is the Yes. Okay. I think I might be so high is that we might respond a little bit slower than normal in terms of inflationary pressures on claims costs. But the second part, which is being more aggressive to grow the book. It's interesting that there on a few small experiments and the momentum insurer with different pricing strategies, they're not seeing a massive impact in conversion rates from cutting prices a little bit or increasing them a little bit. Ultimately, the efficiency of our sales activities, particularly in the direct space is very much a function of the quality of the leads coming in. So it's not so much of a pricing matter as it is of generating more high-quality leads. So elasticity of demand is maybe a little bit less than 1 would guess. I can say it's 3, we can't do the similar experiments in life insurance. I've sort of been a bit more dynamic, but anyway.

Thank you very much. Let's give him a round of applause. Risto, thank you for taking all those questions. We appreciate it, and we also thank the analyst who put those questions to you. And it's good to know that when people acknowledge the good work that you're doing as all analysts in terms of the kind of results and the disclosures that are being made in this transparent grade is brilliant for the group. A brilliant set of results, and this is how we end our presentation. Thank you again Jeanette and to Risto and everybody else who's attending and those who took part virtually as well. So time the half year is gone, it's time now to put shoulder to the wheel for the next half year, which is the next 6 months all the best. Thank you very much.