Momentum Metropolitan : Summary of Financial Information

SUMMARY OF FINANCIAL INFORMATION

Audited results for the year ended

30 June 2021

MOMENTUM METROPOLITAN HOLDINGS LIMITED

SUMMARY OF FINANCIAL INFORMATION

FOR THE YEAR ENDED 30 JUNE 2021

CONTENTS

1. How we create value
2. Chairman's review

4 Group CEO's strategic review

11 Group Finance Director's review

20 Directors' statement

24 Condensed consolidated statement of financial position

25 Condensed consolidated income statement

26 Consolidated statement of comprehensive income

27 Consolidated statement of changes in equity

28 Condensed consolidated statement of cash flows

29 Notes to the summarised audited annual financial statements

64 Embedded value information

77 Additional information

83 Stock exchange performance

84 Report by the Social, Ethics and Transformation Committee

89 Notice of annual general meeting

Attached	Form of proxy
Attached	Electronic participation form
IBC	Administration

| HOW WE CREATE VALUE

HOW OUR BUSINESS WORKS

Momentum Metropolitan is one of South Africa's largest diversified financial services companies with listings on the JSE, A2X Financial Markets and Namibia Stock Exchange.

Our business is about protection (life and non-life), investments and long-term savings and we conduct it through Momentum, Metropolitan, Guardrisk and Eris Properties brands.

Outside South Africa, we operate in six African countries through Momentum Metropolitan Africa, which includes Botswana, Ghana, Kenya, Lesotho, Mozambique and Namibia. Momentum Investments has operations in the United Kingdom and Guernsey. The Group has a health insurance joint venture in India and Guardrisk has businesses in Gibraltar and Mauritius. aYo, in which the Group owns a 25% holding, operates in Côte d'Ivoire, Ghana, Uganda and Zambia.

Our solutions
					Asset and property
	Life insurance		Non-life insurance		management,
			investments and
					savings
	Employee		Healthcare
	benefits, including		administration		Non-life and life
	administration and		and health risk		cell captives
	consulting		management

What differentiates us

• Our synergistic portfolio of value-creating businesses is strategically aligned and managed for sustainability
• We execute through empowered end-to-end businesses
• In recognition of the value of advice, we have built strong adviser brand equity and relationships
• We meet a wide range of client needs through a comprehensive but flexible product set
• Through Multiply we offer client engagement and rewards that encourage healthier and safer lifestyles
• We are a responsible business with a long-term perspective, committed to contributing positively to the communities where we operate and dedicated to combating climate change and its impacts and contributing to a just transition to a low carbon economy

MOMENTUM METROPOLITAN HOLDINGS SUMMARY OF FINANCIAL INFORMATION 2021 | 1

| CHAIRMAN'S REVIEW

We maintained focus, completed the resetting of the business and changed gears by developing plans enabling us to reinvent our business for growth.

Sello Moloko

Chairman

The year under review can be described as the most unprecedented in the modern insurance era. The macroeconomic environment, which was already facing significant headwinds before the ratings agencies downgrades in 2020, was badly affected by the Covid-19 pandemic and its associated disruptions. This has, of course, impacted both our retail and institutional clients. While the Group has been impacted by the slowdown in economic activity and a substantial increase in Covid-19-related claims, particularly in our life insurance businesses, our business units have still found ways to be productive, serve our clients and deliver credible operating results. Despite the adverse impact of Covid-19, which has been both direct and fundamental, we were able to maintain the resilience our business units demonstrated in F2020.

The Board was actively engaged in guiding the Group's strategic response to Covid-19. We applied our minds to addressing its impact on the sustainability of the business including our capital management strategy, the significant changes to our reserving approach, our employees' working environment, and how we incentivise our workforce to maintain high levels of productivity.

This was all happening at a time when the Group was going through its own process of resetting for future growth. Despite the many challenges encountered, we maintained focus, completed the resetting of the business and changed gears by developing plans enabling us to reinvent our business for growth in uncertain and changing times.

Our management team continues to do outstanding work with regard to the safety of our employees, our clients and the communities in which we operate. The team continues to maintain excellent communication with our employees (who are mainly working remotely) and our clients, and continues to address the challenges our employees are facing as a result of Covid-19. I believe the ability of our people to continue to be productive and effective and their fast adjustment to the new way of doing things can be attributed to the salubrious culture that has been fostered in the business.

Sustainability and ESG

The sustainability of the Group and its ability to create value remains a key focus of the Board, which includes our performance in terms of ESG. The Board recognises that ESG is a critical component of our value creation and that it requires careful attention in terms of how we weave it into our business planning. While the Group has already made substantial progress in this regard, our management team is focusing on how best to further integrate ESG into our Group strategy and the strategies of our individual business units.

Our commitment to meeting our responsibilities regarding the environment was reinforced this year when we became a formal supporter of the TCFD (see page 153 of the Integrated Report). Our efforts to meet our commitments as

a responsible corporate citizen, which includes being a signatory to the UN Principles of Responsible Investment (UNPRI), are detailed on pages 148 and 149 of the Integrated Report.

It has been challenging in the current economic environment to make progress in ensuring more young South Africans are employed through our focus on youth employability. Our efforts in the year ahead will include supporting black female entrepreneurs in the agricultural value chain, and through incubating innovation among young people in the socially inclusive green economy and growing climate-aware young leaders, we will be preparing young people for roles in the changing world of work.

2 | MOMENTUM METROPOLITAN HOLDINGS SUMMARY OF FINANCIAL INFORMATION 2021

Our investments in start-ups in insurtech and fintech are creating an enabling environment for smart young people to come up with solutions which could, in future, emerge as innovative big businesses.

Board and executive succession

This is my first year as Chairman of the Group. The Board is in a period of transition during which some Board members have come to the end of their tenure. Our approach to selecting new members of our Board has been deliberate and strategic from a skills, gender and racial diversity perspective. We have a skills matrix in place that considers gender and race issues. However, to ensure we appoint people to the Board who can add value and make a difference, it is driven from a skills perspective. This drive has seen the introduction in 2021 of two new directors with considerable financial services skills and experience, Nigel Dunkley and Seelan Gobalsamy. Over the past three years we have also bolstered the Board's technology and insurance skills.

Succession planning is critical for the Group, both from a Board and executive perspective. In the past 15 months the Nominations Committee has looked in depth at our leadership team, and gained a good understanding of our talent base with a view to developing a succession plan. Because this is such a critical issue, the Board will be holding a detailed discussion dedicated to executive succession before the end of 2021.

Governance

By practising good corporate governance through the application of the King IV Code, we ensure the Board provides ethical, effective and responsible leadership and strategic decision-making that balances short, medium and long- term outcomes. It also acts with integrity and provides robust risk and performance management, and monitors the embedding of an ethical culture and a response to our role as a responsible corporate citizen that goes well beyond compliance. During the year under review the Board approved a new Group conflict of interest policy for directors as part of its efforts to continually improve corporate governance in the Group.

Our transformation journey

Our transformation agenda remains on course, which includes our role in structures such as Business Leadership South Africa (BLSA) and Business Unity South Africa (BUSA). We continue to work hard to ensure that we improve the demographics of our senior leadership team; however, we continue to focus on authentically transforming our workforce. From a Board perspective we have made good progress with transformation. An area where we can continue to contribute to the transformation of South Africa is through the ongoing transformation of our product range.

Thanks

On behalf of the Board, I wish to thank Hillie Meyer and his executive team for their dedication and resilience in the most unprecedented of commercial eras. In addition to bedding down the Reset and Grow strategy, they did outstanding work in ensuring employee safety and productivity. I would also like to thank all the employees of Momentum Metropolitan for the Group's achievements in this tough operating environment. It would be remiss of me not to thank our clients for their continued support.

I also thank my predecessor, JJ Njeke, for leaving behind a sound governance legacy. I would also like to welcome our two new Board members, Nigel Dunkley and Seelan Gobalsamy, and to thank all our Board members for their valuable contribution, energy and commitment during the year under review.

Going forward

During the year ahead the Group's business units will be implementing their Reinvent and Grow strategies, which they shared at our 2021 Investor Conference.

My view is that we are likely to be grappling with the impact of Covid-19 until around 2023. It is my belief that, in future, we will look back and realise that the Covid-19 pandemic created an inflection point for South Africa. We need to start thinking about how we can turn this crisis into an opportunity, and how we can use it to retool, achieve digital acceleration across the Group and use gaps that exist in the market to preserve and grow value.

Sello Moloko

Chairman

MOMENTUM METROPOLITAN HOLDINGS SUMMARY OF FINANCIAL INFORMATION 2021 | 3