MOMMET Ar Jun22 Part2

MOMENTUM METROPOLITAN
Audited Annual Financial Statements

for the year ended 30 June 2022
Contents
GROUP REPORTS
1 Directors’ responsibility and approval
2 CEO and Financial Director confirmation of financial controls
2 Certificate by the Group Company Secretary
3 Independent auditor’s report
10 Review report on Group embedded value
11 Report on Group embedded value
25 Directors’ report
30 Report of the Audit Committee
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS

34 Statement of financial position
35 Income statement
36 Statement of comprehensive income
37 Statement of changes in equity
38 Statement of cash flows
39 Basis of preparation
40 Critical judgements and accounting estimates
41 Notes to the financial statements
192 MOMENTUM METROPOLITAN HOLDINGS LTD ANNUAL FINANCIAL STATEMENTS
ADDITIONAL INFORMATION
212 Annexures
220 Shareholder profile
221 Stock exchange performance
222 Shareholder diary
222 Administration
The preparation of the Group’s audited consolidated results was supervised by the Group Finance Director,
Risto Ketola (FIA, FASSA, CFA Charterholder).
Our reporting for the year ended 30 June 2022

Our Annual Financial Statements form part of our reporting suite which includes our Integrated Report and other
supplementary reports. These are available at www.momentummetropolitan.co.za/en/investor-relations/financial-results.
Directors’ responsibility and approval
RESPONSIBILITY FOR FINANCIAL STATEMENTS
GROUP REPORTS
The Board takes responsibility for ensuring that these financial statements accurately and fairly represent the state of affairs of
Momentum Metropolitan Holdings Ltd (MMH or the Company) and its subsidiaries (collectively Momentum Metropolitan or the Group)
at the end of the financial year and the profits and losses for the year. The Board is also responsible for the accuracy and consistency of
other information included in the financial statements.
To enable the Board to meet these responsibilities:
• the Group and Company financial statements are prepared by management; opinions are obtained from the external auditors of the
companies and also from the Heads of Actuarial Function (HAFs) of the insurance companies (life and non-life) regarding the statutory
solvency of those entities; and
• the Board is advised by the Audit Committee, comprising independent non-executive directors, and the Actuarial Committee. These
committees meet regularly with the auditors, the Group HAF and the management of the Group to ensure that adequate internal
controls are maintained, and that the financial information complies with International Financial Reporting Standards and advisory
practice notes issued by the Actuarial Society of South Africa. The internal auditors, external auditors and the HAFs of the companies
have unrestricted access to these committees or similar committees applicable at subsidiary level.
CONSOLIDATED ANNUAL
FINANCIAL STATEMENTS
The Board is comfortable that the internal financial controls are effective and adequate to support the integrity of the preparation and
presentation of the Annual Financial Statements (AFS).
The financial statements have been prepared in accordance with the provisions of the South African Companies Act, 71 of 2008 (as amended)
(Companies Act), the Long-term Insurance Act, 52 of 1998, the Short-term Insurance Act, 53 of 1998, and the Insurance Act, 18 of 2017, and
comply with International Financial Reporting Standards and guidelines issued by the Actuarial Society of South Africa.
The Board is satisfied that the Group is a going concern and remains so for the foreseeable future, based on cash forecasts, liquidity, solvency
and capital assessments.
It is the responsibility of the independent auditors to report on the financial statements. In order to do so, they were given unrestricted
access to all financial records and related data, including minutes of all meetings of shareholders, the Board of directors and committees
of the Board. The independent auditor’s report is presented on page 3.
MOMENTUM METROPOLITAN HOLDINGS LTD

APPROVAL OF ANNUAL FINANCIAL STATEMENTS
The annual financial statements, presented on pages 34 to 221, were approved by the Board of directors on 12 September 2022 and are
ANNUAL FINANCIAL STATEMENTS
signed on its behalf by:

Paul Baloyi Hillie Meyer
Chairman Group Chief Executive Officer
Centurion, 12 September 2022 Centurion, 12 September 2022

MOMENTUM METROPOLITAN HOLDINGS GROUP ANNUAL FINANCIAL STATEMENTS 2022 | 1

CEO and Financial Director confirmation of financial controls
Each of the directors, whose names are stated below, hereby confirm that:
a) the annual financial statements set out on pages 34 to 221, fairly present in all material respects the financial position, financial
performance and cash flows of the issuer in terms of International Financial Reporting Standards (IFRS);
b) to the best of our knowledge and belief, no facts have been omitted or untrue statements made that would make the annual financial
statements false or misleading;
c) internal financial controls have been put in place to ensure that material information relating to the issuer and its consolidated
subsidiaries have been provided to effectively prepare the financial statements of the issuer;
d) the internal financial controls are adequate and effective and can be relied upon in compiling the annual financial statements, having
fulfilled our role and function as executive directors with primary responsibility for implementation and execution of controls;
e) where we are not satisfied, we have disclosed to the Audit Committee and the auditors any deficiencies in design and operational
effectiveness of the internal financial controls and have taken steps to remedy the deficiencies; and
f) we are not aware of any fraud involving directors.
Hillie Meyer Risto Ketola

Group Chief Executive Officer Group Finance Director
Centurion, 12 September 2022 Centurion, 12 September 2022
Certificate by the Group Company Secretary
In accordance with the provisions of section 88(2)(e) of the Companies Act, I certify that for the year ended 30 June 2022 the companies
have lodged with the registrar of companies all such returns as are required of a company in terms of the Companies Act, and that all such
returns are true, correct and up to date.
Gcobisa Tyusha
Group Company Secretary
Centurion, 12 September 2022
2 | MOMENTUM METROPOLITAN HOLDINGS GROUP ANNUAL FINANCIAL STATEMENTS 2022

Independent auditor’s report
TO THE SHAREHOLDERS OF MOMENTUM METROPOLITAN HOLDINGS LTD
REPORT ON THE AUDIT OF THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
GROUP REPORTS
Opinion
We have audited the consolidated and separate financial statements of Momentum Metropolitan Holdings Ltd and its subsidiaries (‘the Group’)
and Company set out on pages 34 to 211, which comprise of the consolidated and separate statements of financial position as at 30 June 2022,
the consolidated and separate income statements, the consolidated and separate statements of comprehensive income, the consolidated and
separate statements of changes in equity and the consolidated and separate statements of cash flows for the year then ended, and notes to the
consolidated and separate financial statements, including a summary of significant accounting policies.
In our opinion, the consolidated and separate financial statements present fairly, in all material respects, the consolidated and separate financial
position of the Group and Company as at 30 June 2022, and its consolidated and separate financial performance and consolidated and separate
cash flows for the year then ended in accordance with International Financial Reporting Standards and the requirements of the Companies Act
of South Africa.
Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the consolidated and separate financial statements section of our report.
CONSOLIDATED ANNUAL
We are independent of the Group and Company in accordance with the Independent Regulatory Board for Auditors’ Code of Professional
Conduct for Registered Auditors (IRBA Code) and other independence requirements applicable to performing audits of financial
statements of the Group and Company and in South Africa. We have fulfilled our other ethical responsibilities in accordance with the IRBA
Code and in accordance with other ethical requirements applicable to performing audits of the Group and Company and in South Africa.
The IRBA Code is consistent with the corresponding sections of the International Ethics Standards Board for Accountants’ International
Code of Ethics for Professional Accountants (including International Independence Standards). We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated and
separate financial statements of the current period. These matters were addressed in the context of our audit of the consolidated and
separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
For each matter below, our description of how our audit addressed the matter is provided in that context.

We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the consolidated and separate financial
statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures
designed to respond to our assessment of the risks of material misstatement of the consolidated and separate financial statements. The
results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion
on the accompanying consolidated and separate financial statements.

Independent auditor’s report continued
The Key Audit Matters applies to the audit of the consolidated financial statements as specified below.
Key Audit Matter How the matter was addressed in the audit
1. VALUATION OF LIFE INSURANCE CONTRACT LIABILITIES
This key audit matter applies to the audit of the consolidated financial statements.
We considered the valuation of insurance contract liabilities to The specific audit procedures performed to address the
be a significant risk for the Group. Specifically, we considered various aspects of significant risk are set out in the sections
the actuarial assumptions and models applied, as these involve below. In addition to the procedures below, we also evaluated
complex and significant judgements about future events, both management’s analysis of movements in insurance contract
internal and external to the business for which small changes can liabilities and corroborated large or unexpected movements.
result in a material impact to the resultant valuation. Additionally,
the valuation process is conditional upon the accuracy and
completeness of the data.
The disclosures around the key assumptions and methodologies

applied in valuing the insurance contract liabilities are included
in note 11 and the valuation and movements in the liability are
disclosed in note 9.1.1.
We have split the risks relating to the valuation of insurance

contract liabilities into the following components:
• actuarial assumptions;
• actuarial modelling; and
• data.
1.1 Actuarial assumptions Our audit included the following procedures with the assistance
Key actuarial assumptions in the valuation of the insurance of our internal actuarial specialists:
contract liabilities include both economic and non-economic
• we assessed the design and operating effectiveness of key
assumptions as described below.
controls over management’s process for setting and updating
• Economic assumptions are set by management taking into key actuarial assumptions – performing additional substantive
account market conditions as at the valuation date. The testing where necessary (for example, in respect of data inputs
economic assumptions applied in determining the valuation to the experience analysis);
rate of interest used to discount insurance contract liabilities • we assessed the appropriateness of the methodology and
is a key assumption within the valuation of insurance assumptions applied based on our knowledge of the Group,
contract liabilities. industry standards and regulatory and financial reporting
• Non-economic assumptions such as future expenses, requirements;
mortality, morbidity and persistency are set based on the • we reviewed the results of management’s experience analysis
Group’s past experience, market experience, market practice, (where available), including base mortality, morbidity and
regulations and expectations about future trends, with persistency, to assess whether this analysis supports the
specific focus on persistency, mortality and morbidity that adopted assumptions;
we consider to have the most significant impact. • we evaluated the information applied by management in
determining key economic assumptions such as the valuation
These actuarial assumptions require significant focus annually rate of interest, to assess whether these were reflective of the
with the use of internal actuarial specialists to assess the assets backing insurance contract liabilities;
reasonability of assumptions set by management using • we evaluated and performed procedures over management’s
expert judgement. modelling of investment guarantee reserves;
• we assessed the expense assumptions adopted by
In addition, the Covid-19 pandemic continues to evolve and management with reference to the Group’s underlying expense
still has uncertain outcomes. Management has considered base and the relevant functional cost analysis;
experience to date as well as their view on the possible future • we evaluated the use of the chosen longevity improvement
outcomes and based on this continued to set aside a judgemental model and the parameters used to ensure that it was
provision in addition to the base actuarial assumptions and appropriate relative to the industry;
liability to allow for their updated outlook. • we agreed the assumptions used in the year end valuation to
the approved basis; and
• we considered the expert judgement applied by management in
determining the Covid-19 explicit provision based on currently
available information and the treatments applied by other
market participants.

GROUP REPORTS
Key Audit Matter continued How the matter was addressed in the audit continued
1.2 Actuarial modelling Our audit included the following procedures with the assistance
We consider the integrity and appropriateness of the models of our internal actuarial specialists:
used by management to be critical to the overall valuation of
insurance contract liabilities. • we obtained an understanding of management’s process for
model developments to the core actuarial models and tested
Our audit focused on the insurance contract liabilities which are the design, implementation and operating effectiveness of key
modelled using the core actuarial models, as this represents controls over that process;
the majority of the liability. However, we also placed attention
on the liabilities which are calculated outside the core actuarial
• we obtained an understanding of the governance process
systems to address the risk of additional required liabilities around model changes;
which are not reflected in the model and consequently require • we evaluated the integrity of the core actuarial models by
significant judgement applied by management. considering testing performed on a subset of products by a
specialist appointed by management in the current year. This
Every year, the Group assesses the models to ensure that it is in addition to the testing performed on a sample of products
remains appropriate given the product features, applicable
in the previous financial years;
legislation and relevant actuarial guidance. Therefore, we involve
CONSOLIDATED ANNUAL
our actuarial specialists who for the current period assist with • we evaluated the changes made to the core actuarial models
assessing the: during the year by analysing management's rationale behind
these changes, the tests conducted by management to
i) integrity and appropriateness of actuarial models used by validate the changes and where appropriate, evaluate the
management relative to product features, applicable legislation impacts of these changes to our own calculations of what we
and relevant actuarial guidance; expect the impact to be;
ii) model developments applied to the core actuarial models; and • we assessed the results of management’s analysis of
iii) the appropriateness of the adjustments that are applied outside movements in insurance contract liabilities to corroborate that
of the core actuarial model which require individual assessment. the actual impact of changes to models was consistent with
that expected when the model change was implemented; and
• we stratified the components of reserves modelled outside the
core actuarial models and focused our audit procedures on
those that presented a higher risk of material misstatement.
1.3 Data Our audit included the following procedures to assess the

The large volume of insurance contract data held on policy completeness and accuracy of policyholder data:
administration systems (‘policyholder data’) is a key input to the
• we tested the design and operating effectiveness of key controls
valuation process. The valuation of insurance contract liabilities
supporting the maintenance of policyholder data on underlying
is therefore conditional upon the accuracy and completeness of
source systems with the involvement of our internal IT specialists;
the data extracted from the policy administration systems and
• we evaluated that the data maintained on these source systems
converted for use in the valuation process.
was correctly used as an input to the valuation process by
performing audit procedures to evaluate that the extraction scripts
had operated as intended or via two-way sample tests of policies,
as applicable;
• we obtained an understanding of management’s process for the
collection, extraction and validation of data and tested the design
and operating effectiveness of key controls; and
• we confirmed the results of the data enrichment and
conversion process by assessing the integrity of the rules
applied by management and re-performing it for a sample
of policies.

Key Audit Matter continued How the matter was addressed in the audit continued
2. VALUATION OF COMPLEX AND ILLIQUID ASSETS
This key audit matter applies to the audit of the consolidated financial statements.
The extent of judgement applied by management in valuing the Our audit included the following procedures with the assistance
Group’s investments varies with the nature of securities held, the of our internal valuation specialists:
markets in which they are traded, and the valuation methodology
applied. • we obtained an understanding of management’s process for
determining fair value on Level 3 assets and we evaluated
Observable inputs are not readily available for some of the the design effectiveness of key controls (including IT general
Group’s invested assets and a mark-to-model valuation is applied controls) relevant to the valuation of Level 3 assets;
as a result. • we assessed the appropriateness of the valuation
methodologies applied by management with reference to
The Level 3 assets amount to: R2 870 million of owner-occupied relevant accounting standards and industry guidance;
properties as disclosed in note 4; R9 031 million of investment • we tested the completeness and accuracy of data inputs used
properties as disclosed in note 5; and R6 188 million of financial in the valuation model by agreeing them on a sample basis to
assets as disclosed in note 7. source (including the underlying contracts) or comparing them
to available market benchmarks;
We consider the valuation of the diverse portfolio of Level 3 • we evaluated the key assumptions applied in determining fair
assets to be a key auditing matter given: value by making a comparison to our own understanding of
i) that the assumptions determined by management are largely the market, comparable evidence relied upon by management
based on non-observable inputs, are highly judgemental and and to industry benchmarks;
consider a diverse range of sector information, which required • we involved our internal valuation specialist to perform
the involvement of our internal valuation experts; and independent valuations on a sample basis and we compare
ii) the extent of effort required assessing the completeness and the output to the modelled valuations produced by
accuracy of data utilised in the valuation models due to the management or third parties, as applicable;
diverse and large portfolio. • we considered the completeness and accuracy of valuation
adjustments applied by management to exposures of
leveraged entities that may be adversely affected by the
Covid-19 pandemic or other forms of economic uncertainty
in terms of their ability to service interest and capital; and
• with the assistance of our internal valuation specialists, we
corroborated key inputs to models and validated significant
assumptions on a sample basis with reference to relevant
industry market valuation considerations, with a particular
focus on discount rates and credit risk.

Other Information
GROUP REPORTS
The directors are responsible for the other information. The other information comprises the information included in the 222-page document
titled “Momentum Metropolitan Group Annual Financial Statements – Audited results for the year ended June 2022", which includes the
Directors’ report, the Report of the Audit Committee and the Certificate by the Company Secretary as required by the Companies Act of
South Africa, and the following:
• Directors’ responsibility and approval

• CEO and Financial Director confirmation of financial controls
• Certificate by the Group Company Secretary
• Report on Group embedded value
• Directors' report
• Report of the Audit Committee
• Annexure A
• Annexure B
• Shareholder profile
• Stock exchange performance
CONSOLIDATED ANNUAL
• Shareholder diary
• Administration
• Momentum Metropolitan Integrated Report 2022
• King IV application summary.
• Sustainability report
• Stewardship report (latest version from 2021)
• Task Force on Climate-related Financial Disclosures Report (latest version from 2021)
The other information does not include the consolidated or the separate financial statements and our auditor’s report thereon.
Our opinion on the consolidated and separate financial statements does not cover the other information and we do not express an audit
opinion or any form of assurance conclusion thereon.
In connection with our audit of the consolidated and separate financial statements, our responsibility is to read the other information and,

in doing so, consider whether the other information is materially inconsistent with the consolidated and separate financial statements or
our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude
that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Consolidated and Separate Financial Statements
The directors are responsible for the preparation and fair presentation of the consolidated and separate financial statements in accordance
with International Financial Reporting Standards and the requirements of the Companies Act of South Africa, and for such internal control as
the directors determine is necessary to enable the preparation of consolidated and separate financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated and separate financial statements, the directors are responsible for assessing the Group and Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless the directors either intend to liquidate the Group and Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated and
separate financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the
audit. We also:
• Identify and assess the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group and Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group and
Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the consolidated and separate financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Group and/or the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the
disclosures, and whether the consolidated and separate financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group
to express an opinion on the consolidated and separate financial statements. We are responsible for the direction, supervision and
performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and
to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where
applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the
consolidated and separate financial statements of the current period and are therefore the key audit matters. We describe these matters
in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements
GROUP REPORTS
In terms of the IRBA Rule published in Government Gazette Number 39475 dated 4 December 2015, we report that Ernst and Young Inc.
has been the auditor of the Momentum Metropolitan Group for 3 years.
Director: JC de Villiers CA(SA)

Registered Auditor
102 Rivonia Road

Sandton
14 September 2022
CONSOLIDATED ANNUAL

Review report on Group embedded value
OF MOMENTUM METROPOLITAN HOLDINGS LTD AND ITS SUBSIDIARIES TO THE DIRECTORS OF MOMENTUM
METROPOLITAN HOLDINGS LTD
INTRODUCTION
We have reviewed the accompanying Group embedded value report (“the Report”) of Momentum Metropolitan Holdings Ltd for the year
ended 30 June 2022, as set out on pages 11 to 24, and the basis of accounting as set out on page 11.
DIRECTORS’ RESPONSIBILITY
The directors of Momentum Metropolitan Holdings Ltd are responsible for the preparation and presentation of the Report in accordance
with the basis of accounting set out on page 11, for determining that the basis of accounting is acceptable in the circumstances,
and for such internal control as the directors determine is necessary to enable the preparation of the Report that is free from material
misstatement, whether due to fraud or error.
AUDITORS’ RESPONSIBILITY
Our responsibility is to express a conclusion on the Report. We conducted our review in accordance with International Standard on Review
Engagements (ISRE) 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. ISRE 2410
requires us to conclude whether anything has come to our attention that causes us to believe that the Report is not prepared in all
material respects in accordance with the basis of accounting as set out on page 11. This standard also requires us to comply with
relevant ethical requirements.
A review of financial information in accordance with ISRE 2410 is a limited assurance engagement. We perform procedures primarily
consisting of making enquiries of management and others within the entity, as appropriate, and applying analytical procedures, and
evaluate the evidence obtained.
The procedures performed in a review are substantially less than and differ in nature from those performed in an audit conducted in
accordance with International Standards on Auditing. Accordingly, we do not express an audit opinion on the Report.
CONCLUSION
Based on our review, nothing has come to our attention that causes us to believe that the accompanying Report for the year ended
30 June 2022 is not prepared, in all material respects in accordance with the basis of accounting set out on page 11.
EMPHASIS OF MATTER – BASIS OF ACCOUNTING

Without modifying our conclusion, we draw attention to page 11 of the Report, which describes the basis of accounting. The Report
is prepared to provide additional information in respect of the Group embedded value which is used by management in evaluating
the performance of the Group. As a result, the Report may not be suitable for another purpose.
Director: JC de Villiers CA(SA)

Registered Auditor
14 September 2022
102 Rivonia Road

Sandton
2196

Report on Group embedded value
At 30 June 2022
GROUP REPORTS
The report on Group embedded value sets out the diluted embedded value (EV), taking into account all shares issued by Momentum
Metropolitan Holdings Ltd. This report has been prepared in accordance with the EV guidance from the Actuarial Society of South Africa
(ASSA) – APN 107.
MOMENTUM METROPOLITAN LIFE LTD REQUIRED CAPITAL

Momentum Metropolitan Life Ltd required capital is determined as the amount of assets required to support the internal capital targets of
the covered business over the business planning horizon.
OTHER COVERED BUSINESS

A multiple of regulatory capital requirements applicable to those entities has been used.
ASSETS BACKING REQUIRED CAPITAL

The assumed composition of the assets backing the required capital has been determined with reference to the shareholder fund mandate.
CONSOLIDATED ANNUAL

Report on Group embedded value continued
At 30 June 2022
2022 2021
Embedded value results Rm Rm
Covered business
Equity attributable to owners of the parent 24 620 21 575
Fair value adjustments on Metropolitan business acquisition and other consolidation adjustments (2 015) (2 014)
Net assets – non-covered business within life insurance companies (3 394) (3 982)
Net assets – non-covered business outside life insurance companies (6 631) (6 387)
Diluted adjusted net worth – covered business 12 580 9 192
Net value of in-force business 20 650 20 706
Diluted embedded value – covered business 33 230 29 898
Non-covered business
Net assets – non-covered business within life insurance companies 3 394 3 982
Net assets – non-covered business outside life insurance companies 6 631 6 387
Consolidation adjustments1 (1 548) (2 550)
Adjustments for dilution2 1 422 1 510
Diluted adjusted net worth – non-covered business 9 899 9 329
Write-up to directors’ value 2 299 2 101
Non-covered business 5 247 5 475
Holding company expenses3 (1 839) (2 204)
International holding company expenses3 (1 109) (1 170)
Diluted embedded value – non-covered business 12 198 11 430

Diluted adjusted net worth 22 479 18 521
Write-up to directors’ value 2 299 2 101
Diluted embedded value 45 428 41 328
Required capital – covered business (adjusted for qualifying debt)4 6 633 6 451
Free surplus – covered business 5 947 2 741
Diluted embedded value per share (cents) 2 977 2 708
Diluted adjusted net worth per share (cents) 1 473 1 214
Diluted number of shares in issue (million)5 1 526 1 526
1
Consolidation adjustments include mainly goodwill and intangibles in subsidiaries that are eliminated.
2
Adjustments for dilution are made up as follows:
• Treasury shares held on behalf of contract holders: R407 million (30.06.2021: R587 million);
• Liabilities related to iSabelo transaction: R763 million (30.06.2021: R678 million); and
• Liability – MMH convertible preference shares issued to KTH: R252 million (30.06.2021: R245 million).
3
The holding company expenses reflect the present value of projected recurring head office expenses. The international holding company expenses reflect the
allowance for support services to the international businesses.
4
The required capital for in-force covered business amounts to R10 936 million (30.06.2021: R10 881 million) and is adjusted for qualifying debt of R4 303 million
(the total qualifying debt amounts to R5 327 million when including R1 024 million of subordinated debt to be redeemed in August 2022 (including accrued interest);
30.06.2021: R4 430 million).
5
The diluted number of shares in issue takes into account all issued shares, assuming conversion of the convertible redeemable preference shares, and includes the
treasury shares held on behalf of contract holders as well as those held by a subsidiary related to the iSabelo transaction.

2022 2021
GROUP REPORTS
Analysis of net value of in-force business Rm Rm
Momentum Life 9 832 9 501
Gross value of in-force business 10 585 10 330
Less cost of required capital (753) (829)
Momentum Investments1 1 410 1 389
Metropolitan Life 3 950 4 190
Momentum Corporate 2 948 3 136
Less cost of required capital (1 132) (956)
Momentum Metropolitan Africa 2 510 2 490
CONSOLIDATED ANNUAL

1
Included in covered business is Wealth business not deemed to be long-term insurance business with a value of in-force of R160 million (30.06.2021: R51 million).
Adjusted Net value Restated

net worth2, 3 of in-force 2022 20212
Embedded value detail Rm Rm Rm Rm
Covered business
Momentum Life 2 600 9 832 12 432 13 001
Momentum Investments1 1 707 1 410 3 117 2 405
Metropolitan Life 1 800 3 950 5 750 5 990

Momentum Corporate 3 600 2 948 6 548 6 536
Momentum Metropolitan Africa 1 229 2 510 3 739 3 655
Operating segments2 10 936 20 650 31 586 31 587
Qualifying Debt (4 303) – (4 303) (4 430)
Free Surplus 5 947 – 5 947 2 741
Total covered business 12 580 20 650 33 230 29 898

1
Included in covered business is Wealth business not deemed to be long-term insurance business with a value of in-force of R160 million (30.06.2021: R51 million).
2
The embedded value of the covered operating segments have been restated to more clearly disclose the required capital referenced in the valuation (cost of required
capital). The embedded value consist of the following components:
Restated
2022 2021
Rm Rm
Required capital 10 936 10 881

Net value of in-force 20 650 20 706
Operating segments embedded value 31 586 31 587

3
Intercompany loans are carried by the units that utilise the funding, aligned with capital management practices.

At 30 June 2022
Write-up
Adjusted to directors’
net worth2 value 2022 2021
Embedded value detail Rm Rm Rm Rm
Momentum Life 156 (620) (464) (563)
Momentum Multiply 144 (620) (476) (566)
Other 12 - 12 3
Momentum Investments 1 159 1 423 2 582 2 559
Investment and savings 1 050 1 429 2 479 2 334
Other 109 (6) 103 225
Metropolitan Life 9 – 9 7
Other 9 – 9 7
Momentum Corporate 109 – 109 80
Other 109 – 109 80
Momentum Metropolitan Health 467 599 1 066 1 234
Health 467 599 1 066 1 234
Non-life Insurance 3 859 2 763 6 622 6 776
Non-life insurance 1 403 599 2 002 2 666
Cell captives 2 456 2 164 4 620 4 110
Momentum Metropolitan Africa 572 (1 140) (568) (349)
Life insurance 223 (205) 18 47
Health 300 83 383 541
Non-life insurance 62 25 87 73
Other (13) 66 53 160
International holding company expenses1 – (1 109) (1 109) (1 170)
New Initiatives 1 129 1 113 2 242 1 876
New initiatives India 1 030 1 113 2 143 1 547
New initiatives aYo – – – 220
Other 99 – 99 109
Shareholders 2 439 (1 839) 600 (190)
Other 2 439 – 2 439 2 014
Holding company expenses1 – (1 839) (1 839) (2 204)
Total non-covered business 9 899 2 299 12 198 11 430

Total embedded value 22 479 22 949 45 428 41 328
1
The international holding company expenses reflect the allowance for support services to the international businesses. The holding company expenses reflect the
present value of projected recurring head office expenses.
2
Intercompany loans are carried by the units that utilise the funding, aligned with capital management practices.

Covered business
GROUP REPORTS
Gross value Cost of 12 mths to 12 mths to
Adjusted net of in-force required 30.06.2022 30.06.2021
worth (ANW) (VIF) capital Total EV Total EV
Analysis of changes in Group embedded value Notes Rm Rm Rm Rm Rm
Profit from new business (824) 1 790 (277) 689 783
Embedded value from new business A (824) 1 727 (277) 626 725
Expected return to end of period B – 63 – 63 58
Profit from existing business 3 951 (1 108) 294 3 137 (1 328)
Expected return – unwinding of RDR B – 1 907 (268) 1 639 1 495
Release from the cost of required capital C – – 488 488 570
Expected (or actual) net of tax profit transfer to net worth D 3 223 (3 223) – – –
Operating experience variances E 82 (109) – (27) (528)
Development expenses F (52) – – (52) (37)
Operating assumption changes G 698 317 74 1 089 (2 828)
Embedded value profit/(loss) from operations 3 127 682 17 3 826 (545)

Investment return on adjusted net worth H 246 – – 246 124
CONSOLIDATED ANNUAL
Investment variances I 388 (650) (355) (617) 1 130
Economic assumption changes J (35) 157 92 214 535
Exchange rate movements K 3 3 (1) 5 (91)
Embedded value profit/(loss) – covered business 3 729 192 (247) 3 674 1 153
Transfer of business to non-covered business L – – – – (10)
Other capital transfers M 519 (1) – 518 118
Dividend paid (860) – – (860) (1 892)
Change in embedded value – covered business 3 388 191 (247) 3 332 (631)
Change in directors’ valuation and other items 687 2 519
Change in holding company expenses 426 (853)
Embedded value profit – non-covered business 1 113 1 666
Transfer of business from covered business L – 10
Other capital transfers M (518) (118)

Dividend received 125 1 527
Allowance for shareholder flows related to iSabelo
transaction 85 387
Finance costs – preference shares (37) (37)
Change in embedded value – non-covered business 768 3 435
Total change in Group embedded value 4 100 2 804
Total embedded value profit 4 787 2 819
Return on embedded value (%) – annualised internal
rate of return 11.6 7.3

At 30 June 2022
Adjusted Gross value Cost of

net worth of in-force required 12 mths to 12 mths to
(ANW) (VIF) capital 30.06.2022 30.06.2021
Analysis of changes in Group embedded value Rm Rm Rm Rm Rm
Momentum Life
Embedded value from new business (342) 377 (55) (20) 72
Expected return – unwinding of RDR – 690 (57) 633 523
Release from the cost of required capital – – 173 173 271
Expected (or actual) net of tax profit transfer to net worth 1 250 (1 250) – – –
Operating experience variances (147) 22 – (125) (159)
Development expenses (30) – – (30) (9)
Operating assumption changes 254 299 293 846 (916)
Embedded value profit/(loss) from operations 985 138 354 1 477 (218)
Investment return on adjusted net worth 61 – – 61 106
Investment variances 53 39 (300) (208) (292)
Economic assumption changes – 78 22 100 656
Embedded value profit – covered business 1 099 255 76 1 430 252
Momentum Investments
Embedded value from new business (8) 412 (58) 346 392
Expected (or actual) net of tax profit transfer to net worth 286 (286) – – –
Operating experience variances 212 (38) – 174 178
Operating assumption changes 103 244 (157) 190 (248)
Embedded value profit/(loss) from operations 592 448 (180) 860 468
Investment return on adjusted net worth 58 – – 58 (49)
Investment variances 33 (372) 112 (227) 487
Economic assumption changes – 9 2 11 (239)
Embedded value profit/(loss) – covered business 683 85 (66) 702 667
Metropolitan Life
Operating experience variances (113) (75) – (188) 3
Operating assumption changes 52 – – 52 (453)
Embedded value profit/(loss) from operations 568 (77) (5) 486 144
Investment variances 43 (88) (68) (113) 325
Economic assumption changes – (2) – (2) (15)
Embedded value profit/(loss) – covered business 643 (167) (73) 403 513

Adjusted Gross value Cost of
GROUP REPORTS
net worth of in-force required 12 mths to 12 mths to
(ANW) (VIF) capital 30.06.2022 30.06.2021
Analysis of changes in Group embedded value Rm Rm Rm Rm Rm
Momentum Corporate
Operating experience variances 304 21 – 325 (552)
Operating assumption changes 251 (229) (62) (40) (1 185)
Embedded value profit/(loss) from operations 899 146 (77) 968 (1 151)
Investment variances 150 (212) (99) (161) 420
Economic assumption changes (2) 55 – 53 117
Embedded value profit/(loss) – covered business 1 107 (11) (176) 920 (566)
CONSOLIDATED ANNUAL
Momentum Metropolitan Africa
Embedded value from new business (174) 188 (26) (12) (3)
Operating experience variances (120) (39) – (159) (39)
Operating assumption changes 38 3 – 41 (26)
Embedded value profit/(loss) from operations 137 27 (75) 89 171
Investment variances 34 (17) – 17 159
Economic assumption changes (33) 17 68 52 16
Exchange rate movements 3 3 (1) 5 (91)
Embedded value profit/(loss) – covered business 272 30 (8) 294 373
Shareholders
Operating experience variances (54) – – (54) 41
Embedded value (loss)/profit operations (54) – – (54) 41

Investment return on adjusted net worth (96) – – (96) (158)
Investment variances 75 – – 75 31
Embedded value loss – covered business (75) – – (75) (86)

At 30 June 2022
A. VALUE OF NEW BUSINESS (VNB)

In determining the VNB for retail and traditional corporate business:
• A policy is only taken into account for new business if at least one premium, that has not subsequently been refunded, is
recognised in the financial statements.
• Premium increases that have been allowed for in the value of in-force covered business are not included as new business
at inception.
• The expected value of future premium increases, resulting from premium indexation on the new recurring premium business
written during the financial year under review, is included in the VNB.
• Only client-initiated continuations of individual policies and deferrals of retirement annuity policies after the maturity dates of
contracts not previously expected in the present valuation of in-force business, are allowed for.
• For Momentum Life and Momentum Investments business, new business exclude negative alterations after the commission
clawback period.
• For employee benefit business, increases in business from new schemes or new benefits on existing schemes are included
as new business, but new members or salary-related increases under existing schemes are allowed for in the value of in-force
covered business.
• Renewable recurring premiums under existing Group insurance contracts are treated as in-force covered business.
12 mths to 12 mths to
30.06.2022 30.06.2021
Reconciliation of lump sum inflows Rm Rm
Total lump sum inflows 41 593 38 905
Inflows not included in value of new business (6 723) (6 618)
Wealth off-balance sheet business 15 270 13 637
Term extensions on maturing policies 242 321
Automatically Continued Policies 1 510 1 255
Non-controlling interests and other adjustments (7) (3)
Single premiums included in value of new business 51 885 47 497

A. VALUE OF NEW BUSINESS (VNB) CONTINUED
GROUP REPORTS
Momentum
Momentum Momentum Metropolitan Momentum Metropolitan
Life Investments4 Life Corporate Africa Total
Value of new business1, 2, 3 Rm Rm Rm Rm Rm Rm
12 mths to 30.06.2022
Value of new business (20) 346 244 68 (12) 626
Gross 35 404 317 133 14 903
Less cost of required capital (55) (58) (73) (65) (26) (277)
New business premiums 3 255 41 854 3 555 5 789 2 039 56 492
Recurring premiums 1 053 205 1 710 1 239 400 4 607
Protection 459 – 1 219 784 148 2 610
Long-term savings 594 189 483 453 252 1 971
Annuities and structured products – 16 8 2 – 26
Single premiums 2 202 41 649 1 845 4 550 1 639 51 885
Protection – – – 1 105 106
CONSOLIDATED ANNUAL
Long-term savings 2 202 36 129 474 4 521 886 44 212
Annuities and structured products – 5 520 1 371 28 648 7 567
New business premiums (APE) 1 273 4 370 1 894 1 694 565 9 796
Protection 459 – 1 219 784 159 2 621
Long-term savings 814 3 802 530 905 341 6 392
Annuities and structured products – 568 145 5 65 783
Present value of new business
premiums (PVNBP) 7 291 42 476 7 160 12 276 3 470 72 673
Profitability of new business as a
percentage of APE (1.6) 7.9 12.9 4.0 (2.1) 6.4
percentage of PVNBP (0.3) 0.8 3.4 0.6 (0.3) 0.9
12 mths to 30.06.2021
Value of new business 72 392 253 11 (3) 725

Gross 146 414 320 34 21 935
Less cost of required capital (74) (22) (67) (23) (24) (210)
New business premiums 3 149 40 873 2 892 3 008 1 358 51 280
Recurring premiums 1 059 207 1 409 694 414 3 783
Protection 503 – 1 015 170 153 1 841
Long-term savings 556 190 388 522 261 1 917
Annuities and structured products – 17 6 2 – 25
Single premiums 2 090 40 666 1 483 2 314 944 47 497
Protection – – – 35 108 143
Long-term savings 2 090 35 647 509 2 242 261 40 749
Annuities and structured products – 5 019 974 37 575 6 605
New business premiums (APE) 1 268 4 274 1 557 926 509 8 534
Protection 503 – 1 015 174 164 1 856
Long-term savings 765 3 755 439 746 287 5 992
Annuities and structured products – 519 103 6 58 686
Present value of new business
premiums (PVNBP) 7 479 41 471 5 885 8 220 2 843 65 898
percentage of APE 5.7 9.2 16.2 1.2 (0.6) 8.5

percentage of PVNBP 1.0 0.9 4.3 0.1 (0.1) 1.1
1
Value of new business and new business premiums are net of non-controlling interests.
2
The value of new business has been calculated using opening demographic and point of sale economic assumptions. Investment yields at the point of
sale have been used for fixed annuity and guaranteed endowment business; for other business the investment yields at the reporting date have been
assumed to be representative of the economic assumptions at point of sale. The Group does not allow for marginal diversification benefits to be allocated
to the value of new business for purposes of deriving the cost of required capital.
3
No allowance has been made for Covid-19 in the assumptions used to calculate value of new business.
4
Included in covered business is Wealth business not deemed to be long-term insurance business with value of new business of R68 million (30.06.2021:
R75 million).

At 30 June 2022
A. VALUE OF NEW BUSINESS (VNB) CONTINUED

Changes in bases and assumptions
The Group constantly reviews its EV methodologies to align them with evolving practice and to ensure consistency with
current practices.
Assumptions
The main assumptions used in the EV calculations are described below.
30.06.2022 30.06.2021
Principal assumptions (South Africa)1, 2 % %
Pre-tax investment return
Equities 15.5 13.9
Properties 13.0 11.4
Government stock 12.0 10.4
Other fixed-interest stocks 12.5 10.9
Cash 11.0 9.4
Risk-free return3 12.0 10.4
Risk discount rate (RDR)4 14.4 12.8
Investment return (before tax) – balanced portfolio3 14.2 12.6
Renewal expense inflation rate5 7.7 6.5
1
The principal assumptions relate only to the South African life insurance business. Assumptions relating to international life insurance businesses are based
on local requirements and can differ from the South African assumptions.
2
The assumptions quoted in the table are representative rates derived at the 10-year point of the yield curves.
3
Risk-free returns are taken from an appropriate market-related, risk-free yield curve as at the valuation date. Appropriate risk premia are added to the risk-
free yields in order to derive yields on other asset classes. Expected cash flows at each duration are discounted using yields appropriate to that duration.
The investment return on balanced portfolio business was calculated by applying the above returns to an expected long-term asset distribution.
4
The risk discount rate applied for covered business in South Africa is derived based on a weighted average cost of capital approach. The assumptions with
regards the beta used to derive the cost of equity, the equity risk premium and the relative weighting between debt and equity funding are reviewed annually
and has remained unchanged from that assumed at 30 June 2021 (the parameters used to derive the cost of debt have been updated to reflect the current
market inputs and expectations).
5
For the retail businesses an inflation rate of 5.0% p.a. is used over the planning horizon (three years) where after the inflation rate is derived from market
inputs as the difference between nominal and real yields across the term structure of these curves. An addition to the expense inflation is allowed for in
some divisions to reflect the impact of closed books that are in run-off. The 7.7% above represents the 10-year point of the yield curves.
Non-economic
The EV calculation uses the same best estimate assumptions with respect to future experience as those used in the financial
soundness valuation (FSV).
The EV of in-force business includes the expected value of future premium increases resulting from premium indexation
arrangements on in-force business. The VNB excludes premium increases during the current year resulting from premium indexation
arrangements in respect of in-force business, but includes the expected value of future premium increases in respect of new policies
written during the current financial year.
B. EXPECTED RETURN
The expected return is determined by applying the risk discount rate applicable at the beginning of the reporting year to the present
value of in-force covered business at the beginning of the reporting year. The expected return on new business is determined by
applying the current risk discount rate to the value of new business from the point of sale to the end of the year.
C. RELEASE FROM THE COST OF REQUIRED CAPITAL

The release from the cost of required capital represents the difference between the risk discount rate and the expected after
tax investment return on the assets backing the required capital over the year.
D. EXPECTED (OR ACTUAL) NET OF TAX PROFIT TRANSFER TO NET WORTH

The expected profit transfer for covered business from the present value of in-force to the adjusted net worth is calculated
on the IFRS basis.

E. OPERATING EXPERIENCE VARIANCES
GROUP REPORTS
12 mths to
12 mths to 30.06.2022 30.06.2021
Cost of
required
ANW Gross VIF capital EV EV
Operating experience variances Notes Rm Rm Rm Rm Rm
Momentum Life (147) 22 – (125) (159)
Mortality and morbidity 1 (261) (11) – (272) (316)
Terminations, premium cessations
and policy alterations 2 76 142 – 218 228
Expense variance 27 – – 27 82
Other 3 11 (109) – (98) (153)
Momentum Investments 212 (38) – 174 178
Mortality and morbidity 4 125 (8) – 117 81
and policy alterations 5 (7) (32) – (39) (68)
CONSOLIDATED ANNUAL
Expense variance 39 – – 39 84
Credit risk variance 47 – – 47 29
Other 8 2 – 10 52
Metropolitan Life (113) (75) – (188) 3
Mortality and morbidity 6 25 (9) – 16 (107)
and policy alterations 7 (200) (72) – (272) 40
Expense variance (2) – – (2) 18
Credit risk variance 25 – – 25 34
Other 39 6 – 45 18
Momentum Corporate 304 21 – 325 (552)
Mortality and morbidity 8 320 (3) – 317 (266)
and policy alterations 9 5 22 – 27 (298)

Expense variance (78) – – (78) 64
Credit risk variance 11 – – 11 (6)
Other 10 46 2 – 48 (46)
Momentum Metropolitan Africa (120) (39) – (159) (39)
Mortality and morbidity 11 (126) 9 – (117) 61
and policy alterations 12 (7) (57) – (64) (100)
Expense variance (4) – – (4) (11)
Other 17 9 – 26 11
Shareholders (54) – – (54) 41
Total operating experience variances 82 (109) – (27) (528)
Notes
1. The mortality and morbidity variance has been impacted by additional deaths during the Covid-19 pandemic. This was offset to some extent by reinsurance
recoveries and a release from the Covid-19 provisions.
2. Largely driven by better than expected lapse experience on the Protection business and net positive contribution from alterations experience, in particular
with regards voluntary premium growth.
3. In line with premium changes for new business (and voluntary premium growth), the mortality basis for in-force business has also been adjusted.
The positive impact on the VIF relating to voluntary premium pricing partly offset the negative impact of mortality basis change on in-force business.
4. The annuity book of business experienced higher than expected mortality due to the Covid-19 pandemic.
5. Reprice of contracts, fee changes and drawdowns on living annuities.
6. The mortality and morbidity variance has been impacted by additional deaths during the Covid-19 pandemic. This was offset by a release from the Covid-19
provisions.
7. The deterioration in persistency and alteration experience includes once-off operational impacts and deterioration observed in the lapse experience.
8. The ANW was positively impacted by morbidity experience on the PHI book as well as positive mortality experience on the CPI annuity and Group Risk book.
9. The VIF benefited mainly from better-than-expected termination experience on the Investments book.
10. Mainly relates to admin fees exceeding expectations.
11. The mortality and morbidity variance has been impacted by additional deaths during the Covid-19 pandemic. This was offset to some extent by a release
from the Covid-19 provisions.
12. ANW impact is mainly due to a lapse rule change in Lesotho (to lapse policies in arrears due to Covid-19) and lower lapse experience in Botswana. The
reduction in VIF is as a result of schemes being terminated in Lesotho as well as moving from higher to lower margin products.

At 30 June 2022
F. DEVELOPMENT EXPENSES
Business development expenses within segments.
G. OPERATING ASSUMPTION CHANGES

12 mths to
12 mths to 30.06.2022 30.06.2021
Cost of
required
ANW Gross VIF capital EV EV
Operating assumption changes Notes Rm Rm Rm Rm Rm
Momentum Life 254 299 293 846 (916)
Mortality and morbidity assumptions 1 (64) – – (64) (876)
Termination assumptions 2 (679) 558 – (121) (245)
Renewal expense assumptions 296 (114) – 182 188
Modelling, methodology and other changes 3, 4 701 (145) 293 849 17
Momentum Investments 103 244 (157) 190 (248)
Mortality and morbidity assumptions – – – – 20
Termination assumptions – (10) – (10) 39
Renewal expense assumptions 29 271 – 300 (338)
Modelling, methodology and other changes 4, 5 74 (17) (157) (100) 31
Metropolitan Life 52 – – 52 (453)
Mortality and morbidity assumptions 1 196 – – 196 (387)
Termination assumptions 6 (34) (65) – (99) –
Renewal expense assumptions (41) (7) – (48) 39
Modelling, methodology and other changes 7 (69) 72 – 3 (105)
Momentum Corporate 251 (229) (62) (40) (1 185)
Mortality and morbidity assumptions 1, 8 206 40 – 246 (1 176)
Termination assumptions – – – – (130)
Renewal expense assumptions (34) (298) – (332) 178
Modelling, methodology and other changes 4, 5 79 29 (62) 46 (57)
Momentum Metropolitan Africa 38 3 – 41 (26)
Mortality and morbidity assumptions 9 (8) (28) – (36) (78)
Termination assumptions 10 (50) 6 – (44) (12)
Renewal expense assumptions 11 33 – 44 (50)
Modelling, methodology and other changes 11 85 (8) – 77 114
Total operating assumption changes 698 317 74 1 089 (2 828)

Notes
1. No mortality basis changes were implemented other than changes to the Covid-19 provisions (releases in Momentum Corporate and Metropolitan Life;
increase in Momentum Life).
2. The impact noted relates to an increase in the long-term persistency for Protection business (mostly impacting ANW). This has been offset (in VIF) by
an adjustment in the allowance for take-up of voluntary premium growth.
3. Changes to the modelling of ancillary benefits (and other features of the Protection models) resulted in a net release of reserves. In addition some
provisions have been assessed and formally aligned with internal projects resulting in some movements in these (overall a net release of these
provisions are recognised).
4. Cost of capital impact mainly due to an adjustment in the capital allocation basis between segments.
5. Release of data reserves.
6. Funeral lapse basis assumptions updated in line with experience excluding the once-off operational losses.
7. The impact consists of a number of changes, including margin direction and asset allocation assumption updates.
8. Assumption changes on the PHI book which impacted the claims margins.
9. The impact is due to the revision of EB profit margins across all countries.
10. Mainly due to the update of lapse rates in Namibia on the Myriad business.
11. Mainly due to asset fee corrections, margin direction updates and reserve releases in Namibia.

H. INVESTMENT RETURN ON ADJUSTED NET WORTH
GROUP REPORTS
30.06.2022 30.06.2021
Investment return on adjusted net worth Rm Rm
Investment income 491 420
Capital appreciation and other1 (245) (296)
Preference share dividends paid – –
Investment return on adjusted net worth 246 124
1
This includes the revaluation of owner-occupied properties.
I. INVESTMENT VARIANCES
Investment variances represent the impact of higher/lower than assumed investment returns on current and expected future after
tax profits from in-force business.
J. ECONOMIC ASSUMPTION CHANGES

The economic assumption changes include the effect of the change in assumed rate of investment return, expense inflation rate
CONSOLIDATED ANNUAL
and risk discount rate in respect of local and offshore business.
K. EXCHANGE RATE MOVEMENTS

The impact of foreign currency movements on International covered businesses.
L. TRANSFER OF BUSINESS FROM/TO NON-COVERED BUSINESS

Transfer of business between covered and non-covered business.
M. OTHER CAPITAL TRANSFERS

Capital transfers include the alignment of the net asset value of subsidiaries between covered and non-covered business and the
recapitalisation of some International subsidiaries. In addition, the change in the treatment of intercompany loans to align with
capital management practices has been analysed as capital transfers (this represents the bulk of the number).


At 30 June 2022
Sensitivity of the in-force value and the VNB

This section illustrates the effect of different assumptions on the ANW, the value of in-force business, the VNB and the cost of required
capital. For each sensitivity illustrated, all other assumptions have been left unchanged and, with the exception of the first two sensitivities
and the “1% reduction in gross investment return, inflation rate and RDR” sensitivity, the central RDR has been used.
The table below shows the impact on the EV (ANW, value of in-force and cost of required capital) and VNB (gross and net of the cost of
required capital) of a 1% change in the RDR. It also shows the impact of independent changes in a range of other experience assumptions.
The effect of an equivalent improvement in these experience assumptions would be to increase the base values by a percentage
approximately equal to the reductions shown below.
In-force business New business written

Cost of Cost of
Adjusted required required
Covered business: sensitivities – net worth Net value Gross value capital3 Net value Gross value capital3
30.06.2022 Rm Rm Rm Rm Rm Rm Rm
Base value 12 580 20 650 23 769 (3 119) 626 903 (277)
1% increase in risk discount rate 18 998 22 447 (3 449) 497 803 (306)
% change (8) (6) 11 (21) (11) 10
1% reduction in risk discount rate 22 500 25 247 (2 747) 785 1 030 (245)
% change 9 6 (12) 25 14 (12)
10% decrease in future expenses 22 462 25 581 (3 119) 819 1 096 (277)
% change1 9 8 – 31 21 –
10% decrease in lapse, paid-up and
surrender rates 21 211 24 330 (3 119) 818 1 095 (277)
% change 3 2 – 31 21 –
5% decrease in mortality and
morbidity for assurance
business 23 596 26 715 (3 119) 813 1 090 (277)
% change 14 12 – 30 21 –
5% decrease in mortality for
annuity business 20 255 23 374 (3 119) 597 874 (277)
% change (2) (2) – (5) (3) –
1% reduction in gross investment
return, inflation rate and risk
discount rate 12 580 20 711 23 830 (3 119) 655 932 (277)
% change2 – – – – 5 3 –
1% reduction in inflation rate 21 606 24 725 (3 119) 735 1 012 (277)
% change 5 4 – 17 12 –
10% fall in market value of equities
and properties 12 488 19 700 22 819 (3 119)
% change2 (1) (5) (4) –
10% reduction in premium
indexation take-up rate 19 939 23 058 (3 119) 584 861 (277)
% change (3) (3) – (7) (5) –
10% decrease in non-commission-
related acquisition expenses 768 1 045 (277)
% change 23 16 –
1% increase in equity/property
risk premium 21 138 24 257 (3 119) 663 940 (277)
% change 2 2 – 6 4 –
1
No corresponding changes in variable policy charges are assumed, although in practice it is likely that these will be modified according to circumstances.
2
Bonus rates are assumed to change commensurately.
3
The change in the value of cost of required capital is disclosed as nil where the sensitivity test results in an insignificant change in the value.
SUBSEQUENT EVENTS
Refer to note 34 in the Group financial statements.

Directors’ report
The Board is pleased to present the audited financial statements of Momentum Metropolitan Holdings Ltd (MMH or the Company) and its
GROUP REPORTS
subsidiaries (collectively Momentum Metropolitan or the Group) for the year ended 30 June 2022. The Board is of the opinion that the Group
is in compliance with the Companies Act as well as the Company's Memorandum of Incorporation. The material risk factors applicable to the
Group can be found in the Integrated Report which is available online in PDF format at https://www.momentummetropolitan.co.za.
NATURE OF ACTIVITIES
Momentum Metropolitan is a South African based financial services group that offers a comprehensive range of products and
administration services, including life and short-term insurance, employee benefits, medical scheme and asset management to clients in
selected African and other countries. MMH is listed on the Johannesburg Stock Exchange (JSE) and A2X Markets (A2X) in South Africa,
and the Namibian Stock Exchange (NSX) in Namibia.
CORPORATE EVENTS
Acquisitions
On 9 December 2020, the Group, through its 70% owned subsidiary, Momentum Short-term Insurance (Namibia) Ltd, acquired 100%
in Alexander Forbes Insurance Company Namibia Ltd (AFIN). AFIN has since been renamed to Momentum Insurance (Namibia).
The initial accounting for the AFIN acquisition was provisionally determined and was presented as preliminary at 31 December 2020
and 30 June 2021. The acquisition accounting has been finalised and has resulted in a revision of the purchase consideration from
N$40 million in cash and N$10 million contingent consideration to a purchase consideration of N$32 million which comprises a
CONSOLIDATED ANNUAL
cash component of N$32 million and a contingent consideration of nil. The excess cash of N$8 million represents a receivable at the
acquisition date.
On 1 June 2022, the Group, through its wholly owned subsidiary, Workers Health Investments (Pty) Ltd, acquired 30% in Homeville
Holdings (Pty) Ltd (the holding company of a group of pharmacies) for R16.5 million in cash. The Group has significant influence over
this entity and has therefore classified it as an investment in associate.
Disposals
Sales agreements were entered into for the sale of three properties during the prior financial year and were thus classified as held
for sale. These properties have been sold during the current year.
On 1 September 2021, the Group disposed of its 25% shareholding in aYo Holdings Ltd (aYo), as well as the related intellectual property,
for a consideration of $20 million (R287 million).
On 30 April 2022, the Group disposed of its 40% shareholding in Aluwani Capital Partners (Pty) Ltd (Aluwani) for a consideration

of R146.8 million.
Listed debt
On 25 May 2022, Momentum Metropolitan Life Ltd (MML) listed two new subordinated debt instruments to the combined value of
R1 billion on the JSE Ltd. The proceeds of the issuance were used to refinance the subordinated debt instrument, MMIG05, which
became callable on 12 August 2022.
Other
The Group entered into a Broad-based black economic empowerment (B-BBEE) transaction with strategic partners during the current
year in order to establish and enhance relationships that will encourage business and health value penetration in the government,
public and private sector. The Group provided preference share funding to facilitate the transaction. The strategic restructuring resulted
in a change of the Group’s holdings in respect of two subsidiaries Metropolitan Health Corporate (Pty) Ltd (MHC) (51% to 70.5%) and
Momentum Health Solutions (Pty) Ltd (MHS) (100% to 73%). No IFRS 2 Share-based payment expense has been recognised in respect
of this transaction as all terms of the transaction are considered to be market related.

Directors’ report continued
PRESENTATION OF FINANCIAL STATEMENTS

The consolidated statement of financial position, income statement, statement of comprehensive income, statement of changes in equity
and statement of cash flows, as set out in these financial statements, have been prepared in accordance with:
• IFRS;
• Interpretations by the IFRS Interpretations Committee (IFRIC) issued and effective at the time of preparing these statements;
• South African Institute of Chartered Accountants (SAICA) Financial Reporting Guides (as issued by the Accounting Practices
Committee);
• Financial Pronouncements (as issued by the Financial Reporting Standards Council);
• JSE Listings Requirements; and
• Companies Act.
The accounting policies of the Group have been applied consistently to all years presented except specific restatements being listed in note 47 of
the AFS. The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates as well as
the exercise of managerial judgement in the application of the Group’s accounting policies. Such judgement, assumptions and estimates are
disclosed in the Critical judgements and accounting estimates note on page 40 of the AFS, including changes in estimates that are an integral
part of the insurance business.
SOLVENCY ASSESSMENT AND GOING CONCERN

The Group’s solid performance during the current year follows the less severe impacts of Covid-19 on earnings as mortality experience
in the current year improved over the second half of the year. This resulted in a small full-year net mortality profit, after a partial release
of opening Covid-19 provisions, for the first time since the start of the pandemic. The mortality experience during the second half of the
current year, affected by the fourth and fifth Covid-19 waves in South Africa, was less severe than during the first half when the third
Covid-19 wave still caused significant mortality losses. The second half showed an improvement in mortality experience with a net
mortality profit of R483 million being recognised after release of Covid-19 provisions, offsetting the net mortality loss of R378 million
reported in the first half of the year. This brought the net mortality profit for the full year to R105 million. Releases of the mortality
component of the Covid-19 provision in the current year amounted to R1 639 million, of which R1 133 million was released in the first half
of the year. The timing and magnitude of future Covid-19 waves remain uncertain, and the Group’s remaining provision for future claims
assumes a sixth and seventh wave in line with the experience during the fourth and fifth waves. The Group remains profitable, with robust
levels of capital and liquidity and a strong regulatory solvency position. The Board, through the Audit Committee and Actuarial Committee,
has received reports and updates on the operational and financial performance. The Board is satisfied of the Group’s solvency, taking into
account its ability to withstand impacts from the continuously evolving environment, and its ability to continue as a going concern.
CORPORATE GOVERNANCE
The Board has satisfied itself that the Group has applied the principles of corporate governance as detailed in the King Report on Corporate
Governance™ for South Africa, 2016 (King IV™)* throughout the year under review. Refer to the Integrated Report and the King IV™ Application
Summary available on the Group’s website for details of the governance framework and assessment of its application throughout the year.
PROVISIONS, CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS

The Group is party to legal proceedings and appropriate provisions are made when it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation and that amount is measured reliably. The Group is not aware of capital
commitments at 30 June 2022 that were not in the ordinary course of business other than what is disclosed in note 32.
RESULTS OF OPERATIONS
The operating results and the financial position of the Group are reflected in the statement of financial position, income statement,
statement of comprehensive income, statement of changes in equity, statement of cash flows, segmental report and the notes thereto.
Group basic earnings and headline earnings attributable to equity holders for the year under review were R3 711 million (2021: R451 million)
and R4 233 million (2021: R445 million) respectively. Group normalised headline earnings were R4 383 million (2021: R1 007 million) and
normalised headline earnings per share 287.2 cents (2021: 67.1 cents). Refer to note 1 for a reconciliation of basic earnings to normalised
headline earnings.
* Copyright and trademarks are owned by the Institute of Directors in South Africa NPC and all of its rights are reserved.

Normalised headline earnings adjust the JSE definition of headline earnings for the dilutive impact of finance costs related to preference
GROUP REPORTS
shares that can be converted into ordinary shares of the Group, the impact of treasury shares held by policyholder funds and the iSabelo
Trust, the amortisation of intangible assets arising from business combinations and B-BBEE costs. Additionally, the iSabelo special purpose
vehicle, which houses preference shares issued as part of the employee share ownership scheme's funding arrangement is deemed to be
external from the Group and the discount at which the iSabelo Trust acquired the MMH treasury shares is amortised over a period of 10 years
and recognised as a reduction to normalised headline earnings. The adjustment for the impact of treasury shares held by policyholder funds
removes mismatches that might arise from elimination of treasury shares (potential mismatches that are peculiar to financial institutions that
invest in their own securities on behalf of clients). Group normalised headline earnings are reported by segment and disclosed in note 2. For
the current year and prior year it is as follows:
2022 2021
Analysis of normalised headline earnings Rm % of total Rm % of total
Momentum Life 1 110 25 (859) (85)
Momentum Investments 938 21 1 095 109
Momentum Corporate 1 174 27 (552) (55)
Momentum Metropolitan Health 209 5 213 21
Non-life Insurance 461 11 544 55
CONSOLIDATED ANNUAL
Momentum Metropolitan Africa 118 3 256 25
New Initiatives (466) (11) (358) (36)
Shareholders 167 4 233 23
Total 4 383 100 1 007 100
SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES

Details of significant subsidiary companies are contained in note 42. Details of associates are contained in note 6 and 43. Details of joint
ventures are contained in note 6.
SHARE CAPITAL
Share issue and repurchase
During the current and prior year, no A3 preference shares were converted into ordinary shares. There were also no share issues or share
repurchases in the current year. As part of the employee share ownership programme, 17 987 573 number of shares were repurchased
during the prior year. Refer to note 16 for more details.

Share options
The Group awards units to employees as part of cash-settled share-based schemes. Refer to note 15.1.2 for more details.
The iSabelo Trust (the Trust) has been set up to hold and administer 3% of total issued MMH shares until such time as the shares are
allocated to employees. At commencement of the programme, units in the Trust were allocated to all current South African employees
during April 2021. Units will also be allocated, on an annual basis, to new South African employees who joined after the commencement
date. Accordingly, units were granted to new South African employees who joined after commencement date on 29 April 2022. Vesting will
occur as follows: 10% to vest in year one and 15% thereafter for years two to seven. The shares will be distributed to employees at the end
of the 10th anniversary of their initial allocation. Refer to note 17.6 for more details.
SHAREHOLDER DIVIDEND
MMH – ordinary shares
During the current year, interim ordinary dividends of 35 cents per share were declared in March 2022 and a final ordinary dividend of 65 cents
per share was declared on 12 September 2022 by the Board, resulting in a total ordinary dividend of 100 cents per share. In the prior year, an
interim ordinary dividend of 25 cents per share was declared in March 2021 and a final ordinary dividend of 15 cents per share was declared
in September 2021 by the Board.
The dividend is payable out of income reserves to all holders of ordinary shares recorded in the register of the Company at the close of
business on Friday, 7 October 2022, and will be paid on Monday, 10 October 2022. The dividend will be subject to local dividend withholding
tax at a rate of 20% unless the shareholder is exempt from paying dividend tax or is entitled to a reduced rate. This will result in a net final
dividend of 52 cents per ordinary share for those shareholders who are not exempt from paying dividend tax.
The last day to trade cum dividend will be Tuesday, 4 October 2022. The shares will trade ex dividend from the start of business on
Wednesday, 5 October 2022. Share certificates may not be dematerialised or rematerialised between Wednesday, 5 October 2022 and Friday,
7 October 2022, both days inclusive. The number of ordinary shares in issue at the declaration date was 1 497 475 356. MMH’s income tax
number is 975 2050 147.

Directors’ report continued
Where applicable, dividends in respect of certificated shareholders will be transferred electronically to shareholders’ bank accounts on
payment date. In the absence of specific mandates, dividend cheques will be posted to certificated shareholders on or about payment
date. Shareholders who hold dematerialised shares will have their accounts with their CSDP or broker credited on the payment date.
Preference shares
Dividends of R18.5 million (2021: R18.5 million) (132 cents per share p.a.) were declared on the unlisted A3 MMH preference shares as
determined by the Company’s Memorandum of Incorporation.
MMH convertible redeemable preference shares (issued to Kagiso Tiso Holdings (Pty) Ltd (KTH))
The A3 MMH preference shares are redeemable on 30 November 2022 (after extending it by 5 months in the current year) at a redemption
value of R9.18 per share unless converted into MMH ordinary shares on a one-for-one basis prior to that date. Refer to note 12.2.3 for
more details.
SHAREHOLDERS
Details of the Group’s shareholders are provided in the Shareholder profile note of this report.
DIRECTORATE, SECRETARY AND AUDITOR

The Group had the following directors at 30 June 2022:
PC Baloyi (Chair)1 Independent non-executive
HP Meyer (Group Chief Executive) Executive
JC Cilliers (Marais) (Deputy Chief Executive) Executive
RS Ketola (Group Finance Director) Executive
LM Chiume Independent non-executive
P Cooper Independent non-executive
L de Beer Independent non-executive
NJ Dunkley Independent non-executive
T Gobalsamy Independent non-executive
SC Jurisich Independent non-executive
PJ Makosholo Non-independent non-executive
S McPherson Independent non-executive
V Nkonyeni Independent non-executive
DJ Park Independent non-executive
The following represents a list of the new Board appointments and resignations or retirements during the year:
Appointments Resignations
MS Moloko – Chair 25 November 2021
P Cooper – Interim Board Chair1 25 November 2021 1 July 2022
F Daniels (retired) 25 November 2021
FJC Truter (retired) 25 November 2021
PC Baloyi – Chair2 8 April 2022

1
P Cooper acted as interim chair of the Board following the resignation of MS Moloko on 25 November 2021, until the appointment of PC Baloyi as Chair on 1 July 2022.
2
PC Baloyi was appointed as Chair on 1 July 2022.
Detailed information regarding the directors and Group Company Secretary of MMH is provided in the Integrated Report which is available
online in PDF format at https://www.momentummetropolitan.co.za.
Ernst & Young Inc. will continue in office as auditor in accordance with section 90(6) of the Companies Act.
DIRECTORS’ INTEREST
KTH, of which Mr P Makosholo is an executive director, has a direct holding of 5.3% interest in the Group (28 million MMH preference
shares and 81 million listed MMH ordinary shares).
No material contracts involving directors’ interests were entered into by Group entities during the year.
DIRECTORS’ SHAREHOLDING
The aggregate direct and indirect holdings in MMH of the directors of the Company at 30 June 2022 are set out below:
Direct Indirect Total Total

Beneficial Beneficial 2022 2021
’000 ’000 ’000 ’000
Listed
Executive directors 469 394 863 827
Non-executive directors 574 952 1 526 992
1 043 1 346 2 389 1 819
The above directors' effective MMH shareholding amounts to 0.16% (2021: 0.07%).
Refer to the Shareholder profile note for the percentage of issued shares held by directors.

All transactions in listed shares of the Company involving directors were disclosed on the Stock Exchange News Service as required.
GROUP REPORTS
No changes occurred between the reporting date and the date of approval of the financial statements. The detail in terms of the Listings
Requirements of the JSE is set out in note 45.
The aggregate direct and indirect holdings of the directors in Rand Merchant Investment Holdings Ltd (RMI) shares at 30 June 2022 are
set out below:

’000 ’000 ’000 ’000
Listed
Executive directors – – – 44
Non-executive directors – – – 4 054
– – – 4 098
1
RMI unbundled from MMH effectively on 25 April 2022 and as at 30 June 2022, there are no shares held by RMI in MMH. In the prior year, RMI was a significant
shareholder of MMH. In the current year, there is no disclosure of MMH director's shareholding in RMI. In the prior year, the shares held by MMH directors in RMI was
disclosed as RMI was a significant shareholder of MMH.
CONSOLIDATED ANNUAL
DIRECTORS’ REMUNERATION
The executive directors have standard employment contracts with the Company or its subsidiaries with a minimum of a one month notice
period. The aggregate remuneration of the MMH directors for the period ended 30 June 2022 is set out below. The detail in terms of the
Listings Requirements of the JSE is set out in note 45.
Short-term Long-term
incentive Expense Retirement Medical incentive Total Total
Fees Salary payments1 allowance fund aid payment 2022 2021
R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000
Executive – 16 673 3 750 – 520 154 6 005 27 102 26 709
Non-executive 19 291 – – – – – – 19 291 18 142
Total 19 291 16 673 3 750 – 520 154 6 005 46 393 44 851
1
Bonus payments relate to the 2021 financial year's bonus.

BORROWING POWERS
In terms of the Company’s Memorandum of Incorporation, directors have unlimited borrowing powers (subject to section 45 of the Companies
Act); however, Financial Sector Conduct Authority (FSCA) approval is required for any borrowings within a life insurance company in the Group.
EVENTS AFTER THE REPORTING PERIOD

During August 2022, Aditya Birla Capital Ltd and MMH announced a transaction whereby the Abu Dhabi Investment Authority will own
9.99% in Aditya Birla Health Insurance Company Ltd (ABHIL), by way of a fresh issuance of ordinary shares. This will result in a dilution of
the Group’s shareholding from 49% to 44.1%. Completion of the transaction is still subject to statutory and regulatory approvals, including
the approval of the Insurance Regulatory and Development Authority of India. The capital infusion of R1.3 billion (Rs. 665 crore) will be
used to drive ABHIL's growth in the health insurance market in India.
During July 2022, the Group, through its wholly owned subsidiary, Metropolitan International Holdings (Pty) Ltd (MIH), disposed of its entire
shareholding in Metropolitan Cannon Life Assurance Ltd and Metropolitan Cannon General Insurance Ltd. At 30 June 2022, this disposal did not
meet all the recognition criteria to be classified as held for sale in terms of IFRS 5 - Non-current assets held for sale and discontinued operations.
MMH has commenced a R750 million share buyback programme in August 2022 after receiving approval from the Prudential Authority (PA).
Share buybacks deliver considerable value accretion to shareholders while the share price continues to trade at a deep discount to embedded
value. They also represent an effective form of capital distribution in line with the Group’s capital management framework. Future share
buybacks will continue to be considered based on affordability.
On 25 August 2022, the Competition Commission released a media statement that it was conducting search and seizure operations at the
premises of eight insurance companies in South Africa, including Momentum, a division of MMH. In the statement, the Commission indicated
that it has reasonable grounds to suspect that the insurers under investigation have contravened the Competition Act by engaging in collusive
practices to fix prices and/or trading conditions in respect of fees for investment products and premiums for risk-related life products.
At the time of the approval of these financial statements, the directors have assessed that the scope of the Commission’s investigation
does not extend beyond the kinds of investment and risk-related life products reported in the Commission’s media statement. In addition,
the directors have concluded that the impact to MMH group entities would be unclear until such time as the Commission concludes its
investigation and decides formally to refer a case to the Competition Tribunal for adjudication. Accordingly, given the preliminary stage of the
Commission’s investigation, these financial statements do not make provision for the Commission’s allegations relating to contraventions of
the Competition Act to the extent that they remain subject to further investigation, assessment and determination.
Refer to note 34 for more details relating to these events. No other material events occurred between the reporting date and the date of
approval of these results.

Report of the Audit Committee
The Audit Committee (the Committee) of Momentum Metropolitan Holdings Group (MMH/the Group) herewith presents its report for
the financial year ended 30 June 2022. The Group consists of Momentum Metropolitan Holdings Ltd (the Company) and its subsidiaries,
which includes the Momentum Metropolitan Life Group.
This was a year of change for the Committee, as two of our stalwart members, Fatima Daniels and Frans Truter, retired from the Board of
Momentum Metropolitan Holdings Ltd (the Board), and hence the Committee. Towards the end of the 2022 financial year the Nominations
Committee added Lisa Chuime and David Park to the Committee as members, with effect 1 July 2022. Lisa has been a permanent
attendee. Due to the unbundling of Rand Merchant Investment Holdings’ shareholding in MMH, she is now an independent director and
therefore meets the requirements of the Companies Act to serve as an audit committee member. David has also served on the MMH
Board for quite some time. He took over the chairmanship of the Board Risk, Capital and Compliance Committee and hence became a
permanent invitee to the Committee, which was subsequently changed to a member.
FUNCTION OF THE COMMITTEE

The Committee had discharged its responsibilities as mandated by the Board, its statutory duties in compliance with the Companies Act 71
of 2008, as amended, and the JSE Listings Requirements and best practices in corporate governance, set out in King IV™.
The Committee’s oversight responsibilities, delegated to the Committee by the Board include:
• the integrity of financial reporting;

• the internal audit function, including the annual internal audit plan as well as objectivity and performance of the function;
• assessment of the internal control environment;
• combined assurance;
• external audit, including independence and audit quality.
The Committee’s terms of reference, which are regularly reviewed and are available on our website, are aligned with the above legislation,
regulations and practices.
An overview of the Committee’s terms of reference, focus areas for the current year and 2023 objectives are included on pages 46 to 50 of
the Group’s 2022 Integrated Report. This report does not elaborate on the complete list of responsibilities of the Committee, as set out
in its terms of reference, but instead, focuses on the more pertinent matters and required assessments, sign offs and attestations by
the Committee.
COMMITTEE COMPOSITION, ATTENDEES AND MEETINGS

The Committee comprises only of independent non-executive directors. The Chair of the Board of the Company is not a member of the
Committee.
The Committee’s composition during the year was as follows:

Linda de Beer (Chair)
Nigel Dunkley
Seelan Gobalsamy
Fatima Daniels (retired on 25 November 2021)
Frans Truter (retired on 25 November 2021)
A brief profile of the current members can be viewed on pages 36 to 38 of the 2022 Integrated Report and the Group’s website at
www.momentummetropolitan.co.za.
The Committee had five scheduled meetings during the year. An additional three meetings were held to consider information for purposes
of trading updates, with one other special meeting held to discuss the implementation of the joint audit requirement. Member attendance
is reflected on pages 36 to 38 of the 2022 Integrated Report, which is available on the Group’s website.
Key members of management as well as control functions such as Risk, Compliance, Internal Audit and External Audit attend meetings of
the Committee by invitation. Closed sessions for Committee members only, as well as with internal audit, external audit and management
are held on a regular basis.

KEY FOCUS AREAS OF THE COMMITTEE FOR THE YEAR
GROUP REPORTS
During the current year, the Committee, in addition to its regular agenda as per its terms of reference, paid specific attention to the following:
• Continuously assessing the adequacy of Covid-19 related provisioning and valuations as well as the underlying methodology and
assumptions applied in doing this.
• Ongoing monitoring of the Group's readiness for the implementation of IFRS 17: Insurance Contracts, where notable progress has
been made.
• Further focus on the reviews and findings by Internal Audit mainly on the various businesses outside of South Africa, to oversee
corrective action.
• Commencing with actions to ensure the Group’s readiness to implement the joint audit requirement, once this becomes mandatory.
This also entailed a realignment of the various assurance providers in the Group.
ANNUAL CONFIRMATIONS BY THE COMMITTEE

On an annual basis the Committee assesses the following:
Group financial reporting practice processes and annual financial statements
CONSOLIDATED ANNUAL
As required by the JSE Listings Requirements, the Committee considered the appropriateness of financial reporting procedures and
whether these are operational in all entities in the Group, to effectively prepare and report on the financial statements. This oversight by the
Committee is supported by the combined assurance activities of the Group, as further explained below.
Furthermore, the Committee considered all related guidance and requirements issued by the JSE, including its 2021 Proactive Monitoring
Report and the impact thereof on the Group.
The Committee recommended the Group annual financial statements to the Board for approval.
Going concern
The Committee considered management’s assessment of the ability of the Group to continue as a going concern, including key
assumptions, forecasts, current and future liquidity, solvency and capital assessments and has made a recommendation to the Board
in accordance with this assessment. In doing this, the Committee specifically considered the impact of the Covid-19 pandemic on the
Group’s ongoing financial stability and sustainability. The Board's statement on the going concern status is included on page 1 of the AFS.

Group Finance Director and finance function
The Committee considered and satisfied itself that Risto Ketola has the appropriate expertise and experience to fulfil the role of Group
Finance Director; that the finance function has adequate experience and expertise, and that the finance function has established
appropriate financial reporting procedures, which are operating effectively.
Integrated Report
The Committee reviewed the Group’s 2022 Integrated Report to satisfy itself as to the integrity thereof, including an appropriate and
consistent view of the Group's position and performance relative to operational and financial information known to the Committee. The
Integrated Report was recommended to the Board for approval.
External audit quality and independence

The Committee assessed and is satisfied with the suitability of EY and the designated auditor, Cornea de Villiers, following inspection of
the required reports, in line with the JSE Listings Requirements. Furthermore, in accordance with section 94(8) of the Companies Act, the
Committee was satisfied with the independence and objectivity of EY in carrying out their duties as external auditors.
The Committee has satisfied itself that, EY, with Cornea de Villiers as the designated auditor, satisfactorily fulfilled their responsibilities as
the external auditors and designated auditor, respectively, during the financial year.
External audit fees are disclosed on page 111 within note 26 to the AFS. All the non-audit services (disclosed on page 111, note 26 of the AFS)
provided by the external auditors were approved by the Committee in accordance with the policy for the provision of non-audit services.

Report of the Audit Committee continued
Internal audit
Otsile Sehularo, Chief Audit Executive (CAE) oversees the Group Internal Audit function and the internal audit co-sourced relationship with
KPMG. The Committee annually assesses the performance of the CAE and Group Internal Audit and remains satisfied that the co-sourced
internal audit model with KPMG results in the appropriate independence of Group Internal Audit, provides access to subject matter
assurance expertise and has the authority to fulfil its duties as per its mandate, which is outlined in the internal audit charter. The charter
and the risk-based internal audit plan are reviewed annually and approved by the Committee. Progress in terms of the internal audit plan is
monitored by the Committee.
During the year the Committee approved the reappointment of KPMG as co-sourced internal auditors, effective 1 January 2023 for a
period of five years.
Combined assurance and internal financial control assessment

Momentum Metropolitan has a well-established combined assurance framework and practices to enable integrated planning, execution
and reporting of the various assurance activities across the business. These assurance activities include both internal assurance functions,
including Compliance, Risk, Actuarial and Group Internal Audit as well as external assurance providers, most pertinently External Audit. This
integrated approach allows for improved understanding and coverage of risks by all relevant Momentum Metropolitan assurance providers.
The Committee has carried out its responsibilities with the support of the Combined Assurance Forums that represent the various
operating structures within the Group. The Combined Assurance Forums report to the Committee every quarter.
As Chair of this Committee, I am a member of the Board’s Risk, Capital and Compliance Committee. The chair of the Risk, Capital and
Compliance Committee has been a permanent invitee, who became a member of this Committee, with effect from 1 July 2022. The
dual membership ensures that the Committee is appropriately made aware of material matters that may impact the Group’s financial
reporting procedures.
Details of the Group’s combined assurance framework and the results of the assurance work in 2022 is provided on page 30 of the
Integrated Report.
Through feedback from the quarterly Combined Assurance Forums, the Committee was able to assess that the review of the design,
implementation and effectiveness of the Group's internal controls, with specific focus on internal financial controls, was performed in all
material segments of the business. Based on the feedback from the Combined Assurance Forums, the annual self-assessments by the
management of the various businesses, the work done to support the CEO and FD conclusion and sign off on the financial controls to support
the accuracy of the financial statements, as well as the assurance provided by Group Internal Audit, the Committee concluded that internal
financial controls are effective and adequate to support the integrity of the preparation and presentation of the annual financial statements.
THE COMMITTEE’S RESPONSE TO KEY AUDIT MATTERS REPORTED BY THE EXTERNAL AUDITOR
Key audit matters (KAMs) are matters that, in the external auditor’s professional judgement, were of most significance in the audit of the
AFS for the current financial year.
The Committee considers these matters as follows:
Valuation of insurance contract liabilities

The valuation of insurance liabilities is a critical focus area for the Committee. The Committee reviews the key assumptions used and
reasons for basis changes and other adjustments to understand the impact it would have on the calculations. As in the past, the Committee
relied on the Board Actuarial Committee to interrogate the consistency and appropriateness of the methodology and calculations applied
in determining the appropriate level of provisioning. Feedback from the Chair of the Actuarial Committee was given to the Committee. The
Committee paid particular attention to the assumptions and judgments applied to determine the Covid-19 provisions. Other basis changes
were also assessed. The Committee is satisfied that the valuation of insurance contract liabilities were adequately considered.

Valuation of complex and illiquid financial instruments
GROUP REPORTS
The Committee has considered the appropriateness and consistency of the methodology applied, as well as the assumptions and
judgments made by management in order to determine the fair value of its property portfolio, investment in non-listed entities and credit
exposure in respect of lending activities. The Committee gave specific consideration to the judgements applied to take account of the
economic impact of the Covid-19 pandemic on the property portfolio and credit exposure in respect of lending activities. To this end, in
compliance with the measurement requirements of International Financial Reporting Standards, the Committee was comfortable with
these valuations and that the related judgements in this regard are adequately considered and disclosed.
PLANNED KEY FOCUS AREAS OF THE COMMITTEE FOR 2023

The key items of focus for the 2023 financial year are currently considered as follows:
• Overseeing that the Group is ready to implement IFRS 17, for meaningful financial reporting.
• Monitoring that the Group is ready to implement the joint audit requirement, should this become mandatory - which will inadvertently
impact the construct of other assurance providers and services for which the Committee is responsible.
• Continued focus on developments in the regulatory environment to monitor that controls and processes are in place to ensure compliance.
CONSOLIDATED ANNUAL
Linda de Beer
Chair: Audit Committee
12 September 2022


Statement of financial position
at 30 June
Restated Restated
2022 20211 1 July 20201
Notes Rm Rm Rm
Assets
Intangible assets 3 8 747 9 939 10 339
Owner-occupied properties 4 3 016 3 033 3 598
Fixed assets 478 404 391
Investment properties 5 9 051 8 938 9 042
Properties under development 162 163 118
Investments in associates and joint ventures 6 1 491 1 156 905
Employee benefit assets 460 697 652
Financial assets at fair value through profit and loss (FVPL) 7.1 489 511 471 362 433 186
Financial assets at amortised cost 7.2 8 739 7 968 6 063
Reinsurance contract assets 8 14 976 6 849 6 142
Deferred income tax 14 880 756 862
Insurance and other receivables 7.3 7 739 6 240 5 380
Current income tax assets 81 456 371
Assets relating to disposal groups held for sale 46 14 171 154
Cash and cash equivalents 7.4 28 720 36 822 30 414
Total assets 574 065 554 954 507 617
Equity
Equity attributable to owners of the parent 24 621 21 575 22 593
Share capital 16 12 769 12 737 13 170
Other components of equity 17 1 453 1 469 2 315
Retained earnings 10 399 7 369 7 108
Non-controlling interests 365 348 410
Total equity 24 986 21 923 23 003
Liabilities
Insurance contract liabilities
Long-term insurance contracts 9.1 126 225 128 918 114 387
Non-life insurance contracts 9.2 22 152 13 563 11 445
Capitation contracts 8 7 9
Investment contracts 321 789 311 722 279 956
– with discretionary participation features (DPF) 10.1 3 031 19 222 18 320
– designated at FVPL 10.2 318 758 292 500 261 636
Financial liabilities at FVPL 12.1 48 141 51 013 52 307
Financial liabilities at amortised cost 12.2 4 336 4 164 4 610
Reinsurance contract liabilities 13 2 299 2 347 2 277
Deferred income tax 14 2 601 2 729 2 926
Employee benefit obligations 15.1 1 438 1 148 1 228
Other payables 12.3 19 567 16 967 14 789
Provisions 33 307 283 321
Current income tax liabilities 216 170 238
Liabilities relating to disposal groups held for sale 46 – – 121
Total liabilities 549 079 533 031 484 614
Total equity and liabilities 574 065 554 954 507 617
1
Refer to note 47 for more information on the restatements.

Income statement
for the year ended 30 June
Restated
GROUP REPORTS
2022 20211
Notes Rm Rm
Insurance premiums 59 666 56 589
Insurance premiums ceded to reinsurers (20 773) (19 553)
Net insurance premiums 18 38 893 37 036
Fee income 19 9 267 9 022
Contract administration 3 533 3 119
Health administration 2 246 2 107
Trust and fiduciary services 1 252 1 150
Cell captive commission 1 496 1 322
Other fee income 740 1 324
Investment income 20 26 167 22 040
Amortised cost 1 394 1 236
Other investment income 24 773 20 804
Net realised and unrealised fair value (losses)/gains 21 (4 170) 40 262
CONSOLIDATED ANNUAL
Net income 70 157 108 360
Insurance benefits and claims 53 491 43 320
Insurance claims recovered from reinsurers (23 115) (12 182)
Net insurance benefits and claims 22 30 376 31 138
Change in actuarial liabilities and related reinsurance (6 605) 12 961
Change in long-term insurance contract liabilities (3 280) 13 002
Change in non-life insurance contract liabilities (126) (78)
Change in investment contracts with DPF liabilities (1 644) 763
Change in reinsurance assets 8 (897) (142)
Change in reinsurance liabilities 13 (658) (584)
Fair value adjustments on investment contract liabilities 10.2 10 884 34 192
Fair value adjustments on collective investment scheme (CIS) liabilities 894 3 091
Depreciation, amortisation and impairment expenses 23 1 680 1 273
Employee benefit expenses 24 7 157 6 511

Sales remuneration 25 7 674 7 193
Other expenses 26 8 256 7 306
Expenses 60 316 103 665
Results of operations 9 841 4 695
Share of equity accounted loss on associates and joint ventures 6 (243) (237)
Profit on sale of associate and joint venture 246 –
Finance costs 27 (2 327) (1 616)
Profit before tax 7 517 2 842
Income tax expense 28 (3 709) (2 298)
Earnings for the year 3 808 544
Attributable to:
Owners of the parent 1 3 711 451
Non-controlling interests 97 93
3 808 544
Basic earnings per ordinary share (cents) 1 260.6 31.3
Diluted earnings per ordinary share (cents) 1 256.9 31.3
1

Statement of comprehensive income
Restated
2022 20211
Notes Rm Rm
Earnings for the year 3 808 544
Other comprehensive loss, net of tax (36) (738)
Items that may subsequently be reclassified to income 89 (469)
Exchange differences on translating foreign operations 2, 3
17 37 (381)
Share of other comprehensive income/(loss) of associates 17 52 (88)
Items that will not be reclassified to income (125) (269)
Own credit losses on financial liabilities designated at FVPL 12 (26) (90)
Land and building revaluation 17 (138) 22
Remeasurements of post-employee benefit funds 17 (8) (179)
Income tax relating to items that will not be reclassified 17 47 (22)
Total comprehensive income/(loss) for the year 3 772 (194)

Total comprehensive income/(loss) attributable to:
Owners of the parent 3 675 (275)
Non-controlling interests 97 81
3 772 (194)
1
2
In the prior year, negative R17 million represents the foreign currency translation reserve (FCTR) reversal on the sale of Metropolitan Life Zambia Ltd, Metropolitan
Health Zambia Ltd, Metropolitan Tanzania Life Assurance Company Ltd and Metropolitan Tanzania Insurance Company Ltd, giving rise to an income of the same
extent in the income statement.
3
The movement is primarily caused by the year-on-year strengthening of the ZAR against the GBP, BWP, GHS, KES and USD. In the prior year, the ZAR weakened against
these currencies.

Statement of changes in equity
Total
GROUP REPORTS
attributable
to owners Non-
Share Share Other Retained of the controlling Total
capital premium reserves earnings parent interests equity
Notes Rm Rm Rm Rm Rm Rm Rm
Balance at 1 July 2020 9 13 161 2 315 7 108 22 593 410 23 003
Total comprehensive (loss)/income – – (636) 361 (275) 81 (194)
Income statement – – – 451 451 93 544
Other comprehensive loss – – (636) (90) (726) (12) (738)
Dividend declared/paid – – – (365) (365) (109) (474)
Equity-settled share-based
payments 17.6 – – 46 – 46 – 46
Net movement in treasury shares
held on behalf of contract holders 16 – (142) – – (142) – (142)
Increase in treasury shares held by
subsidiary for employees – (291) – – (291) – (291)
Transfer to retained earnings from
CONSOLIDATED ANNUAL
other reserves – – (256) 256 – – –
Increase relating to transactions
with owners1 – – – 9 9 17 26
Decrease relating to transactions
with owners1 – – – – – (10) (10)
Sale of subsidiary – – – – – (41) (41)
Balance at 1 July 2021 9 12 728 1 469 7 369 21 575 348 21 923
Total comprehensive (loss)/income – – (10) 3 685 3 675 97 3 772
Income statement – – – 3 711 3 711 97 3 808
Other comprehensive loss – – (10) (26) (36) – (36)
Dividend declared/paid – – – (735) (735) (58) (793)
Equity-settled share-based
payments 17.6 – – 52 – 52 – 52
Net movement in treasury shares
held on behalf of contract holders 16 – 32 – – 32 – 32

Transfer to retained earnings from
other reserves – – (58) 58 – – –
Increase relating to transactions
with owners2 – – – 151 151 38 189
Decrease relating to transactions
with owners3 – – – (129) (129) (60) (189)
Balance at 30 June 2022 9 12 760 1 453 10 399 24 621 365 24 986
1
Information previously presented on an aggregated basis has now been disaggregated for comparability.
2
The current year relates to the strategic restructuring which resulted in the Group's effective interest in MHS declining by 27% from 100% to 73%.
3
The current year relates to the strategic restructuring which resulted in the Group's effective interest in MHC increasing from 51% to 70.5%.

Statement of cash flows
Restated
2022 20211
Notes Rm Rm
Cash flow from operating activities
Cash utilised in operations 29.1 (19 619) (7 350)
Interest received 16 297 16 202
Dividends received 6 190 4 423
Income tax paid 29.2 (3 484) (2 588)
Interest paid 29.3 (1 986) (1 604)
Net cash (outflow)/inflow from operating activities (2 602) 9 083
Cash flow from investing activities
Contingent consideration related to business combinations 30 (64) –
Proceeds on sale of associate 147 –
Net investments in subsidiaries – (214)
Proceeds on sale of associate and intangibles included in non current assets held for sale 291 (79)
Investment in associates and joint ventures (647) (457)
Capital injection on associate held in non-current asset held for sale (69) –
Loans advanced to related parties – (37)
Loans repaid by related parties 150 8
Purchase of owner-occupied properties (256) (242)
Proceeds from disposal of owner-occupied properties – 20
Purchase of fixed assets (279) (233)
Proceeds from disposal of fixed assets – 11
Purchase of computer software (58) (77)
Proceeds from disposal of computer software – 5
Dividends from associates 37 16
Net cash outflow from investing activities (748) (1 279)
Cash flow from financing activities
Proceeds from borrowings 29.4 6 704 8 716
Repayment of borrowings 29.4 (10 916) (8 140)
Dividends paid to equity holders (735) (365)
Dividends paid to non-controlling interest shareholders (58) (109)
Purchase of treasury shares held on behalf of contract holders – (619)
Proceeds from disposal of treasury shares held on behalf of contract holders 32 477
Purchase of treasury shares held by subsidiary for employees – (291)
Shares purchased from non-controlling interest shareholders2 (347) –
Shares issued and sold to non-controlling interest shareholders3 347 21
Subordinated call notes issued 29.4 1 000 750
Subordinated call notes repaid 29.4 (87) (750)
Net cash outflow from financing activities (4 060) (310)
Net cash flow (7 410) 7 494
Cash resources and funds on deposit at beginning 36 822 30 439
Foreign currency translation (692) (1 111)
Cash resources and funds on deposit at end 28 720 36 822
Made up as follows:
Cash and cash equivalents 7.4 28 720 36 822
28 720 36 822
1
2
MHC repurchased ordinary shares (R347 million). Non-controlling interests purchased ordinary shares in the entity for R158 million.
3
Momentum Metropolitan Strategic Investments (Pty) Ltd (MMSI) sold a portion of its ordinary shares in MHS to non-controlling interest.

Basis of preparation
The financial statements, as set out below, have been prepared in accordance with IFRS, IFRIC interpretations issued and effective at the
GROUP REPORTS
time of preparing these statements, the SAICA Financial Reporting Guides (as issued by the Accounting Practices Committee), Financial
Pronouncements (as issued by the Financial Reporting Standards Council), the Listings Requirements of the JSE and the South African
Companies Act. These statements have been prepared on the historical cost basis, except for the following items which are carried at
fair value or valued using another measurement basis:
FAIR VALUE
• Owner-occupied and investment properties
• Investments in associates at FVPL
• Financial assets at FVPL
• Investment contract liabilities designated at FVPL and financial liabilities at FVPL
• Liabilities for cash and equity-settled share-based payment arrangements
OTHER MEASUREMENT BASIS

• Insurance contracts, investment contracts with DPF and reinsurance contracts valued using the Financial Soundness Valuation (FSV)
basis as set out in Standard of Actuarial Practice (SAP) 104 – Calculation of the value of the assets, liabilities and capital adequacy
CONSOLIDATED ANNUAL
requirement of long-term insurers
• Non-life insurance contracts valued using the Insurance Act, 18 of 2017
• Employee benefit obligations measured using the projected unit credit method
• Investments in associates and joint ventures measured using the equity method of accounting
• Assets and liabilities relating to disposal groups held for sale measured at the lower of carrying value or fair value less cost to sell
The principal accounting policies applied in the preparation of these consolidated financial statements are set out in note 48. These
policies have been consistently applied to all the years presented except specific restatements being listed in note 47 of the AFS.
The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates. It also requires
management to exercise judgement in the process of applying the Group’s accounting policies. There are areas of complexity involving
a higher degree of judgement and areas where assumptions and estimates are significant to the consolidated financial statements. The
accounting estimates and assumptions have been reviewed in line with the Covid-19 pandemic. These judgements, assumptions and
estimates are disclosed in detail in the notes to the AFS and in a summary in the Critical judgements and accounting estimates note.

The preparation of the Group’s consolidated results was supervised by the Group Finance Director, Risto Ketola (FIA, FASSA, CFA
Charterholder) and have been audited by Ernst & Young Inc. in compliance with the requirements of the Companies Act.
Published standards, amendments and interpretations effective for June 2022 financial period
The following published standards are mandatory for the Group’s accounting period beginning on or after 1 July 2021 and have been
implemented in accordance with the transitional provisions of these standards:
• Interest rate benchmark reform – Phase 2: Amendments to IFRS 9, International Accounting Standards (IAS) 39, IFRS 7, IFRS 4 and IFRS 16; and
• Covid-related rent concessions beyond 30 June 2021: Amendment to IFRS 16.
These amended standards had no financial impact on the Group’s earnings or net asset value. ADDITIONAL INFORMATION

Critical judgements and accounting estimates
PREPARATION OF FINANCIAL STATEMENTS

The consolidated financial statements are prepared on the going concern basis of accounting. The statement of financial position is
presented based on liquidity. The income statement is presented on the nature of expense method; however, sales remuneration is
separately disclosed. In the statement of cash flows, the cash flows from operating activities are reported on the indirect method. The
consolidated financial statements are presented in South African rand, which is the functional currency of the parent.
APPLICATION OF ACCOUNTING POLICIES

Estimates and assumptions are an integral part of financial reporting and as such have an impact on the assets and liabilities of
the Group. Management applies judgement in determining best estimates of future experience. Judgements are based on historical
experience and management’s best-estimate expectations of future events. Estimates and assumptions are regularly updated to reflect
actual experience. Actual experience in future financial years can be materially different from the current assumptions and judgements
and could require adjustments to the carrying amount of the affected assets and liabilities. All business across the Group reviewed their
bottom-up forecasted cash flows to account for the potential impact of the pandemic on its assumptions including revenue growth,
claims experience, expenses and lapse rates inter alia. These have been incorporated into the projections which are used as inputs in
various valuations models. The critical judgements and estimates made in applying the Group’s accounting policies are detailed in the
notes to the AFS, as listed below:
• Impairment testing of intangible assets – note 3

• Valuation assumptions for both owner-occupied and investment properties – notes 4 and 5
• Valuation of financial assets – note 7
• Assessment of control over CISs – note 7
• Assumptions and estimates of contract holder liabilities (also applicable to reinsurance contracts) – notes 8, 11 and 13
• Provision for deferred tax – note 14
• Business combination – note 30
• Assessment of the principles of IFRS 15 around the timing of revenue recognition – note 48
• Valuation assumptions for financial instruments – note 44
• Valuation assumptions for cash and equity-settled arrangements – note 45

Notes to the financial statements
1 NORMALISED HEADLINE EARNINGS
GROUP REPORTS
Normalised headline earnings adjust the JSE definition of headline earnings for the dilutive impact of finance costs related to
preference shares that can be converted into ordinary shares of the Group, the impact of treasury shares held by policyholder
funds and the iSabelo Trust, the amortisation of intangible assets arising from business combinations and B-BBEE costs.
Additionally, the iSabelo special purpose vehicle, which houses preference shares issued as part of the employee share ownership
scheme's funding arrangement is deemed to be external from the Group and the discount at which the iSabelo Trust acquired the
MMH treasury shares is amortised over a period of 10 years and recognised as a reduction to normalised headline earnings.
Basic earnings1 Diluted earnings2

Group earnings per ordinary share attributable to owners of the parent 2022 2021 2022 2021
Earnings (cents per share) 260.6 31.3 256.9 31.3
Headline earnings (cents per share) 297.3 30.9 292.7 30.9
Normalised headline earnings (cents per share) 287.2 67.1
Basic earnings Diluted earnings

2022 2021 2022 2021
CONSOLIDATED ANNUAL
Weighted average number of ordinary shares in issue (million) 1
1 424 1 439 1 424 1 439
Adjustments for
Employee share scheme3 7 –
Assumed conversion of 28 million preference shares (weighted)2 28 –
Weighted average – earnings and headline earnings (million)1 1 459 1 439
Employee share scheme3 (7) –
Assumed conversion of 28 million preference shares (weighted)2 – 28
Treasury shares held on behalf of contract holders 29 23
Treasury shares held on behalf of employees 45 10
Weighted average – normalised headline earnings (million)4 1 526 1 500
Basic earnings Diluted earnings

2022 2021 2022 2021

Reconciliation of headline earnings attributable to owners of the parent Rm Rm Rm Rm
Earnings – equity holders of the Group 3 711 451 3 711 451
Finance costs – convertible preference shares5 37 –
Diluted earnings 3 748 451
Adjustments within equity-accounted earnings 16 28 16 28
Loss on dilution of joint venture – 5 – 5
Intangible asset impairments6 709 117 709 117
Tax on intangible asset impairments 4 (40) 4 (40)
Gain on sale of associate and joint venture7 (246) – (246) –
Gain on sale of subsidiary8 – (150) – (150)
FCTR reversal on sale of foreign subsidiary – (17) – (17)
Investment in associates impairments9 – 38 – 38
Net impairment of owner-occupied property below cost10 35 116 35 116
Tax on net impairment of owner-occupied property below cost 4 (103) 4 (103)
Headline earnings11 4 233 445 4 270 445
B-BBEE costs 11 25
Adjustments for iSabelo12 (54) 40
Adjustments for MMH shares held by policyholder funds (134) 54
Amortisation of intangible assets relating to business combinations 290 406
Finance costs – convertible preference shares5 – 37
Normalised headline earnings13, 14 4 383 1 007

Notes to the financial statements continued
1 NORMALISED HEADLINE EARNINGS CONTINUED

1
For basic and diluted earnings and headline earnings per share, treasury shares held on behalf of contract holders as well as those held by a subsidiary on
behalf of employees are deemed to be cancelled.
2
On a diluted basis, the KTH preference shares were anti-dilutive in the prior year. For diluted earnings and headline earnings, these preference shares were
therefore ignored in accordance with IAS 33 for that year. Normalised headline earnings treats the preference shares as if they were ordinary equity. This
treatment is consistent with how the preference shares are treated when dilutive.
3
The diluted number of shares in issue includes the dilutive potential ordinary shares from the iSabelo employee scheme. The diluted number of shares in
issue for normalised headline earnings does not include this adjustment as these shares are deemed to be issued.
4
For normalised headline earnings per share, treasury shares held on behalf of contract holders as well as those held by a subsidiary on behalf of employees
are deemed to be issued.
5
The finance costs relating to the KTH preference shares were anti-dilutive in the prior year and it accordingly was only taken into account in the calculation
of normalised headline earnings for that year.
6
The current year impairments relate mainly to:
• Goodwill recognised as part of the acquisition of the Alexander Forbes Short-term Insurance business (Non-life Insurance segment). The recoverable
amount (R2 002 million) of the cash-generating unit (Momentum Insure) is determined based on value-in-use calculations with reference to directors'
valuations (DVs). The impairment is due to a revision of the 5-year forecast that reflects a more subdued medium-term growth outlook. The remaining
goodwill balance after the impairment is R478 million.
The prior year included impairments related mainly to:
• Value of in-force business acquired in Shareholders segment due to a decrease in the asset values that back these liabilities.
• The reversal of impairments relating to computer software in Momentum Metropolitan Africa segment due to a higher recoverable amount.
7
Relates to the sale of aYo, the related intellectual property sold as part of the disposal, as well as the sale of Aluwani.
8
The prior year related mainly to the sale of the controlling interest in Methealth Namibia Administrators (Pty) Ltd (MHNA) as well as the sale of Metropolitan
Life Zambia Ltd, Metropolitan Health Zambia Ltd, Metropolitan Tanzania Life Assurance Company Ltd and Metropolitan Tanzania Insurance Company Ltd in
the Momentum Metropolitan Africa segment.
9
The prior year related to the impairment of RMI Investment Managers Affiliates 2 (Pty) Ltd due to a decline in value of this associate.
10
The impairment in the current and prior year mainly relate to the impairment of the Marc, Tower 2. The impairment can largely be attributed to the decline in
market rental rates for office property in Sandton in recent years, as well as considering the weak property market outlook as a result of the Covid-19 pandemic.
11
Headline earnings consist of operating profit, investment return, investment variances and basis and other changes. The long-term insurance industry
exemption which allows that net realised and unrealised fair value gains on investment properties not being excluded from headline earnings has been applied.
12
This mainly includes the add back of the IFRS 2 expense incurred as a result of the employee share ownership scheme, as well as the investment income
earned on the preference shares issued to the iSabelo special purpose vehicle. In the current year, it also includes the fair value loss on these preference shares.
13
As announced in February 2022, the South African corporate tax rate will be reduced from 28% to 27%, effective for years of assessment ending on or after
31 March 2023. As a result, the closing deferred tax balance at 30 June 2022 has been adjusted to take into account the change in rate. In accordance with
the Headline Earnings Circular 1/2021, the items impacting headline earnings have been adjusted to take this change into account.
14
Refer to note 2 for an analysis of normalised headline earnings per segment.

2 SEGMENTAL REPORT
GROUP REPORTS
The Group’s reporting view reflects the following segments:
• Momentum Life: Momentum Life includes protection and savings products focused on the middle and affluent client
segments, as well as Multiply, a wellness focused client engagement platform.
• Momentum Investments: Momentum Investments consists of the Momentum Wealth platform business, local and offshore
asset management operations, retail annuities and guaranteed investments, as well as Eris Properties.
• Metropolitan Life: Metropolitan Life focuses on the lower and middle income retail market segment, with a range of protection,
savings and annuity products.
• Momentum Corporate: Momentum Corporate offers group risk, annuities, pension savings and umbrella fund (FundsAtWork)
products.
• Momentum Metropolitan Health: Provides healthcare solutions to individuals, corporates and the public sector within a range
of structures and products.
• Non-life Insurance: Non-life Insurance comprises the retail general insurance offering, Momentum Short-term Insurance and
Momentum Insurance; and the cell captive insurer, Guardrisk.
• Momentum Metropolitan Africa: This segment includes the Group’s operations within other African countries. This includes life
CONSOLIDATED ANNUAL
insurance, non-life insurance, health insurance and administration and asset management. Botswana, Lesotho and Namibia
contributes most materially to the results of this segment.
• New Initiatives: This includes India, aYo, Multiply Money, Exponential Ventures and Momentum Consult.
• Shareholders: The Shareholders segment represents the investment return on venture capital fund investments, a proportion
of the investment returns from MML, less the head office costs not allocated to operating segments (eg certain holding
company expenses).
Intergroup fees are charged at market-related rates. Corporate costs are allocated on a usage or time spent basis. Intergroup
charges are eliminated in the ‘Reconciling items’ column. No individual customer generates more than 10% of revenue for
the Group.
The Executive Committee of the Group assesses the performance of the operating segments based on normalised headline
earnings. Normalised headline earnings adjust the JSE definition of headline earnings for the dilutive impact of finance costs related
to preference shares that can be converted into ordinary shares of the Group, the impact of treasury shares held by policyholder

funds and the iSabelo Trust, the amortisation of intangible assets arising from business combinations and B-BBEE costs.
Additionally, the iSabelo special purpose vehicle, which houses preference shares issued as part of the employee share ownership
scheme’s funding arrangement is deemed to be external from the Group and the discount at which the iSabelo Trust acquired the
MMH treasury shares is amortised over a period of 10 years and recognised as a reduction to normalised headline earnings.
A reconciliation of earnings to normalised headline earnings is provided in note 1.
Refer to the EV report for in depth detail on covered business.
Reconciliation of management information to IFRS

The segmental information is reconciled to the IFRS income statement results. The ‘Reconciling items’ column represents the
IFRS accounting reclassifications and adjustments that are required to reconcile management information to the IFRS financial
statements. More information has been provided as a footnote.

2 SEGMENTAL REPORT CONTINUED

Momentum Momentum
Momentum Momentum Metropolitan Momentum Metropolitan Non-life Metropolitan New Segmental Reconciling
Life Investments Life Corporate Health Insurance Africa Initiatives Shareholders total items1 Total2
Notes Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm
12 mths to 30.06.2022
Revenue
Net insurance premiums 2.4 9 889 30 732 8 239 17 509 1 186 14 035 5 620 – – 87 210 (48 317) 38 893
Recurring premiums 9 392 869 6 450 12 798 1 186 10 907 4 015 – – 45 617 (14 328) 31 289
Single premiums 497 29 863 1 789 4 711 – 3 128 1 605 – – 41 593 (33 989) 7 604
Fee income 1 274 3 689 70 1 237 2 315 1 685 189 123 546 11 128 (1 861) 9 267
Fee income 2.3, 2.4 1 233 2 976 70 1 234 2 261 1 685 189 83 – 9 731 (464) 9 267
Intergroup fee income 41 713 – 3 54 – – 40 546 1 397 (1 397) –
Expenses
Net payments to contract holders
External payments 11 250 27 035 6 485 19 917 724 6 373 3 418 – – 75 202 (44 826) 30 376
Other expenses3 3 350 3 579 3 072 1 611 2 320 5 445 1 747 215 775 22 114 2 653 24 767
Sales remuneration 1 324 998 1 402 85 83 3 070 675 37 – 7 674 – 7 674
Administration expenses 1 783 1 927 1 506 1 222 1 826 2 099 830 105 1 381 12 679 2 888 15 567
Asset management, direct
property and other fee expenses 53 286 – – 7 – 2 1 15 364 1 162 1 526
Intergroup expenses 190 368 164 304 404 276 240 72 (621) 1 397 (1 397) –
Income tax 347 920 169 498 67 1 522 69 1 118 3 711 (2) 3 709
Normalised headline earnings 2.1 1 110 938 672 1 174 209 461 118 (466) 167 4 383 – 4 383
Operating profit/(loss)4 1 395 1 145 845 1 475 295 450 22 (467) (285) 4 875 – 4 875
Tax on operating profit/(loss) (419) (275) (239) (426) (83) (51) (14) (1) (4) (1 512) – (1 512)
Investment return 143 83 71 134 (4) 70 137 2 535 1 171 – 1 171
Tax on investment return (9) (15) (5) (9) 1 (8) (27) – (79) (151) – (151)
Covered 2.2 1 164 680 670 1 172 – – 202 – (17) 3 871 – 3 871

Non-covered 2.2 (54) 258 2 2 209 461 (84) (466) 184 512 – 512
1 110 938 672 1 174 209 461 118 (466) 167 4 383 – 4 383
Basis changes and investment
variances5 307 136 95 399 – – 39 – 75 1 051 – 1 051
Actuarial liabilities 74 637 190 001 36 265 107 064 108 45 052 16 899 – 148 470 174 – 470 174
1
The ‘Reconciling items’ column includes: investment contract business premiums and claims; intergroup fee income and expenses; direct property (R460 million) and asset management fees for all entities (R702 million), except non-life entities, that are
set off against investment income for management reporting purposes but shown as an expense for accounting purposes; asset management fees from cell captive business (R2 395 million); the amortisation of intangible assets relating to business
combinations (R475 million); expenses relating to consolidated CISs and other minor adjustments to expenses and fee income.
2
The total of non-current assets (other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts) located in South Africa is R22 769 million, and the total of such non-current assets
located in other countries is R175 million.
3
Other expenses consists of the following line items on the income statement: depreciation, amortisation and impairment expenses, employee benefit expenses, sales remuneration and other expenses.
4
Operating profit/(loss) is normalised headline earnings gross of tax less investment return.
5
Basis changes and investment variances are included in normalised headline earnings and are net of tax. The reported numbers represent basis changes on in-force business and investment variances that are aligned with EV reporting.


Momentum Momentum
Momentum Momentum Metropolitan Momentum Metropolitan Non-life Metropolitan New Segmental Reconciling
Life Investments Life Corporate Health Insurance Africa Initiatives Shareholders total items1 Total2
Notes Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm
Restated
12 mths to 30.06.20213
Revenue
Net insurance premiums 2.4 9 516 32 361 7 657 14 864 932 11 146 4 839 – – 81 315 (44 279) 37 036
Recurring premiums 8 976 766 6 233 12 346 931 9 291 3 867 – – 42 410 (12 674) 29 736
Single premiums 540 31 595 1 424 2 518 1 1 855 972 – – 38 905 (31 605) 7 300
Fee income 1 226 3 427 106 1 011 2 123 1 995 224 90 112 10 314 (1 292) 9 022
Fee income 2.3, 2.4 1 182 2 785 106 1 010 2 120 1 997 224 69 – 9 493 (471) 9 022
Intergroup fee income 44 642 – 1 3 (2) – 21 112 821 (821) –
Expenses
Net payments to contract holders
External payments 10 718 29 551 6 564 18 102 633 6 265 2 701 – – 74 534 (43 396) 31 138
Other expenses4 3 451 3 072 2 808 1 497 2 014 4 452 1 536 239 316 19 385 2 898 22 283
Sales remuneration 1 357 858 1 265 88 45 2 890 658 32 – 7 193 – 7 193
Administration expenses 1 917 1 704 1 489 1 184 1 625 1 362 656 174 910 11 021 2 650 13 671
Asset management, direct
property and other fee expenses 67 258 – – 6 – 2 4 14 351 1 068 1 419
Intergroup expenses 110 252 54 225 338 200 220 29 (608) 820 (820) –
Income tax – 79 1 – 74 1 194 80 – 80 1 508 790 2 298
Normalised headline earnings 2.1 (859) 1 095 435 (552) 213 544 256 (358) 233 1 007 – 1 007
Operating (loss)/profit5 (1 346) 1 490 513 (827) 282 699 122 (360) (219) 354 – 354
Tax on operating (loss)/profit 355 (387) (146) 220 (68) (191) (60) – (4) (281) – (281)
Investment return 151 (14) 79 64 (1) 50 248 2 597 1 176 – 1 176
Tax on investment return (19) 6 (11) (9) – (14) (54) – (141) (242) – (242)
Covered 2.2 (822) 885 433 (547) – – 225 – 90 264 – 264
Non-covered 2.2 (37) 210 2 (5) 213 544 31 (358) 143 743 – 743
(859) 1 095 435 (552) 213 544 256 (358) 233 1 007 – 1 007
Basis changes and investment
variances6 (1 486) 327 (278) (774) – – (26) – 31 (2 206) – (2 206)
Actuarial liabilities 76 910 185 275 36 608 106 351 35 32 952 15 889 – 190 454 210 – 454 210
1
The 'Reconciling items' column includes: investment contract business premiums and claims; intergroup fee income and expenses; direct property (R468 million) and asset management fees for all entities (Restated R600 million), except non-life entities, that are
set off against investment income for management reporting purposes but shown as an expense for accounting purposes; asset management fees from cell captive business (R2 044 million); the amortisation of intangible assets relating to business combinations
(R558 million); expenses relating to consolidated CISs and other minor adjustments to expenses and fee income.
2
The total of non-current assets (other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts) located in South Africa is R23 175 million, and the total of such non-current assets
located in other countries is R458 million.
3
MOMENTUM METROPOLITAN HOLDINGS GROUP ANNUAL FINANCIAL STATEMENTS 2022 |

4
Other expenses consists of the following line items on the income statement: depreciation, amortisation and impairment expenses, employee benefit expenses, sales remuneration and other expenses.
5
45
Operating (loss)/profit is normalised headline earnings gross of tax less investment return.
6
Basis changes and investment variances are included in normalised headline earnings and are net of tax. The reported numbers represent basis changes on in-force business and investment variances that are aligned with EV reporting.
ADDITIONAL INFORMATION ANNUAL FINANCIAL STATEMENTS FINANCIAL STATEMENTS GROUP REPORTS

MOMENTUM METROPOLITAN HOLDINGS LTD CONSOLIDATED ANNUAL

2.1 Change in normalised headline earnings
30.06.2022 30.06.2021
Notes Change % Rm Rm
Momentum Life >100 1 110 (859)
Momentum Investments (14) 938 1 095
Metropolitan Life 54 672 435
Momentum Corporate >100 1 174 (552)
Momentum Metropolitan Health (2) 209 213
Non-life Insurance (15) 461 544
Momentum Metropolitan Africa (54) 118 256
Normalised headline earnings from operating segments >100 4 682 1 132
New Initiatives (30) (466) (358)
Shareholders (28) 167 233
Total normalised headline earnings 2 >100 4 383 1 007

2.2 Segmental analysis
Momentum Momentum
Momentum Momentum Metropolitan Momentum Metropolitan Non-life Metropolitan New Share-
Life Investments Life Corporate Health Insurance Africa Initiatives holders Total
Notes Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm
12 mths to 30.06.2022
Covered
Protection 749 – 214 759 – – 5 – – 1 727
Long-term savings 159 (17) 201 314 – – 157 – – 814
Annuities and structured products – 641 166 34 – – 55 – – 896
Traditional 126 – 38 – – – (6) – – 158
Other1 1 (4) (15) (60) – – (43) – 53 (68)
Investment return 129 60 66 125 – – 34 – (70) 344
Total 2 1 164 680 670 1 172 – – 202 – (17) 3 871
Non-covered
Investment and savings 2.2.1 – 249 – – – – – – – 249
Life insurance – – – – – – (23) – – (23)
Health 2.2.2 – – – – 212 – 20 – – 232
Momentum Multiply (50) – – – – – – – – (50)
Non-life insurance 2.2.3 – – – – – (9) (32) – – (41)
Cell captives 2.2.3 – – – – – 408 – – – 408
Holding company expenses – – – – – – (125) – (206) (331)
New initiatives India 2.2.4 – – – – – – – (338) – (338)
New initiatives aYo – – – – – – – (1) – (1)
Other2 (9) 1 2 2 – – – (129) (136) (269)
Investment return 5 8 – – (3) 62 76 2 526 676
Total 2 (54) 258 2 2 209 461 (84) (466) 184 512
Normalised headline earnings 1 110 938 672 1 174 209 461 118 (466) 167 4 383
1
Included in Other are once-off items that are not linked to a specific product as well as earnings that are not policyholder related.
2
Included in Other is mainly Multiply Money as well as earnings that are not policyholder related.
MOMENTUM METROPOLITAN HOLDINGS GROUP ANNUAL FINANCIAL STATEMENTS 2022 |

47
2.2 Segmental analysis continued
Momentum Momentum
Momentum Momentum Metropolitan Momentum Metropolitan Non-life Metropolitan New Share-
Life Investments Life1 Corporate Health Insurance Africa Initiatives holders Total
Notes Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm
Restated
12 mths to 30.06.2021
Covered
Protection (1 110) – 78 (997) – – (2) – – (2 031)
Long-term savings 236 107 28 257 – – 114 – – 742
Annuities and structured products – 779 216 175 – – 26 – – 1 196
Traditional (216) – 81 – – – 6 – – (129)
Other2 146 18 (38) (36) – – 3 – 58 151
Investment return 122 (19) 68 54 – – 78 – 32 335
Total 2 (822) 885 433 (547) – – 225 – 90 264
Non-covered
Investment and savings 2.2.1 – 199 – – – – – – – 199
Life insurance – – – – – – (4) – – (4)
Health 2.2.2 – – – – 214 – 82 – – 296
Momentum Multiply (40) – – – – – – – – (40)
Non-life insurance 2.2.3 – – – – – 133 (27) – – 106
Cell captives 2.2.3 – – – – – 375 – – – 375
Holding company expenses – – – – – – (108) – (193) (301)
New initiatives India 2.2.4 – – – – – – – (230) – (230)
New initiatives aYo – – – – – – – (17) – (17)
Other3 (7) – 2 (6) – – (28) (113) (88) (240)
Investment return 10 11 – 1 (1) 36 116 2 424 599
Total 2 (37) 210 2 (5) 213 544 31 (358) 143 743
Normalised headline earnings (859) 1 095 435 (552) 213 544 256 (358) 233 1 007
1
There has been a revision to the reporting disclosure within covered Metropolitan Life mainly relating to GetUp development expenses as well as the treatment of the expected profit on the income stabilisation reserve. June 2021 has been
restated accordingly.
2
Included in Other are once-off items that are not linked to a specific product as well as earnings that are not policyholder related.

3
Included in Other is mainly Multiply Money as well as earnings that are not policyholder related.
GROUP REPORTS
2.2.1 Momentum Investments – non-covered business
Restated
30.06.2022 30.06.20211
Notes Rm Rm
Revenue 1 714 1 576
Fee income 1 645 1 522
Fair value gains 16 22
Expenses and finance costs (1 428) (1 306)
Other expenses (1 391) (1 276)
Finance costs (37) (30)
Share of profit of associates 37 17
CONSOLIDATED ANNUAL
Profit before tax 323 287
Income tax expense (60) (73)
Non-controlling interest (5) (4)
Normalised headline earnings 258 210
Operating profit before tax 2.2 309 271
Tax on operating profit 2.2 (60) (72)
Investment return 10 12
Tax on investment return (1) (1)
Normalised headline earnings 258 210
Assets under management at year end2 518 727 492 656
1
The Fee income and Other expenses line items were erroneously grossed up for intercompany transactions within the Momentum Investments segment.
June 2021 has been restated accordingly.
2
Refer to the Analysis of assets managed and/or administered note for more information on the restatements other than footnote 1.



2.2.2 Health – non-covered business
Momentum Momentum
Metropolitan Metropolitan
Health Africa Total
Notes Rm Rm Rm
12 mths to 30.06.2022
Revenue 3 482 596 4 078
Net insurance premiums 1 186 571 1 757
Fee income 2 263 2 2 265
Investment income 18 23 41
Intergroup fees 15 – 15
Expenses and finance costs (3 067) (583) (3 650)
Net payments to contract holders (724) (434) (1 158)
Change in actuarial liabilities 1 – 1
Other expenses (2 341) (149) (2 490)
Finance costs (3) – (3)
Share of profit of associates 12 26 38
Profit before tax 427 39 466
Income tax expense (116) (4) (120)
Non-controlling interest (102) 1 (101)
Normalised headline earnings 209 36 245
Operating profit before tax 2.2 295 20 315
Tax on operating profit 2.2 (83) – (83)
Investment return (4) 21 17
Tax on investment return 1 (5) (4)
Closed schemes 24 36 60
Open scheme 104 – 104
Other 81 – 81
209 36 245
Principal
members Lives
Momentum Metropolitan Health principal members 1 184 094
Momentum Metropolitan Africa lives 404 890

GROUP REPORTS
2.2.2 Health – non-covered business continued
Momentum Momentum
Metropolitan Metropolitan
Health Africa Total
Notes Rm Rm Rm
12 mths to 30.06.2021
Revenue 3 087 634 3 721
Net insurance premiums 932 518 1 450
Fee income 2 121 82 2 203
Investment income 12 34 46
Intergroup fees 22 – 22
Expenses and finance costs (2 698) (477) (3 175)
Net payments to contract holders (633) (314) (947)
Change in actuarial liabilities (7) (2) (9)
CONSOLIDATED ANNUAL
Other expenses (2 055) (160) (2 215)
Finance costs (3) (1) (4)
Share of profit of associates 13 15 28
Income tax expense (104) (44) (148)
Non-controlling interest (85) (22) (107)
Operating profit before tax 2.2 282 117 399
Tax on operating profit 2.2 (68) (35) (103)
Investment return (1) 24 23
Closed schemes 49 106 155
Open scheme 75 – 75
Other 89 – 89

213 106 319
Principal
members Lives
Momentum Metropolitan Health principal members 1 164 241
Momentum Metropolitan Africa lives 432 663


2.2.3 Non-life Insurance
Momentum
Non-life Cell captive Metropolitan
business business Africa Total
Notes Rm Rm Rm Rm
12 mths to 30.06.2022
Gross written premiums 2 878 – 432 3 310
Net insurance premiums 2 753 – 344 3 097
Fee income 3 1 119 89 1 211
Management fees – 635 – 635
Investment fees – 79 – 79
Underwriting fees – 399 – 399
Other fee income 3 6 89 98
Investment income 76 166 33 275
Total income 2 832 1 285 466 4 583
Expenses and finance costs (2 913) (688) (462) (4 063)
Net payments to contract holders (1 916) – (185) (2 101)
Change in actuarial liabilities – – 19 19
Acquisition costs1 (206) – (73) (279)
Other expenses (791) (673) (223) (1 687)
Finance costs – (15) – (15)
(Loss)/Profit before tax (81) 597 4 520

Income tax expense 94 (149) (4) (59)
Non-controlling interest – – (5) (5)
Normalised headline earnings 13 448 (5) 456
Operating (loss)/profit before tax 2.2 (111) 558 (29) 418
Tax on operating (loss)/profit 2.2 102 (150) (3) (51)
Investment return 31 39 27 97
Tax on investment return (9) 1 – (8)
Normalised headline earnings 13 448 (5) 456
Momentum Insure (including Admin) 13 – – 13
Guardrisk Group – 448 – 448
Momentum Insurance (Namibia) – – 8 8
Momentum Short-term Insurance (Namibia) – – 5 5
Cannon Short-term – – (18) (18)
13 448 (5) 456

1
The acquisition costs relating to the cell captive business are included in underwriting fees.

GROUP REPORTS
2.2.3 Non-life Insurance continued
Momentum
Non-life Cell captive Metropolitan
business business Africa Total
Notes Rm Rm Rm Rm
Restated
12 mths to 30.06.20211
Gross written premiums 2 793 – 472 3 265
Net insurance premiums 1 495 – 271 1 766
Fee income 537 952 67 1 556
Management fees – 590 – 590
Investment fees – 79 – 79
Underwriting fees – 276 – 276
Other fee income 537 7 67 611
CONSOLIDATED ANNUAL
Total income 2 101 1 097 397 3 595
Expenses and finance costs (1 861) (587) (369) (2 817)
Net payments to contract holders (926) – (139) (1 065)
Change in actuarial liabilities – – (26) (26)
Acquisition costs2 (270) – (52) (322)
Other expenses (665) (572) (152) (1 389)
Finance costs – (15) – (15)

Income tax expense (74) (132) (1) (207)
Non-controlling interest – – (2) (2)
Normalised headline earnings 166 378 25 569
Operating profit/(loss) before tax 2.2 193 506 (26) 673
Tax on operating profit/(loss) 2.2 (60) (131) (1) (192)

Investment return 46 3 52 101
Tax on investment return (13) – – (13)
Normalised headline earnings 166 378 25 569
Momentum Short-term Insurance (including Admin) 2 – – 2
Momentum Insurance 164 – – 164
Guardrisk Group – 378 – 378
Momentum Insurance (Namibia) – – 1 1
Tanzania – – – –
Momentum Short-term Insurance (Namibia) – – 1 1
Cannon Short-term – – 23 23
166 378 25 569

1
Momentum Insurance acquisition costs were incorrectly shown as Other expenses. June 2021 has been restated accordingly.
2
The acquisition costs relating to the cell captive business are included in underwriting fees.


2.2.4 India – non-covered business1
30.06.2022 30.06.2021
Notes Rm Rm
Gross written premiums 3 522 2 710
Net earned premiums 2 426 1 765
Fee income 21 26
Net incurred claims (1 688) (883)
Total management expenses (1 545) (1 393)
Net commission expenses (39) (103)
Underwriting loss (825) (588)
Operating loss (680) (458)
Investment income on excess 48 46
Loss before and after tax (632) (412)
MMH share of results (49%) (310) (202)
Group support costs (32) (28)
Group IT and IT services 4 –
Normalised headline earnings 2.2 (338) (230)
Number of lives 18 789 363 13 414 469
1
The India results have been reported with a three month lag.
2.3 Segment IFRS 15 – Revenue from contracts with customers

Total revenue in scope of IFRS 15
Contract Trust and Health Cell
admini- fiduciary admini- captive Other fee Total fee
stration services stration commission income income
Notes Rm Rm Rm Rm Rm Rm
12 mths to 30.06.2022
Momentum Life 1 043 20 – – 170 1 233
Momentum Investments 1 561 1 243 – – 172 2 976
Metropolitan Life – – – – 70 70
Momentum Corporate 759 431 – – 44 1 234
Momentum Metropolitan Health – – 2 246 – 15 2 261
Non-life Insurance 121 – – 1 496 68 1 685
Momentum Metropolitan Africa 49 26 – – 114 189
New Initiatives – – – – 83 83
Segmental total 3 533 1 720 2 246 1 496 736 9 731
Reconciling items – (468) – – 4 (464)
Total 2 3 533 1 252 2 246 1 496 740 9 267
Restated
12 mths to 30.06.20211
Momentum Life 963 19 – – 200 1 182
Momentum Investments 1 459 1 162 – – 164 2 785
Metropolitan Life 36 – – – 70 106
Momentum Corporate 537 421 – – 52 1 010
Momentum Metropolitan Health 1 – 2 102 – 17 2 120
Non-life Insurance 99 – – 1 319 579 1 997
Momentum Metropolitan Africa 24 22 5 3 170 224
New Initiatives – – – – 69 69
Segmental total 3 119 1 624 2 107 1 322 1 321 9 493
Reconciling items – (474) – – 3 (471)
Total 2 3 119 1 150 2 107 1 322 1 324 9 022
1

GROUP REPORTS
2.4 Segment revenue per geographical basis
SA Non-SA Total revenue
Notes Rm Rm Rm
12 mths to 30.06.2022
Momentum Life 11 122 – 11 122
Metropolitan Life 8 309 – 8 309
Momentum Corporate 18 743 – 18 743
Momentum Metropolitan Health 3 447 – 3 447
Non-life Insurance 14 840 880 15 720
Momentum Metropolitan Africa – 5 809 5 809
New Initiatives 83 – 83
Segmental total 89 564 7 377 96 941
Reconciling items (47 105) (1 676) (48 781)
Total 2 42 459 5 701 48 160
Restated
CONSOLIDATED ANNUAL
12 mths to 30.06.20211
Momentum Life 10 698 – 10 698
Metropolitan Life 7 763 – 7 763
Momentum Corporate 15 874 – 15 874
Momentum Metropolitan Health 3 052 – 3 052
Non-life Insurance 11 875 1 268 13 143
Momentum Metropolitan Africa – 5 063 5 063
New Initiatives 62 7 69
Segmental total 83 750 7 058 90 808
Reconciling items (42 962) (1 788) (44 750)
Total 2 40 788 5 270 46 058
1


3 INTANGIBLE ASSETS
Refer to note 48.4 for the accounting policies relating to this note.
Restated
2022 20211
Rm Rm
3.1 Goodwill 1 775 2 489
3.2 VOBA 3 034 3 261
3.3 Customer relationships 577 697
3.4 Brands 562 628
3.5 Broker network 310 365
3.7 Deferred acquisition costs (DAC) on long-term investment business 1 992 2 002
3.8 Computer software 283 303
3.9 DAC on short-term insurance business 214 194
8 747 9 939
3.1 Goodwill
Cost 2 969 2 965
Accumulated impairment (1 194) (476)
Carrying amount 1 775 2 489
Carrying amount at beginning 2 489 2 288
Business combinations (refer to note 30) 1 201
Impairment charges2 (717) –
Exchange differences 2 –
Carrying amount at end 1 775 2 489
Cash-generating units (CGUs)
Momentum Insure (previously Momentum Insurance) – Non-life Insurance 478 1 185
Guardrisk – Non-life Insurance 660 660
Eris Property Group – Momentum Investments 191 191
Ex-Metropolitan Group – Metropolitan Life (Metropolitan/Momentum merger) 170 170
Momentum Global Investment Management – Momentum Investments 142 139
Momentum Medical Scheme Administrators – Momentum Metropolitan Health 116 125
Other 18 19
1 775 2 489
1
2
The current year impairment predominantly relates to Goodwill recognised as part of the acquisition of the Alexander Forbes Short-term Insurance business
(Non-life Insurance segment). The recoverable amount (R2 002 million) of the cash-generating unit (Momentum Insure) is determined based on value-in-use
calculations with reference to DVs. The impairment is due to a revision of the 5-year forecast that reflects a more subdued medium-term growth outlook.
The remaining goodwill balance after the impairment is R478 million. Refer to note 3.6 for further details on the sensitivity of this impairment amount.
Critical accounting estimates and judgements

Goodwill is allocated to CGUs and impairment testing is performed at the level of individual CGUs.
The recoverable value of these CGUs is determined based on value-in-use calculations with reference to directors' valuations. The
value-in-use calculations use risk-adjusted cash flow projections, which include projected new business based on financial forecasts
approved by management covering a five-year period. These cash flow projections take account of entity specific risks and are
subject to a revenue ceiling and an expense floor to ensure that the earnings projections lie within boundaries that are deemed
appropriate. The financial forecasts are informed by past experience as well management's best estimate of the future. Appropriate
allowance is also made for terminations risk where a CGU has concentrated exposure to large clients.
At the end of the defined projection period, a terminal value is determined based on an assumption of inflationary growth following
the five years.
The other assumption that is subject to judgement is the determination of an appropriate discount rate. The approach to setting the
discount rate is to reference the yield on long-dated government bonds and add an equity risk premium plus an additional margin for
entity-specific risk. The assessment of the risk discount rate (RDR) takes into account the risk adjustments already made in the cash
flow projection.
The central RDR assumption for most of the strategic subsidiaries resident in South Africa has been derived as follows:
2022 2021
Risk-free rate (long-term) 12.0% 10.5%
Equity risk premium 3.5% 3.5%
Risk premium applied to unlisted equity investments 2.3% 2.3%
Total (central rate) 17.8% 16.3%
The long-term risk-free rate is set with reference to the 10 year RSA government bond yield.
For CGUs where the range of possible outcomes remains wide, the RDR is adjusted to allow for the risk characteristics of the entity
under consideration. For entities with risk characteristics above the norm, additions of 2% – 4% to the central rate are made, based on
the maturity of the CGU under consideration, as well as the perceived degree of certainty in the cash flow projections.

3 INTANGIBLE ASSETS CONTINUED
GROUP REPORTS
3.1 Goodwill continued
2022 2021
Long-term Long-term
RDR growth rate RDR growth rate
% % % %
Assumptions
Momentum Insure (previously Momentum Insurance) 18 7 18 6
Guardrisk 16 7 16 6
Eris Property Group 16 7 16 6
Ex-Metropolitan Group 14 8 13 6
Momentum Global Investment Management 13 3 13 2
Momentum Medical Scheme Administrators 16 7 16 6
A higher discount rate applies to Momentum Insure, due to a higher risk profile associated with the recent integration with the Alexander
Forbes Short-term business and higher uncertainty in its earnings forecasts.
Momentum Global Investment Management has a lower RDR, commensurate with lower UK interest rates, compared to SA.
Guardrisk, Eris Property Group and Momentum Medical Scheme Administrators have a history of sustainable profits and with the
CONSOLIDATED ANNUAL
inclusion of limits to revenue and margin growth have relatively less uncertainty associated with their cash flows. As such, the
central rate is deemed appropriate.
The discount rate for the ex-Metropolitan Group is based on run-off of in-force insurance liabilities and thus its valuation employed
a lower RDR, in line with the discount rate used for “covered business” in the Group EV calculation.
2022 2021
Rm Rm
3.2 VOBA
Acquisition of insurance and investment contracts with DPF
Cost 6 667 6 683
Accumulated amortisation (3 474) (3 253)
Accumulated impairment (159) (169)
Amortisation charges (237) (258)
Impairment reversals/(charges) 10 (144)

To be fully
amortised
The carrying amount is made up as follows: by year:
Metropolitan/Momentum merger
Metropolitan Life 2037 2 092 2 237
Momentum Corporate 2037 428 459
Momentum Metropolitan Africa 2026 47 63
Sage – Shareholders 2032 286 303
Momentum Namibia – Momentum Metropolitan Africa 2037 152 163
Guardrisk – Non-life Insurance 2029 29 36
3 034 3 261
As a result of certain insurance contract acquisitions, the Group carries intangible assets representing the VIF acquired.
VOBA is reviewed for impairment through a discounted cash flow (DCF) valuation. This valuation method references the results of
the EV calculations for the relevant products. This methodology uses a number of assumptions relating to future cash flows which is
aligned to the Group’s valuation data and models and these are all subjected to the Group’s governance structures and review.
VOBA relating to the Sage acquisition (Shareholders) had a reversal of prior year impairments of R10 million (2021: impairment of
R144 million) by comparing the carrying amount with the recoverable amount. The current year's reversal of impairment is due to
positive investment experience on the Sage products. Value in use was used to calculate the recoverable amount by incorporating
valuation assumptions and economic bases of the Sage product liabilities, including a RDR of 14.36% (2021: 12.8%). Refer to note 11
for additional information regarding contract holder liabilities – assumptions and estimates. The Sage book of business is in run-off
and depending on the rate of run-off impacting on the VIF relative to the amortisation of the carrying value future consideration of
impairment might be required. Refer to note 3.6 for further details on the sensitivity of this impairment amount.


2022 2021
Rm Rm
3.3 Customer relationships
Cost 3 883 3 883
Accumulated amortisation (3 256) (3 136)
Carrying amount 577 697
Carrying amount at beginning 697 791
Business combinations (refer to note 30) – 99
Impairment charges – (9)
Carrying amount at end 577 697
To be fully
amortised
Metropolitan/Momentum merger
Investment contracts – Momentum Corporate 2030 322 367
Guardrisk – Non-life Insurance 2024 57 106
Momentum Global Investment Management – Momentum Investments 2031 83 93
Other 17 21
577 697
Customer relationships represent the fair value of customer relationships in place immediately before a business combination
took place. The recoverable value is determined based on directors’ valuations and value-in-use calculations with reference to
VIF business which is set out in notes 3.1 and 3.2 respectively.
Customer relationships relating to Providence Risk Managers (Momentum Metropolitan Health segment) were impaired by
R9 million during the prior year as a result of the ThebeMed contract making losses.
Additional sensitivity analysis on all intangible assets are disclosed in note 3.6.
Restated
2022 20211
Rm Rm
3.4 Brands
Cost 1 257 1 257
Accumulated amortisation (687) (621)
To be fully
amortised
Metropolitan brand – Metropolitan Life (Metropolitan/Momentum merger) 2031 453 507
Guardrisk brand – Non-life Insurance 2034 46 50
Momentum Insure (previously Momentum Insurance) brand – Non-life Insurance 2035 38 41
Momentum Insurance (Namibia) brand – Non-life Insurance 2031 16 19
Momentum Namibia brand – Momentum Metropolitan Africa 2027 9 11
562 628
1
Brands represent the fair value of Brands acquired as part of various acquisitions of the Group. The recoverable value is
determined based on directors' valuations and value-in-use calculations with reference to VIF business which is set out in
notes 3.1 and 3.2 respectively.
Additional sensitivity analysis on all intangibles are disclosed in note 3.6.

GROUP REPORTS
Restated
2022 20211
Rm Rm
3.5 Broker network
Cost 766 768
To be fully
amortised
Guardrisk (non-life) – Non-life Insurance 2029 121 139
Momentum Insurance (Namibia) – Non-life Insurance 2031 3 3
CONSOLIDATED ANNUAL
Guardrisk (life) – Non-life Insurance 2029 41 47
Momentum Global Investment Management – Momentum Investments 2041 36 39
Momentum Short-term Insurance (Namibia) – Momentum Metropolitan Africa 2023 4 18
310 365
1
Broker network represents the fair value of Broker network acquired as part of various acquisitions of the Group. The recoverable
value is determined based on directors' valuations which is disclosed in note 3.1.
Additional sensitivity analysis on all intangible assets are disclosed in note 3.6.
3.6 Sensitivity analysis of intangible assets acquired in business combinations

Management have performed additional sensitivity analysis on intangible assets acquired as part of business combinations
to assess how sensitive these assets are to changes in the recoverable amounts ie how much headroom exists in these
recoverability tests. The significant items are discussed below:

The Group currently recognise goodwill, VOBA, customer relationships and brands relating to the Metropolitan/Momentum
merger. The current recoverable amount of these assets are R2 040 million (2021: R2 118 million) higher than the carrying value
and has 37% (2021: 36%) headroom available before the Group would need to consider impairing any of the associated goodwill.
The combination of the net asset value and the intangible assets recognised on the acquisition of Alexander Forbes Short-term
Insurance business (Non-life Insurance segment), which was subsequently renamed to Momentum Insurance and thereafter
integrated into Momentum Insure from 1 July 2021 is currently below the recoverable amount with nil (2021: nil) headroom
available. The recoverable amount (R2 002 million) of the cash-generating unit (Momentum Insure) is determined based on value-
in-use calculations with reference to DVs. The goodwill recognised as part of the acquisition was impaired during the current year
by R707 million. The impairment is due to a revision of the 5-year forecast that reflects a more subdued medium-term growth
outlook. The remaining goodwill balance after the impairment is R478 million (2021: R1 186 million) which may be subject to
further impairment should the medium-term outlook not be achieved.
Following the acquisition of Guardrisk, the Group currently recognises goodwill, VOBA, customer relationships and brands on the
statement of financial position. The current recoverable amount of these assets is currently R1 800 million (2021: R1 372 million)
higher than the carrying value and has 40% (2021: 34%) headroom available before the Group would need to consider impairing
any of the associated goodwill. Future revenue and expenses included in the risk-adjusted cashflow projections will need to
decrease by 20% and increase by 35% respectively in order for the recoverable amount to equate to the carrying amount.
During the current year, the VOBA relating to Sage decreased due to amortisation charges to its recoverable amount of
R286 million (2021: R303 million). Any further reduction in the recoverable amount will result in an additional impairment.
The acquisition of Seneca during the prior year included the recognition of goodwill, customer relationships and broker networks
by the Group. Following the acquisition, the Seneca business has been fully integrated into Momentum Global Investment
Management. As such, Seneca is no longer individually assessed for the purposes of impairment testing, but rather forms part
of the Momentum Global Investment Management CGU. The current recoverable amount of these assets is currently R63 million
(2021: R25 million) higher than the carrying value and has 9% (2021: 3%) headroom available before the Group would need to
consider impairing any of the associated goodwill. Future revenue and expenses included in the risk-adjusted cashflow projections
will need to decrease by 2% and increase by 3% respectively in order for the recoverable amount to equate to the carrying amount.
In aggregate, if the recoverable amounts of all the CGUs under consideration were to decrease by 10%, it would result in an
impairment of intangible assets of R192 million (2021: R319 million). Should the recoverable amounts decrease by 20%, an
impairment of R510 million (2021: R749 million) will be required, with R326 million (2021: R528 million) of this relating to the
Momentum Insure goodwill, R85 million (2021: R129 million) relating to Momentum Global Investment Management goodwill,
R70 million (2021: R9 million) relating to Momentum Health Solution goodwill and R29 million (2021: R61 million) relating to the
VOBA from Momentum Namibia.


2022 2021
Rm Rm
3.7 DAC on long-term insurance business
Additions 390 394
Impairment reversals/(charges) 9 (9)
Exchange differences 2 (3)
An impairment test is conducted annually at reporting date on the DAC balance to ensure that the
amount will be recovered from future revenue generated by the applicable remaining investment
management contract. DAC is reviewed for impairment losses through the liability adequacy test
and written down for impairment if necessary. Refer to assumptions in note 11.
3.8 Computer software
Cost 858 845
Additions 58 77
Disposals (3) (2)
Impairment (charges)/reversal (2) 36
Transfer to assets relating to disposal groups held for sale – (36)
Exchange differences – (2)
In the current year, the computer software impairment relates to internally developed software held by Momentum Metropolitan
Life Ltd (Shareholders segment). The impairment is due to the impaired post-merger JDE consolidation project costs which were
incurred to merge multiple ledgers. The business has moved significantly beyond a residual benefit of this particular project. In the
prior year, the impairment reversal related to computer software held by Metropolitan International Support (Momentum Metropolitan
Africa segment). A sales agreement was entered into for the software which caused the recoverable amount, which is based on the
purchase price, to increase to R36 million. The software has been sold during the current year.
Internally developed software

Included in computer software is a carrying amount of R56 million (2021: R90 million) representing Internally developed software.
The decrease in Internally developed software mainly relates to R23 million (2021: R33 million) amortisation charges.
Material computer software

The Non-life Insurance segment has computer software of R159 million (2021: R141 million) relating to MSTI's line of business
system which will be fully amortised by 2027. For impairment testing purposes, a RDR of 14% (2021: 13%) and a growth rate of 8%
(2021: 16%) was used to present value the future economic benefits of the software. No impairment was required.
Momentum Multiply (Momentum Life segment) has computer software of R41 million (2021: R51 million) relating to the wellness
and rewards platform which will be fully amortised by 2028. No impairment was required.
Guardrisk (Non-life Insurance segment) has computer software of R18 million (2021: R28 million) relating to cell captive and
product administration systems which will be fully amortised by 2024. For valuation purposes a RDR of 18% (2021: 16%) and
a growth rate of 6% (2021: 6%) was used. No impairment was required.
Restated
2022 20211
Rm Rm
3.9 DAC on short-term insurance business
Net movement in deferred acquisition costs 20 22
Acquisition costs paid 1 612 1 553
Acquisition costs incurred (expensed to income statement) (1 592) (1 556)
1

4 OWNER-OCCUPIED PROPERTIES
GROUP REPORTS
Refer to note 48.5 and 48.15 for the accounting policies relating to this note.
2022 2021
Rm Rm
4.1 Owned owner-occupied properties 2 870 2 857
Right-of-use assets 146 176
3 016 3 033
4.1 Owned owner-occupied properties
Owner-occupied properties – at fair value 2 870 2 857
Historical carrying amount – cost model 1 808 2 509
Fair value at beginning 2 857 3 360
Additions 256 242
Disposals – (20)
Revaluations (138) (9)
Depreciation charges (50) (62)
Net impairment charges charged to income statement (35) (116)
Transfer to investment properties (23) (532)
CONSOLIDATED ANNUAL
Other 2 –
Fair value at end 2 870 2 857
In the prior year, borrowing costs of R18 million were capitalised, no borrowing costs were capitalised in the current year. The
borrowing costs related to the Marc, Tower 2 and a capitalisation rate equal to the interest rate on the loan of 3 month Jibar plus
2.1 points were used.
The revaluation decrease mainly relates to Centurion Head office revaluation loss of R152 million (Shareholder segment) due to
decline in market rental rates per square meter.
The net impairment in the current and prior year mainly related to the impairment of the Marc, Tower 2 of R51 million (2021: R77 million)
(Shareholders segment). The impairment can largely be attributed to the decline in market rental rates for office property in Sandton in
recent years, as well as considering the weak property market outlook as a result of the Covid-19 pandemic. The valuation further took
the expected vacancy into account.
A register of owner-occupied properties is available for inspection at the Company’s registered office.

Owner-occupied properties are classified as level 3.
All properties are valued using a DCF method or the income capitalisation approach based on the aggregate contractual or market-
related rent receivable less associated costs. The DCF takes projected cash flows and discounts them at a rate that is consistent
with comparable market transactions. Increases in the carrying amount arising on revaluation of owner-occupied buildings are
credited to a land and building revaluation reserve in other comprehensive income, except to the extent that the increase reverses a
revaluation decrease of the same asset previously recognised in profit or loss, in which case the increase shall be recognised in profit
or loss. Decreases that offset previous increases in respect of the same asset are charged against the revaluation reserve, and all
other decreases are charged to the income statement. All owner-occupied properties were valued by internal valuers at the end of the
current year. At the end of the prior year, the properties were valued by external valuers. Valuations are performed semi-annually.
Change in fair value

Decrease in Increase in
Base Change in assumption assumption
Assumptions Valuation technique assumption assumption Rm Rm
2022
Capitalisation rate
Office buildings DCF & Income capitalisation 8.56% – 9.50% 100bps 252 (205)
Parkade Income capitalisation 9.00% 100bps 9 (7)
Discount rate
Restated
20211
Capitalisation rate
Parkade Income capitalisation 9.25% 100bps 8 (6)
Discount rate
1
Information previously presented on an aggregated basis has now been disaggregated for comparability.

4 OWNER-OCCUPIED PROPERTIES CONTINUED

Capitalisation and discount rates are based on a number of factors, including but not limited to the following: the current risk-free
rate, the risk associated with the income stream flowing from the property, the real estate cycle, current economic conditions at
both the micro- and macro-economic level and the yield that an investor would require in order to make the property an attractive
investment. For valuation purposes, existing lease agreements and subsequent expected market-related rentals are used to
determine the fair value of each building. Furthermore, the internal valuers performed a sensitivity analysis by adjusting the
capitalisation rate and discount rate up and down by 100bps.
In determining the property values regard was had for the fact that, due to the Covid-19 pandemic, market activity was being
impacted in many sectors. Due to Covid-19, a conservative take up of the vacant space has been assumed, likewise a conservative
view has been taken on probable market rentals. Market rental growth has been adjusted downward from an industry average of
5% to 4 – 4.5% (2021: 3 – 4%).
5 INVESTMENT PROPERTIES
2022 2021
Rm Rm
5.1 Owned investment properties 9 031 8 918
9 051 8 938
5.1 Owned investment properties
At 30 June, investment properties comprised the following property types:
Shopping malls 3 954 3 125
Office buildings 4 193 5 141
Industrial 638 532
Hotels 248 257
Vacant land 223 133
Other 155 95
Property at valuation 9 411 9 283
Accelerated rental income (refer to note 7.3) (380) (365)
9 031 8 918
Investment properties under development
Fair value at beginning – 270
Capitalised development expenditure – 38
Transfer to completed properties1 – (308)
Fair value at end – –
Completed properties
Fair value at beginning 8 918 8 739
Capitalised subsequent expenditure 118 207
Additions 22 –
Disposals (5) (159)
Revaluations charged to income statement (26) (330)
Change in accelerated rental income (21) (21)
Transfer from owner-occupied properties2 23 532
Transfer from investment properties under development1 – 308
Transfer to assets relating to disposal groups held for sale (14) (129)
Sale of business – (178)
Other 3 –
Fair value at end 9 031 8 918
1
The prior year relates to Chuma Mall and Umgeni.
2
The current year relates to Meersig. The prior year relates to 3 Gwen Lane, Parc Du Cap 9 and 102 Rivonia.
A register of investment properties is available for inspection at the Company’s registered office.
Investment properties are classified as level 3.

In the current year all properties were internally valued using an income approach or DCF method based on contractual or market-
related rent receivable. The internal valuers hold recognised and relevant professional qualifications and have recent experience in
the location and category of the investment property being valued.

5 INVESTMENT PROPERTIES CONTINUED
GROUP REPORTS
5.1 Owned investment properties continued
Critical accounting estimates and judgements continued
The valuation input is focused on "headline" assumptions including capital and discount rates however the underlying cashflow
is based on contractual arrangements where applicable and appropriate market norms. Each valuation is carried out in isolation,
and tested in each individual case by looking at factors including current tenant retention, potential market rentals and potential
of increased long-term vacancies as well as necessary changes in the capitalisation and discount rates. The valuers carried out
extensive market research and also collaborated with the their professional peers.
Change in fair value

Decrease in Increase in
Base Change in assumption assumption
Assumptions Valuation technique assumption assumption Rm Rm
2022
Capitalisation rate 638 (503)
Shopping malls DCF 7.54% – 9.49% 100bps 393 (306)
Office buildings DCF 8.10% – 10.97% 100bps 190 (153)
Industrial DCF 9.51% – 10.00% 100bps 38 (31)
CONSOLIDATED ANNUAL
Hotels DCF 9.00% 100bps 17 (13)
Discount rate 405 (379)
Hotels DCF 13.00% 100bps 17 (16)
Vacancy rate 61 (61)
Hotels DCF 1.00% 100bps 1 (1)
2021
Capitalisation rate 584 (464)

Hotels DCF 8.50% – 9.00% 100bps 16 (13)
Discount rate 381 (354)
Hotels DCF 12.50% – 13.75% 100bps 17 (16)
Vacancy rate 71 (72)
Hotels DCF 2.00% 100bps 1 (1)
Capitalisation and discount rates are based on a number of factors, including but not limited to the following: market transactions,
the current risk-free rate, the risk associated with the income stream flowing from the property, the real estate cycle, current
economic conditions at both the micro- and macro-economic level and the yield that an investor would require in order to make
the property an attractive investment.
The Covid-19 pandemic has affected various property market sectors and the related valuation inputs and assumptions are
as follows:
Office sector – higher vacancies (due to tenant fall-off as well as downsizing) has been experienced. Based on South African
Property Owners Association statistics the office market was already experiencing an oversupply of office space and this
increased during the past 18 months. The oversupply and decrease in demand has led to downwards asking (and achieved)
rentals which inevitably led to yield compression and associated valuations.
Retail sector – rural retail had a strong year-on-year performance and is continuing to perform well. Urban retail experienced some
lease fall-off but this was mostly attributable to tenants who were already experiencing difficulties prior to Covid-19. The ability to
re-let may have been a bit slow in 2020 but this has improved greatly in 2021/2022. Capitalisation rates and discount rates have
remained stable due to locational performance and rentals achieved.
Industrial – The industrial sector is still a strong performer with distribution centres, large warehousing and multi-parks showing the
strongest total return by property type across all sectors. This resulted in more robust market rentals and a steady vacancy rate.

6 INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

Refer to note 48.2.2 and 48.2.3 for the accounting policies relating to this note.
2022 2021
Rm Rm
Carrying amount at beginning 1 156 905
Additions1 647 641
Disposals2 (84) –
Loss on dilution of joint venture – (5)
Share of loss3 (243) (237)
Dividends declared (37) (16)
Impairment charges4 – (38)
Transfer to assets relating to disposal groups held for sale – (6)
Carrying amount at end – non-current 1 491 1 156
1
The current year includes :
• Workers Health Investment (Pty) Ltd, acquired 30% in Homeville Holdings (Pty) for R17 million acquisition in cash.
• Momentum Metropolitan Stategic Investment (Pty) Ltd made capital injections to ABHIL for R584 million in cash.
• MML made capital injection to South African Student Accommodation Impact Investments (Pty) Ltd (SASAII) for R46 million in cash.
• A capital contribution was made to aYo while the investment was classified as held for sale (R69 million), therefore the amount has not been presented
as an additions in this note.
2
The disposals relate to sale of Aluwani during the current year.
3
Mainly relates to ABHIL losses.
4
The impairment in prior year related to RMI Investment Managers Affiliates 2 (Pty) Ltd (RMIA) (Momentum Investments segment). The main reason for the
impairment was due to a decrease in one of the underlying investments in the fund following a deterioration in business prospects.
The directors’ valuation of investment in associates exceeds the carrying value.
(Loss)/
Carrying profit for
amount Assets# Liabilities# Revenue# the year# Earnings^
Equity-accounted associates and joint ventures* %** Rm Rm Rm Rm Rm Rm
2022
Associates
ABHIL 49% 1 017 3 846 (2 719) 2 455 (631) (309)
MHNA 49% 175 82 (29) 211 53 26
SASAII1 17% 69 512 (122) 25 32 6
2Cana 30% 64 217 (20) 153 25 7
RMIA 49% 71 336 (86) 26 (13) (6)
Aluwani 0% – – – – – 10
Other 86 *** *** *** *** 22
1 482 (244)
Joint ventures
MRKT Energy Holdings (Pty) Ltd (MRKT) 50% 9 85 (66) 10 – –
2021
Associates
ABHIL 49% 694 2 917 (2 119) 1 792 (412) (202)
MHNA 49% 171 84 (40) 205 31 15
RMIA 49% 77 329 (89) 19 (65) (32)
Aluwani 40% 76 76 (40) 142 25 10
Other 133 *** *** *** *** 19
1 151 (190)
Joint ventures
MRKT 50% 5 52 (41) 7 – –
* All entities’ principal place of business is in South Africa unless otherwise stated.
** Effective group percentage held.
*** This amount consists of various associates’ financial information.
#
This represents the actual assets, liabilities, revenue and profit or loss of the associate or joint venture at the end of the financial year. ABHIL has a financial
year end of 31 March and as such the summarised financial information disclosed for ABHIL represents the financial information at 31 March 2022.
^ Group’s share of equity accounted earnings.
1
Despite the Group holding less than 20% of the ordinary shares, the Group exerts significant influence as a result of decision making rights to which the
Group remains entitled.
• ABHIL is a health insurance business and was formed by MMSI, which holds 49% of ordinary shares, and Aditya Birla Capital Ltd&
(incorporated in India), which holds 51% of ordinary shares. Voting rights are proportional to ordinary shareholding, with Aditya
Birla Capital Ltd being able to outvote MMSI, appoint the CEO of ABHIL, who in turn appoints the executive team and therefore
directing the relevant activities of the business. MMSI does not have control over this entity. The carrying amount of the associate
includes further capital injections advanced to the Company in addition to the capital acquired. The total assets consist of
R421 million current assets and R3 425 million non-current assets. The total liabilities consist of R1 283 million current liabilities
and R1 436 million non-current liabilities. The principal place of business is in India.
&
Aditya Birla Financial Services Ltd was renamed to Aditya Birla Capital Ltd in June 2017.

6 INVESTMENTS IN ASSOCIATES AND JOINT VENTURES CONTINUED
GROUP REPORTS
• MHNA is an entity engaged in the administration of medical aid schemes and operates principally in Namibia. During the prior
year Momentum Metropolitan Namibia Ltd sold its controlling interest in MHNA. The entity is thus classified as an investment
in associate.
• SASAII is a fund that will engage in the development of student accomodation and the purchase and refurbishment of existing
student accomodation. This will either be done directly by the fund or by the fund investing in another proprietary limited
company. MML holds 17% in this fund and does not have control over this fund, as the relevant activities of the fund are not
under the direction of MML. SASAII became an associate as at 30 June 2021.
• The 2Cana Group has been responsible for the development of the MHS IT platform which maintains MHS data on the Oracle system.
MHS identified this outsourced function as a potential strategic risk and viewed the acquisition of the 2Cana Group as a way to secure
the protection of the Intellectual Property maintained in the system.
• RMIA is an investment company that invests in asset management business held by MMSI. MMSI does not have control over this
entity, as the relevant activities of the entity is not under the direction of MMSI.
• Aluwani is an asset management services company that is 40% held by MMSI in the Momentum Investments segment. MMSI sold
Aluwani during April 2022.
• MRKT will be carried on between RKT Energy (Pty) Ltd (RKT) and MML as equal shareholders. MRKT has a predefined business scope,
which centers around the ownership and operation of solar energy systems and the identification of future prospective energy-related
assets and opportunities.
7 FINANCIAL ASSETS
CONSOLIDATED ANNUAL
Refer to note 48.7, 48.8 and 48.9 for the accounting policies relating to this note.
The Group classifies its financial assets into the following categories:
• Financial assets at FVPL
• Financial assets at amortised cost
The classification is based on contractual cash flows characteristics and models through which financial instruments are
managed (business model). Management determines the classification of its financial assets at initial recognition.
Above classification is not applied to insurance and other receivables as classification is dependent on the nature of the risk transferred.
Critical judgements and estimates
Management applies judgement to the valuation of certain level 2 and level 3 financial assets, which include the Group’s venture
capital investments, where the market is inactive. Refer to note 44 for more information.
The assessment of significant increase in credit risk to calculate the expected credit loss for assets carried at amortised cost is
performed by determining the risk of default over the expected lifetime of an instrument. Management applies judgement to the
probability of default and loss given default. Refer to note 7.6 for more information.

As a result of the adoption of IFRS 10 the Group considers control over the fund manager to be a key aspect in determining
whether a CIS is controlled by the Group or not. Where the funds are managed by Group owned fund managers and the Group
holds 20% or more in these funds, it is viewed to have control of the fund. Where the control criteria are not met, the criteria for
joint control and significant influence are considered. Refer to note 42 and 43 for information on the CISs classified as subsidiaries
or associates.
Restated
2022 20211
Rm Rm
The Group’s financial assets are summarised below:
7.1 Financial assets at FVPL 489 511 471 362
7.2 Financial assets at amortised cost 8 739 7 968
7.3 Insurance and other receivables (excluding accelerated rental income,
prepayments and other) 6 861 5 613
7.4 Cash and cash equivalents 28 720 36 822
Total financial assets 533 831 521 765
7.1 Financial assets at FVPL
Unit-linked investments2 184 886 178 981
Debt securities2 174 781 157 347
Equity securities 96 646 105 163
Carry positions 1 124 4 461
Funds on deposit and other money market instruments2 30 160 22 649
Derivative financial assets 1 914 2 761
489 511 471 362

Open-ended 277 371 280 972
Current 61 575 51 437
Non-current 150 565 138 953
1 to 5 years 60 650 58 263
5 to 10 years 23 015 18 864
> 10 years 66 900 61 826
489 511 471 362
1
2
Upon further investigation it was concluded that funds on deposit of R643 million should have been classified as debt securities (R256 million) and
unit‑linked investments (R386 million). June 2021 has been restated accordingly.

7 FINANCIAL ASSETS CONTINUED

7.1 Financial assets at FVPL continued
General
The open-ended maturity category includes investment assets such as listed and unlisted equities, unit-linked investments and
other non-term instruments. For these instruments, management is unable to provide a reliable estimate of maturity, given factors
such as the volatility of the respective markets and policyholder behaviour.
A schedule of equity securities is available for inspection at the Company’s registered office.
Restated
2022 20211
Assets Liabilities Assets Liabilities
Derivative financial instruments Rm Rm Rm Rm
Held for trading 1 914 3 039 2 761 3 993
1
As part of its asset and liability management, the Group purchases derivative financial instruments to reduce the exposure of
policyholder and shareholder assets to market risks and to match the liabilities arising on insurance contracts.
Under no circumstances are derivative contracts entered into for speculative purposes.
The following table shows the fair value of derivative financial instruments recorded as assets or liabilities, together with their
effective exposure. Effective exposure is the exposure of a derivative financial contract or instrument to the underlying asset by
also taking delta (the ratio comparing the change in the price of the underlying asset to the corresponding change in the price of
a derivative) into account, where applicable.
The mark-to-market value of a derivative does not give an indication of the effective exposure of portfolios to changes in market
values of that derivative position. The effective exposure of a derivative position reflects the equivalent amount of the underlying
security that would provide the same profit or loss as the derivative position, given an incremental change in the price of the
underlying security. A derivative position is translated into the equivalent physical holding, or its market value, which provides
a meaningful measure in respect of asset allocation. For example:
• the market value for swaps, such as interest rate swaps;

• the underlying market value represented by futures contracts; and
• the delta adjusted effective exposure derived from an option position.

GROUP REPORTS
Restated
2022 20211
Effective Effective
exposure Assets Liabilities exposure Assets Liabilities
Rm Rm Rm Rm Rm Rm
Derivatives held for trading
Equity derivatives 222 83 538 348
Options, OTC 5 4 – 9 340 327
Options, exchange traded 330 216 1 71 187 6
Futures, OTC – – – 211 6 1
Futures, exchange traded 1 792 1 2 831 1 1
Swaps, OTC (80) – 80 (9) 4 13
CFD, OTC 814 1 – 513 – –
Interest rate derivatives 1 683 2 058 1 842 2 754
Futures, exchange traded (5) – 5 – – –
Swaps, OTC (308) 1 658 1 958 (978) 1 667 2 610
CONSOLIDATED ANNUAL
Forward rate agreement, OTC (91) 25 95 30 175 144
Bonds 3 140 51 10
Options, exchange traded 82 – – 44 – –
Futures, OTC 3 285 – 139 2 696 50 10
Futures, exchange traded (81 728) 3 1 (13 954) 1 –
Credit derivatives – 16 26 –
Swaps, OTC (16) – 16 26 26 –
Currency derivatives 6 742 304 881
Options, OTC – – – 6 300 300
Futures, OTC 727 6 – (159) 4 8
Futures, exchange traded (205) – 18 19 – 1
Swaps, OTC (724) – 724 534 – 572
Commodity derivatives – – – –
Futures, exchange traded 120 – – 72 – –
Total derivative financial instruments 1 914 3 039 2 761 3 993

1
At their inception, derivatives often involve only a mutual exchange of promises with little or no transfer of consideration. However,
these instruments frequently involve a high degree of leverage and are very volatile. A relatively small movement in the value of the
asset, rate or index underlying a derivative contract may have a significant impact on the profit or loss of the Group.
Over-the-counter (OTC) derivatives may expose the Group to the risks associated with the absence of an exchange market on
which to close out an open position.
The Group’s exposure under derivative contracts is closely monitored as part of the overall management of the Group’s market risk.


Offsetting
The following financial instruments are subject to offsetting, enforceable master netting arrangements and similar agreements:
Restated
2022 20211
Rm Rm
Derivative financial assets
Gross and net amounts of recognised financial assets 1 914 2 761
Related amounts not set off in the statement of financial position
Financial instruments (1 281) (2 325)
Cash collateral received (141) (539)
Net amount 492 (103)
Derivative financial liabilities
Gross and net amounts of recognised financial liabilities 3 039 3 993
Related amounts not set off in the statement of financial position
Financial instruments (1 281) (2 325)
Cash collateral issued (814) (849)
Net amount 944 819
1
7.2 Financial assets at amortised cost

Unsettled trades 1 896 1 854
Accounts receivable 3 426 2 930
Less: provision for impairment (143) (127)
Debt securities 481 512
Funds on deposit and other money market instruments 294 342
Loans 2 816 2 488
Related party loans
Empowerment partners 262 262
Loans due from associates 54 74
Preference shares 36 81
Staff loans 55 53
Other related party loans 139 213
Other loans
Policy loans 1 004 1 057
Due from agents, brokers and intermediaries 443 392
Other2 958 471
Total financial assets at amortised cost 8 739 7 968

Open-ended 215 190
Current 7 524 6 715
Non-current 1 000 1 063
8 739 7 968
1
2
Includes loans advanced of R294 million (2021: R44 million) of which the largest (R251 million) relates to monies advanced by the Public Rail Agency
of South Africa to fund their 25% obligation, R268 million (2021: R239 million) in respect of a the underlying assets in a credit fund classified as a CIS,
R205 million (2021: nil) relates to investments held by external managers on behalf of the Group and R99 million (2021: R118 million) relates to fully
secured loans advanced to clients with investment holdings.
Unsettled trades result from transactions that Portfolios Managers enter into on behalf of the various subsidiaries in the Group in
accordance with discretionary portfolio management agreements. The Group’s accounting policy is to recognise purchases and
sales of financial assets on the trade date, ie the date on which the Group commits to purchase or sell the financial asset. All trade
transactions that the Group enters into before the last day of the reporting period, ie 30 June, but where the settlement will only
occur after the reporting period, are reported as unsettled trades. This is applied to both purchases and sales across all entities in the
Group. As a result of the nature of these type of transactions, the unsettled trades balances can fluctuate significantly year-on-year.

GROUP REPORTS
7.2 Financial assets at amortised cost continued
Due from Funds on
agents, deposit and
brokers and other money
Accounts Related party inter- market
receivable loans mediaries instruments1 Total
Reconciliation of expected credit losses Rm Rm Rm Rm Rm
2022
Balance at beginning (127) (42) (73) (31) (273)
Additional provision (29) (11) (9) – (49)
Reversed to the income statement 11 2 2 – 15
Other2 2 – (4) – (2)
Balance at end (143) (51) (84) (31) (309)
2021
Balance at beginning (184) (6) (75) – (265)
Additional provision (45) (2) (6) (31) (84)
CONSOLIDATED ANNUAL
Reversed to the income statement 105 1 12 – 118
Other2 (3) (35) (4) – (42)
Balance at end (127) (42) (73) (31) (273)

1
In the prior year, an impairment was raised in respect of promissory notes held, determined based on 14% of the gross carrying amount. As a result of partial
redemptions in the current year, the expected credit loss provision represents 22% of the gross carrying amount as at 31 June 2022. Given significant uncertainty
arising from a lack of counterparty information, there is potential for further downside risk to transpire in future. An increase of the impairment to 30% of the gross
carrying amount will result in an additional impairment of R11 million (2021: R14 million).

2
Includes FCTR movements, foreign exchange gains/losses, and amounts written off as bad debt.
Terms and conditions of material loans

• The loans to empowerment partners is R 262 million (2021: R262 million) at 30 June 2022, which relates to preference shares
acquired on 2 December 2011 in Off the Shelf Investments (Pty) Ltd (a KTH subsidiary) for R316 million. Given the financial
substance of the KTH subsidiary and the commercial terms attached to the funding arrangement, there is sufficient security in the
Company that the Group does not carry and has not carried the risks and rewards of the shares that are funded by the loan. The
loan is therefore not accounted for as an option under IFRS 2 – Share-based payments – and is recognised as a receivable carried
at amortised cost. Interest is charged at 88% of the prime interest rate of South Africa and the preference shares have a repayment

date of 30 November 2022 (after extending the terms for a further 5 months in the current year). The modification did not constitute
a significant modification and therefore this was accounted for as a change in the expected future cash flows.
In 2019, the Company subscribed for a cumulative, redeemable preference share in Off The Shelf Investment 108 (Pty) Ltd
which is linked to the A3 preference shares, first acquired in 2011. This is accounted for as a financial asset at FVPL.
• Policy loans are limited to and secured by the underlying value of the unpaid policy benefits. These loans attract interest at rates
greater than the current prime rate but limited to 9% (2021: 8%) and have no fixed repayment date. Policy loans are tested for
impairment against the surrender value of the policy.
Refer to note 7.6 for the split of the credit risk and expected credit loss allowances into stages.
Restated
2022 20211
Rm Rm
7.3 Insurance and other receivables
Receivables arising from insurance contracts, investment contracts with DPF and reinsurance
contracts 6 764 5 572
Insurance contract holders 2 456 2 403
Cell captives 1 950 1 343
Due from reinsurers 2 478 1 889
Investment contract holders with DPF 28 58
Other2 97 41
Total included in financial assets 6 861 5 613
Accelerated rental income 380 365

Other (not included in financial assets)3 263 –
Prepayments 235 262
Total insurance and other receivables 7 739 6 240
Current 6 747 5 627
Non-current 992 613
7 739 6 240

1

2
Included in other is R53 million (2021: R33 million) salvage and recovery reserves, R30 million (2021: R33 million) relates to the investment portion of premium
debtors and other immaterial balances.

3
Included in other is R263 million (2021: nil) relating to VAT receivables.


7.3 Insurance and other receivables continued
Impairment of receivables arising from insurance contracts and investment contracts with DPF
For insurance-related receivables, provision for impairment is made in line with expected lapse rates, or where specific and
objective evidence on corporate clients indicates that balances may not be recoverable. Objective evidence that an insurance
receivable is impaired is gathered when the following events occur:
• significant financial difficulty of the debtor;

• a breach of contracts such as default or delinquency in payments; or
• it becomes probable that the debtor will enter bankruptcy or financial reorganisation.
Where outstanding balances can be recovered from fund values, no provision is made.
Restated
2022 20211
Rm Rm
7.4 Cash and cash equivalents

Bank and other cash balances 13 370 14 453
Funds on deposit and other money market instruments – maturity < 90 days 15 350 22 369
28 720 36 822
1
Expected credit loss on cash and cash equivalents is immaterial.

7.5 Financial assets measurement
FVPL
Total fair Amortised Not in scope
Financial assets summarised by Mandatorily Designated1 value cost of IFRS 9 Total
measurement category in terms of IFRS 9 Rm Rm Rm Rm Rm Rm
2022
Unit-linked investments 184 886 – 184 886 – – 184 886
Debt securities 45 386 129 395 174 781 481 – 175 262
Equity securities2 96 646 – 96 646 – – 96 646
Carry positions – 1 124 1 124 – – 1 124
Funds on deposit and other money
market instruments 13 442 16 718 30 160 263 – 30 423
Derivative financial assets 1 914 – 1 914 – – 1 914
Financial assets at amortised cost – – – 7 995 – 7 995
Insurance and other receivables (excluding
accelerated rental and prepayments) – – – – 6 861 6 861
Cash and cash equivalents – – – 28 720 – 28 720
Total financial assets 342 274 147 237 489 511 37 459 6 861 533 831
Restated
20213
Unit-linked investments4 178 981 – 178 981 – – 178 981
Debt securities4, 5 40 922 116 425 157 347 512 – 157 859
Equity securities2 105 163 – 105 163 – – 105 163
Carry positions – 4 461 4 461 – – 4 461
market instruments4, 5 10 023 12 626 22 649 311 – 22 960
Derivative financial assets 2 761 – 2 761 – – 2 761
Financial assets at amortised cost – – – 7 145 – 7 145
Insurance and other receivables
(excluding accelerated rental and
prepayments) – – – – 5 613 5 613
Cash and cash equivalents – – – 36 822 – 36 822
Total financial assets 337 850 133 512 471 362 44 790 5 613 521 765
1
Assets designated at fair value mainly consists of policyholder assets which back policyholder liabilities which are carried at FVPL. The amount of change,
during the period and cumulatively, in the fair value of financial assets designated at FVPL that is attributable to changes in the credit risk of the financial
asset is determined as the change triggered by factors other than changes in the benchmark rate. The impact of the changes in credit risk for the current
and prior year was immaterial.
2
Equity securities are classified as FVPL at inception.
3
4
Upon further investigation it was concluded that funds on deposit of R643 million should have been classified as debt securities (R256 million) and
unit‑linked investments classified as mandatorily at FVPL (R386 million). June 2021 has been restated accordingly.
5
Upon further investigation it was concluded that funds on deposit and other money market instruments (R569 million) and debt securities classified as
mandatorily at FVPL (R3 billion) should have been classified as designated at FVPL. June 2021 has been restated accordingly.

GROUP REPORTS
7.5 Financial assets measurement continued
Business model assessment
The Group’s financial asset classification is determined based on the contractual cash flows characteristics and models through
which financial instruments are managed (business model). The Group has a number of subsidiaries which range from life companies,
non-life companies and CISs which are consolidated. The level at which the business model assessment is done is determined by
Group and is on a portfolio level.
Life insurance companies

Financial assets mandatorily at FVPL
All shareholder assets are managed to maximise shareholder value creation on a long-term sustainable basis through the
optimised taking or minimising of market risk borne by shareholders, across the Group. Shareholder value creation is measured on
a basis that is risk adjusted, ie returns achieved must fully compensate their associated risk profile, taking into account the earnings
at risk, economic value at risk and solvency at risk perspectives. These assets are managed on a fair value basis and are classified
mandatorily at FVPL.
Financial assets designated at FVPL
CONSOLIDATED ANNUAL
Debt securities and funds on deposit and other money market instruments that back policyholder liabilities are designated at
FVPL to eliminate or reduce accounting mismatch.
• Certain policyholder fixed income assets follow an enhanced immunisation strategy which implies that while the inherent risk
is well managed the cash flows would not be strictly matched. The strategy therefore involves buying and selling securities to
keep the risks within risk limits and to meet contractual liability flows.
• Other policyholder fixed income assets are managed in accordance with an Investment Management Agreement (IMA) that
does not allow fund managers to enter into activities which are deemed to be speculative or profit-taking in nature. These
fixed income instruments are purchased with the intent of achieving stated investment return objectives through capital
return and interest income. Portfolio managers sell these assets from time to time to honor contractual liabilities or to
manage inherent market risk factors.
Other companies
The rest of the Group’s operating activities include non-life, health and asset management services. The business model

assessments on the financial assets were done within the individual entities, using Group methodology.
Consolidated CISs
A number of CISs are consolidated into the Group. Refer to note 42 for a list of significant schemes. The majority of these
funds are held with an objective of capital growth. For those funds not held for capital growth, a look-through basis is applied to
determine the business model. The majority of the underlying assets are sold before maturity and the fund’s performance and
management fee is based on the fair value of the underlying assets and therefore have been classified mandatorily at FVPL.
Impairment
The impairment of financial assets is based on assumptions about risk of default and expected loss rates, which include the
estimation of future cash flows and the significant increase in credit risk. The Group uses judgement in making these assumptions
and selecting inputs to the impairment calculations, based on the Group’s history, existing market conditions, as well as forward-
looking estimates at the end of each reporting period. Refer to note 7.2 for more detail.


7.6 Credit risk
Refer to note 40 for detail on the credit risk management.
Credit risk exposure

The Group’s maximum exposure to credit risk, without considering any collateral or credit enhancements, is through the following
classes of assets, and is equal to their carrying amounts:
Restated
2022 20211
Rm Rm
Financial assets at FVPL
Debt securities 174 781 157 347
Stock and loans to government and other public bodies 91 417 83 819
Other debt instruments2, 3 83 364 73 528
Funds on deposit and other money market instruments3 30 160 22 649
Unit-linked investments (categorised as interest-bearing and money market – refer to note 43) 8 302 9 271
CISs3 6 805 7 527
Other unit-linked investments 1 497 1 744
Derivative financial assets – Held for trading 1 914 2 761
Financial assets at amortised cost 8 739 7 968
Accounts receivable 3 283 2 803
Loans 2 816 2 488
Receivables arising from insurance contracts, investment contracts with DPF and reinsurance
contracts 6 764 5 572
Cash and cash equivalents 28 720 36 822
Total assets bearing credit risk 260 504 246 851
1
2
Amandla Renewable Energy Fund (Pty) Ltd holds collateral in respect of preference shares held by the associated special purpose vehicle, Amandla Ilanga
(RF) (Pty) Ltd. The security has subsequently been ceded to the holder of the senior preference shares issued by the special purpose vehicle as part of
initially securing the senior funding. The material terms of the security cession include that the bare dominium in respect of the asset remains with the
cedent and the cessionary only receives the right to sell the security upon default as well as only to the extent that value is owed by the cedent in terms of
the cession agreement. The fair value of the security ceded is R600 million (2021: R591 million).
3
Upon further investigation it was concluded that funds on deposit of R643 million should have been classified as other debt instruments (R256 million) and
CISs (R386 million). June 2021 has been restated accordingly.

GROUP REPORTS
7.6 Credit risk continued
Stage 1 Stage 2 Stage 3 Total
Credit risk balances – expected credit loss Rm Rm Rm Rm
2022
Financial assets at amortised cost
Unsettled trades 1 896 – – 1 896
Accounts receivable 3 162 76 188 3 426
Provision for impairment (51) (2) (90) (143)
Debt securities 481 – – 481
Funds on deposit and other money market instruments1 149 – 145 294
Provision for impairment1 – – (31) (31)
Policy loans 1 004 – – 1 004
Due from agents, brokers and intermediaries 260 – 183 443
Provision for impairment (76) – (8) (84)
Other2 1 425 – 79 1 504
Provision for impairment2 – – (51) (51)
8 250 74 415 8 739
CONSOLIDATED ANNUAL
Restated
20213
Unsettled trades 1 854 – – 1 854
Accounts receivable 2 686 110 134 2 930
Debt securities 512 – – 512
Funds on deposit and other money market instruments 116 – 226 342
Provision for impairment – – (31) (31)
Policy loans 1 057 – – 1 057
Due from agents, brokers and intermediaries 120 22 250 392
Other 1 092 – 62 1 154
Provision for impairment (8) – (34) (42)
7 364 122 482 7 968

1
The gross carrying amount for funds on deposit and other money market instruments (stage 3) has decreased by R81 million while the expected credit loss has
remained consistent. In the prior year, an impairment was raised in respect of promissory notes held, determined based on 14% of the gross carrying amount.
As a result of partial redemptions in the current year, the expected credit loss provision represents 22% of the gross carrying amount as at 30 June 2022.

2
The gross carrying amount for other loans (stage 1) has increased by R333 million in the current year, while the associated expected credit loss decreased by
R8 million. The decrease in expected credit loss (R8 million) is driven by a corresponding decrease in the gross carrying amount (R66 million). The remaining
increase in the gross carrying amount is not accompanied by a correlated increase in the expected credit loss balance, as the majority of the increase in the
gross carrying amount relates to instruments for which the expected credit loss is considered to be immaterial.
3


The Group’s maximum exposure to credit risk balances relate to unrated counterparties, except for:
• Debt securities and funds on deposit totaling R719 million (2021: R776 million) and associated impairment of R31 million
(2021: R31 million), issued by a B-rated counterparty; and
• Debt securities and funds on deposit totaling Rnil (2021: R23 million), which relates to government stock issued by a country
with a sovereign rating of BBB.
12 month Lifetime Lifetime

expected expected expected
credit losses credit losses credit losses
(Stage 1) (Stage 2) (Stage 3) Total
Reconciliation of expected credit losses Rm Rm Rm Rm
2022
Accounts receivable
Opening balance (47) (5) (75) (127)
Transfer between stages (1) – 1 –
Movement recognised in the income statement (5) 3 (16) (18)
Other 2 – – 2
Closing balance (51) (2) (90) (143)
Related party loans
Opening balance (8) – (34) (42)
Transfer between stages 5 – (5) –
Movement recognised in the income statement 3 – (12) (9)
Closing balance – – (51) (51)
Due from agents, brokers and intermediaries
Opening balance (18) (5) (50) (73)
Transfer between stages - 5 (5) –
Movement recognised in the income statement (53) – 46 (7)
Other (5) – 1 (4)
Closing balance (76) – (8) (84)
Funds on deposit and other money market instruments
Opening and closing balance – – (31) (31)
2021
Accounts receivable
Opening balance (4) (61) (119) (184)
Transfer between stages (111) 60 51 –
Movement recognised in the income statement 67 (4) (3) 60
Other 1 – (4) (3)
Related party loans
Opening balance – – (6) (6)
Transfer between stages (5) – 5 –
Movement recognised in the income statement (3) – 2 (1)
Other – – (35) (35)
Closing balance (8) – (34) (42)
Opening balance – (4) (71) (75)
Transfer between stages (10) (1) 11 –
Movement recognised in the income statement (4) – 10 6
Other (4) – – (4)
Funds on deposit and other money market instruments
Opening balance – – – –
Movement recognised in the income statement – – (31) (31)
Closing balance – – (31) (31)
There were no significant changes to the gross carrying amounts of the financial assets during the current and prior year that
resulted in changes in the expected credit loss allowances due to significant increases in credit risk.

GROUP REPORTS
Staging definitions
Debt securities
and funds on Basis for
deposit and other Due from agents, recognition of
Unsettled trades and money market brokers and expected credit
Stage accounts receivable instruments Loans intermediaries loss provision
Stage 1 • Low risk of default • Low risk of • Loans are recoverable • Low risk of 12 months
• Strong capability default • Low risk of default default expected losses
to meet contractual • Strong capability • Strong capability to meet • Strong ability to
payments to meet contractual payments meet contractual
contractual • Repayment of interest and payments
payments capital payments in line with
terms of agreements
• No restructuring of the loan
has occurred
CONSOLIDATED ANNUAL
Stage 2 • Significant increase • Financial • Loans are recoverable • Significant Lifetime expected
in credit risk assets move to • Repayment of interest and increase in credit losses
• Repayments are stage 2 if the capital significantly in line with risk
more than 30 days instruments the terms of agreements, ie not • Repayments
and less than investment grade more than 30 days past due are more than
90 days past due falls with two • Loans have been restructured 30 days and less
rating grades due to the inability to repay than 90 days
interest and capital. The past due
requirement for a restructure
of this nature indicates
deterioration of credit quality,
which results in the loan being
classified as stage 2.
• Deterioration of credit quality
Stage 3 • Significant increase • Financial • Loans are partially recoverable • Broker balances Lifetime expected

in credit risk assets move to • Loan is in default, ie repayment are more than losses
• Repayments are stage 3 if the of interest and capital payments 90 days past due
more than 90 days instruments are not in line with the terms or where legal
past due investment of the agreement and default action has been
grade falls an relates to amounts 90 days taken
additional two past due. • Out-of-service
rating grades • Significant deterioration in brokers and
since classified credit quality financial planners
as stage 2
Written Long outstanding amounts due are evaluated on a case by case basis and would generally be written off when there is
off no alternative for the debtor to return to solvency and/or legal action taken was unsuccessful.


Significant increase in credit risk Criteria
Unsettled trades, accounts receivable, To determine a significant change in credit risk both historical data and forward
due from agents, broker and looking information is taken into account. This includes existing or expected adverse
intermediaries and loans changes in business, financial or economic conditions that are expected to cause a
significant change in the borrower’s ability to meet its debt obligations, a breach of
contract, significant changes in the value of any collateral supporting the obligation
and reductions in financial support from a parent entity.
Debt securities and funds on deposit Significant increase in credit risk means that the credit rating of the instrument has
and other money market instruments dropped by two ratings.
Financial asset Impairment information
Unsettled trades and accounts Impairment of accounts receivable is based on the recoverability of balances grouped
receivable together based on shared credit risk characteristics, eg instrument type. Balances
generally relate to amounts where the timing of settlement is within one month.
Historic payments as well as forward looking information is also taken into account.
Debt securities and funds on deposit The expected credit loss is calculated using information extracted from the reports
and other money market instruments published by the rating agencies annually.
Loans For related party loans the solvency of the counterparty is taken into account as well as
any collateral held.
Due from agents, brokers and Impairment of amounts due from agents, brokers and intermediaries is mainly due to
intermediaries intermediaries moving to out-of-service status and unproductive agent accounts.
Sensitivities
Accounts receivable and due from As most of the balances in stage 1 are short-term in nature and majority of the
agents brokers and intermediaries balance in stage 3 has been provided for, the impairment amount for stages 1 and 3
are not considered to be sensitive to changes in the forward looking information.
A deterioration of the forward looking information for balances in stage 2 is also not
expected to be material as the gross amounts are not material.
Debt securities and funds on deposit Considered to have low credit risk and therefore the expected credit loss is not
and other money market instruments considered to be sensitive.
Loans Most of the loan balances outstanding are considered to have low credit risk as the
borrower has a strong capacity to meet its obligations and has a low risk of default.
The expected credit loss is therefore not considered to be sensitive to changes in
forward looking information.

GROUP REPORTS
Credit quality
The assets in the Group’s maximum exposure table on the previous page are analysed in the table below, using national scale
long-term credit ratings issued by rating agencies, or national scale ratings generated by an internal model where rating agency
ratings are not available. The internal rating scale is based on internal definitions and influenced by definitions published by
external rating agencies including Moody’s, Standard & Poor’s (S&P) and Global Credit Rating (GCR). Refer to Annexure A for the
definitions used in this section.
AAA AA A BBB BB B C CCC Unrated Total
Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm
2022
Debt securities
Stock and loans to
government and other
public bodies1 76 998 6 926 5 091 222 825 644 145 312 254 91 417
Other debt instruments 9 876 57 727 10 289 1 819 233 282 – 100 3 038 83 364
CONSOLIDATED ANNUAL
Derivative financial assets 180 1 509 10 5 20 – – – 190 1 914
Carry positions – – – – – – – – 1 124 1 124
Debt securities and funds on
deposit and money market
instruments at amortised cost2 – – – – – 137 – 581 26 744
Cash and cash equivalents and
funds on deposit and money
market instruments 11 490 39 426 5 558 1 072 107 133 – 5 1 089 58 880
Other unrated instruments
Other financial assets at
amortised cost – – – – – – – – 7 995 7 995
Insurance and other
receivables – – – – – – – – 6 764 6 764
Unit-linked investments3 – – – – – – – – 8 302 8 302
98 544 105 588 20 948 3 118 1 185 1 196 145 998 28 782 260 504
Restated

20214
Debt securities
Stock and loans to
government and other
public bodies5 70 072 7 084 4 322 235 587 1 116 – 176 227 83 819
Other debt instruments5, 6 9 837 45 185 8 609 2 095 346 146 – 218 7 092 73 528
Derivative financial assets 201 2 315 6 2 1 – – – 236 2 761
Carry positions – – – – – – – – 4 461 4 461
Debt securities and funds on
deposit and money market
instruments at amortised cost – – – 23 – 776 – – 24 823
Cash and cash equivalents and
funds on deposit and money
market instruments6 14 653 36 507 6 202 1 047 60 248 – – 754 59 471
Other unrated instruments –
Other financial assets at
amortised cost – – – – – – – – 7 145 7 145
Insurance and other
receivables – – – – – – – – 5 572 5 572
Unit-linked investments3, 6 – – – – – – – – 9 271 9 271
94 763 91 091 19 139 3 402 994 2 286 – 394 34 782 246 851
1
Debt securities (stock and loans to government and other public bodies) were rated as AA (R145 million) in the prior year, in line with the credit rating of the
issuing entity. In the current year the issuing entity's credit rating has been downgraded to C, as such the rating assigned to the debt securities issued by this
entity (R145 million) has been updated accordingly.

2
Debt securities and funds on deposit and money market instruments at amortised cost held by the Ghanaian entities in the Group were classified as a
B credit rating at June 2021, in line with the country's sovereign rating at the time. During 2022 the country's sovereign rating changed to CCC, as a result
the credit rating of the debt securities and funds on deposit and money market instruments at amortised cost was updated accordingly.
3
Refer to note 43 for detail on unit-linked investments and note 40 for credit risk management relating to unit-linked investments.
4
5
Upon further investigation it was noted that R153 million of other debt instruments rated as BB was inappropriately classified as such and should have been
classified as stock and loans to government and other public bodies rated as BB. June 2021 has been restated accordingly.
6
Upon further investigation it was noted that cash and cash equivalents and funds on deposit and other money market instruments was inappropriately
classified as having a BB credit rating (R131 million) and an unrated credit rating (R512 million). This should have been classified as debt securities (other
debt instruments) with an A credit rating (R131 million) and an unrated credit rating (R126 million) as well as unit-linked investments with an unrated credit
rating (R386 million). June 2021 has been restated accordingly.


Credit quality of reinsurers
The table below represents the reinsured portion of all the businesses with whom the Group has reinsured of R2 478 million (2021:
R1 889 million) (included in note 7.3) as well as their respective national scale credit rating issued by rating agencies, or national
scale ratings generated by an internal model where rating agency ratings are not available:
2022 2021
Reinsured Reinsured
Reinsurer portion – % Credit rating portion – % Credit rating
Swiss Re 31% AA- 29% AA-
General Cologne Re 18% AA+ 20% AA+
Hannover Re 3% AA- 4% AA-
RGA Re 15% AA- 15% AA-
Munich Re 26% AA- 26% AA-
SCOR Re 5% AA- 5% AA-
Other 2% A 1% A
100% 100%
The following tables analyse the age of financial assets that are past due as at the reporting date but not impaired:
90 days –
0 – 90 days 1 year 1 – 5 years > 5 years Total
Rm Rm Rm Rm Rm
2022
Other receivables
Receivables arising from insurance contracts,
investment contracts with DPF and
reinsurance contracts 709 126 457 157 1 449
2021
Other receivables
reinsurance contracts 826 371 50 51 1 298
Other receivables that are past due but not impaired have not been impaired as there has been no specific and objective evidence
that has indicated that balances may not be recoverable.

GROUP REPORTS
7.7 Financial assets hierarchy
Refer to note 44 for the valuation techniques relating to this note.
The following table provides an analysis of the assets at fair value into the various levels:
Level 1 Level 2 Level 3 Total

Rm Rm Rm Rm
2022
Securities at FVPL 339 107 144 216 6 188 489 511
Unit-linked investments
CISs1
Local unlisted or listed quoted 113 859 1 214 – 115 073
Local unlisted unquoted – 16 – 16
Foreign unlisted or listed quoted 53 645 270 55 53 970
Foreign unlisted unquoted – 1 529 58 1 587
Other unit-linked investments
CONSOLIDATED ANNUAL
Local unlisted or listed quoted 3 364 1 – 3 365
Local unlisted unquoted – 6 620 3 132 9 752
Foreign unlisted or listed quoted 463 – – 463
Foreign unlisted unquoted – 96 564 660
Debt securities
Stock and loans to government and other public bodies
Local listed 70 362 10 789 1 81 152
Foreign listed 1 590 3 652 2 5 244
Unlisted – 3 650 1 371 5 021
Other debt instruments
Local listed 1 43 832 3 43 836
Foreign listed 10 3 281 64 3 355
Unlisted – 35 717 456 36 173
Equity securities
Local listed 60 522 3 1 60 526
Foreign listed 35 221 567 146 35 934

Unlisted – 27 159 186
Funds on deposit and other money market instruments – 30 155 5 30 160
Carry positions – 1 124 – 1 124
Derivative financial assets – Held for trading 70 1 673 171 1 914
339 107 144 216 6 188 489 511

1
CISs are classified as level 1 when there is an active market of transactions between investors and CISs based on a published price.
There were no significant transfers in and out of level 1 and 2 respectively in the current year.


7.7 Financial assets hierarchy continued
Rm Rm Rm Rm
Restated
20211
Securities at FVPL 333 827 132 153 5 382 471 362
CISs2
Local unlisted or listed quoted3, 4, 5, 6 112 026 1 182 – 113 208
Local unlisted unquoted – 17 – 17
Foreign unlisted or listed quoted7 49 432 51 58 49 541
Foreign unlisted unquoted8 – 1 161 263 1 424
Local unlisted or listed quoted4 3 330 2 – 3 332
Local unlisted unquoted5 – 7 542 2 427 9 969
Foreign unlisted or listed quoted7 187 108 54 349
Foreign unlisted unquoted8 3 948 190 1 141
Debt securities
Stock and loans to government and other public bodies
Local listed 62 641 11 111 820 74 572
Foreign listed 1 775 3 220 2 4 997
Unlisted9 – 3 578 672 4 250
Other debt instruments
Local listed6, 10 – 39 868 103 39 971
Foreign listed – 2 506 64 2 570
Unlisted9 – 30 675 312 30 987
Equity securities
Local listed 68 291 3 1 68 295
Foreign listed 36 101 517 128 36 746
Unlisted – 17 105 122
Funds on deposit and other money market instruments6 – 22 644 5 22 649
Derivative financial assets – Held for trading 41 2 542 178 2 761
333 827 132 153 5 382 471 362

1
Refer to note 47 for more information on the restatements other than footnotes 3, 4, 5, 6, 7, 8, 9 and 10.
2
CISs are classified as level 1 when there is an active market of transactions between investors and CISs based on a published price.
3
Upon further interrogation is was noted that R280 million local unlisted or listed quoted CISs were inappropriately classified as level 1 and should have been
classified as level 2. June 2021 has been restated accordingly.
4
Upon further interrogation it was noted that R17 million local unlisted or listed quoted other unit-linked investments included in level 2 was inappropriately
classified as such and should have been classified as local unlisted or listed quoted CISs included in level 1. June 2021 has been restated accordingly.
5
Upon further interrogation it was noted that R33 million local unlisted unquoted other unit-linked investments included in level 3 was inappropriately
classified as such and should have been classified as local unlisted or listed quoted CISs included in level 1. June 2021 has been restated accordingly.
6
Upon further interrogation it was concluded that funds of deposit of R643 million included in level 2 should have been classified as debt securities
(R256 million) included in level 2 and CIS (R386 million) included in level 1. June 2021 has been restated accordingly.
7
Upon further interrogation is was noted that R108 million foreign unlisted or listed quoted CISs inlcuded in level 2 was inappropriately classified as such and
should have been classified as foreign unlisted or listed quoted other unit-linked investments included in level 2. June 2021 has been restated accordingly.
8
Upon further interrogation it was noted that R932 million foreign unlisted unquoted CISs included in level 2 was inappropriately classified as such and should
have been classified as foreign unlisted unquoted other unit-linked investments included in level 2. June 2021 has been restated accordingly.
9
Upon further interrogation it was noted that R153 million unlisted other debt instruments included in level 2 was inappropriately classified as such and
should have been classified as unlisted stock and loans to government and other public bodies included in level 3. June 2021 has been restated accordingly.
10
Upon further interrogation it was noted that R94 million local listed other debt instruments was inappropriately included in level 2 and should have been
included in level 3. June 2021 has been restated accordingly.
There were no further significant transfers in and out of level 1 and 2 respectively in the prior year.

GROUP REPORTS
The following table provides a reconciliation of the fair value of the level 3 assets:
At FVPL
Funds
on deposit
and other Derivative
Unit-linked Debt Equity money market financial
investments securities securities instruments assets Total
Rm Rm Rm Rm Rm Rm
2022
Opening balance 2 992 1 973 234 5 178 5 382
Total gains/(losses) in net
realised and unrealised fair
value gains in the income
statement
Realised gains/(losses) 107 17 (49) – – 75
Unrealised gains/(losses) 998 (39) 39 – 3 1 001
Foreign exchange adjustments (3) – 1 – 2 –
CONSOLIDATED ANNUAL
Accrued interest in investment
income in the income
statement – 56 – – – 56
Other (4) (3) – – – (7)
Purchases 459 865 176 – – 1 500
Sales (284) (917) (133) – – (1 334)
Settlements (464) (68) – – (12) (544)
Transfers into level 3 from
level 21 8 13 69 – – 90
Transfers out to level 22 – – (31) – – (31)
Closing balance 3 809 1 897 306 5 171 6 188
Restated
20213
Opening balance 2 667 1 166 296 5 – 4 134
Transfer to assets relating to
disposal groups held for sale (10) – – – – (10)
Transfer from other asset

classes – – – – 4 4
Total gains/(losses) in net
realised and unrealised fair
value gains in the income
statement
Realised (losses)/gains (35) 6 (6) – – (35)
Unrealised gains/(losses) 109 (211) (74) – 181 5
Foreign exchange adjustments (4) – (19) – (7) (30)
Accrued interest in investment
income in the income
statement – 47 – – – 47
Purchases 626 1 281 42 – – 1 949
Sales (343) (862) (1) – – (1 206)
Settlements (10) (279) – – – (289)
Transfers into level 3 from level 14 – – 1 – – 1
Transfers into level 3 from level 24 25 825 33 – – 883
Transfers out to level 22 – – (38) – – (38)
Transfers out to level 15 (33) – – – – (33)
Closing balance 2 992 1 973 234 5 178 5 382
1
Level 2 equity securities (R52 million) were transferred to level 3 as the instrument's price was stale for more than 30 days.
2
Transfers out to level 2 relates mainly to assets with inputs to valuation techniques that are no longer stale.
3
4
Transfers into level 3 equity securities and unit-linked investments relates mainly to assets with stale prices. Debt securities of R759 million were transferred
from level 2 to level 3 in June 2021 as a result of fair value adjustments processed due to recoverability and credit risk. The remaining debt securities which
were transferred in June 2021 related to instruments with stale prices.

5
Upon further investigation it was noted that R33 million other unit-linked investments included in level 3 was inappropriately classified as such and should
have been classified as local unlisted or listed quoted CIS included in level 1. June 2021 has been restated accordingly.
The amount of total gains and losses for the year included in net realised and unrealised fair value gains in the income statement
for assets held at the end of the year is R960 million (2021: R24 million) for the Group.
Transfers in and out of level 3 are deemed to have occurred at inception of the reporting period at fair value.


Sensitivity of significant level 3 financial assets measured at fair value to changes in key assumptions:
At FVPL
Unit-linked Debt
investments securities
Rm Rm
2022
Assumption change 10% increase/ 1% increase/
(decrease) (decrease)
in unit price in discount rates
Effect of increase in assumption 381 1
Effect of decrease in assumption (381) 3
Restated
20211, 2
Assumption change 10% increase/ 1% increase/
(decrease) (decrease)
in unit price in discount rates
Effect of increase in assumption 299 3
Effect of decrease in assumption (299) (13)
1
Level 2 debt securities were reclassified to level 3 debt securities as through further interrogation it was deemed more appropriate.
2
The carrying amount on which the assumptions are applied has been corrected. June 2021 sensitivities have been restated accordingly.
The following table provides an analysis of the fair value of financial assets not carried at fair value in the statement of financial position:
Restated
2022 20211
Carrying Carrying
amount Fair value amount Fair value
Rm Rm Rm Rm
Financial assets at amortised cost 8 739 8 739 7 968 7 968
Unsettled trades 1 896 1 896 1 854 1 854
Accounts receivable 3 283 3 283 2 803 2 803
Debt securities 481 481 512 512
Funds on deposit and other money market instruments 263 263 311 311
Loans 2 816 2 816 2 488 2 488
Insurance and other receivables (excluding accelerated rental
income and prepayments) 6 861 6 861 5 613 5 613
Cash and cash equivalents 28 720 28 720 36 822 36 822
44 320 44 320 50 403 50 403
1
Calculation of fair value

• For unsettled trades, accounts receivable, debt securities, funds on deposit and other money market instruments, loans, insurance
and other receivables and cash and cash equivalents, the carrying amount approximates fair value due to their short-term nature.
• For policy loans, the fair value of R958 million (2021: R1 023 million) is the discounted amount of the estimated future cash
flows to be received, based on monthly repayments of between 15 and 30 months. The expected cash flows are discounted
using a rate of 12.02% (2021: 10.5%). The fair value for policy loans are level 2.

8 REINSURANCE CONTRACT ASSETS
GROUP REPORTS
Restated
2022 20211
Rm Rm
Reinsurance asset relating to cell captive business 10 671 3 472
Reinsurance asset relating to long-term insurance 3 229 2 399
Prepaid reinsurance 1 076 978
14 976 6 849
Balance at beginning 6 849 6 142
Movement charged to income statement 897 142
Attributable to non-cell captive business 753 279
Attributable to cell captive business 144 (137)
Cell captive premiums – 35
First-party cell captives 1 (92)
CONSOLIDATED ANNUAL
Third-party cell captives 711 215
Promoter2 6 638 237
Other (151) 98
Balance at end 14 976 6 849
Current 13 281 5 530
14 976 6 849
1
2
In prior year, the Promoter business amount was included in the First-party cell captives balance and this year, we have created a line for Promoter business
since the balance has moved significantly. Promoter business includes contingency policies, and policies where the company accepts insurance and
reinsurance inwards risks directly.
A significant claim of R6.9 billion was received following the floods in KwaZulu-Natal during April 2022. This claim is fully

reinsured. Towards the end of June 2022, an amount of R1.7 billion was received from the reinsurer and paid to the client. At
30 June 2022, the outstanding gross claim estimate is R5.2 billion.
Refer to note 11 for relevant assumptions and estimates applied in valuation of the reinsurance assets.
Amounts due from reinsurers in respect of claims incurred by the Group on contracts that are reinsured are included in insurance
and other receivables. Refer to note 7.3.

9 INSURANCE CONTRACTS
Restated
2022 20211
Rm Rm
9.1 Long-term insurance contracts
9.1.1 Long-term insurance contract liabilities 123 636 125 899
9.1.2 Liabilities to third-party cell captive owners 2 589 3 019
126 225 128 918
Current 38 908 42 365
126 225 128 918
Movement in long-term insurance contracts

9.1.1 Long-term insurance contract liabilities
Transfer (from)/to policyholder liabilities under insurance contracts (2 365) 13 706
(Decrease)/Increase in retrospective liabilities (548) 4 886
Unwind of discount rate 3 625 2 552
Expected release of margins (3 408) (3 548)
Expected cash flows (7 243) (4 990)
Change in economic assumptions (176) 2 188
Change in non-economic assumptions (352) 1 003
New business 6 862 5 919
Experience variances (1 033) 5 694
Other (92) 2
Revaluation liability – 58
Other 136 21
Exchange differences (34) (425)
9.1.2 Liabilities to third-party cell captive owners

Charge to the income statement (915) (707)
Net insurance related cash flows 6 079 4 859
Dividends paid to cell owners (3 358) (1 129)
Changes in share capital and other items relating to cell captives2 (2 236) (1 852)
1
2
Relates mainly to cell captive expenses including binder fees, administration fees and commission and includes net proceeds in share issues of R143 million
(2021: R41 million).

9 INSURANCE CONTRACTS CONTINUED
GROUP REPORTS
Restated
2022 20211
Rm Rm
9.2 Non-life insurance contracts
9.2.1 Unearned premium provision 7 749 6 664
9.2.2 Outstanding claims 11 413 4 055
9.2.3 Liabilities to third-party cell captive owners 2 990 2 845
Total 22 152 13 564
Current 18 905 10 634
22 152 13 563
Movement in non-life insurance contracts
9.2.1 Unearned premium provision
Movement in unearned premium provision
CONSOLIDATED ANNUAL
Premium income received 9 199 6 950
Recognition of premium income (8 049) (6 142)
Other (77) (3)
9.2.2 Outstanding claims

Increase in outstanding claims 7 272 487
Other 58 43
A significant claim of R6.9 billion was received following the floods in KwaZulu-Natal

during April 2022. This claim is fully reinsured. Towards the end of June 2022, an amount
of R1.7 billion was received from the reinsurer and paid to the client. At 30 June 2022, the
outstanding gross claim estimate is R5.2 billion.
9.2.3 Liabilities to third-party cell captive owners

Charge to the income statement (97) (108)
Cell tax (275) (271)
Net fair value gains on assets at FVPL 178 163
Cell captive income 1 103 1 091
Net cash flows 182 (6)
Dividends paid (1 080) (766)
1
Refer to note 11 for the assumptions and estimates used.


10 INVESTMENT CONTRACTS
Restated
2022 20211
Rm Rm
10.1 Investment contracts with DPF 3 031 19 222
10.2 Investment contracts designated at FVPL 318 758 292 500
10.2.1 Investment contract liabilities designated at FVPL 307 867 283 414
10.2.2 Liabilities to first-party cell captive owners 10 891 9 086
Total investment contract liability 321 789 311 722
Movement in investment contracts with DPF

10.1 Investment contracts with DPF
Reclassification to investment contracts designated at FVPL2 (14 547) –
Transfer (from)/to policyholder liabilities under investment contracts with DPF (1 644) 763
(Decrease)/Increase in retrospective liabilities (1 511) 790
Unwind of discount rate 30 5
Expected release of margins (40) (31)
Expected cash flows 8 37
Change in non-economic assumptions (141) (17)
New business 1 3
Experience variances 9 (24)
Other – 144
Exchange differences – (5)
Current 1 586 17 648
3 031 19 222
1
2
As a result of an update to legislation, namely FSCA Standard 5 of 2020, certain investment contracts that
were previously classified as investment contracts with DPF were reclassified to investment contracts
designated at FVPL. The update in the legislation resulted in a modification to the contract which resulted in
the derecognition of investment contracts with DPF and recognition of investment contracts designated at FVPL.
Movement in investment contracts designated at FVPL

10.2 Investment contracts designated at FVPL
10.2.1 Investment contract liabilities designated at FVPL
Contract holder movements 9 633 31 861
Deposits received 47 239 42 898
Contract benefit payments (44 240) (41 587)
Fees on investment contracts (3 308) (2 919)
Fair value adjustment to policyholder liabilities under investment contracts2 10 711 33 628
Other (769) (159)
Reclassification from investment contracts with DPF3 14 547 –
1
2
The decrease is mainly due to decrease in fair value gains on the assets backing the investment contract policies.
3
As a result of an update to legislation, namely FSCA Standard 5 of 2020, certain investment contracts that were previously classified as investment
contracts with DPF were reclassified to investment contracts designated at FVPL. The update in the legislation resulted in a modification to the contract
which resulted in the derecognition of investment contracts with DPF and recognition of investment contracts designated at FVPL.

10 INVESTMENT CONTRACTS CONTINUED
GROUP REPORTS
10.2 Investment contracts designated at FVPL continued
10.2.2 Liabilities to first-party cell captive owners
Restated
2022 20211
Rm Rm
Contract holder movements 1 643 (278)
Deposits received 1 078 1 339
Contract benefit payments (586) (1 827)
Fees on investment contracts (101) (85)
Fair value adjustment to policyholder liabilities under investment contracts 173 564
Cell captive income (89) (49)
Changes in share capital, dividends and other items relating to cell captives2 1 168 (220)
CONSOLIDATED ANNUAL
Current 313 009 151 185
318 758 292 500
1
2
Includes net proceeds in share issues of R299 million (2021: R45 million) and dividend distributions of R25 million (Restated 2021: R454 million) and Other
items relating to cell captives R1 142 million (Restated 2021: 189 million). The increase in Other items relating to cell captive is due to increase in net assets
of the first party cells, which is a function of the results thereof.
The instruments in note 10.2 would have been classified as financial liabilities at amortised cost under IFRS 9 had they not been
designated at FVPL.
For the IFRS 7 disclosures relating to investment contracts, refer to note 12.4.
Refer to note 11 for the assumptions and estimates used.

11 CONTRACT HOLDER LIABILITIES – ASSUMPTIONS AND ESTIMATES
The actuarial value of policyholder liabilities arising from long-term insurance contracts is determined using the FSV method as
described in the actuarial guidance note SAP 104 of ASSA – Calculation of the value of the assets, liabilities and solvency capital
requirement of long-term insurers. The valuation of contract holder liabilities is a function of methodology and assumptions. The
methodology is described in the accounting policies in note 48.10.
The assumptions are set as follows:
• The best estimate for a particular assumption is determined.

• Prescribed margins are then applied, as required by SAP 104.
• Discretionary margins are applied where the prescribed compulsory margins are deemed insufficient in a particular case in
relation to prevailing uncertainty or for the prudent release of profit.
The liabilities at 30 June 2022 would have been R6 854 million (2021: R8 901 million) lower for the Group without the discretionary
margins. This impact is shown gross of transfer tax.

11 CONTRACT HOLDER LIABILITIES – ASSUMPTIONS AND ESTIMATES CONTINUED

The process used to decide on best-estimate assumptions is described below:
Mortality
• Individual smoothed bonus and non-profit business: Mortality assumptions are based on internal investigations into mortality
experience. These are monitored annually, more recent experience that includes the impact of Covid-19 has been excluded when
setting long-term assumptions.
• Conventional with-profit business (excluding home service funeral business): Regular mortality investigations are carried out, with the
most recent investigations being in respect of the period ended June 2020 for MML retail businesses.
• Home service business: Mortality assumptions are based on internal investigations into mortality experience, with the most recent
investigation being for the period 2011 to 2016 for Metropolitan Life business.
• Annuity business: Mortality assumptions for Metropolitan Life annuity business are based on internal experience investigations. The
Momentum Investments annuitant mortality basis is derived from the RMV 92, RFV 92 and 2002 South African Annuitant standard
mortality tables, adjusted for experience. Mortality assumptions for employee benefits contracts within the Momentum Corporate
segment are based on the 2002 South African Annuitant mortality tables adjusted for experience. The most recent investigation was
in respect of the period to December 2020. An explicit allowance is made for mortality improvements.
Morbidity
• Internal morbidity and accident investigations on retail contracts are done regularly, the most recent being in respect of the period
ended June 2020 for Momentum Life. For Metropolitan Life exposure is extremely low and morbidity rates are derived through
collaboration with reinsurers.
• For individual Permanent Health Insurance business, disability claim recovery probabilities are based on recovery rates provided
by reinsurers.
• For benefits under employee benefit contracts within the Momentum Corporate segment, disability claim recovery probabilities
are modelled using the Group Long-term Disability Table (GLTD) developed in the United States of America. The table details
recovery rates for given ages, elimination periods and durations since disability. These recovery rates are then adjusted for the
Group’s own experience. The most recent investigation was in respect of the period ended December 2020.
Persistency
• Lapse and surrender assumptions are based on past experience. When appropriate, account is also taken of expected future
trends (including the effect of expected premium reviews).
• Lapse investigations are performed at least annually for MML retail business, the most recent being in respect of the
period ended December 2021 for Metropolitan Life business and June 2021 for Momentum Life and Investments business
(December 2021 for protection business).
• Surrender investigations are performed at least annually for MML retail business, the most recent being in respect of the period
ended February 2022 for Metropolitan Life business and June 2021 for Momentum Life and Investments business (December
2021 for protection business).
• Experience is analysed by product type as well as policy duration, distribution channel and smoker status.
Expenses
Expenses are allocated into three major categories, namely new business, maintenance and development and project expenses.
Expenses are allocated into these categories, as well as per segment and product, using a variety of methods. These methods
include direct allocations according to function and/or operational structure, functional cost analyses as well as pre-defined cost
allocation models.
• Provision for future renewal expenses starts at a level consistent with the budgeted expense for the 2023 financial year and
allows for escalation at the assumed expense inflation rate.
• Asset management expenses are expressed as an annual percentage of assets under management.

GROUP REPORTS
Investment returns and inflation
• Market-related information is used to derive assumptions in respect of investment returns, discount rates used in calculating
contract holder liabilities and renewal expense inflation.
• These assumptions take into account the notional long-term asset mix backing each liability type and are suitably adjusted for tax
and investment expenses.
• Yields of appropriate duration from an appropriate market-related yield curve as at the valuation date are used to discount expected
cash flows at each duration. The yield curve used is based on fixed or CPI-linked risk-free securities and, depending on the nature of
the corresponding liability, adjusted for credit and liquidity spreads of the assets actually held in the underlying portfolio.
• Investment returns for other asset classes are set as follows:
– Equity rate: gilt rate +3.5% (2021: +3.5%)
– Property rate: gilt rate +1.0% (2021: +1.0%)
– Corporate bonds: gilt rate +0.5% (2021: +0.5%)
– Cash rate: gilt rate -1.0% (2021: -1.0%)
• An inflation rate of 5% p.a. (2021: 5% p.a) for ZAR-denominated business is used to project future renewal expenses over the
CONSOLIDATED ANNUAL
planning horizon (three years) whereafter the inflation rate is derived from market inputs as the difference between nominal
and real yields across the term structure of these curves. The 7.7% (2021: 6.5%) in the table below represents the 10-year point
of the yield curves. An addition to the expense inflation is allowed for in some divisions to reflect the impact of closed books
that are in run-off.
• The main best-estimate investment assumptions, gross of tax, used in the valuation are:
2022 2021
RDR 14.4% 12.8%
Gilt rate – risk-free investment return 12.0% 10.4%
Assumed investment return for individual smoothed bonus business 14.2% 12.6%
Renewal expense inflation rate 7.7% 6.5%
Future bonuses
• Contract holders’ reasonable benefit expectations are allowed for by assuming bonus rates supported by the market value of

the underlying assets and the assumed future investment return.
•
For smoothed bonus business, where bonus stabilisation accounts (BSAs) are negative, liabilities are reduced by an amount
that can reasonably be expected to be recovered through under-distribution of bonuses during the ensuing three years.
These amounts are determined by projecting BSAs three years into the future using assumed investment returns as per the
valuation basis, net of applicable taxes and charges, as well as assumed bonus rates that are lower than those supported by
the assumed investment return but nevertheless consistent with the bonus philosophies of the relevant funds. The assumed
bonus rates are communicated to, and accepted by, both management and the respective boards of directors.
• For conventional with-profit business, all future bonuses are provided for at bonus rates supported by the market value of
the underlying assets and the assumed future investment return. Any resulting reduction in future bonus rates used in the
valuation assumptions, relative to those most recently declared, is communicated to, and accepted by, both management and
the respective boards of directors at each annual bonus declaration.
Investment guarantees (APN 110)

• Market-consistent stochastic models were calibrated using market data as at 30 June 2022. The value of the investment
guarantee liabilities was calculated as at this date.
• APN 110 prescribes specific disclosure in respect of the market-consistent stochastic models that were used to calculate the
liabilities. The disclosure is set out below.
The following table discloses specific points on the zero coupon yield curve used in the projection of the assets as at 30 June:
Year 1 2 3 4 5 10 15 20 25 30 35 40
2022 6.8 7.6 8.3 9.1 9.7 12.1 12.8 13.0 12.9 12.6 12.3 11.9
2021 4.9 5.6 6.3 6.9 7.6 10.3 11.9 12.5 12.5 12.3 11.8 11.4


Investment guarantees (APN 110) continued
The following instruments have been valued by the model:
2022 2021
Price (% Price (%
Instrument of nominal) Volatility of nominal) Volatility
A 1-year at-the-money (spot) put on the Financial Times Stock
Exchange (FTSE)/JSE Top 40 index 8.3% 26.0% 7.1% 21.3%
A 1-year put on the FTSE/JSE Top 40 index, with a strike price
equal to a 0.8 (2021: 0.8) of spot 2.8% 30.2% 1.8% 25.0%
equal to a forward of 1.0357 (2021: 1.024) 9.7% 25.2% 8.1% 20.9%
A 5-year at-the-money (spot) put on the FTSE/JSE Top 40 index 5.9% 23.6% 7.0% 21.7%
equal to (1.04)5 (2021: (1.04)5) of spot 10.9% 22.4% 12.9% 20.2%
A 20-year at-the-money (spot) put on the FTSE/JSE
Top 40 index 0.4% 25.0% 0.4% 25.0%
equal to (1.04)20 (2021: (1.04)20) of spot 2.3% 24.0% 2.6% 23.8%
A 5-year put, with a strike price equal to (1.04)5 of spot, on an
underlying index constructed as 60% FTSE/JSE Top 40 and 40%
ALBI, with rebalancing of the underlying index back to these
weights taking place annually 4.2% 13.9% 6.1% 12.7%
A 20-year put on an interest rate with a strike price equal to the
present 5-year forward rate at maturity of the put, which pays
out if the 5-year interest rate at the time of maturity (in 20 years)
is lower than this strike price 0.1% N/A 0.2% N/A
Tax
• Future tax on investment returns is allowed for, according to current five-fund tax legislation, by appropriately reducing the
gross valuation interest rate expected to be earned in the future on the various books of business.
• A long-term assumption is made for assumed future tax relief on expenses, based on past experience and expected future trends.
• No value has been attributed to any assessed losses in the contract holder tax funds.
Provisions for Covid-19

The Group has considered the possible impact of the Covid-19 pandemic. It has reviewed recent claims experience, and publicly
available infection and excess death data.
The expected impact of the pandemic has led to changes in the applicable mortality assumptions for F2023 that are used in
the valuation basis of the life insurance operations of the Group. Morbidity and terminations assumptions were left unchanged.
The impact of claims on non-life insurance business in Guardrisk has also been considered.
Taking into account the observed progression of the pandemic, and the prevailing uncertainty regarding its future course, it
was decided to allow for a series of mild Covid-19 waves over the next two years (or limited to the contract boundary of the
business if shorter). The assumed severity of the projected waves was based on the most recent waves as experienced over
the previous six months by each segment.
The resultant mortality assumptions thus differ between segments. As trends in Covid-related claims experience and policyholder
behaviour continue to evolve, the Group will continue to evaluate and assess the assumptions used in the valuation basis.

GROUP REPORTS
Provisions for Covid-19 continued
The Covid-19 provision was increased during the current year by the net of tax amount of R107 million (2021: 2 305 million
increase), while existing provisions of R1 763 million (2021: R1 193 million) were released. The overall net impact is an increase
in the Group’s normalised headline earnings for the year of R1 656 million (2021: R1 046 million decrease). This led to the total
embedded value increasing by R1 656 million (2021: R648 million reduction).
The impacts by segment are shown in the table below:
Impact of provisions for Covid-19 on:

Normalised headline earnings
Non-life Embedded Embedded
insurance Termina- Total value NHE impact value
Mortality Morbidity claims tions 2022 Total 2022 Total 2021 Total 2021
Rm Rm Rm Rm Rm Rm Rm Rm
Provision balance at
beginning of the year 1 854 71 54 50 2 029 2 029 983 1 381
CONSOLIDATED ANNUAL
Release of provision
during the year (1 639) (62) (36) (26) (1 763) (1 763) (1 193) (1 591)
Momentum Life (689) (26) – (1) (716) (716) (346) (460)
Metropolitan Life (283) – – (24) (307) (307) (169) (169)
Momentum Corporate (610) (36) – – (646) (646) (568) (852)
Momentum Metropolitan
Africa (57) – – (1) (58) (58) (73) (73)
Non-life Insurance – – (36) – (36) (36) (37) (37)
Additional provision
during the year 87 – – – 87 87 2 305 2 305
Momentum Life 64 – – – 64 64 747 747
Metropolitan Life – – – – – – 386 386
Momentum Corporate – – – – – – 1 026 1 026
Momentum Metropolitan

Africa 23 – – – 23 23 93 93
Non-life Insurance – – – – – – 53 53
Change in annuitant
reserve during the year 20 – – – 20 20 (66) (66)
Total change in provision (1 532) (62) (36) (26) (1 656) (1 656) 1 046 648
Provision at 30 June 2022 322 9 18 24 373 373 2 029 2 029
Where pricing assumptions were adjusted in response to the Covid-19 pandemic, the assumptions used in the valuation of
contract holder liabilities were adjusted as required to reflect a best-estimate view of the future and prevent the premature
recognition of profit.
Non-life insurance claims

Previous provisions made by Guardrisk to deal with claims related to business interruption as a result of the Covid-19 lock down
regulations were adequate and claims largely been settled.
The overall exposure relating to Covid-19 for Momentum Insure business interruption claims as accounted for at the end of
June 2021 (approx. R38 million) remained unchanged with corresponding movement from IBNR to OCR and paid levels during
the financial year.


Basis and other changes
Assumptions and methodologies used in the FSV basis are reviewed at the reporting date and the impact of any resulting changes
in actuarial estimates is reflected in the income statement as they occur. An exception to this is the impact of changes in the
valuation discount rate, consequent changes in the assumed level of renewal expense inflation or bonuses and investment over
or underperformance in respect of non-linked business, which is treated in accordance with the stabilisation policy as described in
the accounting policies in note 48.10.
• Basis and other changes decreased the excess of assets over liabilities at 30 June 2022 by R647 million (2021: R2 470 million)
for the Group. The major contributors to this change were as follows:
– Actuarial methodology changes and corrections (other changes) - positive R869 million (2021: positive R185 million).
Methodology changes consist mainly of reserve release as a result of a number of modelling improvements and
refinements as well as a net positive impact from a number of parameter and assumption updates.
– Experience basis changes - negative R174 million (2021: negative R2 609 million). The experience basis changes are in
respect of withdrawal, expense and mortality assumptions. A significant portion of the current year changes relates to the
alignment of Protection business lapse rates with the pricing assumptions, offset by a release of the Covid-19 provision and
a positive change in respect of future expense assumptions.
– Economic assumption changes - negative R47 million (2021: negative R46 million). The economic assumption changes
are in respect of future investment returns, bonus and inflation assumptions as well as the difference between actual and
expected investment returns on non-profit business.
Sensitivity analysis
The sensitivity of the value of contract holder liabilities to movement in the assumptions is shown in the table below. In each
instance, the specified assumption changes while all the other assumptions remain constant.
The numbers in the table demonstrate the impact on liabilities if experience deviates from best-estimate assumptions by the
specified amount in all future years.
Discontinu-
Renewal Expense ance Mortality and Investment
expenses inflation rates morbidity returns
decrease decreases decrease decrease reduce
Liability by 10% by 1% by 10% by 5% by 1%
Rm Rm Rm Rm Rm Rm
2022
Insurance business
Retail insurance business (excluding
annuities) 63 551 61 945 62 319 64 031 60 101 65 413
Annuities (retail and employee benefits) 58 178 57 997 58 024 58 178 58 762 60 913
Employee benefits business (excluding
annuities) 2 277 2 273 2 275 2 277 2 281 2 304
Investment with DPF business 3 031 3 013 3 023 3 031 3 031 3 039
Investment business 296 241 296 222 296 232 296 245 296 240 298 952
Subtotal 423 278 421 450 421 873 423 762 420 415 430 621
Cell captive and non-life business 46 896
Total 470 174 421 450 421 873 423 762 420 415 430 621
Restated
20211
Insurance business
Retail insurance business (excluding
annuities) 66 847 65 221 65 712 67 359 63 319 68 204
Annuities (retail and employee benefits) 56 439 56 260 56 290 56 439 57 024 59 037
Employee benefits business (excluding
annuities) 3 140 3 138 3 140 3 145 3 145 3 282
Investment with DPF business 19 222 19 203 19 213 19 221 19 221 19 402
Investment business 273 777 273 755 273 767 273 783 273 777 276 136
Subtotal 419 425 417 577 418 122 419 947 416 486 426 061
Cell captive and non-life business 34 785
Total 454 210 417 577 418 122 419 947 416 486 426 061
1
The impact of the reduction in the assumed investment return includes the consequent change in projected bonus rates, discount
rates and the assumed level of renewal expense inflation.

GROUP REPORTS
Sensitivity analysis continued
The sensitivities were chosen because they represent the main assumptions regarding future experience that the Group employs
in determining its insurance liabilities. The magnitudes of the variances were chosen to be consistent with the sensitivities shown
in the Group’s published EV report and also to facilitate comparisons with similar sensitivities published by other insurance
companies in South Africa.
It is not uncommon to experience one or more of the stated deviations in any given year. There might be some correlation
between sensitivities; for instance, changes in investment returns are normally correlated with changes in discontinuance rates.
The table on the previous page shows the impact of each sensitivity in isolation, without taking into account possible correlations.
The table does not show the financial impact of variances in lump sum mortality and morbidity claims in respect of employee
benefits business because of the annually renewable nature of this class of insurance. An indication of the sensitivity of financial
results to mortality and morbidity variances in this class of business can be obtained by noting that a 5% (2021: 5%) increase
in mortality and morbidity lump sum benefits paid on employee benefits business in any given year will result in a reduction of
R164 million (2021: R198 million) in the before-tax earnings of the Group.
CONSOLIDATED ANNUAL
It should be pointed out that the table shows only the sensitivity of liabilities to changes in valuation assumptions. It does not fully
reflect the impact of the stated variances on the Group’s financial position. In many instances, changes in the fair value of assets
will accompany changes in liabilities. An example of this is the annuity portfolio, where assets and liabilities are closely matched.
A change in annuitant liabilities following a change in long-term interest rates will be countered by an almost equal change in the
value of assets backing these liabilities, resulting in a relatively modest overall change in net asset value.
12 FINANCIAL LIABILITIES
The Group classifies its financial liabilities into the following categories:
• Financial liabilities at FVPL

• Financial liabilities at amortised cost

The classification depends on the purpose for which the financial liabilities were acquired. Management determines the
classification of its financial liabilities at initial recognition.
Restated
2022 20211
Rm Rm
The Group’s financial liabilities are summarised below:
12.1 Financial liabilities at FVPL 48 141 51 013
12.2 Financial liabilities at amortised cost 4 336 4 164
12.3 Other payables (excluding premiums paid in advance and deferred revenue
liability (DRL)) 17 628 15 238
70 105 70 415
12.1 Financial liabilities at FVPL
CIS liabilities 30 782 29 372
Subordinated call notes 5 327 4 429
Derivative financial liabilities (refer to note 7.1) 3 039 3 993
Preference shares issued by subsidiaries 337 357
Other borrowings 933 1 170
48 141 51 013
Current 40 217 42 720

48 141 51 013
1

12 FINANCIAL LIABILITIES CONTINUED

12.1 Financial liabilities at FVPL continued
• The change in the fair value of financial liabilities designated at FVPL due to own credit risk amounted to a loss of R26 million
(2021: a loss of R90 million). This was calculated by measuring the daily changes in the instrument's credit spreads against the
equivalent risk-free assets and then accumulating the impact of the changes in the market value for the period. The difference
between the fair value of the subordinated call notes and the contractual amount required to pay at maturity is R77 million
(2021: R179 million).
• CIS liabilities – certain CISs have been classified as investments in subsidiaries; refer to note 42. Consequently, scheme
interests not held by the Group are classified as third–party liabilities as they represent demand deposit liabilities measured at
fair value.
• Subordinated call notes (unsecured) – the PA granted approval for MML to raise debt issuances. MML has sufficient cash to
cover the debt. On 25 May 2022, MML listed two new subordinated debt instruments to the combined value of R1 billion on
the JSE Ltd. A fair value gain of R134 million (2021: a loss of R82 million) was recognised in profit or loss. During the current
year, R26 million (2021: a loss of R90 million) fair value loss was recognised on the subordinated call notes which has been
accounted for in other comprehensive income. These fair value losses were offset by other market factors. Refer to note 36
for more detail. (cash flow interest rate risk)
• Carry positions (secured) – this relates to a carry position reported by the Group that represents a sale and repurchase
of assets in specific group annuity portfolios. These carry positions are secured by government stock with a value of
R8 491 million (2021: R9 492 million). Offsetting has not been applied. (fair value interest rate risk)
• The preference shares issued by subsidiaries relate to senior variable rate cumulative redeemable preference shares issued to
external parties by Amandla Renewable Energy Fund (Pty) Ltd, an asset holding entity. These preference shares are measured
at fair value in order to eliminate an accounting mismatch. There is no recourse to the MMH Group in case of default on these
preference shares. (cash flow interest rate risk)
• The Amandla Renewable Energy Fund (Pty) Ltd holds collateral in respect of preference shares held by, the associated
special purpose vehicle, Amandla Ilanga (RF) (Pty) Ltd. The security has subsequently been ceded to the holder of the senior
preference shares issued by the special purpose vehicle as part of initially securing the senior funding. The material terms of
the security cession include that the bare dominium in respect of the asset remains with the cedent and the cessionary only
receives the right to sell the security upon default as well as only to the extent that value is owed by the cedent in terms of the
cession agreement. The fair value of the security ceded is R600 million (2021: R591 million).
• Other borrowings - non-controlling interests of 25% of Cannon Life Assurance (Pty) Ltd and Cannon General Insurance (Pty) Ltd
have the option to sell their shares to the Group from 3 October 2016 at a price linked to EV. In terms of IFRS, the Group has
recognised a financial liability of R94 million (2021: R103 million), being the present value of the estimated purchase price, for
exercising this option. The Group has consolidated 96% of the subsidiaries' results.
Other borrowings also include outstanding contingent consideration of R33 million (2021: R118 million) relating to the
acquisition of subsidiaries in the prior year. The majority of the balance relates to the Seneca acquisition. (no interest rate risk)
Other borrowings also include financed trades of R377 million (2021: R427 million) and short positions in respect of
government stock of R383 million (2021: R294 million) recognised as a result of the Group’s investment into Qualified Investor
Hedge funds that, as a result of the requirements in IFRS 10 – Consolidated Financial Statements, are consolidated. There is
no recourse to MMH in case of default (fair value interest rate risk).
• These instruments, excluding ‘Other borrowings’ and ‘Derivative financial liabilities, would have been disclosed as at amortised
cost under IFRS 9 had they not been designated at FVPL.
12.2 Financial liabilities at amortised cost

2022 2021
Rm Rm
Term loans1 1 541 1 357
Cumulative redeemable preference shares2 2 025 2 022
Lease liabilities 188 220
Cumulative redeemable convertible preference shares 252 245
Other 330 320
4 336 4 164
Current 818 700
4 336 4 164
1
It was deemed more appropriate that certain loans previously disclosed in other (2021:932 million) have now been presented within loans of a similar nature
as term loans. June 2021 has been restated accordingly.
2
Cumulative redeemable preference shares are those issued by a subsidiary in the Group, MMSI. More detail is disclosed in note 12.2.2.

GROUP REPORTS
12.2 Financial liabilities at amortised cost continued
12.2.1 Term loans
Term loans include property development loans that were subsequently converted to Term loans. Details of which are as follows:
• A R475 million (2021: R489 million) loan from Standard Bank Ltd relates to a developed property held by a subsidiary, 129 Rivonia
Road (Pty) Ltd. Interest on the loan is levied at the three-month JIBAR plus 1.85%. The loan is secured by the underlying property and
there is no recourse to MMH in case of default. (cash flow interest rate risk).
• A R234 million (2021: R247 million) loan from FirstRand Bank Ltd in order to develop property held by a subsidiary, 102 Rivonia Road
(Pty) Ltd. Interest on the loan is levied at a fixed rate of 11%. The loan is secured by the underlying property and there is no recourse
to MMH in case of default. (no interest rate risk)
• A R167 million (2021: R178 million) loan from Standard Bank Ltd in order to develop property held by a subsidiary, Momentum
Metropolitan Umhlanga (Pty) Ltd. Interest on the loan is levied at JIBAR plus 1.90%. The loan is secured by the underlying property
and there is no recourse to MMH in case of default. (cash flow interest rate risk)
• A R224 million (2021: R214 million) loan from Amalgamated Bank of South Africa in order to develop property held by a subsidiary,
Chuma Mall (Pty) Ltd. Interest on the loan is levied at a fixed rate 9.63%. The loan is secured by the underlying property and there is
no recourse to MMH in case of default. (no interest rate risk)
• A R20 million (2021: R20 million) loan from ABSA in order to develop property held by a subsidiary, Umgeni Developments 4 (Pty) Ltd.
Interest on the loan is levied at a fixed rate 7.95%. (no interest rate risk)
CONSOLIDATED ANNUAL
• A R82 million (2021: R90 million) loan from Nedbank Ltd in order to develop property held by a subsidiary, Rilarex (Pty) Ltd. Interest
on the loan is levied at a fixed rate 10.98%. The loan is secured by the underlying property and there is no recourse to MMH in case of
default. (no interest rate risk)
• A R142 million (2021: Rnil) loan from Rand Merchant Bank to fund the acquisition of Seneca Investment Managers Ltd by MGIM
(100% held subsidiary of MMH). Interest on the loan is levied at a fixed rate 6.31%. The loan is secured by MGIM and there is no
recourse to MMH in case of default. (no interest rate risk)
• A R86 million (2021: R54 million) loan from Nedbank Ltd relates to a developed property held by a subsidiary, Taung Mall (Pty)
Ltd. Interest on the loan is levied at three-month JIBAR plus 2.79%. The loan is secured by the underlying property and there is no
recourse to MMH in case of default. (cash flow interest rate risk)
• The remaining term loans of R111 million (2021: R68 million) relate to property entities within the Group and bear interest at a fixed
rates. There is no recourse to the Group in the event of default for these loans. (no interest rate risk)
12.2.2 Cumulative redeemable preference shares

On 26 June 2014, MMSI issued 1 000 cumulative redeemable preference shares at R1 million per share to FirstRand Bank Ltd.
The declaration of preference dividends is calculated at 72% of JIBAR plus 180 basis points. During June 2020 300 redeemable

preference shares were redeemed, the remaining 700 redeemable preference shares have a redemption date of 30 June 2023.
Dividends are payable on 31 March and 30 September of each year. The issuer has an option to redeem the preference shares on
any dividend payment date. (cash flow interest rate risk)
On 29 January 2020, MMSI issued 1 000 Class B cumulative redeemable preference shares at R1 million per share to FirstRand
Bank Ltd. The declaration of preference dividends is calculated at 72% of three-month JIBAR plus 200 basis points with a
redemption date of 28 January 2025. Dividends are payable on 31 March and 30 September of each year. The issuer has an option
to redeem the preference shares on any dividend payment date. (cash flow interest rate risk)
On 28 April 2020, MMSI issued 300 cumulative redeemable preference shares at R1 million per share to Sanlam Alternative
Income Fund. The declaration of preference dividends is calculated at 72% of three-month JIBAR plus 165 basis points with a
redemption date of 28 April 2023. Dividends are payable on 31 March and 30 September of each year. The issuer has an option to
redeem the preference shares. (cash flow interest rate risk)
12.2.3 Cumulative redeemable convertible preference shares

MMH had 28 060 898 A3 cumulative convertible redeemable preference shares in issue (to KTH, the Group's strategic B-BBEE
partner) at the beginning of the year. The preference shares were issued in 2011. Dividends are payable at 132 cents semi-
annually in arrears on 31 March and 30 September each year. The preference shares are redeemable at a redemption value of
R9.18 per share unless converted, at the option of the holder, into MMH ordinary shares on a one-for-one basis any time prior to
the redemption date. The ordinary shares were originally issued at a price of R10.18 per share.
In 2019, MMH subscribed for a cumulative, redeemable preference share in Off The Shelf Investments 108 (Pty) Ltd (a subsidiary of
KTH) which is linked to the A3 preference shares acquired in 2011. The dividends on the Off The Shelf Investments preference share
aligns the A3 preference share dividend to the ordinary dividends. This is accounted for as a financial asset at FVPL. Refer to note 7.1.
The current redemption date of the A3 preference shares is 30 November 2022 (after extending it by 5 months in the current year).
In the prior year the redemption date was also extended by 18 months to be redeemed on 30 June 2022. The extension in the
current and prior year did not constitute a significant modification, the extinguishment of the liability or result in the recognition of
a new liability and have therefore been accounted for as a change in the expected future cash flows. The change in the expected
cash flows resulted in a R6 million loss recognised in profit or loss in the current year (2021: R8 million gain). In addition, the
change in the expected cash flows before and after the extension resulted in an IFRS 2 – Share-based payment B-BBEE expense
of R11 million being recognised in the current year (2021: R25 million). (no interest rate risk)
The equity component of the preference shares is included in note 17.6.


12.3 Other payables
Restated
2022 20211
Rm Rm
Payables arising from insurance contracts and investment contracts with DPF 6 647 6 874
Claims in process of settlement
Insurance contracts 5 076 4 615
Investment contracts with DPF 123 1 171
Due to reinsurers 1 448 1 088
Payables arising from investment contracts 3 093 1 742
Financial instruments 7 888 6 622
Commission creditors 708 714
Health saver liability 295 272
Other payables 5 418 4 222
Total included in financial liabilities 17 628 15 238

Premiums paid in advance 1 360 1 178
Deferred revenue liability 579 551
Total other payables 19 567 16 967
Current 18 611 15 987
Non-current 956 979
19 567 16 967
1
2022 2021
Rm Rm
Reconciliation of deferred revenue liability
Balance at beginning of year 551 583
Deferred income relating to new business 136 106
Amount recognised in income statement1 (108) (138)
Balance at end of year 579 551
Current 331 330
Non-current 248 221
1 to 5 years 91 70
5 to 10 years 129 120
> 10 years 28 31
579 551
1
Materially all fees recognised in the current year were included in the opening balance.
Refer to note 48.10 for the accounting policies relating to deferred revenue liability.

GROUP REPORTS
12.4 Financial liabilities measurement
FVPL
Total fair Amortised Not in scope
Financial liabilities summarised by Mandatorily Designated value cost of IFRS 9 Total
measurement category in terms of IFRS 9 Rm Rm Rm Rm Rm Rm
2022
Investment contracts with DPF – – – – 3 031 3 031
Investment contracts designated at FVPL – 318 758 318 758 – – 318 758
CIS liabilities – 30 782 30 782 – – 30 782
Subordinated call notes – 5 327 5 327 – – 5 327
Carry positions – 7 723 7 723 – – 7 723
Preference shares – 337 337 – – 337
Derivative financial liabilities 3 039 – 3 039 – – 3 039
Other borrowings 878 55 933 – – 933
Financial liabilities at amortised cost – – – 4 148 188 4 336
Other payables (excluding premiums in
advance and deferred revenue liability) – – – 10 981 6 647 17 628
CONSOLIDATED ANNUAL
Total financial liabilities 3 917 362 982 366 899 15 129 9 866 391 894
Restated
20211
Investment contracts with DPF – – – – 19 222 19 222
Investment contracts designated at FVPL – 292 500 292 500 – – 292 500
CIS liabilities – 29 372 29 372 – – 29 372
Subordinated call notes – 4 429 4 429 – – 4 429
Carry positions – 11 692 11 692 – – 11 692
Preference shares – 357 357 – – 357
Derivative financial liabilities 3 993 – 3 993 – – 3 993
Other borrowings 1 170 – 1 170 – – 1 170
Financial liabilities at amortised cost – – – 3 944 220 4 164
Other payables (excluding premiums in
advance and deferred revenue liability) – – – 8 367 6 872 15 239
Total financial liabilities 5 163 338 350 343 513 12 311 26 314 382 138

1
12.5 Financial liabilities hierarchy
Refer to note 44 for the valuation techniques relating to this note.
The following liabilities are carried at fair value and have been split into a fair value hierarchy:
Rm Rm Rm Rm
2022
Investment contracts designated at FVPL – 318 748 10 318 758
Financial liabilities at FVPL 31 577 16 142 422 48 141
CIS liabilities 30 768 – 14 30 782
Subordinated call notes – 5 327 – 5 327
Preference shares – 43 294 337
Derivative financial liabilities – held for trading 3 3 036 – 3 039
Other borrowings 806 13 114 933
31 577 334 890 432 366 899

Restated
20211
Investment contracts designated at FVPL – 292 477 23 292 500

Financial liabilities at FVPL 30 304 20 177 532 51 013
CIS liabilities 29 354 – 18 29 372
Subordinated call notes – 4 429 – 4 429
Preference shares – 44 313 357
Derivative financial liabilities – held for trading 1 3 992 – 3 993
Other borrowings 949 20 201 1 170
30 304 312 654 555 343 513

1
There were no significant transfers between level 1 and level 2 liabilities for both the current and prior year.


12.5 Financial liabilities hierarchy continued
A reconciliation of the level 3 liabilities has been provided below:
At FVPL
Investment
contracts
designated CIS Preference Other
at FVPL liabilities shares borrowings Total
Rm Rm Rm Rm Rm
2022
Opening balance 23 18 313 201 555
Total gains in net realised and unrealised fair
value gains in the income statement
Unrealised gains (2) (1) (13) (61) (77)
Issues – 4 – 35 39
Sales – (4) – – (4)
Settlements – (3) (6) (64) (73)
Contract holder movements
Benefits paid (11) – – – (11)
Exchange differences – – – 3 3
Closing balance 10 14 294 114 432
2021
Opening balance 26 22 – 110 158
Total (gains)/losses in net realised and
unrealised fair value gains in the income
statement
Unrealised (gains)/losses (3) (7) 6 (8) (12)
Issues – 3 323 104 430
Settlements – – (16) – (16)
Exchange differences – – – (5) (5)
Closing balance 23 18 313 201 555
Transfers in and out of level 3 are deemed to have occurred at inception of the reporting period at fair value.
There were no transfers in and out of level 3 in the current and prior years.
Sensitivity: Increasing/decreasing the net asset value of the underlying entity by 10% does not have an impact on the carrying
amount of level 3 borrowings in both the current and prior years. Increasing/decreasing the assets under management growth
rate by 10% would decrease/increase the carrying amount of the contingent consideration, included in other borrowings, in level 3
by R1.1 million and R1.1 million (2021: R1 million and nil) respectively.

GROUP REPORTS
12.5 Financial liabilities hierarchy continued
The following table provides an analysis of the fair value of financial liabilities not carried at fair value in the statement of financial position:
Restated
2022 20211
Carrying Carrying
amount Fair value amount Fair value
Rm Rm Rm Rm
Investment contracts with DPF 3 031 3 031 19 222 19 222
Financial liabilities at amortised cost 4 336 4 484 4 164 4 477
Cumulative redeemable preference shares 2 025 2 025 2 022 2 022
Cumulative redeemable convertible preference shares 252 400 245 558
Term loans2 1 541 1 541 1 357 1 357
Lease liabilities 188 188 220 220
Other 330 330 320 320
Other payables (excluding premiums in advance and deferred
revenue liability) 17 628 17 628 15 238 15 238
CONSOLIDATED ANNUAL
Payables arising from investment contracts 3 093 3 093 1 742 1 742
Other 14 535 14 535 13 496 13 496
24 995 25 143 38 624 38 937
1
2
A large part of the term loans are subject to variable interest rates and as such the carrying value approximates fair value. For term loans subject to fixed
rates of interest, the carrying value does not materially differ from the fair value as the loans do not have significant term to maturity.
Calculation of fair value

• The value of investment contracts with DPF is the retrospective accumulation of the fair value of the underlying assets, which
has been used as an approximation for the fair value of this financial liability. There is no intention to dispose of these financial
instruments.
• The estimated fair value of the cumulative redeemable preference shares is determined by referencing similar preference shares
that could be obtained with the same maturity profile and an interest rate linked to a 72% three-month JIBAR. The carrying
amount approximates fair value as the terms of the current arrangement are market related. (level 2)
•

The estimated fair value of the cumulative redeemable convertible preference shares is based on the market value of the listed
ordinary shares, adjusted for the differences in the estimated dividend cash flows between the valuation and conversion dates. As
the preference shares are already convertible, the market value is deemed to be the minimum value. In 2022, the expected cash
flows were discounted at a current market rate of 14% (2021: 13%). The conversion of the preference shares is at the option of the
preference shareholder; the date of conversion was estimated based on the most beneficial dividend stream to the holder. (level 2)
• For term loans at amortised cost, the carrying amount approximates fair value as the loans have been granted on
market‑related terms.
• For lease liabilities, other liabilities at amortised cost, payables arising from investment contracts and other payables, the
carrying amount approximates fair value due to their short-term nature.
13 REINSURANCE CONTRACT LIABILITIES

2022 2021
Rm Rm
Change in liabilities under reinsurance agreements (658) (584)
New financial reinsurance agreements 680 475
Repayments (727) (294)
Change in liabilities due to release of rebate (680) (660)
Change in estimates 69 (105)
Reinsurance premium rebate received 680 660
Reinsurance ceded (70) (6)

Current 128 296
2 299 2 347
The reinsurance liability relates to a financial reinsurance agreement with registered reinsurers, whereby the reinsurer provided
upfront funding to cells within Guardrisk. The cells then repay this funding over an agreed term. The liability associated with this
repayment is disclosed above.
Refer to note 11 for relevant assumptions and estimates applied in valuation of the reinsurance liabilities.

14 DEFERRED INCOME TAX

Restated
2022 20211
Rm Rm
Deferred tax asset 880 756
Deferred tax liability (2 601) (2 729)
(1 721) (1 973)
Deferred tax is made up as follows:
Accruals and provisions 134 98
Accelerated wear and tear (123) (149)
Revaluations of financial instruments and properties (1 071) (1 085)
Deferred tax on intangible assets as a result of past business combinations (1 193) (1 385)
Deferred revenue liability (15) 7
Difference between published and statutory policyholder liabilities 4 2
Tax losses 816 1 003
Negative rand reserves (254) (395)
DAC (19) (17)
Other – (52)
(1 721) (1 973)
Movement in deferred tax
Balance at beginning (1 973) (2 064)
Business combinations – (39)
Charge to the income statement 196 143
Change in tax rate 60 –
Accruals and provisions 35 (7)
Accelerated wear and tear 26 (16)
Revaluations of financial instruments and properties 12 (391)
Deferred tax movement on intangible assets as a result of past business combinations 136 179
Deferred revenue liability (22) (13)
Tax losses (184) 258
Negative rand reserves 132 132
DAC – 4
Prepayments 1 –
Other – (3)
Charge to other comprehensive income (refer to note 17)2 47 (22)
Other 7 –
Exchange differences 2 3
Balance at end (1 721) (1 973)
Unused tax losses for which no deferred tax has been recognised 3 294 3 172
Potential tax benefit 889 889
1
2
Included in Charge to other comprehensive income is a decrease of R3 million that is attributable to the change in the South African corporate tax rate from
28% to 27% as announced in February 2022.

14 DEFERRED INCOME TAX CONTINUED
GROUP REPORTS
Creation of deferred tax assets and recognition of deferred tax liabilities
Deferred tax assets are raised for tax losses where their recoverability thereof was probable at year end. The deferred tax asset is
generally raised to the extent it will be utilised within 3 – 5 years. Remaining balances are not recognised.
Included in the deferred tax asset of R816 million (2021: R1 003 million) raised due to tax losses, is a deferred tax asset of R151 million
(2021: R21 million), the utilisation of which depends on future taxable profits in excess of the profits arising from the reversal of existing
taxable temporary differences, and the subsidiary has suffered a loss in either the current or preceding year. Based on approved budgets
prepared by management of these subsidiaries, the Group considers it probable that the deferred tax asset will be used against future
taxable profits.
The deferred tax asset recognised by the Group relates mainly to historic trading losses brought forward in Guardrisk Life Ltd's Individual
Policyholder Fund (IPF) and Momentum Insurance (Pty) Ltd. Management considers it probable that the tax asset will be used against
future taxable profits within a five-year projection period.
Potential tax benefits due to unused tax losses will expire should an entity cease to trade. Deferred tax assets have not been recognised
in this respect. Included in the potential tax benefit is R104 million attributable to Metropolitan Life International Limited, which ceased
trading during the last 12 months. This tax benefit is expected to expire by 30 June 2023.
No deferred tax liability is recognised on temporary differences of R1 925 million (2021: R1 486 million) relating to the unremitted
CONSOLIDATED ANNUAL
earnings of international subsidiaries as the Group is able to control the timing of the reversal of these temporary differences and it is
probable that they will not reverse in the foreseeable future.
During his budget speech on the 23rd of February 2022, the Minister of Finance announced a decrease in the corporate income
tax rate from 28% to 27% for the years of assessment ending on or after 31 March 2023. IAS 12 requires that deferred tax assets
and liabilities be measured at the tax rate applicable when the assets are realised or liabilities are settled, based on the tax rates
that are enacted or substantively enacted at the end of the reporting period. It is expected that the 2022 Draft Rates and Monetary
Amounts and Amendments of Revenue Laws Bill will be promulgated and therefore the rate change is regarded as substantively
enacted. The deferred tax balances as at 30 June 2022 have been redetermined based on a rate of 27%.

The Group is subject to direct taxation in a number of jurisdictions. There may be transactions and calculations where the ultimate
taxation determination has an element of uncertainty during the ordinary course of business. The Group recognises liabilities
based on objective estimates of the amount of taxation that may be due. Where the final taxation determination is different from

the amounts that were initially recorded, such difference will impact earnings in the period in which such determination is made.
Deferred tax assets are raised based on forecasts that are annually updated. Future taxable profits, on which the recognition of
deferred tax assets are based, have been updated to consider the recovery post the Covid-19 pandemic. All business across the
Group reviewed their bottom-up forecasted cash flows to account for the potential impact of the pandemic on its assumptions
including revenue growth, claims experience, expenses, lapse rates inter alia.

15 EMPLOYEE BENEFIT OBLIGATIONS

2022 2021
Rm Rm
15.1 Employee benefit obligations
15.1.1 Post-retirement medical benefits 101 108
15.1.2 Cash-settled arrangements 195 288
Other employee benefit obligations1 1 142 752
Total employee benefit obligations 1 438 1 148
Current 1 255 842
Non-current 183 306
1 438 1 148
1
Other employee benefit obligations relate to a leave pay liability of R355 million (2021: R362 million) and staff
and management bonuses of R787 million (2021: R390 million).
Employee benefit expenses are included in the income statement. Refer to note 24.
15.1.1 Post-retirement medical benefits

Balance at beginning – unfunded 108 124
Current service costs 2 1
Past service costs – (1)
Interest expense 10 13
Actuarial (losses)/gains – other comprehensive income (10) 5
Settlements (1) (27)
Benefits paid and transferred (8) (7)
Balance at end – unfunded 101 108
Current 12 12
Non-current 89 96
101 108
Valuation methodology
Liabilities for qualifying employees and current retirees are taken as the actuarial present value of all future medical
contribution subsidies, using the long-term valuation assumptions. The current medical scheme contribution rates are
projected into the future using the long-term healthcare inflation rate, while the value of the portion subsidised by the employer
after retirement is discounted back to the valuation date using the valuation rate of interest. The projected unit credit method is
used to calculate the liabilities.
2022 2021
Rm Rm
15.1.2 Cash-settled arrangements
Retention and remuneration schemes
Balance at beginning 288 404
Additional provisions 63 168
Benefits paid (156) (284)
Balance at end 195 288
Current 101 140
Non-current 94 148
195 288

15 EMPLOYEE BENEFIT OBLIGATIONS CONTINUED
GROUP REPORTS
15.1 Employee benefit obligations continued
15.1.2 Cash-settled arrangements continued
MMH share schemes
Subsequent to the merger, the Group started share schemes linked to MMH shares.
MMH Long-term Incentive Plan (MMH LTIP)

Certain key senior staff members were identified as vital to the future success of the Group, and its ability to compete in an
ever-changing environment. The purpose of the MMH LTIP is to incentivise and retain these key senior staff members. The
MMH LTIP comprises three separate long-term incentives, the first being a grant of retention units, the second being an award
of performance units, and the third being a grant of deferred bonus units.
Retention units
The retention units have no imposed performance criteria and therefore vest on award date subject to the employee
maintaining satisfactory performance during the period between the award date and the settlement date.
Performance units
CONSOLIDATED ANNUAL
The performance units have performance criteria based on minimum hurdles related to the return on EV of the Group. The
units will therefore vest after a period of three years, and the Group’s performance will be averaged over the same period to
determine whether the criteria have been met.
Deferred bonus units

The deferred bonus units represent the deferred portion of short-term incentives above a threshold. These units vest subject
to the employee remaining in the employ of the Group on the vesting date, and not being subject to disciplinary action during
the period between the award date and the vesting date.
When the retention units, performance units and deferred bonus units have vested on the vesting date, they represent the
right to receive a cash sum on the settlement date equal to the fair market price of a MMH share (average of 20 trading days
before the settlement date).
Momentum Sales Phantom Shares (MSPS)

In November 2013, Momentum Sales began issuing phantom shares to sales staff. Allocations made will vest in three equal
tranches on the third, fourth and fifth anniversary, after the grant date. When the shares vest, the Group will make a cash
payment to the employee to the value of the share price on vesting date. No shares are issued by the Group and therefore
the scheme is cash-settled.
MMH Share Appreciation Rights Scheme (MMH SAR)

The MMH SAR commenced in October 2018, and is a performance-based cash-settled option scheme in terms of which
certain executives are allocated Share Appreciation Rights (SARs) in MMH shares. The SARs simulate “at-the-money” call
options on MMH shares, meaning that the growth in the share price between the allocation date and the vesting date will
accrue to the participant at the vesting date. The measurement of performance takes place after a period of four years,
and vesting then takes place in equal thirds after four, five and six years, at the ruling MMH share price based on the 20 day
volume weighted average price (VWAP) up to payment date. Resignation before the vesting date results in the forfeiture of any
unsettled units.
The volatility used in the valuation of the SAR scheme was based on market rates and determined to be 30%. The risk free rate
used within the valuations was 4.99%.

15 EMPLOYEE BENEFIT OBLIGATIONS CONTINUED

15.1 Employee benefit obligations continued
15.1.2 Cash-settled arrangements continued
MMH LTIP
Retention Performance Deferred MMH
units units bonus units MSPS SAR
‘000 ‘000 ‘000 ‘000 ‘000
Units in force at 1 July 2020 10 983 24 873 13 563 2 901 22 157
Units granted during year 6 12 453 6 097 630 –
Units exercised/released during year (10 730) (1 842) (5 820) (807) –
Units cancelled/lapsed during year (55) (10 730) (320) (79) (350)
Units in force at 1 July 2021 204 24 754 13 520 2 645 21 807
Units granted during year 16 10 812 5 761 562 –
Units exercised/released during year (198) (2) (7 320) (746) –
Units cancelled/lapsed during year (22) (2 999) (555) (128) (1 341)
Units in force at 30 June 2022 – 32 565 11 406 2 333 20 466
2022 2021
Market value of range at date of exercise/release Cents Cents
MMH LTIP
Retention units 1 519 – 1 947 1 519 – 1 826
Performance units 1 519 1 519 – 1 819
Deferred bonus units 1 519 – 2 076 1 412 – 1 994
MSPS 1 427 – 1 966 1 427 – 1 822
Units outstanding (by expiry date) for the MMH LTIP, MSPS, and MMH SAR at 30 June 2022 are as follows:
MMH LTIP
Retention Performance Deferred MMH
units units bonus units MSPS SAR
‘000 ‘000 ‘000 ‘000 ‘000
2022
Financial year 2022/2023 – 3 624 6 020 631 6 822
Financial year 2023/2024 – 7 509 3 578 570 6 822
Financial year 2024/2025 – 10 855 1 808 567 6 822
Financial year 2025/2026 – 7 231 – 379 –
Financial year 2026/2027 – 3 346 – 186 –
Total outstanding shares – 32 565 11 406 2 333 20 466
Refer to note 45 for the valuation assumptions relating to these schemes.

16 SHARE CAPITAL AND SHARE PREMIUM
GROUP REPORTS
In December 2010, Metropolitan Holdings Ltd, now Momentum Metropolitan Holdings Ltd (MMH), became the legal parent company
of Momentum Group Ltd, now MML, by acquiring all the shares in MML from FirstRand Ltd. As this was accounted for as a reverse
acquisition under IFRS 3 – Business combinations (revised) – the share capital and share premium of the Group in the consolidated
financial statements were based on the value of those of MML at the time of the merger. The equity structure in terms of the number
of authorised and issued shares in the consolidated financial statements reflects the equity structure of MMH.
Authorised share capital of MMH

• 2 billion ordinary shares of 0.0001 cents each.
• 129 million (76 million A1, 13 million A2 and 40 million A3) variable rate cumulative redeemable convertible preference shares
of 0.0001 cents each.
Issued share capital

The issued share capital of the Group reflects the issued share capital of MMH.
CONSOLIDATED ANNUAL
2022 2021
Rm Rm
Net decrease/(increase) in treasury shares held on behalf of contract holders 32 (142)
Increase in treasury shares held by subsidiary for employees – (291)
12 769 12 737
Share capital 9 9
Share premium 12 760 12 728
12 769 12 737
2022 2021
Number of ordinary shares in issue Million Million
Total ordinary shares in issue 1 498 1 498

Treasury shares held on behalf of contract holders (29) (30)
Treasury shares held on behalf of employees (45) (45)
Basic number of shares in issue 1 424 1 423
Adjustment to employee share scheme shares 7 –
Convertible redeemable preference shares 28 –
Diluted number of shares in issue 1 459 1 423
Adjustment to employee share scheme shares (7) –
Convertible redeemable preference shares – 28
Diluted number of shares in issue for normalised headline earnings purposes
(prior to weighting) 1 526 1 526
The increase in treasury shares in the prior year is as a result of the Group entering into an employee share ownership plan. Refer
to note 17.6 for more details.
Preference shares
MMH had 28 million A3 preference shares in issue at the beginning of the year. The variable rate, redeemable, convertible
preference shares are compound instruments with a debt and an equity component. The fair value of the equity component
is disclosed under note 17 and the debt component is disclosed under note 12.2. Refer to note 12.2 for more details.

2022 2021
Rm Rm
17 OTHER COMPONENTS OF EQUITY
17.1 Land and building revaluation reserve 311 409
17.2 FCTR (16) (106)
17.3 Non-distributable reserve 73 66
17.4 Employee benefit revaluation reserve 23 84
17.5 Fair value adjustment for preference shares issued by MMH 940 940
17.6 Equity-settled share-based payment arrangements 122 76
1 453 1 469
Movements in other reserves
17.1 Land and building revaluation reserve
Earnings directly attributable to other components of equity (91) –
Revaluation (138) 22
Deferred tax on revaluation 47 (22)
Transfer to retained earnings (7) (268)
17.2 FCTR
Balance at beginning (106) 337
Currency translation differences 89 (457)
Transfer from retained earnings 1 14
Balance at end (16) (106)
17.3 Non-distributable reserve
Transfer from/(to) retained earnings 7 (2)
17.4 Employee benefit revaluation reserve
Remeasurement of post-employment benefit obligations (8) (179)
Transfer to retained earnings1 (53) –
1
During the current year, the Metropolitan Staff Pension Fund was liquidated and R53 million was transferred
from the Employee Benefit Fund Reserve to Retained earnings
17.5 Fair value adjustment for preference shares issued by MMH

Equity component of preference shares issued 940 940
This represents the write-up of the carrying amount of the preference shares issued by MMH to
KTH to fair value, as part of the fair value exercise performed on Metropolitan as a result of the
merger with Momentum in December 2010.
17.6 Equity-settled share-based payment arrangements

B-BBEE share-based payment reserve
Transfer to retained earnings (6) –
Share schemes – value of services provided 52 46
A3 Preference shares
The Company issued A3 preference shares to Off The Shelf Investments 108 (Pty) Ltd (a subsidiary of KTH) in 2011.
In 2019, the Company subscribed for a cumulative, redeemable preference share in Off The Shelf Investments 108 (Pty) Ltd which is
linked to the A3 preference shares acquired in 2011. The dividends on the Off The Shelf Investments preference share aligns the A3
preference shares dividend to the ordinary dividends.
The redemption date was extended by 5 months to 30 November 2022 in the current year. In the prior year, the redemption date was
extended by 18 months to 30 June 2022. As a result of this, an IFRS 2 – Share-based payment B-BBEE expense of R10 million (2021:
R25 million) was recognised.

17 OTHER COMPONENTS OF EQUITY CONTINUED
GROUP REPORTS
17.6 Equity-settled share-based payment arrangements continued
iSabelo Trust
To achieve our long-term strategic business objectives and to strengthen our B-BBEE ownership, Momentum Metropolitan has
made available an Employee Share Ownership Plan to its employees. iSabelo is structured to benefit all permanent employed
South African based employees to promote inclusivity.
Units were granted to all permanent Momentum Metropolitan employees based in South Africa who were employed by the Group
as at 28 February 2021. The units were granted to these eligible employees during April 2021.
These units are allocated on a deferred delivery basis over a seven-year period. All units need to be held for an initial period of
10 years (lock in period) before they can be redeemed for Momentum Metropolitan shares. At the end of the lock in period, the
iSabelo Trust will exchange the units for MMH shares.
Employees will retain the proportional vesting of units for the portion of the seven years they were employed by Momentum
Metropilitan, however if they leave within the first year of the scheme they will forfeit their entire allocation. Units will be granted
annually to new permanent South African based employees of the Group who have joined between the period of 1 March 2021
to 30 April 2026, under the same terms as above. No further units will be allocated to any new employees after April 2026. Units
were granted to new employees on 28 April 2022.
CONSOLIDATED ANNUAL
The fair value used in determining the allocation is based on the unit price on grant date, adjusted for various variables. Refer to
note 45 for more details regarding the valuation assumptions. The total unit allocation costs relating to the current period for the
iSabelo Trust amounting to R42 million (2021: R23 million) (refer to note 24) has been included in the income statement. As at
30 June 2022, the total value of the units was R264 million (2021:R400 million). There were no modifications to the scheme in
the current period.
The valuation model used to determine the grant date fair value at June 2021 has been refined during F2022.
The following refinements were incorporated:
• Refined the share price projection to reference the risk-free rate (ie a risk-neutral projection)
• Refined the dividend yield assumption to a constant rate of 4% over the projection period
• Semi-annual time steps to match the coupon payments of the debt instruments
• A z-spread roll-up basis was used to model future coupon obligations beyond the contractual terms of the debt instruments to
more accurately allow for the upwarsloping nature of the yield curve.
• Allowance for term-dependent discount rates over the projection period
• Updated the volatility assumption to our best estimate of long-term option volatilities based on the duration of the scheme.

Refer to note 45 for valuation assumptions relating to this scheme.
The following units were awarded and the redemption thereof deferred to a predetermined future date:
Weighted
average
remaining Number of
Redemption contractual Grant date units
Grant date1, 2 date life fair value3 ‘000
Units awarded F2021 22-Apr-21 12-Apr-31 8.8 years 64 359 479
Units awarded F2022 29-Apr-22 28-Apr-32 9.8 years 48 72 410
1
Units were allocated to employees on 12 April 2021. The IFRS 2 grant date for employees is 22 April 2021 as at this date there was a shared understanding
of the terms and conditions of the arrangement.
2
Units were allocated to employees on 28 April 2022. The IFRS 2 grant date for employees is 29 April 2022 as at this date there was a shared understanding
of the terms and conditions of the arrangement.
Average Number of
price units
Cents ‘000
Movements on units awarded:
As at 1 July 2020 – –
Units awarded3 64 359 479
Awarded units lapsed due to resignation3 64 (14 529)
As at 1 June 2021 344 950

Units awarded 48 72 410
Awarded units lapsed due to resignation 63 (69 505)
As at 30 June 2022 347 855
3
It was noted that the valuation model used at June 2021 was a simplified approximation of the grant date fair value. The model has been refined in the
current year and as a result the 2021 grant date fair value for units awarded in June 2021 has been corrected from 89 cents to 64 cents. The correction of
the 2021 grant date fair value has been recognised as a prospective change in the current year, as it did not give rise to a material difference in the prior year.
As such, the Share-based payment expense related to equity settled arrangements (included within employee benefit expenses – refer to note 24), has been
revised for June 2022 to counter the overstatement recognised in the June 2021 financial year. The revised expense recognised in the current year ensures
that the appropriate closing balance is disclosed and recognised in line with the refined valuation model. Refer above for details of how the valuation model
has been refined.

Restated
2022 20211
Rm Rm
18 NET INSURANCE PREMIUMS
Premiums received 59 666 56 589
Long-term insurance contracts 40 093 37 471
Non-life insurance contracts 17 725 16 269
Investment contracts with DPF 770 1 832
Health premiums 1 078 1 017
Premiums received ceded to reinsurers (20 773) (19 553)
38 893 37 036
Included in the above is the following relating to cell captives:
Premiums received 24 151 20 634
Non-life insurance contracts 14 306 12 030
Premiums received ceded to reinsurers (17 391) (14 300)
6 760 6 334
19 FEE INCOME
Contract administration 3 533 3 119
Investment contract administration 3 409 3 004
Release of deferred front-end fees 124 115
Health administration 2 246 2 107
Trust and fiduciary services 1 252 1 150
Asset management 639 500
Retirement fund administration 446 437
Asset administration 167 213
Cell captive commission 1 496 1 322
Other fee income 740 1 324
Momentum Multiply fee income 166 175
Reinsurance commission2 – 528
Administration fees received 6 83
Other 568 538
9 267 9 022
1
2
Reinsurance commission income has declined in the current year as a result of the cessation of proportional treaties in the prior year.
Revenue disaggregation
Revenue from contracts with customers is disaggregated by type of revenue and also split per the Group’s reporting segments. This
most accurately depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

Restated
GROUP REPORTS
2022 20211
Rm Rm
20 INVESTMENT INCOME
Interest income 18 550 16 289
At FVPL 17 156 15 053
At amortised cost using the effective interest rate method
Cash and cash equivalents 1 089 931
Financial assets at amortised cost 182 191
Dividend income at FVPL 6 317 4 450
Listed 3 144 2 291
Unlisted 3 173 2 159
Rental income 1 289 1 274
CONSOLIDATED ANNUAL
Investment properties 1 278 1 264
Owner-occupied properties 11 10
Other income 11 27
26 167 22 040
21 NET REALISED AND UNREALISED FAIR VALUE (LOSSES)/GAINS

Financial assets (4 360) 40 467
Designated at FVPL (3 233) 37 680
Mandatorily at FVPL (1 493) 1 473
Derivative financial instruments – income 329 1 418
Net realised and unrealised foreign exchange differences on financial instruments not at FVPL 37 (104)
Investment property (47) (389)

Valuation losses (26) (358)
Change in accelerated rental income (21) (31)
Financial liabilities 221 83
Designated at FVPL 221 83
Other investments2 16 101
(4 170) 40 262
1
2
The prior year amount included profit on sale of subsidiaries and the loss on dilution of aYo.

Restated
2022 20211
Rm Rm
22 NET INSURANCE BENEFITS AND CLAIMS
Death and disability claims 19 209 17 839
Maturity claims 4 121 4 203
Annuities 5 422 4 953
Surrenders 2 524 2 421
Terminations, disinvestments and withdrawal benefits 454 1 162
Non-life insurance benefits incurred 12 701 8 054
Investment contracts with DPF2 816 3 394
Terminations, disinvestments and withdrawal benefits 30 1 541
Maturity claims 316 710
Surrenders 359 971
Annuities 87 94
Death and disability claims 24 78
Health and capitation benefits incurred 973 828
Non-life insurance change in provision for outstanding claims3 7 271 466
53 491 43 320
Amounts recovered from reinsurers (23 115) (12 182)
30 376 31 138
1
2
Certain investment contracts with DPF were reclassified as investment contracts designated at FVPL. Refer to note 10.2 for more information on the
reclassification.
3
A significant claim of R6.9 billion was received following the floods in KwaZulu-Natal during April 2022. This claim is fully reinsured. Towards the end of June 2022,
an amount of R1.7 billion was received from the reinsurer and paid to the client. At 30 June 2022, the outstanding gross claim estimate is R5.2 billion.
2022 2021
Rm Rm
23 DEPRECIATION, AMORTISATION AND IMPAIRMENT EXPENSES
Depreciation 358 367
Owner-occupied properties (refer to note 4.1) 50 62
Equipment 205 196
Amortisation (refer to note 3) 551 663
VOBA 237 258
Customer relationships 120 184
Brands 66 64
Broker network 55 53
Computer software 73 104
Impairment losses/(reversals) of intangible assets (refer to note 3) 709 117
Goodwill 717 –
Customer relationships – 9
Computer software 2 (36)
VOBA (10) 144
Impairment of owner-occupied properties (refer note 4.1) 35 116
Impairment of investment in associates (refer to note 6) – 38
Impairment of financial assets (refer to note 7.2) 27 (28)
1 680 1 273

2022 2021
GROUP REPORTS
Rm Rm
24 EMPLOYEE BENEFIT EXPENSES
Salaries 6 215 5 575
Defined contribution retirement fund 419 385
Contributions to medical aid funds 235 223
Share-based payment expenses – Cash-settled arrangements (refer to note 15.1.2) 63 168
Training costs 122 93
Retirement fund assets (42) (56)
Share-based payment expenses – Equity-settled arrangements (refer to note 17.6) 42 23
Post-retirement medical benefits 14 13
Defined benefit retirement fund 1 1
Other 88 86
7 157 6 511
For detail of directors' and prescribed officers' remuneration, refer to note 45.
CONSOLIDATED ANNUAL
Restated
2022 20211
Rm Rm
25 SALES REMUNERATION
Commission incurred for the acquisition of insurance contracts 6 015 5 711
Commission incurred for the acquisition of investment contracts 1 232 1 053
DAC long-term – Acquisition costs incurred 400 434
Net movement in DAC (long-term) 10 40
Additions (refer to note 3.7) 390 394
DAC short-term – Expense 20 1
Acquisition costs paid 1 612 1 557
Acquisition costs incurred (1 592) (1 556)

Impairment of amounts due from agents, brokers and intermediaries (refer to note 7.2) 7 (6)
7 674 7 193
26 OTHER EXPENSES
Asset management fees 3 423 2 942
Consulting fees 943 787
Information technology expenses 1 003 817
Direct property operating expenses on investment property 544 552
Office costs 457 433
Marketing costs 481 436
Other indirect taxes 381 360
Momentum Multiply benefit payments 53 66
Travel expenses 151 74
Auditors’ remuneration 105 118
Audit fees 98 110
Fees for other services 7 8
Bank charges 101 109
Bad debts written off2 36 130
Lease charges3 39 65
Policy services 79 67
Other expenses 460 350

8 256 7 306
1
2
Amounts written off mainly in respect of premium debtors not within the scope of IFRS 9.
3
Included in Lease charges are R24 million (2021: R49 million) relating to short-term leases, Rnil (2021: R2 million) relating to leases of low-value assets,
and R15 million (2021: R14 million) relating to variable lease payments.

Restated
2022 20211
Rm Rm
27 FINANCE COSTS
Interest expense on financial liabilities
Unsecured subordinated call notes 345 353
Cost of carry positions 347 198
Redeemable preference shares 145 133
Cost of trading positions 1 286 748
Lease liabilities 13 19
Other2 191 165
2 327 1 616
Designated at FVPL 1 978 1 299
Amortised cost 349 317
2 327 1 616
1
2
Included are the following items: interest on term loans R104 million (2021: R94 million); and interest on late payment of claims R58 million
(2021: R40 million).
2022 2021
Rm Rm
28 INCOME TAX EXPENSE
Income tax expenses/(credits)
Current taxation 3 905 2 441
Shareholder tax
South African normal tax – current year 1 505 923
South African normal tax – prior year (5) 18
Foreign countries – normal tax 73 111
Foreign withholding tax 170 143
Contract holder tax
Tax on contract holder funds – current year 625 276
Tax on contract holder funds – prior year 13 –
Tax attributable to cell captive owners 1 524 970
Deferred tax (196) (143)
Shareholder tax
South African normal tax – current year (101) (777)
Foreign countries – normal tax (1) 8
Foreign withholding tax 19 9
Contract holder tax
Tax on contract holder funds – current year (112) 599
Tax attributable to cell captive owners (1) 18
3 709 2 298
2022 2021
Tax rate reconciliation % %
Tax calculated at standard rate of South African tax on earnings 28.0 28.0
Capital gains tax (1.1) (1.6)
Change in tax rate (0.8) –
Prior year adjustments (0.2) 2.0
Taxation on contract holder funds 14.3 45.3
Foreign taxes differential due to different statutory rates (1.0) (3.4)
Non-taxable income1 (9.5) (26.3)
Non-deductible expenses2 9.9 20.1
Tax losses for which no deferred tax asset was recognised 1.7 5.6
Cell captive tax – to be recovered from cell owners 8.9 13.4
Recognition of deferred tax assets relating to prior year losses (0.9) (2.2)
Effective rate 49.3 80.9
1
Non-taxable income mainly comprises dividend income which is not taxable.
2
Non-deductible expenses comprises Shareholders expenses which are not directly attributable to an income generating unit (including depreciation and
impairments) and are thus not deductible for tax purposes.

Restated
GROUP REPORTS
2022 20211
Rm Rm
29 CASH FLOW FROM OPERATING ACTIVITIES
29.1 Cash utilised in operations
Adjusted for
Items separately disclosed
Dividend income (6 317) (4 450)
Interest income (18 550) (16 289)
Finance costs 2 327 1 616
Adjustments to reconcile profit before tax to net cash flows
Share of losses of associates and joint ventures 243 237
Depreciation and amortisation expenses 909 1 030
Impairment charges 778 233
Profit on sale of investment in associate and non current asset held for sale (246) (150)
Gains and losses on foreign exhange differences and fair value gains and losses relating to
investing and financing activities 457 1 070
Share-based payments 52 46
CONSOLIDATED ANNUAL
Impairment of investment in joint ventures/associates – 38
Cash flow from operating assets and liabilities
Movements in financial assets and liabilities (15 846) (40 861)
Properties under development 1 (45)
Insurance and other receivables (1 499) (1 173)
Employee benefit assets and obligations 561 (151)
Net insurance and investment contract liabilities 15 486 47 804
Intangible assets related to insurance and investment contracts (8) 90
Investment properties (96) 258
Reinsurance assets and liabilities (8 144) (430)
Other operating liabilities 2 756 935
Cash utilised in operations (19 619) (7 350)
29.2 Income tax paid

Receivable at beginning 286 133

Charged to income statement (3 905) (2 441)
Exchange differences – 3
Due/(receivable) at end 135 (286)
(3 484) (2 588)
29.3 Interest paid

Redeemable preference shares (129) (133)
Unsecured subordinated call notes (252) (353)
Cost of trading positions (1 258) (920)
Cost of carry positions (347) (198)
(1 986) (1 604)
1

Restated
2022 20211
Rm Rm
29 CASH FLOW FROM OPERATING ACTIVITIES CONTINUED
29.4 Liabilities arising from financing activities
29.4.1 Subordinated call notes 5 327 4 429
29.4.2 Carry positions 7 723 11 692
29.4.3 Preference Shares 337 357
29.4.4 Other borrowings 933 1 170
29.4.5 Financial liabilities at amortised cost 4 336 4 164
18 656 21 812
29.4.1 Subordinated call notes
Due at beginning 4 429 4 431
Subordinated call notes issued 1 000 750
Accrued interest 345 353
Interest paid (252) (362)
Subordinated call notes repaid (87) (750)
Fair value movement (134) (83)
Own credit gains included in other comprehensive income 26 90
Due at end 5 327 4 429
29.4.2 Carry positions
Proceeds from carry positions 5 607 8 042
Repayment of carry positions (9 528) (7 436)
Fair value movement (48) –
Due at end 7 723 11 692
29.4.3 Preference Shares
Due at beginning 357 25
Preference shares proceeds 38 371
Preference shares repaid (62) (46)
Accrued interest 145 –
Interest paid (129) –
Fair value movement – 1
Due at end (12) 6
337 357
29.4.4 Financial liabilities at FVPL: Other borrowings
Proceeds from other borrowings 796 29
Repayment of other borrowings (936) (6)
Business combinations (64) 104
Fair value movement (27) (7)
Exchange differences (6) (5)
Due at end 933 1 170
29.4.5 Financial liabilities at amortised cost
New leases entered into 65 33
Accrued interest on leases 13 19
Interest paid on leases (13) (19)
Payments of leases (103) (130)
Modifications 3 6
Exchange differences on leases 1 (6)
Modification of preference shares 6 (8)
Preference shares repaid (129) (130)
Preference shares interest 131 128
Proceeds from other borrowings 263 306
Repayment of capital portion of term loans (23) (19)
Repayment of other borrowings (121) (560)
Business combinations relating to other borrowings – (142)
Accrued interest on other borrowings 79 76
Due at end 4 336 4 164
1

GROUP REPORTS
2022 2021
Rm Rm
29 CASH FLOW FROM OPERATING ACTIVITIES CONTINUED
29.5 Disposal of subsidiary recon
Assets/(liabilities) disposed of:
Financial assets at FVPL – 10
Financial assets at amortised cost – 98
Investment properties – 178
Cash and cash equivalents – 84
Other assets – 75
Long-term insurance contracts – (30)
Financial liabilities at amortised cost – (175)
Other liabilities – (122)
Net assets sold – 118
Non-controlling interests disposed of – (41)
Investment in associate recognised – (184)
Loan to associate – (38)
Profit on sale of subsidiary (refer to note 21) – 150
CONSOLIDATED ANNUAL
Cash flow from sale of subsidiary – 5
Cash outflow recon
Cash inflow from sale of subsidiary – 5
Cash disposed of included in net assets of subsidiary – (84)
Net cash outflow from sale of subsidiary – (79)
In the prior year, the Group disposed of its entire holding in Metropolitan Life Zambia Ltd, Metropolitan Health Zambia Ltd,
Metropolitan Tanzania Life Assurance Company Ltd, Metropolitan Tanzania Insurance Company Ltd and a portion of its holding in
MHNA and SASAII. MHNA and SASAII are now classified as investments in associates as the Group has significant influence over
these investments.
30 BUSINESS COMBINATIONS
June 2022
There were no significant business combinations for the 12 months ended June 2022.

June 2021
Seneca
On 30 November 2020, the Group, through its wholly owned subsidiary, MGIM, acquired 100% of the shares in Seneca for £8.22 million
in cash and £5 million contingent consideration. The contingent consideration is dependant on certain targets being met. If no targets
are met, the payment will be nil and if the targets are met, a maximum payment of £5 million will be made.
AFIN
On 9 December 2020, the Group, through its 70% owned subsidiary, Momentum Short-term Insurance (Namibia) Ltd, acquired
100% in AFIN. AFIN has since been renamed to Momentum Insurance (Namibia). The initial accounting for the AFIN acquisition
was provisionally determined and was presented as preliminary at 30 June 2021. The acquisition accounting has been finalised
and has resulted in a revision of the purchase consideration from N$40 million in cash and N$10 million contingent consideration
to a purchase consideration of N$32 million which comprises a cash component of N$32 million and a contingent consideration
of nil. The excess cash of N$8 million represents a receivable at the acquisition date. June 2021 has been restated accordingly.
These acquisitions provide an opportunity for growth, which is the Group’s current focus.
There were no other significant business combinations for the 12 months ended June 2021.

30 BUSINESS COMBINATIONS CONTINUED

The purchase price consideration, the net assets acquired and any relevant goodwill relating to the transactions on the previous page
are as follows:
Restated Restated
2021 20211 20211
Seneca Other Total
Rm Rm Rm
Purchase consideration in total 283 92 375
Fair value of net assets
Intangible assets 138 48 186
Tangible assets 1 18 19
Financial instrument assets 10 582 592
Insurance and other receivables – 22 22
Reinsurance contract assets – 125 125
Insurance contract liabilities – (701) (701)
Other liabilities (31) (81) (112)
Net identifiable assets acquired 144 30 174
Goodwill recognised 139 62 201
Contingent liability payments (107) (19) (126)
Refund receivable – 8 8
Purchase consideration in cash 176 81 257
Revenue since acquisition 26 78 104
Earnings since acquisition 4 2 6
1
In the current period the first contingent payment of R64 million was paid in relation to the acquisition of Seneca. Subsequently,
the change in the United Kingdom macroeconomic conditions has meant that the full criteria for the remaining contingent
consideration to Seneca is not expected to be met. As such the estimated contingent consideration payable has been revised
downward by R18 million.In the prior period, the above acquisitions resulted in a total of R201 million being recognised, attributable
to certain anticipated operating synergies. The goodwill is not deductible for tax purposes.

As part of and as a result of the Alexander Forbes Insurance Company Ltd (AFI) acquisition in 2020 , various intangible assets
were purchased, and goodwill was recognised. The review of these intangible assets required significant judgements to be made
by management.
The first one was the determination of the CGUs. Various options were considered by management in the prior year and it was
decided that the Group’s short-term businesses (MSTI and Momentum Insurance) will continue to operate as two separate entities
until all systems have been integrated and all clients and employees have moved over to Momentum Metropolitan. Their cash
flows would therefore be independent until a certain point of the integration process has been reached. During this initial period,
the Group Executive Committee also considered the management reports of these entities separately in order to make decisions
regarding the business. As a result, management concluded that in the prior year the most appropriate view would be to treat
MSTI and Momentum Insurance as two CGUs.
During the prior financial year the process of integrating Momentum Insurance and MSTI has led management to consider these
two entities as one business referred to as Momentum Insure. The integration of both businesses was expected to become
effective 1 July 2021 and as a result, management concluded that having one CGU was deemed more appropriate.
The identification of CGUs was based on which CGUs in the Group’s short-term business were expected to benefit from the
synergies of the business combination as well as management's view of how the Group’s short-term businesses will continue
to operate in the future.
The second area of judgement was the allocation of the goodwill and other intangible assets to the two CGUs. As the goodwill was
recognised due to the expected future benefits of the acquisition, an allocation proportional to directors' valuations was deemed
appropriate. This was because directors' valuations represented our current best-estimate view of future financial benefits to be
derived from each entity. The same was applied to all other intangible assets, with the exception of computer software purchased
which was only used by Momentum Insurance.
All the intangible assets allocated to MSTI were written off in the prior years. Refer to note 3 for more details.

31 RELATED PARTY TRANSACTIONS
GROUP REPORTS
31.1 Major shareholders and group companies
MMH is the ultimate holding company in the Group. RMI previously had significant influence over the Group by virtue of its
shareholding of 26.3% in MMH, however as a result of RMI unbundling its shareholding in MMH on 25 April 2022, RMI is no
longer a related party as of that date.
KTH is considered to be a related party by virtue of its role as the Group's B-BBEE partner.
Apart from the shareholders’ roles as related parties discussed above, no other MMH shareholders have a significant influence
and thus no other shareholder is a related party.
Significant subsidiaries of the Group are listed in note 42. Details of the associates of the Group are contained in note 6 and
note 43. Details of the joint ventures of the Group are contained in note 6.
Various CISs in which the Group invests are defined as subsidiaries as the Group controls them in terms of IFRS 10; these are
listed in note 42. CISs over which the Group has significant influence but not control are classified as investments in associates
carried at fair value included as part of Financial assets at FVPL; details are included in note 43.
CONSOLIDATED ANNUAL
Other related parties include directors, key management personnel and their families. Key management personnel for the Group
are defined as the executive and non-executive directors. It is not considered necessary to disclose details of key management
family members and the separate entities that they influence or control. To the extent that specific transactions have occurred
between the Group and these related parties (as defined in IAS 24) the details are included in the aggregate disclosure contained
below under key management, where full details of all relationships and terms of the transactions are provided.
31.2 Transactions with directors and key management personnel and their families
Remuneration is paid to executive directors and key management personnel of the Group, as well as to non-executive directors (in
the form of fees). Remuneration paid to directors is disclosed in note 45.
The aggregate compensation paid by the Group or on behalf of the Group to key management for services rendered to the Group is:
2022 2021

Rm Rm
Salaries and other short-term employee benefits 27 26
Post-employment benefits 1 –
Share-based payment expense 2 5
Directors’ fees 19 18
49 49
The Group’s executive directors are members of the staff pension schemes.
The executive directors participate in the Group’s long-term retention schemes, the details of which are in note 15.1.2.
Aggregate details of insurance and investment transactions between MMH (including any subsidiary) and key management
personnel and their families are as follows:
2022 2021
Insurance Investment Insurance Investment
Rm Rm Rm Rm
Fund value – 69 – 246
Aggregate life and disability cover 30 N/A 33 N/A
Deposits/premiums for the year – 1 1 10
Withdrawals/claims for the year (5) (1) (4) (4)
In aggregate, the Group earned fees and charges totalling R4.3 million (2021: R1.3 million) on the insurance and investment
products set out above.

31 RELATED PARTY TRANSACTIONS CONTINUED

31.3 B-BBEE partner
The Group’s B-BBEE partner, KTH, has an interest of 5.3% (2021: 7.4%) in MMH. The Group has entered into the following
transactions with KTH:
• MMH issued preference shares to KTH and subscribed to a preference share in KTH as disclosed in note 12.2.3.
• KTH has certain strategic empowerment holdings in the Group. Refer to the directors’ report for more details.
• Dividends of R38 million (2021: R38 million) were paid to KTH on the A3 MMH preference shares.
31.4 Contract administration

Certain companies in the Group carry out third-party contract and other administration activities for other related companies in the
Group. These transactions are entered into at market-related rates. These fees are eliminated on consolidation.
31.5 Transactions with associates

Transactions with associates relate to loans advanced and preference share investments (refer to note 7.2).
31.6 Transactions with significant shareholders

MMH dividend declarations:
R60 million of the ordinary dividends declared by MMH in September 2021 and R140 million of the ordinary dividends declared
in March 2022 (R100 million of the ordinary dividends declared in March 2021) were attributable to RMI. As a result of RMI
unbundling its shareholding in MMH on 25 April 2022, RMI is no longer a related party as of that date.
31.7 Post-employment benefit plans

Refer to note 15 for details of the Group’s employee benefit plans.
2022 2021
Rm Rm
32 CAPITAL AND LEASE COMMITMENTS
Capital commitments
Authorised but not contracted 687 602
Authorised and contracted 80 64
767 666
The above commitments, which are in respect of computer software, building refurbishments,
and new business opportunities, will be financed from internal sources. The Group has also
made capital commitments of R192 million for 2023 for the India and other new initiatives, and
R203 million for Momentum Investments.
Lease commitments
The minimum future lease payments relating to short-term leases, low-value asset leases and
variable lease payments payable under non-cancellable leases on property and equipment:
Less than 1 year 4 4
4 4
The minimum future lease payments receivable under non-cancellable operating leases on
investment properties:
Less than 1 year 413 492
Between 1 to 2 years 351 363
More than 5 years 749 867
2 400 2 401

33 PROVISIONS AND CONTINGENT LIABILITIES
GROUP REPORTS
The Group is party to legal proceedings in the normal course of business and appropriate provisions are made when losses are
expected to materialise.
Reinter-
mediation Other Total
2022 Rm Rm Rm
Beginning of period 245 38 283
Additional provisions made in the period 12 30 42
Amounts utilised – (6) (6)
Unused amounts reversed during the period (26) – (26)
Other 6 6 12
Exchange differences – 2 2
Total provisions 237 70 307
There is an obligation to reintermediate clients that are not linked to a financial adviser. A provision was made to provide for the
CONSOLIDATED ANNUAL
costs expenses that will be incurred to reintermediate these clients with in-force policies to a financial adviser. It is expected that the
provision will be utilised over the next five years, but there is uncertainty about the number of advisers and clients that will participate
in this reintermediation programme, as well as the timing, which impacts the amount of the provision and timing of the utilisation.
The provision will be re-assessed annually every year and adjusted as required based on the actual experience associated with
the number of financial advisers and clients that will participate in this reintermediation programme.
Commercial building claim

In January 2022 a commercial building claim originated within Momentum Insure, where an entire insured building has burnt
down. The total sum insured was R194 million excluding VAT. The claim on the policy was rejected due to the underwriting
criteria not being met, as contractually agreed upon. Momentum Insure is aware that a law firm has been appointed to dispute
the decision. A portion of the claim to the value of R38 million, which relates to a mortgagee clause, is already reserved for at
the reporting date due to specific conditions on the policy for which a portion of the claim may need to be paid. The retention on
this claim is R5 million and the reinstatement premium is R9 million, with a total impact of R14 million, which has already been

accounted for. In the unlikely scenario, which is considered to be remote, where the claim has to be paid in full, the retention
would remain at R5 million and the reinstatement premium cost for reinsurance would be R14 million, resulting in the total impact
potentially increasing with a contingent R5 million to R19 million.

34 EVENTS AFTER THE REPORTING PERIOD

The Board declared a final ordinary dividend of 65 cents per share on 12 September 2022.
During July 2022, the Group, through its wholly owned subsidiary, MIH, disposed of its entire shareholding in Metropolitan Cannon
Life Assurance Ltd and Metropolitan Cannon General Insurance Ltd. At 30 June 2022, this disposal did not meet all the recognition
criteria to be classified as held for sale in terms of IFRS 5 - Non-current assets held for sale and discontinued operations.
During August 2022, Aditya Birla Capital Ltd and MMH announced a transaction whereby the Abu Dhabi Investment Authority will
own 9.99% in ABHIL, by way of a fresh issuance of ordinary shares. This will result in a dilution of the Group’s shareholding from 49%
to 44.1%. Completion of the transaction is still subject to statutory and regulatory approvals, including the approval of the Insurance
Regulatory and Development Authority of India. A reasonable estimate of the financial effect cannot be made given the relevant
pending approvals.
MMH has commenced a R750 million share buyback programme in August 2022 after receiving approval from the Prudential
Authority. Share buybacks deliver considerable value accretion to shareholders while the share price continues to trade at a deep
discount to embedded value. They also represent an effective form of capital distribution in line with the Group’s capital management
framework. Future share buybacks will continue to be considered based on affordability.
On 25 August 2022, the Competition Commission released a media statement that it was conducting search and seizure operations
at the premises of eight insurance companies in South Africa, including Momentum, a division of MMH. In the statement, the
Commission indicated that it has grounds to suspect that the insurers under investigation have contravened the Competition Act by
engaging in collusive practices to fix prices and/or trading conditions in respect of fees for investment products and premiums for
risk-related life products.
At the time of the approval of these financial statements, the directors have assessed that the scope of the Commission’s investigation
does not extend beyond the kinds of investment and risk-related life products reported in the Commission’s media statement. In addition,
the directors have concluded that the impact to MMH group entities would be unclear until such time as the Commission concludes
its investigation and decides formally to refer a case to the Competition Tribunal for adjudication. Accordingly, given the preliminary
stage of the Commission’s investigation, these financial statements do not make provision for the Commission’s allegations relating to
contraventions of the Competition Act to the extent that they remain subject to further investigation, assessment and determination.
35 FINANCIAL RISK MANAGEMENT

The risk philosophy, structures and management processes of the Group recognise that managing risk is an integral part of generating
sustainable shareholder value while at the same time enhancing the interests of all stakeholders. The importance of maintaining an
appropriate balance between entrepreneurial endeavours and sound risk management practice is also taken into account. While striving
to create a competitive long-term advantage by managing risk as an enabler, the Group simultaneously seeks to achieve higher levels of
responsibility to all stakeholders. The material risk factors applicable to the Group can be found in the Integrated Report which is available
online in PDF format at https://www.momentummetropolitan.co.za. The Group is currently exposed to the following financial risks:
Long-term insurance risk: Long-term insurance risk is the risk of loss or adverse change in the value of long-term (life) insurance
contracts resulting from changes in current or expected future risk claims or policyholder persistency. This can be through the realisation
of an operating experience loss or the change in insurance liabilities. The value of life insurance contracts is the expectation in
the pricing and/or liability of the underlying contract where insurance liabilities are determined using an economic boundary.
It therefore relates to risk exposures across mortality, morbidity/disability, retrenchment, longevity, life catastrophes, lapse and
persistency. The Group also has exposure to health insurance risk in India and its African subsidiaries outside South Africa.
Non-life insurance risk: Non-life insurance risk is the risk of unexpected underwriting losses in respect of existing non-life
insurance business as well as the new business expected to be written over the next 12 months. Underwriting losses could result
from adverse claims, increased expenses, insufficient pricing, inadequate reserving, or through inefficient mitigation strategies like
inadequate or non-adherence to underwriting guidelines. It covers premium, reserve, lapse and catastrophe risk exposures.
Liquidity risk: Liquidity risk is the risk that the Group, though solvent, has inadequate liquid financial resources to meet its financial
obligations as and when they fall due, or where these resources can only be secured at excessive cost. The Group differentiates
between funding liquidity risk (the risk of losses arising from difficulty in raising funding to meet obligations when they become
due or the funding can only be raised at excessive cost) and market liquidity risk (the risk of losses arising when engaging in
financial instrument transactions due to inadequate market depth and/or breadth or a market disruption).
Market risk: Market risk is the risk of financial loss due to adverse movements in the market value of assets supporting liabilities
relative to the value of those liabilities, or due to a decrease in the net asset value, as a consequence of changes in market conditions
or as a result of the performance of investments held. This includes exposure to equities, interest rates, credit spreads, property,
price inflation and currencies.
Credit risk: Credit risk is the risk of losses arising from the potential that a counterparty will fail to meet its obligations in accordance
with agreed terms. It arises from investment and non-investment activities, such as reinsurance credit risk, amounts due from
intermediaries and policy loans.
The sections that follow provide information on the processes in place to manage and mitigate the financial and insurance risks
inherent in the contracts issued by the Group.

36 CAPITAL MANAGEMENT
GROUP REPORTS
36.1 Capital management objectives
The Board has the ultimate responsibility for the efficient management of capital within the Group. The Balance Sheet
Management function is responsible for the day-to-day activities relating to capital management and to make timely, prudent
recommendations to the relevant governance committees.
The key objectives of the Group’s capital management programme are to maintain compliance with minimum regulatory Solvency
Capital Requirements (SCR) as well as the target SCR cover ratios as approved as part of the Group’s risk appetite framework.
The focus on maintaining an optimal solvency position will always be balanced with the aim of not retaining excessive surplus
capital on the statement of financial position. In order to do this, the Group continues to focus on optimising capital consumption,
the Group capital structure, capital deployment and capital distribution. When these activities are combined, capital management
drives value creation within the Group. The capital management programme is underpinned by appropriate links to the Group’s risk
appetite framework and governance processes while focusing on effective implementation and execution of the principles.
36.2 Capital management framework

The Group’s capital management framework rests on the following key principles:
• Capital requirements and definition of capital

The risks inherent in the business activities of the Group drive the need to hold sufficient capital reserves to protect the business
CONSOLIDATED ANNUAL
against the adverse impacts of unexpected risk events. This is the primary aim for holding capital on the statement of financial
position. In addition to this, holding capital on the statement of financial position enables the Group to support its business strategy.
Within the Group, capital is measured and monitored on both an IFRS and regulatory basis. On the IFRS basis, capital is defined
as the total equity plus subordinated debt. On the regulatory basis, capital is defined as the total eligible own funds calculated
in line with the technical specifications of the Prudential Standards together with any applicable approvals obtained.
• Own Funds and Solvency Capital Requirements

The regulatory capital coverage is determined as the ratio of own funds to the SCR. The calculation of the own funds and SCR are in
accordance with the technical specifications of the Prudential Standards applicable to all of the Group’s local insurance entities.
• Capital coverage
The Group specifies capital coverage ratios and ranges for the Group and its regulated insurance entities, which are defined
under its risk appetite framework.
• Capital allocation
As a general principle, subsidiaries are capitalised to ensure medium-term regulatory solvency while additional capital is held

centrally to support the long-term regulatory solvency of the entities. MML houses MMH’s shareholder assets, therefore, MML
is capitalised in excess of what its own covered business requires.
• Investment of assets backing shareholder capital
The assets held in the shareholder capital portfolios, housed within MML, are financial assets that are in excess of the assets
required to meet policyholder obligations and are directly attributable to the Group’s shareholders. These assets back the
Group’s minimum required capital, approved capital buffers, the subordinated debt programme, as well as discretionary capital.
The assets backing shareholder capital portfolios are invested in line with approved risk appetite and mandates.
• Capital planning process

The Group’s capital planning process facilitates value creation by aligning corporate strategy, capital allocation and performance
measurement. This process is conducted on a forward-looking basis through regular solvency and liquidity projections that take
into account capital sourcing requirements, strategic capital deployment and subsidiary capital requirements.
• Dividends
The Group’s dividend policy is to grow dividends in line with normalised headline earnings growth. The Group targets a 2.5x
normalised headline earnings dividend cover with a 2.0x to 3.0x target coverage range. This implies a pay-out ratio of c.40%
to c.50% of normalised headline earnings per annum.

36 CAPITAL MANAGEMENT CONTINUED

36.2 Capital management framework continued
• Alignment of capital with subsidiaries
The Group provides the over-arching guiding principles regarding capital management for all subsidiaries as it is the main
provider of capital to these subsidiaries.
36.3 Overview of capital management developments

36.3.1 Regulatory capital developments
The Financial Sector Regulation Act of 2017 became effective on 1 April 2018, introducing the Twin Peaks model of regulating
financial institutions. The Insurance Act 18 of 2017 took effect on 1 July 2018. The PA has confirmed the conversion of MML’s
registration in terms of item 6(2) of Schedule 3 to the Insurance Act. In addition, the PA has confirmed the designation of Momentum
Metropolitan as an insurance group as well as the licencing of Momentum Metropolitan Holdings as the controlling company of the
Group. The capital management information in this report reflects the requirements of the applicable Prudential Standards.
36.3.2 Changes in capital structure

Subordinated debt raising
On 25 May 2022, MML successfully auctioned two unsecured subordinated debt instruments, MML05 and MML06, with a total
nominal value of R1 000 million. The MML05 bond is a 5 year floating rate note maturing on 25 May 2027 and the MML06 bond
is a 7 year fixed rate note maturing on 25 May 2029. The proceeds of the issuance were used to refinance the subordinated debt
instrument MMIG05 which became callable on 12 August 2022.
36.3.3 Subordinated debt profile

The table below shows a summary of the MML subordinated debt profile, which relates to unsecured callable notes currently in
issue at 30 June 2022:
Amount
issued
Instrument code (Rm) Coupon rate Tenor Date issued Interest rate
MMIG05 980 10.86% 7 years Aug 15 Fixed
MMIG04 270 11.30% 10 years Aug 15 Fixed
MMIG06 750 JIB03 + 220bps 6 years Oct 17 Floating
MMIG07 750 JIB03 + 175bps 5.5 years Mar 19 Floating
MML01 290 JIB03 + 175bps 7 years Dec 19 Floating
MML02 460 9.29% 7 years Dec 19 Fixed
MML03 300 JIB03 + 194bps 7.1 years Feb 21 Floating
MML04 450 7.89% 7.1 years Feb 21 Fixed
MML05 865 JIB03 + 160bps 5 years May 22 Floating
MML06 135 10.01% 7 years May 22 Fixed
Total 5 250
The Group believes that the current capital mix is adequate, but will continue to pursue strategies to optimise the capital mix
within the Prudential Standards.
The table below shows the maturity profile of Momentum Metropolitan’s subordinated debt at 30 June 2022:
Bond Issue Amount

Bond code (Rm) Date Issued Outstanding Tenor Year of maturity
MMIG05 980 Aug 15 0.1 years 2022
MMIG04 270 Aug 15 3.1 years 2025
MMIG06 750 Oct 17 1.3 years 2023
MMIG07 750 Mar 19 2.2 years 2024
MML01 290 Dec 19 4.4 years 2026
MML02 460 Dec 19 4.4 years 2026
MML03 300 Feb 21 5.7 years 2028
MML04 450 Feb 21 5.7 years 2028
MML05 865 May 22 4.9 years 2027
MML06 135 May 22 6.9 years 2029
Total 5 250

36 CAPITAL MANAGEMENT CONTINUED
GROUP REPORTS
36.4 Capital coverage
MML has adopted a target range for regulatory solvency cover of 1.6 to 2.0 times the SCR. This makes allowance for the capital required
to support the covered business against a range of severe but plausible scenarios, as well as the wider strategic investments. The
Solvency Capital Requirements (SCR) requirements of MML were met at 30 June 2022 and throughout the financial year.
The PA has designated Momentum Metropolitan as an insurance group and approval for the licensing of MMH as the controlling company
of the insurance group was received in August 2021. The Group has received approval to calculate its group solvency position using
the Accounting Consolidation method (for Momentum Metropolitan Life Ltd, Momentum Insure Company Ltd and the Asset Holding
Intermediaries held by these entities) as well as certain additional methodology approvals that have a minor impact on group solvency.
The Group targets an SCR cover range of 1.4 to 1.7 times SCR. The Group’s solvency position is determined by aggregating
the adjusted own funds and SCR under the regulatory framework of all the underlying entities, after elimination of intra-group
arrangements. The prescribed Deduction and Aggregation method is applied in aggregating the adjusted solo own funds and
solo SCRs of the controlling company and its participations. For entities for which approval has been received for inclusion in the
Accounting Consolidation group, the eligible own funds and SCR are calculated using a consolidated balance sheet approach as
required by the Framework for Financial Soundness of Insurance Groups.
CONSOLIDATED ANNUAL
36.5 Credit ratings
MML and the Guardrisk Group entities are the main rated entities within the Group. Therefore, this section provides an update on
these entities.
In April 2022, Moody’s updated their credit opinion for Guardrisk and MML. In those credit opinion reports, Moody’s affirmed
the MML and Guardrisk credit ratings and changed the credit rating outlook from negative to stable. The table below shows the
relevant Momentum Metropolitan entity credit ratings as at 30 June 2022.
National scale Global scale

30 June 30 June 30 June 30 June
Entity Type 2022 2021 2022 2021 Outlook
MML
MML Insurance Financial

Strength (IFS) Aaa.za (AAA) Aaa.za (AAA) Ba1 (BB+) Ba1 (BB+) Stable
MML Issuer rating Aa1.za (AA+) Aa1.za (AAA) Ba2 (BB) Ba2 (BB) Stable
Subordinated debt N/A Aa3.za (AA-) Aa3.za (AA) Ba3 (BB-) Ba3 (BB-) Stable
Guardrisk
Guardrisk Insurance
Company Ltd IFS Aaa.za (AAA) Aaa.za (AAA) Ba2 (BB) Ba2 (BB) Stable
Guardrisk Life Insurance
Company Ltd IFS Aaa.za (AAA) Aaa.za (AAA) Ba2 (BB) Ba2 (BB) Stable
Guardrisk International
Ltd PCC IFS N/a N/a Ba2 (BB) Ba2 (BB) Stable
On MML, in the April 2022 report, Moody’s commented that “MML Ba1 global scale and Aaa.za national scale, IFS ratings reflect
the insurer's top tier market position in South Africa, its solid capital position and its flexible product characteristics which serve
to reduce the impact on the Group from stress related to credit pressures at the sovereign level.” They further noted: “These
strengths are partially offset by the Group's exposure to South Africa, both in the form of its invested assets and revenues.
These are susceptible to the pressure on the domestic economy and the effects of coronavirus which has significantly impacted
earnings via high mortality claims and additional life insurance provisions, thus hampering the group's ability to achieve its
previous “Reset and Grow” profitability target.”
On Guardrisk, in the April 2022 report, Moody’s commented that “The Ba2 global scale IFS ratings, with stable outlook, assigned to
entities in the Guardrisk group - as well as the Aaa.za national scale IFS ratings assigned to the South African entities - reflect its
good market position as the largest cell captive insurer in the South African market, low underwriting risk due to its predominantly
fee based model, diverse product mix across life insurance and short-tailed non-life insurance lines, and strong profitability. These
strengths are partially offset by its investment portfolio's concentrated exposure to the South African economy and banking
system with a significant majority of Guardrisk group's invested assets comprising South African bank deposits, debt securities
and investments in money market funds. Also, Guardrisk group has a lower regulatory capital buffer above the new South African
Solvency Assessment and Management framework (SAM) capital requirements due to non-recognition of surplus capital in cells
for regulatory capital purposes, and is exposed to corporate credit risk through its reliance on cell-owners to recapitalise cells in
the event needed."

37 INSURANCE AND INVESTMENT BUSINESS

The table below reconciles the contract holder liabilities for each category to the total liability in the statement of financial position.
Each category represents distinct financial risks. Some categories may include both insurance and investment contracts.
Investment
Insurance with DPF Investment Total
Rm Rm Rm Rm
2022
Individual contracts with market exposure 52 999 2 998 188 672 244 669
Market-related business 16 184 1 040 186 260 203 484
Smoothed bonus business 27 026 1 120 735 28 881
Smoothed bonus – fully vesting – 838 1 677 2 515
Conventional with-profit business 9 789 – – 9 789
Group contracts with market exposure 11 729 1 102 153 113 884
Market-related business (6) – 87 980 87 974
Smoothed bonus business – – 13 545 13 546
Smoothed bonus – fully vesting – – 628 628
Conventional with-profit business 11 735 1 – 11 736
Other business 59 278 32 5 416 64 726
Non-profit annuity business 46 443 – 1 630 48 073
Guaranteed endowments – – 3 786 3 786
Other non-profit business 12 835 32 – 12 867
Subtotal 124 006 3 031 296 241 423 278
Liabilities in cell captive and non-life business 24 379 – 22 517 46 896
Total contract holder liabilities 148 385 3 031 318 758 470 174
Restated
20211
Individual contracts with market exposure 55 549 2 732 181 785 240 066
Market-related business 17 295 1 023 179 301 197 619
Smoothed bonus business 28 359 811 800 29 970
Smoothed bonus – fully vesting – 898 1 684 2 582
Conventional with-profit business 9 895 – – 9 895
Group contracts with market exposure 12 647 16 342 85 415 114 404
Market-related business (14) – 85 371 85 357
Smoothed bonus business (41) 15 694 – 15 653
Smoothed bonus – fully vesting – 618 – 618
Conventional with-profit business 12 702 30 44 12 776
Other business 58 230 148 6 577 64 955
Non-profit annuity business 43 736 – 1 322 45 058
Guaranteed endowments 4 – 5 255 5 259
Other non-profit business 14 490 148 – 14 638
Subtotal 126 426 19 222 273 777 419 425
Liabilities in cell captive and non-life business 16 062 – 18 723 34 785
Total contract holder liabilities 142 488 19 222 292 500 454 210
1

37 INSURANCE AND INVESTMENT BUSINESS CONTINUED
GROUP REPORTS
37.1 Classes of long-term insurance and investment business
The different classes of business are discussed below:
Individual and group contracts with market exposure: Market-related business

Market-related or unit-linked contracts are those invested in portfolios where there is a direct relationship between the returns
earned on the underlying portfolio and the returns credited to the contract. These may be investment contracts or insurance
contracts, and include universal life contracts that also provide cover on death or disability.
• The Group holds the assets on which unit prices are based in accordance with policy terms and conditions.
• Policyholders carry the investment risk; however, the Group carries a risk of reduced income from fees where these are based
on investment returns or the underlying fund value, or where investment conditions affect its ability to recoup expenses incurred.
Furthermore, there is also the reputational risk if actual investment performance is not in line with policyholder expectations.
These risks are managed through the rigorous investment research process applied by the Group’s investment managers, which
is supported by technical as well as fundamental analysis.
• The shareholders earn management fees as a percentage of the fair value of the asset portfolio. To the extent that these assets
CONSOLIDATED ANNUAL
are subject to interest rate and market price risk, these fees are volatile, although always positive. In addition, shareholders earn
fees as a percentage of the investment return on certain asset portfolios over the period. Due to fluctuations in investment returns
over periods, these fees are volatile and can be negative.
• The liabilities originating from market-related investment contracts are measured with reference to their respective underlying
assets. Changes in the credit risk of the underlying assets impact the measurement of these liabilities.
Individual and group contracts with market exposure: Discretionary participation business
Discretionary participation business includes traditional smoothed bonus business, conventional with-profit business and group
with profit annuities. These may be insurance contracts or investment with Discretionary Participation Features (DPF) contracts,
and include universal life contracts that also provide cover on death or disability.
• Bonuses are declared taking into account a number of factors, including actual investment returns, previous bonus rates
declared and contract holders’ reasonable expectations. Bonuses are generally designated as vesting bonuses, which
cannot be removed or reduced on death or maturity, or non-vesting bonuses, which can be removed or reduced. Declared

bonuses are usually a combination of both vesting and non-vesting bonuses, although for certain classes of business,
declared bonuses are fully vesting or fully non-vesting.
• Bonuses for MML are subject to approval by the MMH Actuarial Committee which performs an oversight and approval role on behalf
of the Boards of the life insurers. Non-South African subsidiaries’ bonuses are subject to approval by their respective Boards.
• All long-term insurers that write discretionary participation business are required to define, and make publicly available,
the principles and practices of financial management (PPFM) that they apply in the management of their discretionary
participation business. In accordance with this, MML has issued PPFM for all discretionary participation portfolios detailing
the investment strategies and bonus philosophies of the portfolios. In addition, management reports to the Fair Practices
Committee (a subcommittee of the MMH Board) on an annual basis regarding compliance with the PPFM.
• Bonus Stabilisation Accounts (BSA) are held equal to the difference between the fund accounts, or the discounted value of
projected future benefit payments for conventional with-profit and with-profit annuity business, and the market value of the
underlying assets. A positive BSA is the undistributed surplus in the asset portfolio that is earmarked for future distribution to
contract holders. A positive BSA is recognised as a liability.
• If the smoothing process has resulted in a negative BSA because of a downward fluctuation in the market value of the backing
assets, the liabilities are reduced by the amount that can reasonably be expected to be recovered through under-distribution of
bonuses during the ensuing three years, provided that the Board is satisfied that, if the market values of assets do not recover, future
bonuses will be reduced to the extent necessary. The Group is exposed to market and liquidity risk to the extent that a negative BSA
cannot reasonably be expected to be recovered through under-distribution of bonuses during the ensuing three years.
• Short-term derivative hedging strategies may be utilised at times to protect the funding level of the discretionary participation
portfolios against significant negative market movements. These strategies would be implemented by the underlying asset
managers in consultation with management.
• The shareholders earn management fees as a percentage of the fair value of the asset portfolio. To the extent that the assets
are subject to interest rate and market price risk, these fees are volatile, although always positive. In addition, shareholders earn
fees as a percentage of the investment return on certain asset portfolios over the period. Due to fluctuations in investment
returns over periods, these fees are volatile and can be negative.


37.1 Classes of long-term insurance and investment business continued
• The major classes of smoothed bonus business are:
– Metropolitan Life individual smoothed bonus business (open to new business).
– Momentum Corporate smoothed bonus business (open to new business).
– Momentum Corporate with-profit annuity business (open to new business).
– Momentum Life traditional smoothed bonus business sold on an individual life basis as part of the universal life investment
option, with annual bonuses declared in arrears (closed to new business).
– Momentum Life traditional smoothed bonus business sold on an individual life basis as investment options on the Investo
and Wealth platforms, with annual bonuses declared in arrears (open to new business).
– Momentum Life fully vesting smoothed bonus business sold on both an individual and an institutional basis, with monthly
bonuses declared in advance (open to new business).
Non-profit annuity business

• Benefit payments on non-profit annuities are generally fixed in nominal or inflation-adjusted terms and guaranteed at inception
(except to the extent that they are exposed to mortality insurance risk).
• Payments normally cease on death of the insured life or lives, but different options, such as guaranteed payment periods and
maximum payment terms, are offered to policyholders.
• In order to reduce market risk, projected liability outflows on annuity business are closely matched by an actively managed
combination of bonds of appropriate duration and interest rate derivatives. Any residual mismatch profit or loss as well as any
credit risk for these policies is borne by the shareholder.
Guaranteed endowments (insurance and financial instrument business)

• Guaranteed endowments are typically five-year term contracts with fixed benefit payments that are guaranteed at inception.
The benefit on death is the greater of the initial investment amount and the market value of the underlying assets. The
guaranteed benefits are closely matched from inception by instruments of appropriate nature and duration.
• Credit risk for these policies is borne by the shareholder. In cases where structured assets back this business, they will have a
credit rating that corresponds to senior bank debt, equivalent to a long-term national scale rating of A+.
Other non-profit business

• These include long-term regular premium insurance contracts of varying duration.
• The market risk on these contracts is mitigated through an actively managed combination of interest rate securities and
interest rate derivatives. Any residual mismatch profit or loss as well as any credit risk for these policies is borne by the
shareholder.
Investment guarantees
• A minimum guaranteed maturity value is attached to the majority of the individual discretionary participation business and
some of the individual market-related business. Some products also provide minimum benefits on early duration deaths and on
early terminations.
• In addition, all discretionary participation business has a minimum death or maturity value equal to the vested benefits.
• Some older blocks of retirement annuity business have attaching guaranteed annuity options on maturity. These give contract
holders the right to purchase conventional annuity contracts at guaranteed rates specified at the inception dates of the
retirement annuity contracts. The liabilities in respect of these types of guarantees are much less significant than the liabilities
in respect of minimum guaranteed maturity values and minimum vested benefits.
• On inflation-linked annuities a minimum annual increase rate is generally applicable, for instance as a consequence of
regulatory requirements whereby pension income cannot reduce in nominal terms.
• The liabilities in respect of investment guarantees are sensitive to interest rate and equity price movements as well as market-
implied volatilities and are valued using accepted proprietary models in accordance with market-consistent valuation techniques
as set out in professional guidance note APN 110 – Allowance for Embedded Investment Derivatives. Refer to note 11.
• Currently certain structures are in place to partially match movements in this liability. However, it is not possible to fully match
these guarantees due to the long-term nature of the guarantees provided and the lack of corresponding financial instruments
in the market with similar durations.

GROUP REPORTS
37.2 Long-term insurance risk
Long-term insurance risk is the risk of loss or adverse change in the value of long-term (life) insurance contracts resulting from
changes in current or expected future risk claims or policyholder persistency. This can be through the realisation of an operating
experience loss or the change in insurance liabilities. The value of insurance contracts is the expectation in the pricing and/or
liability of the underlying contract where insurance liabilities are determined using an economic boundary. Insured events are
random and the actual number and amount of claims and benefits will vary from year to year. Statistically, the larger the portfolio
of similar insurance contracts, the smaller the relative variability around the expected outcome will be. Similarly, diversification of
the portfolio with respect to risk factors reduces insurance risk.
Long-term insurance risk management

The HAFs have a duty under the Insurance Act, 18 of 2017 and its associated prudential guidelines to evaluate and provide advice to
the Board of directors and management on the financial soundness of the insurer. This includes the accuracy of the calculations and
the appropriateness of the assumptions underlying the valuation of the insurer’s technical provisions and calculation of the insurer’s
capital requirements. The HAFs report on these matters to the Board, Actuarial Committee and the Prudential Authority. The Actuarial
Committee supports the HAFs in their responsibility for the oversight of insurance risk. The Actuarial Committee has been appointed
CONSOLIDATED ANNUAL
by the Board to ensure that the technical actuarial aspects specific to insurance companies are debated and, where necessary,
independently reviewed.
In determining the value of insurance liabilities, assumptions need to be made regarding future rates of mortality and morbidity,
termination rates, retrenchment rates, expenses and investment performance. The uncertainty of these rates may result in actual
experience being different from that assumed and hence actual cash flows being different from those projected. In adverse
circumstances, actual claims and benefits may exceed the liabilities held. The financial risk is partially mitigated through the
addition of margins, especially where there is evidence of moderate or extreme variation in experience.
Reinsurance agreements are used as a primary risk mitigation tool, particularly in terms of insurance risks that are not well
understood or fall outside the Group’s risk appetite.
The main insurance risks, as well as the Group’s approach to the management of these risks, are set out below.

37.2.1 Demographic risks
The risk of adverse change in the value of insurance contracts arising from changes in the level, trend, or volatility of demographic
rates in respect of insurance obligations where a change in demographic rates lead to an increase in the value of insurance
liabilities or claims. Underwriting processes are in place to manage exposure to these risks. The most significant measures are:
• The HAFs are required to evaluate and provide advice to the Board on the actuarial soundness of the terms and conditions of
insurance contracts (Insurance Act, 18 of 2017, GOI 3).
• Regular experience investigations are conducted and used to set premium rates and valuation assumptions.
• Reinsurance arrangements are negotiated in order to limit the risk from any individual contract or aggregation of contracts.
These include company-wide catastrophe reinsurance. MML’s catastrophe reinsurance cover for the current financial year is
R1 billion (2021: R750 million) in excess of R20 million of the total retained sum assured for any single event involving three or
more lives.
The nature of risks varies depending on the class of business. The material classes of business most affected by these risks are
discussed below.
Individual insurance business

• These are contracts providing benefits on death, disability, accident, medical events and survival that are sold directly to
individuals. These contracts may also bear significant financial risk.
• Factors affecting demographic risks for individual insurance business:
– The most significant factors that could substantially change the frequency of claims are epidemics or widespread changes
in lifestyle (smoking, exercise, eating), resulting in more or earlier claims.

– Economic conditions can potentially affect retrenchment claims as well as morbidity claims where benefits are determined
in terms of the ability to perform an occupation.
– Medical advances can potentially affect the size and severity of medical claims (including critical illness claims).
– Anti-selection, such as where a client who has a pre-existing condition or disease purchases a product where a benefit will
be paid on death or in the event of contracting such a disease.
– The effect of selective terminations, which means policyholders are less likely to terminate voluntarily if the cover is more
likely to be needed in the foreseeable future.
– Concentration risk, which is the risk of a large number of claims from a single event or in a particular geographical area.


37.2 Long-term insurance risk continued
37.2.1 Demographic risks continued
• Demographic risks are managed as follows:
– Risk premiums on most smoothed bonus and market-related contracts may be adjusted within the terms and conditions
of the contracts. The ability of the Group to adjust these charges so that on average they reflect actual mortality experience
reduces mortality risk. There is residual mortality risk resulting from delays in identifying worsening experience and
adjusting charges as well as marketing pressures and client expectation management.
– To reduce cross-subsidisation of risks and the possibility of anti-selection, premium rates differentiate on the basis of some
or all of age, gender, occupation, smoker status, education, income level, geographic region and the results of underwriting
investigations. Experience investigations have shown that these are reliable indicators of the risk exposure.
– A guarantee period shorter than the policy term applies to most risk business, and enables the Group to review premium
rates on in-force contracts during the life of the contracts. The guarantee period on whole-life products is generally within
the range of 10 to 15 years.
– All policy applications are subject to underwriting rules. Applications for risk cover above certain limits are reviewed by
experienced underwriters and evaluated against established standards.
– Compulsory testing for HIV is carried out in all cases where the applications for risk cover exceed limits specified for
a product. Where HIV tests are not required, this is fully reflected in the pricing and experience is closely monitored.
– Underwriting is done to identify non-traditional risks and take appropriate action, such as applying additional premium
loadings or altering benefit terms.
– Additional provisions are held in respect of the potential deterioration of the mortality experience of supplementary benefits
and direct marketing business.
– Reinsurance agreements are used to limit the risk on any single policy and aggregation of policies. Sums assured above a
negotiated retention level are reinsured on a risk premium basis. Facultative arrangements are used for substandard lives
and large sums assured.
– Momentum Life and Investments typically retains 85% of the risk on amounts of cover not exceeding R5 million on
individual lives that are medically underwritten and that are not members of employee benefit schemes. Amounts of cover
in excess of R5 million are typically fully reinsured.
– Metropolitan Life has a number of different reinsurance structures in place, depending on the type of product, the size of
the risks involved and the experience in this type of business. The two structures mostly used are surplus retention where,
generally, amounts of up to R1 million are retained with the full amount above that reinsured, and risk premium reinsurance
on a constant retention basis (up to a maximum retention limit of R400 000 on fully underwritten cover and R600 000 on
limited underwritten cover). Reinsurance is in place on existing and new business for both fully underwritten and limited
underwritten products still actively sold in the market. There is no reinsurance in place for funeral products.
– Concentration risk is reduced by diversification of business over a large number of uncorrelated risks and several classes of
insurance, as well as by company-wide catastrophe reinsurance.
The table below shows the concentration of individual insurance contract benefits (gross and net of reinsurance) by sums insured
at risk:
2022 2021
Amount Amount Amount Amount
Number of (gross) (net) Number of (gross) (net)
Sums insured per benefit benefits Rm Rm benefits Rm Rm
0 – 20 000 4 087 721 35 182 33 262 3 772 542 33 350 31 469
20 001 – 50 000 1 010 741 50 934 49 894 984 562 50 484 49 427
50 001 – 100 000 394 207 41 841 38 921 378 936 40 348 37 307
100 001 – 200 000 128 787 20 518 15 665 126 322 21 559 15 909
200 001 – 500 000 207 693 78 808 49 619 203 357 77 565 47 720
500 001 – 1 000 000 224 635 128 758 95 904 223 731 119 832 88 882
> 1 000 000 511 861 1 195 717 654 929 500 889 1 083 490 607 954
Subtotal 6 565 645 1 551 758 938 194 6 190 339 1 426 628 878 668
Cell captive business 7 517 206 669 283 269 132 7 799 028 622 763 263 540
Total 14 082 851 2 221 041 1 207 326 13 989 367 2 049 391 1 142 208

GROUP REPORTS
Group insurance business
• These are contracts that provide life and/or disability cover to members of a group (eg clients or employees of a specific company).
• Typical benefits are:
– Life insurance (mostly lump sum, but including some children and spouse’s annuities)
– Disability insurance (lump sum and income protection)
– Dread disease cover
– Continuation of insurance option.
• Factors affecting these risks and how they are managed:
– Contracts are similar to individual insurance contracts but there is greater risk of correlation between claims on group schemes
because the assured lives live in the same geographical location or work in the same industry; hence a higher degree of
concentration risk exists.
– The products are mostly simple designs with a one-year renewable term. In most cases the products are compulsory for all
employees although it has become more common recently to provide members with a degree of choice when selecting risk
CONSOLIDATED ANNUAL
benefits.
– Underwriting on group business is much less stringent than for individual business as there is typically less scope for
anti-selection. The main reason for this is that participation in the Group’s insurance programmes is normally compulsory,
and as a rule members have limited choice in the level of benefits. Where choice in benefits and levels is offered, this is
accompanied by an increase in the level of underwriting to limit anti-selection.
– Groups are priced using standard mortality and morbidity tables. The price for an individual scheme is adjusted for the
following risk factors:
º Region
º Salary structure
º Gender structure
º Industry
– For large schemes (typically 400 or more members), a scheme’s past experience is an important input in setting rates for
the scheme. The larger the scheme, the more weight is given to the scheme’s past experience.

– AIDS risk is no longer material, given the impact of anti-retrovirals and the reduction in AIDS cases.
– To manage the risk of anti-selection, there is an "actively at work" clause, which requires members to be actively at work
and attending to their normal duties for cover to take effect. This could be waived if the Group takes over a scheme from
another insurer for all existing members. In addition, a pre-existing clause may apply, which states that no disability benefit
will be payable if a member knew about a disabling condition within a defined period before the cover commenced and the
event takes place within a defined period after cover has commenced.
– There is a standard reinsurance treaty in place covering group business. Group life and lump sum disability sum benefits in
excess of R5 million and disability income benefits above R50 000 per month are reinsured. There are also some facultative
arrangements in place on some schemes that are particularly large and can have a significant impact on profit and loss.
The number of facultative arrangements was increased in 2021 in order to reduce exposure to Covid-19 death claims.
These arrangements are being reviewed given the reduced impact of Covid-19.
– Furthermore, there is a company-wide catastrophe reinsurance treaty in place. The catastrophe reinsurance is particularly
important for group risk business as there are considerably more concentrations of risks compared to individual business.
The table below shows the concentration of group schemes by scheme size (as determined by the number of lives covered):
Lives covered by scheme 2022 2021

0 – 1 000 7 855 7 769
1 001 – 5 000 372 248
> 5 000 243 146
Subtotal 8 470 8 163

Cell captive business 95 103
Total 8 565 8 266


Annuity business
• Annuity contracts provide a specified regular income in return for a lump sum consideration. The income is normally provided
for the life of the annuitant. In the case of a joint-life annuity, the income is payable until the death of the last survivor. The
income may furthermore be paid for a minimum guaranteed period and may be fixed or increased at a fixed rate or in line with
inflation. With-profit annuities are also offered whereby the policyholder shares in the experience of a pre-defined group of
policyholders. The longevity risk in this case is that the annuitants may live longer than assumed in the pricing of the contract.
• Factors affecting these risks:
– Increased longevity due to medical advances and improvement in social conditions.
– Selection bias – individuals purchasing annuities are in better health and therefore live longer than assumed in the pricing basis.
• How risks are managed:
– Mortality on non-profit annuities is monitored and future mortality improvements are allowed for in the pricing.
– Annuity products are sometimes sold in combination with whole life cover, which provides a natural hedge against longevity
and mortality risk.
– Premium rates differentiate on the basis of age and sex.
The following table shows the distribution of number of annuitants by total amount per year:
2022 2021
Total amount Total amount
Number per annum Number per annum
Annuity amount per annum of annuitants Rm of annuitants Rm
0 – 10 000 57 958 259 66 002 290
10 001 – 50 000 42 703 1 008 45 117 1 067
50 001 – 100 000 12 523 887 11 570 816
100 001 – 200 000 8 040 1 134 6 810 945
> 200 000 6 241 2 445 4 705 1 860
Subtotal 127 465 134 204
Cell captive business 1 479 104 1 494 103
Total 128 944 135 698
Permanent health insurance business

The Group also pays permanent health insurance (PHI) income to disabled employees, the bulk of which is from employee benefit
insured schemes. The income payments continue to the earlier of death, recovery or retirement of the disabled employee. There
is, therefore, the risk of lower recovery rates or lower mortality rates than assumed, resulting in claims being paid for longer
periods. Claims are reviewed at inception to determine eligibility. Ongoing claims in payment are also reviewed regularly to ensure
claimants still qualify and rehabilitation is managed and encouraged.
37.2.2 Contract persistency risk

• Persistency risk is the risk of adverse change in the value of insurance contracts due to adverse lapse, surrender and paid-up
experience, or to a change in the expected exercise rates of such policyholder options.
• Expenses such as commission and acquisition costs are largely incurred at outset of the contract. These upfront costs
are expected to be recouped over the term of a contract from fees and charges in respect of the contract. Therefore, if the
contract or premiums are terminated before the contractual date, expenses might not have been fully recovered, resulting in
losses being incurred. As a result, any amount payable on withdrawal normally makes provision for recouping outstanding
expenses from intermediaries. However, losses may still occur if the expenses incurred exceed the expected recoveries, which
is usually the case for risk policies and normally happens early on in the term of recurring premium savings policies, or where
the withdrawal amount does not fully allow for the recovery of all unrecouped expenses. This may either be due to a regulatory
minimum applying, or to product design.
• Terminations can have the effect of increasing insurance risk, eg contract holders whose health have deteriorated are less
likely on average to terminate a contract providing medical, disability or death benefits. Also, for these types of policies, the risk
at later durations is that terminations are less than assumed when pricing and valuing policies because upfront costs have
largely been recouped and a termination at that stage releases a liability.
Factors affecting the risk:
• Economic conditions – economic hardship can cause an increase in terminations due to a reduced ability to afford premiums
or a need for funds.

GROUP REPORTS
37.2.2 Contract persistency risk continued
How risks are managed:
• Premium rates are determined using realistic assumptions with regard to termination rates (rates of lapse, surrender and paid
up experience) based on the Group’s actual experience. In addition, customer retention programs are in place to actively retain
customers at risk of departure due to a lapse, surrender or maturity.
• Where withdrawal benefits are payable on termination, these can be adjusted to recover certain expenses. However, market
and legislative forces may restrict the extent to which this may be done in future.
• Persistency rates are measured on a monthly basis by a variety of factors and retention strategies are implemented on an
ongoing basis based on this information.
• Commission paid on many products is closely aligned to premium collection and the terms of the contract, therefore reducing
the risk of non-recovery of commission on new policies subsequently cancelled or paid up, which may improve persistency.
37.2.3 Retrenchment risk
CONSOLIDATED ANNUAL
Retrenchment risk is the risk of loss, or of adverse changes in the value of insurance contracts, resulting from changes in the
level, trend or volatility of retrenchment inception rates used in pricing and valuing retrenchment benefits provided under policies.
The Group has limited exposure to retrenchment risk and will consider future opportunities which provide adequate risk-adjusted
return and can be appropriately mitigated. The risk is seen as an enabler to get more exposure to other risks to which the Group
has a risk seeking attitude. When writing retrenchment risk, the Group carefully considers the design of benefits, benefit term,
premium guarantees as well as the expected diversification across employers and industries.
37.2.4 Expense risk

There is a risk that the Group may experience a loss due to actual expenses being higher than that assumed when pricing and
valuing policies. This may be due to inefficiencies, higher than expected inflation, lower than expected volumes of new business or
higher than expected terminations resulting in a smaller in-force book size.
Budget controls are in place to mitigate this risk. The Group performs expense investigations annually and sets pricing and
valuation assumptions to be in line with actual experience and budgets, with allowance for inflation. The inflation assumption

furthermore allows for the expected gradual shrinking of the number of policies arising from the run-off of certain books that are
closed to new business.
37.2.5 Business volume risk
There is a risk that the Group may not sell sufficient volumes of new business to meet the expenses associated with distribution and
administration. A significant portion of the new business acquisition costs is variable and relates directly to sales volumes. The fixed
cost component can be scaled down if there is an indication of a permanent decline in business volumes, but this will happen over a
period of time. A further mitigating factor is that the distribution channels used to generate new insurance and investment business
are used to distribute a range of product lines within the Group, such as health insurance and non-life insurance.
37.3 Non-life insurance risk

Non-life insurance risk is the risk of unexpected underwriting losses in respect of existing business as well as new business expected
to be written over the following 12 months. Underwriting losses could result from adverse claims, expenses, insufficient pricing,
inadequate reserving, or through inefficient mitigation strategies like inadequate or non-adherence to underwriting guidelines.
Guardrisk
Guardrisk transacts in all classes of non-life insurance business. Insurance is provided to corporate clients (through first-party
cells and contingency policies) and to the general public (through third-party cell owners). Insurance contracts are issued for
monthly, annual and multi-year periods and include the following classes of risk: motor, property, agriculture, engineering, marine,
aviation, transport, rail, legal expense, liability, consumer credit, trade credit, guarantee, accident and health, travel, miscellaneous
as well as reinsurance on all the classes above. Premiums charged for risks are regularly monitored by the underwriting and
actuarial teams and, where necessary, adjustments are made to the office premium to take into account competition, the
underwriting cycle, reinsurance and capital requirements.


37.3 Non-life insurance risk continued
• Guardrisk transacts in all classes of non-life insurance business, primarily as a cell captive and alternative risk transfer insurer,
focusing on both the corporate and retail market.
• There are currently two distinct types of cell captive arrangements, which are described in detail within Annexure A.
• First party cell arrangements where the risks that are being insured relate to the cell owner’s own operations or operations
within the cell owner’s group of companies. First party cell arrangements meet the definition of a financial instrument
and is accounted for as such and premium, claims and other insurance expenses are not included in the statement of
comprehensive income. The fair value gains/losses on financial assets and investment income are accounted for in the
statement of comprehensive income but the amount owing to cells will be recorded as an expense as a fair value adjustment
to financial liabilities at FVPL – amounts due to cell owners.
• All agreements for services provided in respect of third-party arrangements are transacted between Guardrisk and the third party.
All transactions with third parties and policyholders are recorded in the income statement, with the third-party cell owner being a
reinsurer of the net result. The impact of this application on the Group’s financial statements is that the results of the cell captive
arrangements have no direct impact on the Group’s earnings, except for fee income earned by the promoter cell.
• In a number of cases, the promoter cell shares in the emerging underwriting experience of selected cell arrangements. In such
cases the remaining risk in the cell could be further reinsured to external reinsurers. In addition to the fee income earned from
the cell, the promoter cell also earns underwriting profits on the risk retained for these cells. Guardrisk also underwrites specific
niche corporate and commercial business for its own account. Risk retention is managed with appropriate reinsurance.
• The Group’s statement of comprehensive income includes several income and expense items related to insurance business
written through cell arrangements. In particular all transactions relating to third-party cell arrangements are recorded. However,
these transactions are transferred back to the third-party cell owner and therefore the net impact on the Group’s earnings is
limited to the net result of transactions relating to the promoter cell only. Assets and liabilities from cell captive arrangements
are recognised in the statement of financial position. Except for the impact of contingency policies, as well as the fees earned
by the promoter cell and income on the promoter cell’s own assets, cell arrangements have no impact on the Group’s earnings.
37.3.1 Non-life insurance risk management

The Group has similar governance structures in place for non-life insurance as those that are in place for long-term insurance. This
includes a HAF who follows the reporting structure and support process as explained in note 37.2.
The Group has developed an Enterprise Risk Management (ERM) framework in respect of the non-life business to provide
reasonable assurance that the Group’s risks are being prudently and soundly managed. The framework is designed according to
acceptable principles from Corporate Governance and Risk Management standards. The ERM framework outlines the key risks
facing the business and how these risks are managed, monitored and reported on.
Risks are rated individually by programmes loaded onto the underwriting system based on information captured by staff for
each risk. Conditions and exclusions are also automatically set at an individual risk level. Individual risks are only automatically
accepted up to predetermined thresholds which vary by risk type. Risks with larger exposure than the thresholds are automatically
referred and underwritten individually by the actuarial department. These limits are set at a substantially lower level than the
reinsurance retention limits. No risks which exceed the upper limits of the reinsurance can be accepted without the necessary
facultative reinsurance cover being arranged. No claims bonus, which rewards clients for not claiming, and safety bonuses,
which reward clients for adhering to, monitoring and reporting certain safety criteria, also form part of the Group’s non-life
business underwriting strategy. Multi-claimants are monitored and managed by tightening conditions of cover or ultimately
cancelling cover.
Guardrisk
Guardrisk has an Audit and Risk Committee and an Investment Committee. These Board subcommittees oversee the risk universe
from general operations and investments respectively. Operational management of risk is delegated to the Guardrisk Executive
Committee with operational committees tasked in specific areas. New and existing product development initiatives are considered
by the Product Management Committees for appropriateness and viability that conforms to regulatory, legal, tax and accounting
requirements.
For each cell or policy accepted by Guardrisk, a business take-on process is followed that utilises multi-disciplinary teams to
determine major exposures to insurance risk. This take-on process varies in extent and detail depending on the significance of the
new cell facility. Where the business take-on process identifies significant down-side risk, measures are put in place to manage
the residual retained risks to remain within risk appetite.

GROUP REPORTS
37.3.1 Non-life insurance risk management continued
Premiums charged for risks are regularly monitored by the underwriting and actuarial teams and, where necessary, adjustments
are made to the office premium to take into account competition, the underwriting cycle, reinsurance and capital requirements.
The definitions of the risks that compromise non-life insurance risk are presented below:
• Premium risk: the risk of financial loss arising from fluctuations in timing, frequency and severity of insured events for
business to be written in the next 12 months and unexpired risks on existing contracts. Premium risk includes the risk that
premium provisions turn out to be insufficient to compensate claims or the need to increase these provisions.
• Reserve risk: the risk of adverse change in the value of insurance obligations arising from fluctuations in timing and amounts
of claim settlements.
• Lapse risk: the risk of financial loss, or of adverse change in the value of insurance obligations, resulting from changes in the
level or volatility of the rates of policy lapses, terminations, renewals and surrenders.
• Catastrophe risk: the risk that a single event, or series of events, of major magnitude, usually over a short period (often 72 hours),
CONSOLIDATED ANNUAL
leads to a financial loss, or of an adverse change in the value of insurance liabilities. Catastrophe losses are the losses that
arise from catastrophe risk and these include:
– Natural catastrophes which include anything which is caused by a natural process, including earthquakes and hail storms.
– Man-made catastrophes which are events that arise as a consequence of actions by humans.
The Group conducts business in different classes of non-life insurance and writes these either as personal or commercial
contracts. The following types of traditional contracts are written:
• Motor: Provides policy benefits if an event, contemplated in the contract as a risk relating to the possession, use or ownership
of a motor vehicle occurs.
• Property: Provides policy benefits for loss of or damage relating to the possession, use, or ownership of moveable and
immovable property.
• Accident and Health: Provides policy benefits if a disability event, health event or death event occurs.
• Liability: Provides policy benefits relating to the incurring of a liability, otherwise than as part of a policy relating to a risk more

specifically provided for elsewhere. This type of contract typically includes inter alia public liability, product recall and malicious
product tampering.
• Transportation: Provides policy benefits relating to the possession, use or ownership of a vessel, aircraft or other craft or for
the conveyance of persons or goods by air, space, land or water, or to the storage, treatment or handling of goods so conveyed
or to be so conveyed.
• Miscellaneous: Provides policy benefits relating to any matter not otherwise provided for. This type of contract typically
includes inter alia legal expense insurance.
Premiums and claims, gross of reinsurance, relating to non-life insurance for the Group are as follows:
Restated
2022 20211
Rm Rm
Premiums 17 725 16 269
Claims 19 972 8 250
1
Guardrisk
Cell captive arrangements
The cell owner shareholders’ agreements protect the Group from losses arising from business conducted in cells due to the rights
and obligations of both parties set out in the various cell owner shareholders agreements. Individual cells not meeting capital
requirements pose a solvency risk that is monitored on a monthly basis and, if required, additional capital is requested from such
cell owners. This risk is managed by an assessment of potential cell owners’ creditworthiness based on the ability to meet the
responsibility and obligations in terms of the shareholders agreement. Solvency of cells are assessed monthly to manage the
solvency support provided from the promoter within the Board approved solvency support framework.
The Group’s exposure to risk on this business is a credit risk of the cell owner, if a cell owner does not meet its contractual solvency
obligations set out in the cell owner shareholders agreement, with respect to third-party cell arrangements. Based on current
economic conditions, and reviewing specific facilities, a probability of default is applied to cells in deficit. The Group’s underwriting
strategy is directed at a portfolio of underwritten risks that are well diversified in terms of risk, industry and geography.


37.3.1 Non-life insurance risk management continued
In addition, reinsurance agreements are concluded to minimise the solvency risk (refer to Reinsurance section below).
Guardrisk
Contingency policy business
This business is usually written for a one-year period with the policies covering multiple risks. The risks underwritten are those
of a corporate entity (ie first-party business) and are generally either in respect of primary layers of the corporate’s insurance
programme or for risks that are difficult to insure in a traditional insurance product. The corporate insured in a contingency policy
is entitled to a share in the underwriting result if there is favourable claims experience.
Subject matter experts in the business provide input to develop suitable policy and cover limits as well as retention limits for
reinsurance where applicable. Reinsurance is generally structured above the layer provided by the contingency policy.
There is an aggregate excess of loss treaty in place for all contingency policies. This reinsurance treaty is currently arranged for a
limit of R19 million each and every loss in excess of R1 million each and every loss up to R5 million in the annual aggregate.
Guardrisk
Risk participation with cell shareholders
Guardrisk, through the promoter cell, shares in the emerging underwriting experience of selected cell arrangements. Before
entering into new risk sharing agreements with cell owners, internal processes covering all disciplines are executed with a
recommendation to the Guardrisk Product Management Committee for decision-making if within delegated mandate, otherwise
the decision is escalated to the Guardrisk Board. In addition, the company utilises independent underwriting managers to
undertake risk taking on behalf of the company with profit share agreements.
Reinsurance
The Group reinsures a portion of the risk it assumes through its reinsurance programme in order to control the exposure of the
Group to losses arising from insurance contracts and in order to protect the profitability of the Group and its capital. A suite of
treaties is purchased in order to limit losses suffered from individual and aggregate insurance risks. Facultative reinsurance is
purchased for certain individual risks that have been identified as being outside the limits set for these risks. The retention limits
are modelled to optimise the balance between acceptable volatility and reinsurance cost. Acceptable volatility is as defined by the
limits set by the Board of directors. The Group only enters into reinsurance agreements with reinsurers which have adequate credit
ratings, as prescribed by the Group’s Reinsurance Risk Policy.
Guardrisk
The key objective when placing reinsurance is to optimise capital requirements and protection of the retained lines of both Guardrisk
and the cell owners. The reinsurers selected are in accordance with Guardrisk’s reinsurance vetting procedures. These are presented
to and approved by the Guardrisk Board. These procedures include limiting individual cessions and accumulations per reinsurer in
accordance with their credit rating.
Other than sourcing capacity for both first and third-party business, reinsurance is arranged to protect the net retention of the
promoter on both a proportional and non-proportional basis. The net retention of both Guardrisk and the cells will determine the
non-proportional programmes whereas estimated premium income and loss ratios determine retention on proportional programmes.
The non-proportional reinsurance arrangements include per risk and/or per event excess-of-loss coverage. Proportional reinsurance
arrangements are predominantly quota share treaties with limited use of surplus treaties.
Concentrations of insurance risk

The Group is exposed to a concentration of insurance risk in some geographical regions in South Africa. In order to manage this
concentration of insurance risk, the Group has entered into a catastrophe excess of loss reinsurance treaty that would limit the
loss of the Group to predetermined levels following the occurrence of a localised catastrophe in a specific area.
Guardrisk
Risks relating to the cell captive business are adequately spread across the major classes of insurance risk and is spread geographically.
Exposure to catastrophes and policies mitigating this risk

Catastrophe modelling is performed to determine the impact of different types of catastrophe events (including natural disasters)
in different geographical areas, at different levels of severity and at different times of the day.
Catastrophe limits are set to render satisfactory results to these simulations. The catastrophe cover is also placed with reinsurers
with a reputable credit rating and cognisance is taken of the geographical spread of the other risks underwritten by the reinsurers in
order to reduce correlation of the Group’s exposure with the balance of their exposure. These reinsurance models are run at least
annually to take account of changes in the portfolio and to take the latest potential loss information into account.

38 LIQUIDITY RISK
GROUP REPORTS
Liquidity risk is the risk that the Group, although solvent, has inadequate cash resources to meet its financial obligations when due,
or can only secure these resources at excessive cost. The Group differentiates between funding liquidity risk (the risk of losses arising
from difficulty in raising funding to meet obligations when they become due) and market liquidity risk (the risk of losses arising
when engaging in financial instrument transactions due to inadequate market depth or market disruptions).
Liquidity risk governance

Liquidity risk for the Group is managed in terms of the Group liquidity risk management policy, which is a policy of the Group
ERM function.
The Momentum Metropolitan Capital and Investment Committee (CIC) is responsible for the Group’s liquidity and funding risk
management with the Board Risk Capital and Compliance Committee providing oversight for funding and liquidity risk assumed
in the Group’s statement of financial position on behalf of shareholders. This includes the funding and liquidity risk on guaranteed
and non-profit policyholder liabilities and shareholder portfolios.
Liquidity risk management
CONSOLIDATED ANNUAL
The principal risk relating to liquidity comprises the Group’s exposure to policyholder behaviour, eg unanticipated benefit withdrawals
or risk-related claims. The insurance and investment contract liabilities comprise 86% (2021: 85%) of the liabilities of the Group.
Management of the liquidity risk thereof is described below in terms of policyholder benefits.
Policyholder liabilities
Guaranteed endowment and structured product benefits
Guaranteed endowments and structured products have very specific guaranteed repayment profiles. The expected liability outflow
is matched by assets that provide the required cash flows as and when the liabilities become payable.
Non-profit annuity policyholder benefits

These contracts provide guaranteed annuity benefits and all liquidity risks arising from these contracts are borne by the shareholders.
The expected liability outflow is matched as closely as possible with assets of an appropriate nature and term in order to match the
duration and convexity of the portfolio and thus mitigate the interest rate risk exposure. The liquidity risk is mitigated by ensuring
that expected liability cash flows are matched with sufficiently liquid assets of appropriate nature and term. The asset portfolio is

a diversified portfolio of liquid cash and fixed-interest instruments (government bonds, corporate bonds, interest rate swaps and
promissory notes) that closely matches the liquidity profile of the liability cash flow.
Conventional with-profit and smoothed bonus policyholder benefits
These benefits are determined mainly by reference to the policy fund values which reflect past contributions plus declared bonuses
or the initial sum assured plus declared bonuses. The policy values, over time, move broadly in line with the value of underlying
assets. Upon a contractual claim, assets are disposed of in the market, but only to the extent that cash flows into the fund are
insufficient to cover the outflow. Assets are generally easy to realise as they consist mainly of large listed equity securities,
government stock or funds on deposit.
The investment policy and mandates take the expected liability cash flow into account. By limiting the cash flow mismatch, the
risk of premature realisation of assets or reinvestment of excess cash is mitigated. In addition, investment guidelines and limits
are used to limit exposure to illiquid assets.
Maturity dates are normally known in advance and contractual claims are projected. Cash flow projections are performed to aid in
portfolio and cash flow management. Where the product design allows for the payment of an early termination value (ie a benefit
payment before the contract maturity date), such value is not normally guaranteed but is determined at the Group’s discretion
(subject to certain minima prescribed by legislation). This limits the loss on early termination. If underlying assets are illiquid, the
terms of the policy contracts normally allow for a staggered approach to early termination benefit payments. Examples of the
latter are contracts that invest in unlisted equity and certain property funds.
When a particular policyholder fund is shrinking (ie outflows exceed inflows), care is taken to ensure that the investment strategy
and unit pricing structure of the fund are appropriate to meet liquidity requirements (as determined by cash flow projections). In
practice, such a fund is often merged with cash flow positive funds to avoid unnecessary constraints on investment freedom.
Linked and market-related policyholder benefits

earned on the underlying portfolio and the returns credited to the contract. These contracts do not expose the Group to significant
liquidity risk because the risk of liquidity losses, except those that relate to investment guarantees and risk benefit claims, is
largely borne by the policyholders. The investment policy and mandates take the expected liability cash flow into account. By
limiting the cash flow mismatch, the risk of premature realisation of assets or reinvestment of excess cash is mitigated. In
addition, investment guidelines and limits are used to limit exposure to illiquid assets.

38 LIQUIDITY RISK CONTINUED

Liquidity risk management continued
Policyholder liabilities continued
Other policyholder benefits
The liquidity risk arising from the liabilities in respect of embedded investment guarantees is managed by backing these liabilities
with sufficiently liquid financial instruments.
Policyholder contracts that provide mostly lump sum risk benefits do not normally give rise to significant liquidity risks compared
to policies that provide mostly savings benefits. Funds supporting risk benefits normally have substantial cash inflows from which
claims can be paid. Accrued liabilities are matched by liquid assets to meet cash outflows in excess of expected inflows.
On certain large corporate policy contracts, the terms of each individual policy contract take into account the relevant liquidity
requirements. Examples of such contractual provisions include the payment of benefits in specie, or a provision for sufficient lag
times between the termination notification and the payment of benefits.
For these contracts providing guaranteed annuity benefits all the liquidity risk that arises is borne by the shareholders. The liquidity risk
is mitigated by ensuring that expected liability cash flows are matched with sufficiently liquid assets of appropriate nature and term.
Shareholder funds
The significant shareholder liabilities of the Group are the cumulative convertible redeemable preference shares issued by the Company,
the carry positions, the subordinated call notes issued by MML and the cumulative redeemable preference shares issued by MMSI.
The Group holds sufficient cash and liquid marketable financial instruments in its shareholders’ funds to meet its commitments
as and when they fall due. The investment assets backing the shareholder funds are invested in a diversified portfolio of liquid
cash, floating rate instruments and interests in subsidiaries and/or related entities. The investment mandate and guidelines that
govern the investment of shareholder funds restrict exposure to high-quality assets.
The projected liquidity requirements of the shareholder portfolio are identified, measured and reported on a regular basis to the CIC.
The regular reports take the expected shareholder cash flows (eg committed mergers and acquisition activity and liquidity needs of
related entities) into account in order to identify material funding liquidity gaps early. By determining the potential liquidity gaps, the
funding liquidity and market liquidity risks of the shareholder portfolios are mitigated.
Liquidity profile of assets

The following table illustrates that the Group’s assets are fairly liquid in order to meet the liquidity needs of obligations if the Group
should be required to settle earlier than expected:
Restated
2022 20211
Financial asset liquidity % Rm % Rm
High 2
70 398 068 71 393 754
Medium3 26 151 318 25 135 578
Low/illiquid4 4 22 945 4 23 633
Other assets not included above
– employee benefit assets 460 697
– accelerated rental income 380 365
– deferred income tax 880 756
– assets relating to disposal groups held for sale 14 171
Total assets 574 065 554 954
1
2
Highly liquid assets are those that are considered to be realisable within one month (eg level 1 financial assets at fair value, including funds on deposit
and other money market instruments > 90 days, cash and cash equivalents), the current values of which might not be realised if a substantial short-term
liquidation were to occur due to demand-supply principles.
3
Medium liquid assets are those that are considered to be realisable within six months (eg level 2 and level 3 financial assets at fair value, except for funds on
deposit and other money market instruments > 90 days, loans at amortised cost, insurance receivables, reinsurance contracts).
4
Low/illiquid assets are those that are considered to be realisable in excess of six months (eg intangible assets, investment and owner-occupied properties,
property and equipment, equity-accounted associates).

GROUP REPORTS
Maturity profile of liabilities
The cash flows (either expected or contractual) for these liabilities are disclosed in the maturity analysis below:
2022 Carrying Open- 0 to 1 1 to 5 5 to 10

Rm amount Total ended1 year years years > 10 years
Insurance contracts (DCFs)2 148 385 148 385 27 746 30 076 34 820 22 370 33 373
Linked (market-related) business
Individual 16 184 16 183 2 342 1 590 3 821 3 511 4 919
Employee benefits (6) (6) – (1) (2) (3) –
Smoothed bonus business
Individual 27 026 27 026 1 338 2 843 9 514 5 967 7 364
Conventional with-profit business 9 789 9 789 6 466 289 264 134 2 636
Non-profit business
Individual 10 552 10 552 2 008 1 172 1 089 557 5 726
Employee benefits 2 283 2 282 12 1 263 307 193 507
Annuity business 58 178 58 179 10 636 6 731 16 595 11 996 12 221
CONSOLIDATED ANNUAL
Cell captive and non-life business 24 379 24 380 4 944 16 189 3 232 15 –
Investment contracts with DPF (DCFs)2 3 031 3 032 1 436 151 631 355 459
Individual 1 040 1 041 9 91 410 247 284
Individual 1 120 1 120 556 60 221 108 175
Employee benefits 1 1 1 – – – –
Smoothed bonus – fully vesting
Individual 838 838 838 – – – –
Non-profit business
Individual (5) (5) (5) – – – –
Investment contracts (undiscounted
cash flows) 318 758 320 305 310 613 2 396 3 796 833 2 667

Individual 186 260 186 260 185 333 104 302 349 172
Employee benefits 87 980 87 980 86 177 24 106 166 1 507
Individual 735 735 735 – – – –
Employee benefits 13 545 13 545 13 545 – – – –
Individual 1 677 1 677 1 677 – – – –
Guaranteed endowments 3 786 4 075 – 1 628 2 447 – –
Annuity business 1 630 2 888 1 640 941 318 988
Cell captive and non-life business 22 517 22 517 22 517 – – – –
Total policyholder liabilities under

insurance and investment contracts 470 174 471 722 339 795 32 623 39 247 23 558 36 499
1
Open-ended liabilities are defined as:
– policies where the policyholder is entitled to the benefit at any future point (benefits are contractually available on demand); or
– where policies do not have a specified contract term.
2
The cash flows for insurance and investment contracts with DPF liabilities are calculated using discounted expected cash flows. All other values are based
on contractual undiscounted cash flows.


Maturity profile of liabilities continued
2022 Carrying Open- 0 to 1 1 to 5 5 to 10

Rm amount Total ended1 year years years > 10 years
insurance and investment contracts
(continued) 470 174 471 722 339 795 32 623 39 247 23 558 36 499
Financial liabilities at FVPL 48 141 47 025 30 805 9 705 5 195 1 099 221
Collective investment scheme liabilities 30 782 30 782 30 782 – – – –
Subordinated call notes 5 327 6 892 – 1 393 4 525 974 –
Carry positions 7 723 7 723 – 7 723 – – –
Derivative financial liabilities2 3 039
Preference shares 337 482 – 77 91 117 197
Other borrowings 933 1 146 23 512 579 8 24
Financial liabilities at amortised cost 4 336 4 813 26 1 893 2 429 415 50
Cumulative redeemable preference shares 2 025 2 076 – 1 050 1 026 – –
Cumulative redeemable convertible
preference shares 252 252 – 252 – – –
Lease liabilities 188 237 – 63 113 11 50
Other 330 425 26 68 82 249 –
Term loans 1 541 1 823 – 460 1 208 155 –
Other payables3 17 628 17 685 1 16 568 1 116 – –
Reinsurance contract liabilities 2 299 2 299 – 128 1 080 949 142
Other liabilities4 6 501
Total liabilities 549 079 543 544 370 627 60 917 49 067 26 021 36 912
1
Open-ended liabilities are defined as:
– policies where the policyholder is entitled to the benefit at any future point (benefits are contractually available on demand); or
– where policies do not have a specified contract term.
2
Cash flows for derivative financial instruments have been disclosed on a net basis below.
3
Other payables exclude premiums paid in advance and deferred revenue liabilities.
4
Other liabilities are considered to be excluded from the scope of IFRS 9 and IFRS 7; therefore no cash flows are provided for those liabilities.

GROUP REPORTS
Cash flows relating to policyholder liabilities under insurance and investment contracts (current in-force book) have been
apportioned between future time periods in the following manner:
• In general, the earliest contractual maturity date is used for all liabilities.
• For investment contracts, the contractually required cash flows for policies that can be surrendered are the surrender values
of such policies (after deduction of surrender penalties). It is assumed that surrender values are contractually available on
demand and therefore these policies are disclosed as open-ended.
• For policies with no surrender value, the estimated contractual cash flow is disclosed.
• Contractual undiscounted cash flows are disclosed for investment contract liabilities designated at FVPL.
• Expected discounted cash flows, ie the estimated timing of repayment of the amounts recognised in the statement of financial
position, are disclosed for insurance contract liabilities and investment contracts with DPF liabilities. The assumptions used to
calculate the statement of financial position value of these liabilities are disclosed in note 11.
• For investment contracts with DPF liabilities, the discretionary component of the liability has been allocated in line with the
underlying expected benefits payable to policyholders.
CONSOLIDATED ANNUAL
Financial liabilities at FVPL:
• Collective investment scheme liabilities represent demand liabilities of scheme interests not held by the Group arising as a
result of consolidation.
• The cash flows relating to the subordinated call notes have been allocated to the earliest period in which they are callable by
MML. They will be funded from cash resources at that time. The shareholder funds include sufficient cash resources to fund
the coupon payments under these call notes.
• Carry positions have a one-month rolling period and the funding thereof forms part of the general portfolio management.
Financial liabilities carried at amortised cost:
• The cumulative redeemable preference shares are redeemable at the option of the issuer on any dividend payment date.
During the prior year 300 redeemable preference shares were redeemed and the remaining 700 redeemable preference shares

have a redemption date of 30 June 2023 (after extending it under the same terms by 36 months in the prior year). It is expected
that the preference shares will only be redeemed on the ultimate redemption date.
On 29 January 2020, MMSI issued 1 000 Class B cumulative redeemable preference shares at R1 million per share to FirstRand
Bank Ltd with a redemption date of 28 January 2025. Dividends are payable on 31 March and 30 September of each year. The
issuer has an option to redeem the preference shares on any dividend payment date. Additionally, on 28 April 2020, MMSI issued
300 cumulative redeemable preference shares at R1 million per share to Sanlam Alternative Income Fund with a redemption date
of 28 April 2023. Dividends are payable on 31 March and 30 September of each year. The issuer has an option to redeem the
preference shares.
• Cumulative redeemable convertible preference shares: It is expected that the A3 preference shares will convert into ordinary
shares and that there will therefore be no cash outflow on conversion; however, if the shares are not converted, an outflow
at redemption value on the redemption date, 30 June 2022. The preference shares were not redeemed on 30 June 2022 and
an extension was entered into in the current year for a further 5 months. The Group has a further obligation to pay preference
share dividends. The cash flows for these dividends are those expected up to redemption date, even though the conversion of
the preference shares is at the option of the preference shareholder.
• Included in other financial liabilities at amortised cost is a loan from FirstRand Bank Ltd of R234 million (2021: R247 million)
with interest levied at 11% (2021: 11%). The interest is repaid monthly with the capital balance payable in December 2025.
Also included is a loan from Standard Bank Ltd of R475 million (2021: R882 million) with interest levied at three-month average
JIBAR plus 1.85% (2021: JIBAR plus 2.1%). The interest on the loan was capitalised against the loan balance until 1 November 2019.
Thereafter the interest will be repaid quarterly with the capital balance also being amortised quarterly and the balance payable in
November 2026.
There is also a R163 million (2021: R178 million) loan from Standard Bank Ltd acquired in order to develop property held by a
subsidiary, Momentum Metropolitan Umhlanga (Pty) Ltd. Interest on the loan is levied at JIBAR plus 1.9%.
All loans are secured by underlying property.


Restated
20211 Carrying Open- 0 to 1 to 5 to
Rm amount Total ended 1 year 5 years 10 years > 10 years
Insurance contracts (DCFs) 142 488 142 488 29 689 23 127 34 452 22 813 32 406
Individual 17 295 17 295 2 555 1 418 4 237 3 813 5 272
Employee benefits (14) (14) – (1) (6) (7) –
Individual 28 359 28 359 1 921 3 300 9 320 6 229 7 589
Employee benefits (41) (41) (41) – – – –
Conventional with-profit business 9 895 9 895 6 371 363 308 152 2 701
Guaranteed endowments 3 3 – 3 – – –
Non-profit business
Individual 11 283 11 283 2 585 1 966 1 188 611 4 933
Employee benefits 3 207 3 207 220 2 246 258 162 321
Annuity business 56 439 56 439 10 106 6 672 16 225 11 846 11 590
Cell captive and non-life business 16 062 16 062 5 972 7 160 2 922 7 –
Investment contracts with DPF (DCFs) 19 222 19 222 17 418 230 736 356 482
Individual 1 023 1 023 13 125 378 222 285
Individual 811 811 17 105 358 134 197
Employee benefits 15 694 15 694 15 694 – – – –
Individual 898 898 898 – – – –
Non-profit business
Annuity business 30 30 30 – – – –
Investment contracts (undiscounted
cash flows) 292 500 293 030 281 061 2 412 5 307 1 066 3 184
Individual 179 301 179 301 176 183 91 320 915 1 792
Employee benefits 85 371 85 371 83 661 19 89 151 1 451
Individual 800 800 800 – – – –
Individual 1 684 1 684 1 684 – – – –
Guaranteed endowments 5 255 5 683 – 1 724 3 959 – –
Annuity business 1 366 1 468 10 578 939 – (59)
Cell captive and non-life business 18 723 18 723 18 723 – – – –

insurance and investment contracts 454 210 454 740 328 168 25 769 40 495 24 235 36 072
Financial liabilities at FVPL 51 013 48 807 29 389 12 801 3 903 2 123 591
Collective investment scheme liabilities 29 372 29 372 29 372 – – – –
Subordinated call notes 4 429 5 641 – 344 3 636 1 661 –
Carry positions 11 692 11 692 – 11 692 – – –
Derivative financial liabilities 3 983
Preference shares 357 484 – 80 90 117 197
Other borrowings 1 180 1 618 17 685 177 345 394
Financial liabilities at amortised cost 4 164 4 944 – 477 4 087 325 55
Cumulative redeemable preference shares 2 022 2 239 – 1 2 237 – 1
Cumulative redeemable convertible
preference shares 245 291 – 291 – – –
Lease liabilities 220 304 – 69 165 16 54
Other 320 456 – 67 126 262 –
Term loans 1 357 1 654 – 49 1 559 47 –
Other payables 15 239 15 239 33 14 726 480 – –
Reinsurance contract liabilities 2 347 2 347 – 309 1 074 738 226
Other liabilities 6 058
Total liabilities 533 031 526 077 357 590 54 082 50 039 27 421 36 944
1

GROUP REPORTS
Maturity profile of derivative financial instruments
Contractual maturities are assessed to be essential for an understanding of all derivatives presented in the consolidated
statement of financial position. The following table indicates the expiry of derivative financial assets and liabilities, based on net
undiscounted cash flow projections. When the amount payable is not fixed, the amount disclosed is determined by reference to
conditions existing at the reporting date.
Some of the Group’s derivatives are subject to collateral requirements. Cash flows for those derivatives could occur earlier than
the contractual maturity date.
Carrying
amount Total 0 to 1 year 1 to 5 years > 5 years
2022 Rm Rm Rm Rm Rm
Equity derivatives 139 (77) (77) – –
Interest rate derivatives (375) (329) (336) 199 (192)
Bond derivatives (137) (178) (178) – –
CONSOLIDATED ANNUAL
Credit derivatives (16) (1) 6 (3) (4)
Currency derivatives (736) (675) 45 (335) (385)
Total net undiscounted cash flow projections (1 125) (1 260) (540) (139) (581)
Derivative financial instruments
Assets 1 914
Liabilities (3 039)
(1 125)
Restated
20211
Equity derivatives 190 191 23 – 168
Interest rate derivatives (912) (754) 160 (2) (912)
Bond derivatives 41 60 (60) 120 –
Credit derivatives 26 27 (11) 37 1

Currency derivatives (577) (352) (51) 157 (458)
Total net undiscounted cash flow projections (1 232) (828) 61 312 (1 201)
Derivative financial instruments
Assets 2 761
Liabilities (3 993)
(1 232)
1

39 MARKET RISK
Market risk is the risk of financial loss due to adverse movements in the market value of assets supporting liabilities relative to
the value of those liabilities, or due to a decrease in the net asset value, as a consequence of changes in market conditions or as
a result of the performance of investments held. This includes exposure to equities, interest rates, credit spreads, property, price
inflation and currencies.
Financial instruments held by the Group are subject to the components of market risk as follows:
Carrying amount
Restated
2022 20211 Market Interest Currency
Rm Rm price risk rate risk risk
Assets
Carried at FVPL
Unit-linked investments 184 886 178 981 ✓✓ ✓ ✓
Debt securities 174 781 157 347 ✓ ✓✓ ✓
Equity securities 96 646 105 163 ✓✓ ✓
Carry positions 1 124 4 461 ✓ ✓✓
Funds on deposit and other money market instruments 30 160 22 649 ✓ ✓✓ ✓
Derivative financial assets 1 914 2 761 ✓✓ ✓✓ ✓
Carried at amortised cost
Unsettled trades 1 896 1 854 ✓
Accounts receivable 3 283 2 803 ✓ ✓
Debt securities 481 512 ✓✓ ✓✓
Funds on deposit and other money market instruments 263 311 ✓✓ ✓✓
Loans 2 816 2 488 ✓✓ ✓
investment contracts with DPF and reinsurance
contracts 6 764 5 572 ✓ ✓
Cash and cash equivalents 28 720 36 822 ✓✓ ✓
Other non-financial assets 40 331 33 230 N/A N/A N/A
Total assets 574 065 554 954
Liabilities
Carried at FVPL
Investment contracts
Designated at FVPL 318 758 292 499 ✓✓ ✓✓ ✓
Collective investment scheme liabilities 30 782 29 372 ✓✓ ✓ ✓
Subordinated call notes 5 327 4 429 ✓ ✓✓
Carry positions 7 723 11 692 ✓ ✓✓
Derivative financial liabilities 3 039 3 993 ✓✓ ✓✓ ✓
Preference shares 337 357 ✓ ✓✓
Other borrowings 933 1 170 ✓ ✓
Carried at amortised cost
Term loans 1 541 1 357 ✓✓
Cumulative redeemable preference shares 2 025 2 022 ✓✓
Cumulative redeemable convertible preference shares 252 245 ✓✓
Lease liabilities 188 220 ✓✓ ✓
Other 330 320 ✓
Other payables (excluding premiums received in
advance and deferred revenue liabilities)
Payables arising from insurance contracts and
investment contracts with DPF 6 647 6 874 ✓
Payables arising from investment contracts 3 093 1 742 ✓
Unsettled trades 1 467 1 414 ✓
Commission creditors 708 714 ✓ ✓
Other 5 713 4 494 ✓ ✓
Insurance contract liabilities 148 385 142 488 * * *
Investment contracts with DPF liabilities 3 031 19 222 ✓✓ ✓✓ ✓✓
Other non-financial liabilities 8 800 8 406 N/A N/A N/A
Total liabilities 549 079 533 030
1
✓✓ High exposure
✓ Medium/low exposure
* These liabilities are not financial instruments and the risks to which they are subject to are explained in note 37.

39 MARKET RISK CONTINUED
GROUP REPORTS
For discretionary participation business, market-related contracts or unit-linked contracts:
• the policyholder carries the majority of the market risk; while

• the Group carries the risk of investment guarantees provided and of a reduced income from fees where these are based on
investment returns or the underlying fund value or where investment conditions affect its ability to recoup expenses incurred.
Furthermore, the Group is also exposed to reputational risk if actual investment performance is not in line with policyholder expectations.
For non-profit business (including annuities) and in respect of the net asset value, shareholders carry the market risk.
Market risk governance

Shareholder market risk is managed according to the Momentum Metropolitan Shareholder Market Risk Policy while the Client
Investment Policy governs the management of policyholder market risk.
The Momentum Metropolitan CIC is also responsible for the Group’s market risk management, with the Board Risk Capital and
Compliance Committee providing oversight over market risks assumed on behalf of shareholders.
CONSOLIDATED ANNUAL
The Momentum Metropolitan Product Management Committee provides oversight over the management of policyholder
market risk. Policyholder market risk is managed through various management-level governance committees established for
this purpose. These committees monitor the performance of investment portfolios against client outcome requirements. This
includes consideration of the appropriateness of the matching of assets and liabilities of the various policyholder portfolios where
policyholder benefits are impacted by investment returns.
For contract holder liabilities, the financial instruments backing each major line of business are segregated to ensure that they are
used exclusively to provide benefits for the relevant contract holders. The valuation of these financial instruments is subject to
various market risks, particularly interest rate and price risk. Each portfolio consists of an asset mix deemed appropriate for the
specific product. These risks and the Group’s exposure to equity, interest rate, currency and property price risks are discussed and
disclosed in this note.
Market risk management per product

Market-related/unit-linked business
earned on the underlying portfolio and the returns credited to the contract. These may be investment contracts or insurance
contracts and include universal life contracts which also provide cover on death or disability.
Policyholders carry the investment risk; however, the Group carries a risk of reduced income from fees where these are based on
investment returns or the underlying fund value, or where investment conditions affect its ability to recoup expenses incurred.
Furthermore, there is also reputational risk if actual investment performance is not in line with policyholder expectations. These
risks are managed through the rigorous investment research process applied by the Group’s investment managers.
Individual and group contracts with DPF

Assets are invested in line with specified mandates in equities, fixed-interest assets, property and cash, both globally and locally,
according to the asset manager’s best investment view. Separate investment portfolios are managed for each product.
The investment return earned on the underlying assets, after tax and charges, is distributed to policyholders in the form of
bonuses in line with product design, reasonable policyholder expectations, affordability and management discretion. The use of
bonuses is a mechanism to smooth returns to policyholders in order to reduce the risk of volatile investment performance. Any
returns not yet distributed are retained in a BSA for future distribution to policyholders.
A portion of smoothed bonus fund values are deemed vested and thereby constitutes a form of investment guarantee in certain
circumstances. Similarly, on reversionary bonus business, an investment guarantee in the form of sum assured and declared
reversionary bonuses is given.


Market risk management per product continued
Individual and group contracts with DPF continued
In the event of adverse investment performance, such as a sudden or sustained fall in the market value of assets backing
smoothed bonus business, the BSA may be negative. In such an event, there are the following options:
• In valuing the liabilities it is assumed that lower bonuses will be declared in future.
• Lower bonuses are actually declared.
• For those contracts where a portion of bonuses declared is not vested, the Group has the right to remove previously declared
non-vested bonuses in the event of a fall in the market value of assets. This will only be done if the BSA is negative and it is
believed that markets will not recover in the short term.
• A market value adjuster may be applied in the event of voluntary withdrawal in cases where the withdrawal benefit exceeds
the market value. For group contracts, an alternative option is to pay out the termination value over an extended term (usually
10 years). These measures are primarily to protect the remaining policyholders.
• Short-term derivative hedging or other partial derisking strategies can be used to protect the funding level against further
deterioration due to poor investment performance.
• In very extreme circumstances, funds may be transferred from the shareholder portfolio into the BSA on a temporary or
permanent basis.
Individual and group contracts with DPF and continuous guarantees

Certain portfolios provide a continuous guarantee on capital and declared bonuses. Bonuses are fully vesting and are declared
monthly in advance.
No market value adjuster applies but for group contracts, allowance is made for the payment of benefits over a period of up to
12 months if large collective outflows may prejudice remaining investors. Derivative instruments are used to minimise downside
market risk in these portfolios.
Individual contracts offering investment guarantees

The Group has books of universal life business that offer minimum maturity values, based on a specified rate of investment return.
These guaranteed rates range from 0% to 4.5% p.a. for the bulk of business. This applies to smoothed bonus portfolios as well as
certain market-linked portfolios (the latter mostly closed to new business). On some smoothed bonus portfolios, there is also a
guarantee to policyholders that the average annual bonus rate, measured over the lifetime of the contract, will not be less than a
contractual minimum (around 4.5% p.a.).
The Group also carries conventional business that offers minimum guarantees on maturity, surrender and death, with different
forms of guarantees that apply in each event.
On some closed funds policyholders have the option to purchase a minimum guaranteed return of up to 5% p.a. The guarantee
charge for these policies is set at a level that will cover the expected cost of guarantees, including the opportunity cost of
additional capital held in respect of these guarantees. Only selected portfolios qualify for this guarantee and the guarantee also
applies only to specific terms.
On inflation-linked annuities a minimum annual increase rate is generally applicable, for instance as a consequence of regulatory
requirements whereby pension income cannot reduce in nominal terms. The minimum increase represents an inflation-related
embedded financial guarantee.
Investment Guarantee risk management

The risk of being unable to meet investment guarantees is managed by holding a specific liability, as well as additional statutory
capital, for minimum maturity values and other guaranteed benefits in accordance with actuarial guidance (APN 110). Stochastic
modelling is used to quantify the reserves and capital required to finance possible shortfalls in respect of minimum maturity
values and other guaranteed benefits. The stochastic model is calibrated to market data. The shareholders’ exposure to
fluctuations in this liability is mitigated by the use of hedging strategies, subject to available instruments and the overall risk profile
of the business.

GROUP REPORTS
Market risk management per product continued
Non-profit annuity business
An annuity policy pays an income to the annuitant in return for a lump sum consideration paid on origination of the annuity
policy. Income payments may be subject to a minimum period. The income may be fixed or increase at a fixed rate or in line
with inflation.
This income is guaranteed and the value of the liability is, therefore, subject to interest rate risk, in addition to the risk of longer
than anticipated life expectancy. In order to hedge against the interest rate risk, the Group invests in an actively managed portfolio
of government and corporate bonds, promissory notes from banks, swaps and other interest rate derivatives which provide a high
degree of matching to the interest risk profile of the liabilities. The mismatch risk is managed on a dedicated risk management
system that includes daily monitoring of Board-approved limits. Index-linked annuities, which provide increases in line with
inflation, are generally matched with index-linked bonds or bank-issued matching structures. Where cash flow matching is not
possible, or not desirable from an overall risk profile perspective, interest rate risk is minimised by ensuring the values of assets
and liabilities respond similarly to small changes in interest rates.
CONSOLIDATED ANNUAL
The impact of a 1% reduction in yields on the annuity portfolio will generate a mismatch loss of R24 million (20211: R35 million) for MML.
The liability valuation calculation for MML annuities is based on the risk-free yield curve. The average rate that produces the same result is
12.5% (2021: 10.3%).
1
Erroneously disclosed in the prior year. June 2021 has been restated accordingly.
Guaranteed endowments and structured products

The Group issues guaranteed endowment policies. The majority of these contracts are five-year single premium endowment
policies providing guaranteed maturity values. In terms of these contracts, policyholders are not entitled to receive more than
the guaranteed maturity value as assured at inception. The interest rate exposure on these policies is hedged through appropriate
interest sensitive instruments.
A variation on guaranteed endowment policies is contracts where the capital guarantee is combined with a guaranteed return
linked to the returns on local and offshore market indices. The risk associated with the guarantee on these contracts is managed

through the purchase of appropriate assets including equity-linked notes issued by banks. In addition to these hedging strategies,
a portion of the guaranteed endowment policies is reinsured with reinsurers in terms of the Group’s reinsurance policies.
Other non-profit business
These policies mainly represent whole life and term assurance contracts that provide lump sum benefits on death and disability. In addition
to mortality risk, morbidity risk, expense risk and persistency risk, there is also the risk that investment return experienced may be different
to that assumed when the price of insurance business was determined. The market risk on these contracts is mitigated through
appropriate interest rate instruments as well as contractual rights to review regular premium rates charged to clients.
Shareholder cash flows in respect of individual contracts with investment components

The expected future charges, expense outgo and risk benefit payments (including margins) on individual contracts with
investment components are capitalised using long-term interest rates. The resultant discounted value is added to liabilities (an
offset to liabilities when negative). The Group is therefore subject to interest rate risk as any changes in long-term interest rates
will result in a change in the value of liabilities. This risk is mitigated through hedging as well as diversification against other
interest rate risks.


39.1 Market risk management per risk factor
Equity risk
Equity risk is the risk of financial loss as a result of adverse movements in the market value of equities, implied volatility and/or
income from equities.
Equities (listed and unlisted) are reflected at market values, which are susceptible to fluctuations. The risks from these
fluctuations can be separated into systemic risk (affecting all equity instruments) and specific risk (affecting individual securities).
In general, specific risk can be reduced through diversification, while systemic risk cannot.
The Group manages its listed equity risk by employing the following procedures:
• mandating specialist equity fund managers to invest in listed equities where there is an active market and where there is
access to a broad spectrum of financial information relating to the companies invested in;
• diversifying across many securities to reduce specific risk; and
• considering the risk-reward profile of holding equities and assuming appropriate risk in order to obtain higher expected returns
on assets.
Unlisted equity investment risks are managed as follows:
• mandating asset managers and specialist alternative investment boutiques to invest in diversified pools of private equity
partnerships and other unlisted equity investments;
• achieving diversification across sector, stage, vintage and geography;
• all investments are subject to prudential limits stipulated by the Momentum Metropolitan Private Equity Investments
Committee, represented by specialist investment professionals and independent Momentum Metropolitan representatives; and
• mitigating the risk of potential subjective valuation due to the nature of unlisted investments by utilising the guideline
developed by the South African Venture Capital and Private Equity Association (SAVCA) to provide a framework for valuation
and disclosure in this regard. This framework is consistent with best practice exercised and recommended by the European
Venture Capital and Private Equity Association.
Refer to the sensitivity analysis in note 39.5.
39.2 Interest rate risk

Interest rate risk is the risk that the value and/or future cash flows of financial instruments held will fluctuate relative to those of
liabilities issued, as a result of changes in interest rates.
Exposure of financial instruments to interest rates

Changes in market interest rates have a direct effect on the contractually determined cash flows associated with floating rate
financial assets and financial liabilities, and on the fair value of other investments. Fair values of fixed maturity investments
included in the Group’s investment portfolios are subject to changes in prevailing market interest rates. The table overleaf provides
a split of interest-bearing assets that are exposed to cash flow interest rate risk and those that are exposed to fair value interest
rate risk. Debt securities with no interest rate risk exposure are securities where the valuation is driven by factors other than
interest rates, such as capital structured notes where the valuation is derived from the underlying investments. Financial assets
at amortised cost with short-term cash flows are considered not to have any interest rate risk since the effect of interest rate risk
on these balances is not considered significant. In addition to the information disclosed below the Group holds investments in
non-subsidiary unit-linked investments for which disclosures are not provided, as the Group does not manage these assets in a
manner that considers risk from changes in interest rates.

GROUP REPORTS
39.2 Interest rate risk continued
Exposure of financial instruments to interest rates continued
Cash flow Fair value
Carrying interest interest No interest Weighted
amount rate risk rate risk rate risk average rate
Instrument class Rm Rm Rm Rm %
2022
At FVPL
Debt securities 174 781 67 846 103 374 3 561 8.2
Funds on deposit and other money market
instruments 30 160 20 016 10 132 12 5.9
Derivative financial assets 1 914 – 1 914 – N/A
Derivative financial liabilities (3 039) – (3 039) – N/A
Carry positions 1 124 – – 1 124 –
At amortised cost
Debt securities 481 25 – 456 12.4
CONSOLIDATED ANNUAL
instruments 263 23 – 240 2.8
Loans and receivables at amortised cost 7 995 2 283 96 5 616 7.0
Cash and cash equivalents 28 720 25 139 – 3 581 4.3
reinsurance contracts 6 764 – – 6 764 –
249 161 115 330 112 477 21 354
Restated
20211
At FVPL
Debt securities 157 346 58 742 92 703 5 901 7.0
instruments 22 649 14 235 8 375 39 3.9
Derivative financial assets 2 761 612 2 149 – N/A

Derivative financial liabilities (3 993) – (3 993) – N/A
Carry positions 4 461 – – 4 461 –
At amortised cost
Debt securities 512 489 – 23 10.4
instruments 311 – – 311 2.2
Loans and receivables at amortised cost 7 145 1 897 – 5 248 6.3
Cash and cash equivalents 36 822 33 095 – 3 727 2.5
reinsurance contracts 5 572 5 209 5 358 –
233 586 109 075 99 443 25 068
1
Liability exposure to interest rates is reflected in note 12.
39.3 Currency risk

Currency risk is the risk that the rand value and/or future cash flows of financial assets and liabilities will fluctuate due to changes
in foreign exchange rates. Currency risk arises from future commercial transactions, recognised assets and liabilities and net
investments in foreign operations.
The majority of the Group’s currency exposure results from the offshore assets held by policyholder portfolios. These investments
were made for the purpose of obtaining a favourable international exposure to foreign currency and to investment value
fluctuations in terms of investment mandates, subject to limitations imposed by the South African Reserve Bank (SARB).
To the extent that offshore assets are held in respect of contracts where the contract holder benefits are a function of the returns
on the underlying assets, currency risk is minimised.
Details of currency risk contained in investments in local collective investment schemes that are not subsidiaries have not been
included in the table on the following page as the look-through principle was not applied.


39.3 Currency risk continued
Assets and liabilities denominated in Namibian dollar and Lesotho maloti currencies that are pegged to the South African rand
on a 1:1 basis do not represent significant currency risk for the Group. The geographical area of Africa also includes Botswana,
Ghana, Kenya, Uganda and Mozambique.
The following assets, denominated in foreign currencies, where the currency risk (including translation risk) resides with the Group,
are included in the Group’s statement of financial position at 30 June:
Asian
Africa UK ₤ US $ Euro Pacific Other Total
2022 Rm Rm Rm Rm Rm Rm Rm
Closing exchange rate 19.9009 16.3864 17.1352
Investment securities
At FVPL
Unit-linked investments 9 6 814 29 429 2 046 8 85 38 391
Equity securities 244 1 798 21 678 3 475 4 649 3 332 35 176
Debt securities 993 140 3 249 1 184 149 338 6 053
market instruments 190 1 197 – – – 388
Derivative financial assets – 168 50 1 1 3 223
At amortised cost
Debt securities – – – – – 456 456
market instruments 126 – – – – – 126
Loans and accounts receivable 6 88 770 8 16 6 894
Cash and cash equivalents 325 460 4 330 573 61 751 6 500
Insurance and other receivables – – 275 – – 59 334
1 893 9 469 59 978 7 287 4 884 5 030 88 541
Restated
20211
Closing exchange rate 21.4519 17.3610 19.5045
Investment securities
At FVPL
Unit-linked investments 4 5 456 29 335 1 904 100 81 36 880
Equity securities 306 1 921 21 577 3 744 5 489 2 988 36 025
Debt securities 761 307 2 789 913 229 341 5 340
market instruments 345 1 6 – – – 352
Derivative financial assets – 173 8 1 3 2 187
At amortised cost
Debt securities 466 – – – – 23 489
market instruments 116 – – – – – 116
Loans and accounts receivable 63 48 522 15 24 21 693
Cash and cash equivalents 413 322 3 929 764 49 115 5 592
Insurance and other receivables 1 – 109 – – 48 158
2 475 8 228 58 275 7 341 5 894 3 619 85 832
1
The assets above generally back policyholder liabilities, reducing the currency risk exposure for shareholders.
African exchange rates representing material balances above are:
Closing exchange rate Botswana Ghana Kenya Nigeria

2022 1.3183 2.0314 0.1390 0.0389
2021 1.3088 2.4334 0.1322 0.0348

GROUP REPORTS
39.4 Property risk
Property risk is the risk that the value of investment properties, owner-occupied properties and properties under development, as
well as participatory interest in property collective investment schemes, will fluctuate as a result of changes in rental income and
interest rates.
Property investments are made on behalf of policyholders, shareholders and other investment clients and are reflected at market
value. Diversification in property type, geographical location and tenant exposure are all used to reduce the risk exposure.
The Group’s exposure to property holdings at 30 June is as follows:
Restated1
2022 2021
Rm Rm
Investment properties 9 051 8 938
Owner-occupied properties 3 016 3 033
Properties under development 162 163
CISs2 (refer to note 43) 4 412 2 248
CONSOLIDATED ANNUAL
16 641 14 382
Percentage of total assets 2.9% 3.1%
1
Refer to note 47 for more information on restatements.
2
These funds have a significant exposure to property investment.
Refer to note 5 for the concentration risk regarding types of properties relating to investment properties. Owner-occupied
properties mainly comprise office buildings.
The Group is also exposed to tenant default and unlet space within the investment property portfolio. There were no material
long outstanding debtors relating to tenants at 30 June 2022. The carrying amount of unlet and vacant investment property as
at 30 June 2022 was R1 380 million (2021: R1 568 million).
39.5 Sensitivity to market risk

The Group’s earnings and net asset value are exposed to market risks. The Group has identified that changes in equity prices
and interest rates are the market risk elements with the most significant effect on earnings and equity. The table below provides the

sensitivity to a change in equity prices by 10% and a change to long-term interest rates by 100 basis points:
Equity prices Interest rates
Increase by Decrease by Increase by Decrease by
10% 10% 100 bps 100 bps
Rm Rm Rm Rm
2022
Increase/(decrease) in earnings and equity 406 (404) 488 (300)
2021
Increase/(decrease) in earnings and equity 446 (445) 7 (66)
The impact of the projected cash flows as a result of the basis changes and the current shape and level of the yield curve affected
the market risk exposure for the year.
Sensitivity ranges
• The upper and lower limits of the sensitivity ranges are management’s best judgement of the range of probable changes within
a 12-month period from the reporting date. Extreme or irregular events that occur sporadically, ie not on an annual basis, have
been ignored as they are, by nature, not predictable in terms of timing.
Methods and assumptions used in preparing the sensitivity analysis

• The impacts were produced using 31 March 2022 policy and economic data, but adjusted for material differences in the
Group’s investment stabilisation reserve at balance sheet date.
• The liability valuation includes allowance for management actions relating to the review of premiums for whole life risk
contracts in response to enduring interest rate risk in accordance with policy conditions and fair treatment of customers.
Allowance for premium reviews amounting to R487 million in the interest rate decrease scenario (2021: R0 million) is included
in the results presented.
• In line with the Group's current practice and accounting policy, the investment variances from insurance contracts were
stabilised. As at 30 June 2022, the Group’s investment stabilisation reserve had a balance of R179 million (2021: R187 million).
• The change in equity prices was assumed to be a permanent change.
• Future dividend yields were assumed to remain unchanged.
• No change was assumed in expected future returns and discount rates used in valuing liabilities as a result of changes in equity prices.
• The expected future real rates of return were assumed to remain unchanged.
• Future inflation rates were assumed to change in line with interest rates.
• Sensitivities on expected taxation have not been provided.


39.5 Sensitivity to market risk continued
Mitigation
Hedging strategies using derivatives and other structures are implemented to reduce equity and interest rate risk on shareholder
exposures in accordance with risk appetite requirements. These structures and other ways of reducing this risk are assessed,
investigated and implemented on an ongoing basis by management with consideration of the market conditions at any given time.
The impact of the change in interest rates is addressed by ensuring that contract holder liabilities and assets are matched within
approved risk limits and tolerances and continuously monitored to ensure that no significant mismatching losses will arise due to
a shift in the yield curve or a change in the shape of the yield curve.
Currency sensitivity
The impact of changes in currency on earnings and equity for the Group is not considered to be material. Refer to note 39.3 for
more details on the Group’s currency exposure.
40 CREDIT RISK
This is the risk of losses arising from the potential that a counterparty will fail to meet its obligations in accordance with agreed
terms. It arises from investment and non-investment activities, such as reinsurance credit risk, amounts due from intermediaries
and policy loans.
Credit risk could also arise from the decrease in value of an asset because of a deterioration of creditworthiness (which may
give rise to the downgrading of counterparties). Credit risk arises from investments in debt securities, funds on deposit and other
money market instruments, unit-linked investments, derivative financial instruments, reinsurance debtors, loans to policy holders
and other loans and receivables in the shareholder and guaranteed portfolios as well as linked portfolios.
Where instruments are held to back investment-linked contract liabilities, the policyholder carries the credit risk. Where
instruments are held in cell captive arrangements, where the cell owner takes the risk, the credit risk is also transferred.
Credit risk governance

The governance of credit risk is comprehensively set out in the CIC charter. The primary responsibility of the CIC is to oversee, and
ensure proper corporate governance over and management of market risk, which includes credit risk, across the Group in respect of
shareholders. The CIC charter forms part of the overall ERM framework. The overall responsibility for the effectiveness of credit risk
management processes vests with the Board of directors. The operational responsibility has been delegated to the CIC, executive
management and the credit risk management function. The product management committees are responsible for setting the
credit risk sections of mandates for linked policyholder portfolios and for monitoring the performance.
The CIC is a subcommittee of the Group Executive Committee. This committee reports to the Group’s Executive Committee on
the effectiveness of credit risk management and provides an overview of the Group’s shareholder credit portfolio. The CIC and its
subcommittees are responsible for the approval of relevant credit policies and the ongoing review of the Group credit exposure.
This includes the monitoring of the following:
• Quality of the credit portfolio

• Stress quantification
• Credit defaults against expected losses
• Credit concentration risk
• Appropriateness of loss provisions and reserves.
Independent oversight is also provided by the Board Risk, Capital and Compliance Committee.
Managing credit risk

Management recognises and accepts that losses may occur through the inability of corporate debt issuers to service their debt
obligations. In order to limit this risk, the executive Balance Sheet Management (BSM) has formulated guidelines regarding the
investment in corporate debt instruments, including a framework of limits based on the Group’s credit risk appetite.
The approval framework for new credits consists of two committees, namely an Executive Credit Committee and the BSM Credit
Committee. The BSM Credit Committee consists of senior credit executives and independent senior management executives. The
Executive Credit Committee consists of Group Executive Committee members and senior management executives. The Executive
Credit Committee approves credits in excess of the mandate and limits of the BSM Credit Committee.

40 CREDIT RISK CONTINUED
GROUP REPORTS
Managing credit risk continued
The following are taken into account in the approval process:
• The underlying nature of the instrument and credit strength of the counterparty.
• The credit rating of the issuer, either internally generated or external from Moody’s, S&P or Global Credit Ratings (GCR).
• Current exposure and portfolio diversification effects.
To achieve the above, an internal credit risk function performs ongoing risk management of the credit portfolio which includes:
• The use of stochastic portfolio credit risk modelling in order to gauge the level of portfolio credit risk, consider levels of capital
and identify sources of concentration risk and the implications thereof.
• Preparing credit applications and performing annual reviews.
Regular risk management reporting to the CIC includes credit risk exposure reporting, which contains relevant data on the counterparty,
credit limits and ratings (internal and external). Counterparty exposures in excess of set credit limits are monitored and corrective
action is taken where required.
CONSOLIDATED ANNUAL
Credit mitigation instruments are used where appropriate. These include collateral, netting agreements and guarantees or
credit derivatives.
Concentration risk
Concentration risk is managed at the credit portfolio level. The nature thereof differs according to segment. Concentration risk
management in the credit portfolio is based on individual name limits and exposures (which are reported to and approved by the CIC)
and the monitoring of industry concentrations. A sophisticated simulation portfolio model has been implemented to quantify
concentration risk and its potential impact on the credit portfolio.
The Group is exposed to credit risk generated by debt instruments which are invested by collective investment schemes and other
unit-linked investments in which the Group invests. The Group’s exposure to these funds is classified at fund level (refer to note 43

for unit-linked categories) and not at the underlying asset level. This includes the investments in associated collective investment
schemes. Although the funds are not rated, fund managers are required to invest in credit assets within the defined parameters
stipulated in the fund’s mandate. These rules limit the extent to which fund managers can invest in unlisted and/or unrated
credit assets and generally restrict funds to the acquisition of investment grade assets. Further credit risk reduction measures
are obligatory for South African collective investment schemes as required by control clauses within the Collective Investment
Scheme Control Act, 45 of 2002.
Derivative contracts
The Group enters into derivative contracts with A-rated local banks on terms set out by the industry standard International Swaps
and Derivatives Agreements (ISDA). In terms of these ISDA agreements, derivative assets and liabilities can be set off with the
same counterparty, resulting in only the net exposure being included in the overall group counterparty exposure analysis.
For OTC equity index options, the credit risk is managed through the creditworthiness of the counterparty in terms of the Group’s
credit risk exposure policy. For OTC interest rate swaps, the Group enters into margining arrangements with counterparties, which
limit the exposure to each counterparty to a level commensurate with the counterparty’s credit rating and the value-at-risk in the
portfolio. For exchange-traded options, credit risk is largely mitigated through the formal trading mechanism of the derivative
exchange.


Scrip lending
The Group is authorised to conduct lending activities as a lender in respect of local listed equity securities and listed government
stocks to appropriately accredited institutions. In general, the lender retains the full economic risks and rewards of securities lent.
Scrip lending agreements are governed by Global Master Securities Lending Agreement (GMSLA). The main risk in scrip lending
activities is the risk of default by the borrower of securities, ie the borrower fails to return the borrowed securities. Borrower default
risk is mitigated by either requiring borrowers to post adequate levels of high-quality collateral and/or by the use of indemnity
guarantees from the borrowers.
Where collateral is received, the Group monitors collateral levels on a daily basis and the status of collateral coverage is reported
to the executive BSM on a quarterly basis. This collateral serves as security for the scrip lending arrangements in the event
of default by the borrowers. Where the borrower default risk is mitigated by means other than collateral, the Group monitors
the counterparty credit exposure to be within approved limits and the Group ensures that the credit risk capital is held against
counterparty credit exposure.

Commission debtors arise when upfront commission paid on recurring premium policies is clawed back on a sliding scale within
the first two years of origination. As the largest portion of the Group’s new business premiums arises from brokerages that are
subsidiaries of A-rated South African banks, the risk of default is low, and relates mainly to independent intermediaries.
Refer to note 7.6 for impairment details.
Policy loans
The Group’s policy is to lapse a policy automatically where the policy loan debt exceeds the surrender value of the policy. There
is therefore little risk that policy loan debt will remain irrecoverable. Consequently, the policy is considered to be collateral for the
debt. The fair value of the collateral is considered to be the value of the policy.
Policy loans are secured by policies issued by the Group. In terms of the regulations applicable to the Group, the value of policy loans
may not exceed the value of the policy and as a result the policy loans are fully collateralised by assets which the Group owns.
Reinsurance
The Group only enters into reinsurance treaties with reinsurers registered with the PA. The credit rating of the Company is
assessed when placing the business and when there is a change in the status of the reinsurer. If a reinsurer fails to pay a claim,
the Group remains liable for the payment to the contract holder.
The reinsurers contracted represent subsidiaries of large international reinsurance companies, and no material instances of
default have yet been encountered.
Regular monthly reconciliations are performed regarding claims against reinsurers, and the payment of premiums to reinsurers.
Financial Assets credit risk exposure

For the Group’s maximum exposure to credit risk refer to note 7.6.

GROUP REPORTS
Financial liabilities designated at FVPL
The current fair value movements, on financial liabilities that would have otherwise been classified as at amortised cost or FVOCI
under IFRS 9, but which have been designated at FVPL, include R26 million (2021: R90 million) loss attributable to change in own
credit risk.
In April 2022, Moody’s updated their credit opinion for MML’s and Guardrisk Group. In the Moody’s credit opinion MML’s IFS ratings
remained at Ba1 on an international scale and the national scale rating remained at Aaa.za. The Guardrisk’s IFS ratings remained
at Ba2 on an international scale and the national scale rating of Aaa.za. Moody’s changed their credit outlook from negative
outlook to stable outlook. The changes in the credit ratings outlook follows the change in the credit outlook for the sovereign credit
rating outlook from negative to stable in April 2022.
Security and credit enhancements

In terms of the credit risk associated with the instruments above, the following collateral is held in order to mitigate the credit risk:
Debt securities, unit-linked investments, cash and cash equivalents and derivative financial instruments
For debt securities, unit-linked investments, cash and cash equivalents and derivative financial instruments, the credit risk is
CONSOLIDATED ANNUAL
managed through the Group’s credit risk exposure policy described in this note.
Linked notes
The Group has put options with Rand Merchant Bank (RMB) against the linked notes listed and issued by RMB for the guaranteed
capital amounts invested which are exercisable when the market value of the underlying instruments supporting the notes
decreases below the guaranteed amounts. The carrying amount of these investments included in other debt securities at FVPL
was R503 million at 30 June 2022 (2021: R535 million).
Transfers of financial assets

The Group is involved in the transfer of financial assets through scrip lending and sale and repurchase of assets agreements.
Refer below for detail on scrip lending arrangements as well as related security and credit enhancements. Also refer to the
accounting policies for more detail on the nature of the arrangements.
The carrying value of scrip on loan in the current year was R1 051 million (2021: R2 254 million) and consisted of local listed equity
securities. There is collateral of R1 239 million (2021: R2 609 million) on the scrip lent.

The receivables arising from investment contracts are limited to and secured by the underlying value of the unpaid policy benefits
in terms of the policy contract.
Policy loans of R1 004 million (2021: R1 057 million) are limited to and secured by the underlying value of the unpaid policy
benefits. For further details refer to note 7.6. The underlying value of the policy benefits exceeds the policy loan value.
Other receivables
Amounts receivable in terms of long-term insurance contracts and investment contracts with DPF are limited to and secured by
the underlying value of the unpaid policy benefits in terms of the policy contract. ADDITIONAL INFORMATION

41 FINANCIAL RISK INHERENT IN CONSOLIDATED COLLECTIVE INVESTMENT SCHEMES AND OTHER

INVESTMENT PRODUCTS
The Group consolidates a number of collective investment schemes and other investment products. Refer to note 42 for
information on the schemes consolidated.
As a result of exercising control over these schemes and other investment products, the Group’s risk management framework is
applicable to the risk management of these portfolios.
Because of the specific nature of this type of business, the risk management principles may be applied differently to managing the
risks relevant to them. This section describes how the financial risk management of the schemes differs from the overall financial
risk management.
The management company has a dedicated independent risk unit that continuously monitors the overall risk of the portfolios
against stated mandate limits and the portfolio risk appetites over time. To avoid conflicts of interest, the unit is separate from
the investment team and reports directly to the chief risk officer of the management company.
When considering any new investment for a portfolio, the risks and expected returns are critical elements in the investment decision.
Before an instrument is included in a portfolio, risks are carefully considered at instrument and portfolio level. The portfolio’s
mandate is also assessed.
A portfolio’s market risk appetite is measured as a function of current market conditions and its investment objective and mandate
in conjunction with its relevant benchmark.
Credit and liquidity risk are mitigated through diversification of issuers in line with credit policy. All amounts disclosed include
amounts attributable to the consolidated collective investment portfolios.
The collective investment schemes and other investment products not consolidated are included in note 43 as Collective
investment schemes and Investments in associates. These are designated at FVPL.
42 SIGNIFICANT SUBSIDIARY COMPANIES

42.1 Interest in significant subsidiary companies
42.1.1 Significant companies
Loans to
Interest held Cost subsidiaries1
Country of incor-
poration, where 2022 2021 2022 2021 2022 2021
Companies not South Africa % % Rm Rm Rm Rm
Momentum Metropolitan Life Ltd 100 100 17 741 17 741
Subsidiary companies
Momentum Finance Company (Pty) Ltd 100 100
Momentum Ability Ltd 100 100
Momentum Asset Management (Pty) Ltd 100 100
Momentum Global Investment Management Ltd UK 100 100
Momentum Wealth (Pty) Ltd 100 100
Momentum Wealth International Ltd Guernsey 100 100
Subsidiary company
Momentum International Insurance PCC Ltd Guernsey 100 100
102 Rivonia Road (Pty) Ltd 80 80
Momentum Multiply (Pty) Ltd 100 100
Metropolitan International Holdings (Pty) Ltd 100 100 2 358 2 358 –
Momentum Metropolitan Namibia Ltd Namibia 99.2 99.2
Metropolitan Cannon Life Assurance Ltd Kenya 96 96
Metropolitan Cannon General Insurance Ltd Kenya 96 96
Metropolitan Life Insurance Ghana Ltd Ghana 100 100
Metropolitan International Support (Pty) Ltd 100 100
Momentum Mozambique LDA Mozambique 66.7 66.7
Momentum Metropolitan Finance Company (Pty) Ltd 100 100 600 600 3 3
Metropolitan Life International Ltd – 100 – –
Subtotal 20 699 20 699 3 3
1
These loans have been provided as a long-term source of additional capital for the subsidiary.

42 SIGNIFICANT SUBSIDIARY COMPANIES CONTINUED
GROUP REPORTS
42.1 Interest in significant subsidiary companies continued
42.1.1 Significant companies continued
Loans to
Interest held Cost subsidiaries1
Country of incor-
poration, where 2022 2021 2022 2021 2022 2021
Companies continued not South Africa % % Rm Rm Rm Rm
Subtotal carried forward 20 699 20 699 3 3
Metropolitan Life of Botswana Ltd Botswana 100 100 73 73
Metropolitan Lesotho Ltd Lesotho 100 100 120 120
MET Collective Investments (RF) (Pty) Ltd 100 100 34 34
Eris Property Group (Pty) Ltd 76.9 76.9 407 407
Momentum Metropolitan Infrastructure and
Operations (Pty) Ltd 100 100 352 352
Momentum Trust Ltd 100 100 76 76
Momentum Metropolitan Strategic Investments
(Pty) Ltd 100 100 6 446 6 138
CONSOLIDATED ANNUAL
Momentum Health Solutions (Pty) Ltd 73 100
Metropolitan Health Corporate (Pty) Ltd 70.5 51
Momentum Consult (Pty) Ltd 100 100
Momentum Insurance Company Ltd 100 100
MMI Short Term Insurance Administration
(Pty) Ltd 100 100
Momentum Securities (Pty) Ltd 100 100
Momentum Outcome-Based Solutions
(Pty) Ltd 100 100
Guardrisk Group (Pty) Ltd 100 100
Guardrisk Life Ltd
Guardrisk Insurance Company Ltd
Guardrisk International Ltd PCC
Momentum Metropolitan Holdings (UK) Ltd UK 100 100

Anthemis Exponential Ventures LLP UK 100 100
Euroguard Insurance Company PCC Ltd Gibraltar 100 100
Equity-settled shared-based payments
Investment2 63 –
Less: impairments (refer to note 42.1.2) (614) (669)
Total interest in subsidiary companies 27 656 27 230 3 3
1
These loans have been provided as a long-term source of additional capital for the subsidiary.
2
The investment in subsidiaries is as a result of the iSabelo share-based transaction, for which the Company has the responsibility to settle the liability raised
in the respective subsidiaries with its own shares. Please refer to Note 17.6 for the Share-based payment disclosures.
42.1.2 Subsidiary cumulative impairments
2022 2021
Rm Rm
Metropolitan International Holdings (Pty) Ltd 25 25

Momentum Metropolitan Finance Company (Pty) Ltd 395 437
MET Collective Investments (RF) (Pty) Ltd 27 27
Momentum Metropolitan Infrastructure and Operations (Pty) Ltd 91 105
Momentum Trust Ltd 76 75
614 669
42.1.3 Other loans to/(from) significant subsidiaries

Momentum Metropolitan Strategic Investments (Pty) Ltd – 311
Metropolitan Capital (Pty) Ltd 252 228
252 539
Less: impairments (2) (114)
Loans to subsidiary companies 250 425
Momentum Metropolitan Life Ltd (699) (982)
Loans from subsidiary companies (699) (982)

42 SIGNIFICANT SUBSIDIARY COMPANIES CONTINUED

42.2 Interest in CIS subsidiaries
42.2.1 Significant CIS subsidiaries
At 30 June, the following CISs were significant subsidiaries of the Group:
Interest held Carrying amount

2022 2021 2022 2021
% % Rm Rm
Momentum GF Global Equity Fund 92.6 92.6 20 314 21 517
Momentum Bond Fund 96.7 95.7 8 451 6 644
Momentum Money Market Fund 54.8 56.7 7 777 6 911
Momentum SA Flexible Fixed Interest Fund 93.1 92.3 7 129 5 954
Momentum GF Global Enhanced Index Fund 97.3 98.4 6 585 6 402
Momentum Income Plus Fund 50.0 47.8 5 305 5 291
Momentum Enhanced Yield Fund 58.4 52.5 4 714 3 806
Momentum Focus 6 Fund of Funds 86.6 86.7 4 624 4 733
Momentum MoM Ultra Long-Term Value Fund 90.8 90.0 3 494 3 176
Momentum GF Global Emerging Markets Equity Fund 100.0 *** 3 251 ***
Momentum Global Growth Fund IC Ltd 94.5 96.1 2 961 3 237
Momentum MoM High Growth Fund 100.0 99.6 2 658 2 660
Momentum MoM Opportunistic Equity Fund 100.0 100.0 2 542 2 668
Momentum MoM Macro Value Fund 100.0 100.0 2 416 2 499
Momentum Core Equity Fund 78.6 81.7 2 399 2 213
Momentum Capped SWIX Index Fund 92.5 99.8 2 365 2 145
Momentum Trending Equity Fund 99.5 99.5 2 088 2 745
Momentum Focus 7 Fund of Funds 82.4 80.9 1 760 1 570
Momentum Global Managed Fund IC Ltd 89.8 90.9 1 599 1 757
Momentum Diversified Income Fund 64.9 69.5 1 415 1 610
Momentum MoM Emerging Manager Growth Fund 100.0 99.5 1 214 1 365
Momentum Equity Fund 34.2 35.7 1 181 1 256
Momentum Value Equity Fund 99.0 99.3 1 117 1 708
Momentum Focus 5 Fund of Funds 77.2 74.8 1 047 900
Momentum GF Global Fixed Income Fund 99.9 *** 991 ***
Momentum Macro Growth Fund 100.0 100.0 910 874
Momentum MoM Property Equity Fund 92.2 92.4 872 892
Momentum RCIS Multi Managed ZAR Capi Alpha QI Hedge Fund 100.0 100.0 758 753
Momentum Rubix QI 100.0 99.1 731 736
Momentum Real Growth Property Fund 86.4 82.9 701 773
Momentum RCIS Multi-Managed ZAR Equity Hedge QI Hedge Fund 99.4 99.5 664 577
Momentum MoM Managed Bond Fund 100.0 *** 575 ***
Momentum SA Real Growth Property Fund 100.0 99.9 522 577
Momentum Inflation Linked Bond Portfolio ** 91.7 ** 721
Momentum IF Global Fixed Income Fund * 100.0 * 1 192
Momentum IF Global Emerging Markets Fund * 98.6 * 3 655
Total 105 107 103 517
* The funds are no longer subsidiaries due to the liquidation of these funds.
** The fund is no longer a significant subsidiary.
*** The funds is new subsidiaries within the Group.
42.2.2 Domicile
Fund name Domicile
Momentum GF Global Equity Fund Luxembourg
Momentum GF Global Enhanced Index Fund Luxembourg
Momentum GF Global Emerging Markets Equity Fund Luxembourg
Momentum Global Growth Fund IC Ltd Guernsey
Momentum Global Managed Fund IC Ltd Guernsey
Momentum IF Global Fixed Income Fund Luxembourg

43 UNCONSOLIDATED STRUCTURED ENTITIES
GROUP REPORTS
A structured entity is one that has been designed so that voting or similar rights are not the dominant factor in deciding who
controls it. The Group considers certain CISs and other unit-linked investments to be structured entities. This note provides
information on significant unconsolidated structured entities in which the Group holds an interest.
43.1 CISs and other unit-linked investments

Unit-linked investments comprise local and foreign CISs as well as other unit-linked investments. CISs are categorised into
property, equity, money market, mixed assets and interest-bearing instruments based on the Association for Savings and
Investment South Africa (ASISA) classification of the South Africa regulated CIS portfolios.
The category of unit-linked investments with no ASISA classification has been assessed based on the mandate and objective of
the fund, with reference to the ASISA classification guidelines. Where the Group is the contract holder of investment contracts
at another institution, but does not have title to the underlying investment assets, it has been allocated to the class of underlying
asset composition/exposure that exceeds 80%. If no single asset composition exceeds 80%, it has been allocated to the mixed
asset class.
Unlisted and unquoted unit-linked instruments are mainly exposed to equity, comprising investments in hedge funds and private
CONSOLIDATED ANNUAL
equity funds, or interest-bearing instruments, comprising mezzanine funding and structured guaranteed income products. It
includes investments where the exposure is subject to the underlying investments, comprising investments in pooled funds as
well as investments backing policies where the Group is the policyholder of an investment contract issued by other insurance
companies.
Restated
Restated difference
2022 20211 20212
Rm Rm Rm
CISs
Local and foreign 170 543 164 191 (549)
Equity 3
54 787 53 716 (51 736)
Interest-bearing3, 4, 5 4 513 5 053 (20 629)
Property3 4 412 2 248 (3 016)

Mixed3, 6 104 247 100 362 74 866
Money market7 2 268 2 474 (327)
Commodity3 316 338 293
Local and foreign 14 301 14 791 997
Equity 4, 5, 6
5 743 5 973 (3 225)
Interest-bearing3, 7 919 1 127 (1 092)
Property 722 303 303
Mixed 6 109 6 558 4 393
Money market 639 617 617
Commodity 169 213 1
At FVPL: unit-linked investments 184 844 178 982 448

1
The methodology to determine classification was revised in the current year to ensure that the classifications are representative of the true nature and
extent of the risks arising from these financial instruments. The previous methodology, applied in the prior year, determined classification based on the
class of underlying asset composition/exposure exceeding 55%. June 2021 has been restated accordingly.
2
Relates to the difference between the 2021 reported values and the 2021 restated values.
3
Refer to note 47 for more information on the restatements other than footnotes 3, 4, 5, 6 and 7.
4
Upon further interrogation it was concluded that interest-bearing CIS of R108 million should have been included in equity other unit-linked investments.
5
Upon further interrogation it was concluded that interest-bearing CIS of R932 million should have bee included in equity other unit-linked investments.
6
Upon further interrogation it was concluded that equity other unit-linked investments of R33 million should have been included in mixed CIS. June 2021 has
been restated accordingly.
7
Upon further interrogation it was concluded that interest-bearing other unit-linked investments of R17 million should have been included in money market
CIS. June 2021 has been restated accordingly.

43 UNCONSOLIDATED STRUCTURED ENTITIES CONTINUED

43.2 Investments in associates at FVPL
The Group holds a significant investment in the following associates at FVPL:
Carrying %
amount interest Principal place of
Rm held Nature of relationship business
2022
Mometum Africa Real Estate Fund 480 32.2% Standard investment London
2021
Momentum Harmony Portfolios Sterling Growth Fund 352 18.5% Standard investment Luxembourg
Momentum Africa Real Estate Fund 302 30.2% Standard investment London
Momentum Harmony Portfolios Asian Growth Fund 106 12.3% Standard investment Luxembourg
Summarised financial information relating to the associates above:
Momentum Momentum
Harmony Harmony Momentum
Portfolios Asian Portfolios Sterling Africa Real
Growth Fund1 Growth Fund2 Estate Fund
Rm Rm Rm
2022
Current assets – – 1 260
Non-current assets – – 240
Current liabilities – – 7
Non-current liabilities – – 1 493
Revenue – – 32
Profit – – 8
2021
Current assets 34 194 313
Non-current assets 835 1 729 216
Current liabilities 3 16 16
Non-current liabilities 866 1 907 513
Revenue 212 387 12
Profit/(loss) 197 351 (24)
1
This associate was not considered to be significant in the current year.
2
This associate forms part of CIS subsidiaries in the current year.
43.3 Other unconsolidated structured entities

The table below provides information on significant other unconsolidated structured entities in which the Group holds an interest.
Carrying amount1 Income received2

Name of Investment Nature and purpose How is the entity 2022 2021 2022 2021
entity type of business financed? Rm Rm Rm Rm
The Thekwini Floating Special purpose vehicle set Funding received from 469 483 22 15
Fund 16 (RF) Ltd rate note/ up by South African Home the South African
vanilla Loans (Pty) Ltd to finance capital market
bonds mortgage loans
The Thekwini Floating Special purpose vehicle set Funding received from 856 * 15 *
Fund 17 (RF) Ltd rate note/ up by South African Home the South African
vanilla Loans (Pty) Ltd to finance capital market
bonds mortgage loans
1 325 483 37 15
* This listed securitisation was not considered to be significant in the prior year.
1
Included in securities at FVPL in the statement of financial position. The carrying amount represents the Group's maximum exposure.
2
Consists of interest income and fair value gains/(losses).
The Group has not sponsored any significant unconsolidated structured entities in which it holds an interest.

44 VALUATION TECHNIQUES
GROUP REPORTS
The Group’s in-house valuation experts perform the valuations of financial assets required for financial reporting purposes.
Discussions of valuation processes and results are held at least bi-annually, in line with the Group’s bi-annual reporting dates.
The valuation of the Group’s assets and liabilities has been classified using a fair value hierarchy that reflects the significance
of the inputs used in the valuation. The fair value hierarchy has the following levels:
• Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
• Input other than quoted prices included within level 1 that are observable for the asset or liability, either directly (ie prices) or
indirectly (ie derived from prices) (level 2)
• Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3).
The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the
basis of the lowest level input that is significant to the fair value measurement in its entirety. If a fair value measurement uses
observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement.
Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering
factors specific to the asset or liability.
Instruments classified as level 1 have been valued using published price quotations in an active market and include the following
classes of financial assets and liabilities:
CONSOLIDATED ANNUAL
• Local and foreign listed equity securities
• Stock and loans to government and other public bodies, excluding stock and loans to other public bodies listed on the JSE interest rate
market
• Local and foreign listed and unlisted quoted CISs (this also refers to the related CIS liabilities)
• Derivative financial instruments, excluding OTC derivatives.

For venture capital fund investments that are classified as unit-linked investments, the Group applies the International Private Equity
and Venture Capital (IPEV) valuation guidelines, which have been prepared with the goal that the derived fair value measurements are
compliant with IFRS. The IPEV guidelines allow for adjustments post the valuation date for uncertainty related to time elapsing between
the measurement dates of the fund manager and the investor, changes in market dynamics or other economic conditions, and facts or
circumstances that may impact the valuation of start-up businesses. Management applies judgement if an adjustment is needed for
any of these reasons.
44.1 Fair value classification on level 2 instruments

The following are the methods and assumptions for determining the fair value when a valuation technique is used in respect of

instruments classified as level 2. Refer to note 7.7 for details of the instruments split into the different levels.
Instrument Valuation basis Main assumptions
Equities and similar securities
– Listed, local and foreign DCF, earnings multiple, published prices Cost of capital, earnings multiple, consumer price
index, budgets, cash flow forecasts
Stock and loans to other
public bodies
– Listed, local Published yield of benchmark bond Nominal bond curve, swap curve, credit spread,
real bond curve, inflation curve
Published price quotation Nominal bond curve, swap curve, credit spread,
real bond curve, inflation curve
– Listed, foreign Published price quotation Nominal bond curve, credit spread, currency rates
– Unlisted DCF Nominal bond curve, swap curve, real bond curve,
consumer price index, credit spread
Other debt securities
– Listed, local Published prices, DCF Nominal bond curve, real bond curve, swap curve,
consumer price index, credit spread
– Listed, foreign Published prices, DCF Nominal bond curve, credit spread and currency rates
– Unlisted DCF Nominal bond curve, swap curve, real bond curve,
consumer price index, credit spread, currency rates
DCF, Black-Scholes model Yield curves, discount rates, volatilities
Funds on deposit and other

money market instruments
– Listed DCF Money market curve
Published prices Money market curve, credit spread
Published yield of benchmark bond Money market curve, credit spread
– Unlisted DCF Money market curve, nominal bond curve, swap
curve, credit spread, inflation curve
Unit-linked investments Adjusted NAV or NAV Underlying asset and liability values
Derivative assets and liabilities Black-Scholes model (European options), Nominal bond curve, swap curve, real bond curve,
binomial tree (American/Bermudan consumer price index, credit spread, volatility,
options), DCF forward equity, currency rates

44 VALUATION TECHNIQUES CONTINUED

44.1 Fair value classification on level 2 instruments continued
Subordinated call notes Published yield quotations Nominal bond curve, real bond curve
(Liability)
Carry position assets and DCF Nominal bond curve, repo rates
liabilities
Investment contracts Asset and liability matching method Asset value
designated at FVPL
There were no significant changes in the valuation methods applied since the prior year.
44.2 Fair value classification on level 3 instruments

Information about fair value measurements using significant unobservable inputs (level 3)
Relationship of
Valuation unobservable inputs to fair
Financial assets technique(s) Unobservable inputs Range of unobservable inputs value
Securities at FVPL
Equity securities
Foreign listed Published prices Adjustments for low liquidity Liquidity discount: 0% to 30% Adjustments would result in
or inactivity (2021: 0% to 30%) lower fair value
Unlisted NAV Underlying property Could vary significantly based The higher the capitalisation
valuations impacted on the value of the underlying rate the lower the value of the
by capitalisation rates, properties 1 property and the fair value.
vacancy rates and potential The higher the vacancy rate
capitalisation of project costs the lower the value of the
property and the fair value1
Adjusted NAV Price per unit Could vary significantly based The higher the NAV, the
or NAV on the assets and liabilities greater the fair value 1
held by the investee1
Debt securities
Stock and loans to
government and
other public bodies
Unlisted DCF Discount rate 8% to 13% (2021: 8.00% to The higher the discount rate,
11.00%) the lower the fair value of
the assets
Listed Published prices Adjustments for Multiple unobservable Adjustments would result in
recoverability and credit risk inputs1 lower fair value
determined by collection
rates of performing and non-
performing loans
Other debt
instruments
Unlisted DCF, Black-Scholes Discount rate, volatilities, Multiple unobservable Could vary significantly based
model yield curve inputs1 on multiple inputs1
DCF Discount rate 6.41% to 17.92% (2021: 5% The higher the discount rate,
to 15.03%) the lower the fair value of the
assets
Last quoted Price per unit 78c (2021: 78c) The higher the price per unit,
price multiplied the higher the fair value
by number of
units held
1
Quantitative information is not readily available as quantitative unobservable inputs are not developed by the Group.

44 VALUATION TECHNIQUES CONTINUED
GROUP REPORTS
44.2 Fair value classification on level 3 instruments continued
Information about fair value measurements using significant unobservable inputs (level 3) (continued)
Relationship of
Financial assets Valuation unobservable inputs to fair
(continued) technique(s) Unobservable inputs Range of unobservable inputs value
CISs
Foreign unlisted Unit price of Price per unit Could vary significantly based The higher the NAV, the
unquoted underlying assets/ on the assets and liabilities greater the fair value1
liabilities multiplied held by the investee1
by number of
units held
Other unit-linked
investments
Local unlisted Adjusted NAV Price per unit Could vary significantly due The higher the price per unit,
unquoted or NAV to range of holdings1 the higher the fair value1
Adjusted NAV or Underlying investment valuations Could vary significantly due The fair value varies based on
CONSOLIDATED ANNUAL
NAV impacted by funding rounds, to range of holdings1 any changes to the underlying
market dynamics, economic investment valuations and
conditions and internal business judgemental adjustments
metrics. applied by management
Management applies judgement
if an adjustment is required due
to changes in market dynamics,
economic conditions and internal
business metrics.
Foreign unlisted Adjusted NAV Price per unit Could vary significantly due The higher the price per unit,
unquoted or NAV to range of holdings1 the higher the fair value1
Adjusted NAV or Underlying investment Could vary significantly due The fair value varies based
NAV valuations impacted by to range of holdings1 on any changes to the
funding rounds, market underlying investment
dynamics, economic valuations and judgemental
conditions and internal adjustments applied by

business metrics. management
Management applies
judgement if an adjustment
is required due to changes in
market dynamics, economic
conditions and internal
business metrics.
Derivative financial Adjusted NAV or Underlying investment Could vary significantly due to The fair value varies based
assets NAV valuations impacted by range of holdings1 on any changes to the
funding rounds, market underlying investment
dynamics, economic valuations and judgemental
conditions and internal adjustments applied by
business metrics. management
Management applies
judgement if an adjustment
is required due to changes in
market dynamics, economic
conditions and internal
business metrics.
Financial liabilities
Other borrowings DCF Assets under management 3.25% (2021: 2.75% to 3.25%) The higher the rate, the
(AUM) growth rate higher the fair value
Preference shares DCF Discount rate 3% (2021: 12.22%) The higher the discount rate,
the lower the fair value of

the liability
1
Quantitative information is not readily available as quantitative unobservable inputs are not developed by the Group.
There were no significant changes in the valuation methods applied since the prior year.

45 CASH AND EQUITY-SETTLED ARRANGEMENTS VALUATION ASSUMPTIONS AND DIRECTORS’

REMUNERATION
45.1 Cash-settled arrangements
45.1.1 Valuation assumptions relating to outstanding MMH LTIP units at 30 June
Units granted during the current year
Performance units Deferred bonus units
21st 22nd 23rd 24th 25th 26th 27th 6th 9th 11th
2022 tranche1 tranche1 tranche1 tranche1 tranche1 tranche2 tranche2 tranche1 tranche1 tranche1
Award date 01-Oct-19 01-Apr-20 06-Apr-20 01-Oct-20 01-Apr-21 01-Oct-21 01-Apr-22 01-Oct-19 01-Apr-20 01-Oct-20
Vesting date 01-Oct-22 01-Oct-22 06-Apr-23 01-Oct-23 01-Apr-24 01-Oct-24 01-Apr-25 01-Oct-22 01-Apr-23 01-Oct-22
Units granted
(thousands)3 284 1 2 302 7 9 958 81 63 2 46
Valuation assumptions
include:
Outstanding tranche
period in years 0.25 0.25 0.75 1.25 1.75 2.25 2.75 0.25 0.75 0.25
Take-up rate on units
outstanding 98% 98% 95% 93% 90% 87% 84% 98% 95% 98%
Current vesting
probability excluding
attrition 41% 41% 41% 41% 41% 17% 17% 100% 100% 100%
Share price at
year end R14.26 R14.26 R14.26 R14.26 R14.26 R14.26 R14.26 R14.26 R14.26 R14.26
Units granted during the prior year

Retention
units Performance units Deferred bonus units
19th 19th 20th 21st 22nd 23rd 24th 25th 3rd 5th
2021 tranche1 tranche1 tranche1 tranche2 tranche2 tranche2 tranche2 tranche2 tranche1 tranche
Award date 01-Oct-18 09-Apr-18 01-Oct-18 01-Oct-19 01-Apr-20 06-Apr-20 01-Oct-20 01-Apr-21 01-Oct-18 01-Oct-19
Vesting date 01-Oct-21 31-Oct-21 01-Oct-21 01-Oct-22 01-Oct-22 06-Apr-23 01-Oct-23 01-Apr-24 01-Oct-21 01-Oct-21
Units granted
(thousands)3 3 19 3 157 2 1 12 004 251 40 36
Valuation assumptions
include:
Outstanding tranche
period in years 0.25 0.34 0.25 1.25 1.25 1.77 2.25 2.76 0.25 0.25
Take-up rate on units
outstanding 94% 94% 94% 88% 88% 88% 82% 82% 94% 94%
Current vesting
probability excluding
attrition 100% 0% 0% 53% 53% 53% 49% 49% 100% 100%
Share price at
year end R19.50 R19.50 R19.50 R19.50 R19.50 R19.50 R19.50 R19.50 R19.50 R19.50
1
This relates to dividend offers made during the year.
2
In terms of the MMH LTIP rules, the date at which the achievement of performance conditions is measured, is prior to the ultimate vesting date. After year 3
of the scheme, the measurement of performance and the vesting percentage in respect of all units is confirmed. Vesting and settlement then takes place
one third on this date, one third a year thereafter, and one third two years thereafter.
3
This relates to units granted during the year, that are still outstanding at year end.
Vesting rate assumptions regarding performance units in the table above

As stated on page 103, the performance units in the MMH LTIP are subject to performance criteria.
The various active LTIP tranches are set out in the table above.
The October 2019 LTIP tranche’s performance criteria are weighted 50% to business unit specific targets and 50% to Group level
targets. The Group level targets have three components, of which two are linked to normalised headline earnings (NHE) growth over
the vesting period, while the third is linked to MMH's Total Shareholder Returns (TSR) relative to its listed peers. Similarly, for business
units, two of the three vesting conditions are based on cumulative NHE over the vesting period, while a third component is based on
a business unit specific financial measure. The LTIP liability for the October 2019 LTIP tranche as at 30 June 2022 was calculated
assuming 41% of units issued in 2019 (vesting in October 2022 with settlement dates in 2022, 2023 and 2024) will vest. This follows
a recalibration of the performance criteria applicable to this tranche during F2020 in light of the adverse impact of Covid-19 and
experience to date.

GROUP REPORTS
Units granted during the current year
12th 14th 15th 17th 18th 19th 20th 21st 22nd 23rd 24th
tranche1 tranche1 tranche1 tranche1 tranche1 tranche tranche tranche tranche tranche tranche
01-Oct-20 01-Apr-21 01-Apr-21 01-May-21 01-May-21 30-Sep-21 30-Sep-21 30-Sep-21 01-Oct-21 01-Oct-21 01-Oct-21
01-Oct-23 01-Apr-23 01-Apr-24 01-May-23 01-May-24 30-Sep-22 30-Sep-23 30-Sep-24 01-Oct-22 01-Oct-23 01-Oct-24
46 0 0 1 1 9 9 9 1 799 1 799 1 799
1.25 0.75 1.75 0.83 1.83 0.25 1.25 2.25 0.25 1.25 2.25
CONSOLIDATED ANNUAL
93% 95% 90% 95% 89% 98% 93% 87% 98% 93% 87%
100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
R14.26 R14.26 R14.26 R14.26 R14.26 14.26 14.26 14.26 14.26 R14.26 R14.26

6th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th
tranche tranche tranche tranche tranche tranche tranche tranche tranche tranche tranche tranche
01-Oct-19 01-Apr-20 01-Apr-20 01-Oct-20 01-Oct-20 01-Oct-20 01-Apr-21 01-Apr-21 01-Apr-21 01-May-21 01-May-21 01-May-21
01-Oct-22 01-Apr-22 01-Apr-23 01-Oct-21 01-Oct-22 01-Oct-23 01-Apr-22 01-Apr-23 01-Apr-24 01-May-22 01-May-23 01-May-24
36 1 1 1 897 1 897 1 897 13 13 13 27 27 27

1.25 0.75 1.75 0.25 1.25 2.25 0.75 1.75 2.76 0.84 1.84 2.84
88% 94% 88% 94% 88% 82% 94% 88% 82% 94% 88% 82%
100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
R19.50 R19.50 R19.50 R19.50 R19.50 R19.50 R19.50 R19.50 R19.50 R19.50 R19.50 R19.50
The October 2020 LTIP tranche’s performance criteria are weighted 50% to business unit specific targets and 50% to Group level
targets. The Group level targets have four components, of which two are linked to NHE growth over the vesting period, while the third
is linked to Return on Equity (ROE) and the fourth is linked to MMH's TSR relative to its listed peers. Similarly, for business units, two
of the four vesting conditions are based on cumulative NHE over the vesting period while the third component is liked to a business
unit specific financial measure. Where applicable, business units have been given a ROE target for June 2023. The LTIP liability for the
October 2020 LTIP tranche as at 30 June 2022 was calculated assuming 41% of units issued in October 2020 (vesting in 2023 with
settlement dates in 2023, 2024 and 2025) will vest.
The latest LTIP tranche was issued in October 2021. Performance criteria are 100% weighted to the Group’s TSR outperforming an
equally weighted basket of listed peers (Discovery, Old Mutual and Sanlam). As at 30 June 2022 the LTIP liability for October 2021 was
calculated assuming 17% of units issued in October 2021 (vesting in 2024 with settlement dates in 2024, 2025 and 2026) will vest.
Compared to the ROEV assumptions used in the MMH LTIP liability calculation, an additional two percentage point increase in the
future ROEV is not expected to result in any change in the MMH LTIP cost for MMH LTIP tranches in force at 30 June 2022. This is
because the ROEV performance impacting the 2018 MMH LTIP currently falls below the threshold for vesting and would need as
much as a 19% improvement for the performance hurdle to be met. As a result, taking into account historic performance to date
(30 June 2022), the MMH LTIP liability is relatively insensitive to modest improvements in ROEV.


REMUNERATION CONTINUED
45.1 Cash-settled arrangements continued
45.1.2 Valuation assumptions relating to outstanding MSPS units at 30 June:
Units granted during
the current year
34th 35th 36th
2022 tranche tranche tranche
Award date 01-Nov-21 01-Nov-21 01-Nov-21
Vesting date 01-Nov-24 01-Nov-25 01-Nov-26
Units granted (thousands)1 186 186 186
Valuation assumptions include:
Outstanding tranche period in years 2.34 3.34 4.34
Take-up rate on units outstanding 100% 100% 100%
Current vesting probability excluding attrition 95% 95% 95%

31st 32nd 33rd
2021 tranche tranche tranche
Award date 01-Nov-20 01-Nov-20 01-Nov-20
Vesting date 01-Nov-23 01-Nov-24 01-Nov-25
Units granted (thousands)1 208 208 208
Valuation assumptions include:
Outstanding tranche period in years 2.34 3.34 4.34
Take-up rate on units outstanding 100% 100% 100%
Current vesting probability excluding attrition 95% 95% 95%
1
This relate to units granted during the year, that are still outstanding at year end.
45.1.3 Valuation assumptions relating to outstanding MMH SAR units at 30 June 2022
The SAR features three performance criteria measured over the vesting period. One third of the scheme will vest for each
performance criterion that is met or exceeded.
Following the adverse impact of Covid-19, the Board Remuneration Committee agreed to extend the original vesting date and
performance measurement period by 12 months, and to recalibrate the original vesting conditions during F2020. The scheme will now
vest in October 2022 (as opposed to 2021) with settlement dates in 2022, 2023 and 2024. The approved performance criteria are:
• NHE in F2022 must meet or exceed R3 200 million.

• Average ROEV over the vesting period to exceed the 10-year SA Government Bond rate (the risk-free rate) plus 3%.
• TSR over the vesting period to exceed the TSR of an equal-weighted index of MMH’s main listed peers.
For the ROEV performance condition, the Remuneration Committee will retain the right to choose the exact methodology to allow
for the adverse impact of Covid-19. Given that TSR measures relative performance against listed peers, there was no change
made to the performance criteria other than the 12-month extension to the measurement period.
The SAR award specifies a strike price, which will determine the value of vested SARs as at the vesting date. A vested SAR is
worth the greater of zero and the amount by which the MMH share price exceeds the strike price.
The volatility used in the valuation of the SAR scheme was based on market rates and determined to be 30%. The risk free rate
used within the valuations was 4.99%.
The SAR liability as at 30 June 2022 was calculated on an assumption that 59% of units issued in 2018 will vest.
Compared to the ROEV assumptions used in the SAR liability calculation, an additional increase in future ROEV of 2% would result
in a higher vesting assumption of 66% and a resulting IFRS 2 cost of R1.1 million.
Tranches vested during the current or prior year

MMH LTIP: The 3rd, 5th, 10th and 19th tranches were settled in October 2021 at R19.47 per share totalling R138 million.
MMH LTIP: The 13th tranche was settled in April 2022 at R17.38 per share totalling R1.5 million.
MMH LTIP: The 16th tranche was settled in May 2022 at R17.12 per share totalling R0.5 million.
MMH LTIP: Ad-hoc payments totalling R6 million (2021: R5.5 million).
Share-based payment expense

The share-based payment expense relating to cash-settled schemes is R63 million (2021: R168 million) for the Group and is
disclosed under employee benefit expenses in note 24.

GROUP REPORTS
45.2 Equity-settled arrangements
45.2.1 Valuation assumptions relating to outstanding iSabelo units at 30 June 2022
The valuation model
The value of the share scheme is calculated using an option based model.
At the vesting date, the value of the units held, net of the debt attributable to those units, will be used to buy MMH shares for the
holders of the vested units. Consequently, an individual unit holder in the scheme can be seen as holding a call option on MMH
shares where the exercise price is the applicable value of the scheme debt per unit at the settlement date (ie the value of the
preference shares).
All scheme debt will be settled at the end of year 10 of the scheme. Before this, the debt profile allows for the ranking of the
different debt instruments by first servicing obligations to the most senior instruments, in this case the A preference shares, and
then to the subordinated B preference shares.
CONSOLIDATED ANNUAL
The IFRS 2 charge for any specific issuance is then determined as the grant date fair valuation of the option adjusted for the
expected proportion of units that will reach vesting (ie attrition). The recognition profile of the expenses follows a graded vesting
pattern in line with IFRS 2 guidance.
In order to incorporate the impact of employees leaving over the scheme duration, an employee attrition rate of 14% (2021: 14%)
was used.
Key inputs
For the valuation the following key parameters were used:
Key model parameters

2022
Market based parameters Tranche 1 Tranche 2 Comment
Share price 18.89 16.49 Share price as at issue date
Volatility 40.00% 40.00% Based on market rates

Risk-free rate 10.87% 10.61% 10-year point on GOVI Zero NACS
Contractual parameters
Dividend yield 4% 4% Constant dividend yield assumed over the projection period
Funding charges 72% of prime 72% of prime A preference shares
120% of prime 120% of prime B preference shares
Employee attrition 14.00% 14.00% Based on historic experience
Key model parameters
2021
Market based parameters Tranche 1 Comment
Share price 18.89 Share price as at issue date
Volatility 30.20% Based on market rates
Risk-free rate 11.40% 10-year point on GOVI Zero NACS
Contractual parameters
Dividend yield 4% Constant dividend yield assumed over the projection period
Funding charges 72% of prime A preference shares
120% of prime B preference shares
14.00% Based on historic experience
Employee attrition
The volatility used in the valuation was based on our best estimate of long-term option volatilities.
The valuation model used to determine the grant date fair value at June 2021 has been refined during F2022.
It was noted that the valuation model used at June 2021 was a simplified approximation of the grant date fair value. The model
has been refined in the current year and as a result the 2021 grant date fair value for units awarded in June 2021 has been
corrected from 89 cents to 64 cents. The correction of the 2021 grant date fair value has been recognised as a prospective
change in the current year, as it did not give rise to a material difference in the prior year. As such, the Share-based payment
expense related to equity settled arrangements (included within employee benefit expenses – refer to note 24), has been revised
for June 2022 to counter the overstatement recognised in the June 2021 financial year. The revised expense recognised in the
current year ensures that the appropriate closing balance is disclosed and recognised in line with the refined valuation model.
Refer above for details of how the valuation model has been refined.


45.2 Equity-settled arrangements continued
45.2.1 Valuation assumptions relating to outstanding iSabelo units at 30 June 2022 continued
The following refinements were incorporated:
• Refined the share price projection to reference the risk-free rate (i.e. a risk-neutral projection)
• Refined the dividend yield assumption to a constant rate of 4% over the projection period
• Semi-annual time steps to match the coupon payments of the debt instruments
• A z-spread roll-up basis was used to model future coupon obligations beyond the contractual terms of the debt instruments
to more accurately allow for the upward sloping nature of the yield curve.
• Allowance for term-dependent discount rates over the projection period
• Updated the volatility assumption to our best estimate of long-term option volatilities based on the duration of the scheme
45.3 Directors’ remuneration

The Group’s executive directors are contracted as full-time, permanent employees, with the exception of the CEO who is currently
on a fixed term contract. Notice periods range from one to three months’ written notice. Bonus payments and the vesting of
long-term incentives that are in place at the time of an individual’s termination of service are subject to the rules of the relevant
incentive scheme, subject to the discretion of the Remuneration Committee based on recommendations by the CEO.
Non-executive directors, including the Chairman and Independent Director, receive a fixed annual fee that is inclusive of all Board
and committee attendance, as well as all other services performed on behalf of the Group. The Group pays for all travelling and
accommodation expenses in respect of Board meetings.
HP Meyer JC Cilliers (Marais) RS Ketola Total

R'000 2022 2021 2022 2021 2022 2021 2022 2021
Guaranteed remuneration
Salary & allowances 7 121 7 613 4 882 4 243 4 670 3 932 16 673 15 788
Retirement fund contribution – – 263 231 257 223 520 454
Medical aid contribution – – 59 58 95 127 154 185
Short-term incentive payments 1 300 2 000 1 300 1 600 1 150 1 400 3 750 5 000
Long-term incentive payments 2 311 1 144 1 618 1 524 2 076 2 614 6 005 5 282
Executive directors 10 732 10 757 8 122 7 656 8 248 8 296 27 102 26 709
Value of shares granted 19 846 15 239 13 610 9 894 11 368 8 609 44 824 33 742
Value of total units outstanding at year end 16 857 28 256 15 665 20 712 9 898 17 040 42 420 66 008
Total fees
2022 2021
R’000 R’000
PC Baloyi1 185 –
LM Chiume 1 661 1 580
P Cooper 2 280 1 199
F Daniels2 528 1 066
L de Beer 1 696 1 589
NJ Dunkley3, 4 2 528 180
T Gobalsamy3 902 66
SC Jurisich 1 924 1 736
P Makosholo 944 871
SL McPherson 1 279 1 185
MS Moloko2 1 167 2 344
JJ Njeke5 – 869
V Nkonyeni 1 225 1 058
DJ Park 1 305 1 156
KC Shubane5 – 416
FJC Truter2 1 667 2 438
JC van Reenen5 – 389
Non-executive directors 19 291 18 142
1
Appointed April 2022
2
Resigned November 2021
3
Appointed 1 June 2021. The fees for 2021 were restated to reflect the fees earned for the month. These fees were subsequently paid.
4
Received fees from directorship in United Kingdom (MGIM and Euroguard Boards).
5
Resigned November 2020

GROUP REPORTS
45.4 Directors’ shareholding in MMH
Listed shares ’000 ’000 ’000 ’000
Executive directors
HP Meyer 255 394 649 638
JC Cilliers (Marais) 189 – 189 189
RS Ketola 25 – 25 –
Non-executive directors
P Cooper 500 952 1 452 442
NJ Dunkley 73 – 73 73
SC Jurisich1 1 – 1 0
FJC Truter – – – 477
1 043 1 346 2 389 1 819
CONSOLIDATED ANNUAL
1
988 shares held in MMH in the current year and 169 in the prior year.
Shareholding of directors who stepped down/retired in F2022

Direct Indirect
Beneficial Beneficial Total
Listed shares ’000 ’000 ’000
FJC Truter 44 433 477
44 433 477


46 DISPOSAL GROUPS HELD FOR SALE

Assets and liabilities held for sale
2022 2021
At 30 June 2022 Rm Rm
Assets
Intangible assets (refer to notes 3.2) – 36
Investment properties 14 129
Investments in associates and joint ventures (refer to note 6) – 6
Total assets 14 171
The Group has entered into a sales agreement for the sale of one property (Momentum Metropolitan Africa segment). This asset
has therefore been classified as held for sale. The property is classified as level 3.
In the prior year, the Group made the decision to dispose of its remaining 25% shareholding in aYo (New Initiatives segment). The
investment, as well as the related intellectual property (Momentum Metropolitan Africa segment), was classified as held for sale.
On 1 September 2021, the Group successfully disposed of this investment, for a consideration of $20 million (R287 million).
Sales agreements were entered into for the sale of three properties (Shareholders segment) during the prior year and were thus
classified as held for sale. These properties have been sold during the current year.
The Group's interest in the assets mentioned above have been classified as held for sale in the statement of financial position at the
end of the respective period. This judgement was done based on the facts and circumstances which existed at that date when a
formal assessment was made of whether the assets should be classified as held for sale. The Group is satisfied that it meets all the
criteria required in order to classify these assets as held for sale. The sale of the asset held for sale in the current year will take effect
via a cash sale and is expected to occur within the next 12 months.

47 RESTATEMENTS
The following restatements were made to the consolidated statement of financial position, income statement and statement of cash flows for the following periods:
Share Hedge
Before Finance portfolios fund CIS Contin- Guardrisk
restate- costs reclassi- consolida- Reinterme- consoli- gency cell reclas- CGT After
2 6 7
Statement of financial position ment correction1 fication tion3 diation4 dation5 AFIN cells sification8 variance9 restatement
as at 30 June 2021 Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm
Intangible assets 9 888 – – – – – 51 – – – 9 939
Financial assets at FVPL 466 280 – 1 726 3 356 – – – – – – 471 362
Financial assets at amortised cost 9 598 – – (1 630) – – – – – – 7 968
Reinsurance contract assets 6 717 – – – – – 132 – – – 6 849
Insurance and other receivables 6 406 – – – – – (71) – (95) – 6 240
Cash and cash equivalents 38 121 – (1 726) 427 – – – – – – 36 822
Long-term insurance contracts (128 882) – – – – – – 154 – (190) (128 918)
Non-life insurance contracts (13 349) – – – – – (92) – (122) – (13 563)
designated at FVPL (292 563) – – – – – – (154) 217 – (292 500)
Financial liabilities at FVPL (47 420) – – (3 603) – – 10 – – – (51 013)
Deferred income tax (2 722) – – – – – (7) – – – (2 729)
Other payables (18 829) – – 1 450 245 – (23) – 190 (16 967)
Provisions (38) – – – (245) – – – – – (283)
as at 1 July 2020
Financial assets at FVPL 427 917 – 1 292 3 977 – – – – – – 433 186
Financial assets at amortised cost 8 244 – – (2 181) – – – – – – 6 063
Insurance and other receivables 5 371 – – – – – – – 9 – 5 380
Cash and cash equivalents 31 596 – (1 292) 110 – – – – – – 30 414
Long-term insurance contracts (114 545) – – – – – – 158 – – (114 387)
Non-life insurance contracts (11 287) – – – – – – – (158) – (11 445)
designated at FVPL (261 627) – – – – – – (158) 149 – (261 636)
Financial liabilities at FVPL (47 645) – – (4 662) – – – – – – (52 307)
Other payables (17 790) – – 2 756 245 – – – – – (14 789)
Provisions (76) – – – (245) – – – – – (321)
1
Finance costs correction relating to the elimination of an intercompany transaction. 30 June 2021 has been restated accordingly.
2
Investments held in share portfolios were previously incorrectly classified as cash and cash equivalents. These share portfolios have now been correctly split into the underlying assets. June 2021 and June 2020 has been restated accordingly. Additionally, realised
fair value gains on certain share portfolios incorrectly included dividends received. June 2021 has been restated accordingly.
3
The Group invests into Qualified Investor Hedge funds that, as a result of the requirements in IFRS 10 – Consolidated financial statements, are consolidated. As a result of a further detailed review of the financial instruments held by these hedge funds, a number of
refining correcting adjustments were required to the statement of financial position and income statement.
These adjustments do not impact the net asset value of the hedge fund nor that of MMH. The adjustments made in respect of the statement of financial position relate to the following:
1) the offset and classification of interest rate derivatives and carry positions.
2) the offset and recording of financed trade positions carried out in the funds.
June 2021 and June 2020 have been restated accordingly.
The adjustments made in respect of the income statement relate to the following:
1) inappropriate application of the offsetting criteria applied in respect of interest income and finance costs.
2) consolidation of the full income statement disclosures of the hedge funds, which resulted in a reclassification between the relevant lines of the income statement and fair value adjustments on CIS liabilities.
4
In accordance with the Financial Advisory and Intermediary Services Act 37 of 2002 as well as the Policyholder Protection Rules, there is an obligation to reintermediate clients that are not linked to a financial adviser. Accumulated balances that were due
to the financial advisers originally linked to policyholders, were previously reported as other payables. However, when these financial advisers went out of force, the balance was no longer contractually payable and therefore the payable should have been
changed to a provision for the expected cost of reintermediation that is required in order to settle the obligation towards policyholders. In previous reporting periods this balance was however reported as a payable and has therefore been retrospectively
corrected from a payable to a provision to provide for the cost that is required to reintermediate these clients with in-force policies, but no financial advisers. 30 June 2021 and 1 July 2020 have been restated accordingly.
5
Fee income correction relating to the over-elimination of asset management fees received on the CISs being consolidated into the Group. 30 June 2021 has been restated accordingly.
6
The initial accounting for the AFIN acquisition was provisionally determined and was presented as preliminary at 30 June 2021. The accounting has been finalised and 30 June 2021 has been restated accordingly.
7
Contingency policies were previously classified as insurance contracts in accordance with IFRS 4 – Insurance contracts. After reassessing the policy wording it was identified that there is no risk transfer as the policy benefits are limited to the funds available in
the policy comprising of premiums plus investment growth less claims and policy fees. These policies should therefore have been classified as investment contract liabilities in terms of IFRS 9 - Financial instruments. 30 June 2021 and 1 July 2020 have been
8
A cell previously classified as 1st party in terms of IFRS 9 – Financial instruments, has been reassessed based on the type of business underwritten in the cell to instead be classified in terms of IFRS 4 - Insurance contracts. 30 June 2021 and 1 July 2020 have
9
Long-term insurance companies are required to pay tax on behalf of policyholders according to the five-funds tax approach as required by section 29A of the South African Income Tax Act of 1962. The approach requires the insurer to collect taxation in respect
of policies held, determined by reference to different rates of tax (including effective capital gains tax rates) to be applied to different categories of policyholders. In practice, the collection of tax from policyholders and specifically capital gains tax, follows a more

simplistic approach than the calculation that is used for the income tax calculation when submitting a tax return to the South African tax authorities. This difference in methodology, resulted in over-recoveries from policyholders. The over-recovery was accounted
for as an other payable. Management has re-assessed the recognition of this balance and has created an actuarial data reserve. As such, the balance has subsequently been re-classified from other payables to insurance liabilities. 30 June 2021 has been

47 RESTATEMENTS CONTINUED
Share Hedge
Before Finance portfolios fund CIS Contin- Guardrisk
restate- costs reclassi- consolida- Reinterme- consoli- gency cell reclas- CGT After
Income statement ment correction1 fication2 tion3 diation4 dation5 AFIN6 cells7 sification8 variance9 restatement
for the year ended 30 June 2021 Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm
Insurance premiums 55 661 – – – – – – (7) 935 – 56 589
Insurance premiums ceded to reinsurers (18 829) – – – – – – 6 (730) – (19 553)
Fee income
Contract administration 3 116 – – – – – – 3 – – 3 119
Trust and fiduciary services 1 041 – – – – 109 – – – – 1 150
Cell captive commission 1 323 – – – – – – (1) – – 1 322
Other fee income 1 324 – – – – – – – – 1 324
Investment income
Amortised cost 1 240 – – (4) – – – – – – 1 236
Other investment income 19 862 – 208 734 – – – – – – 20 804
Net realised and unrealised fair value gains/(losses) 40 233 (41) (208) 278 – – – – – – 40 262
Insurance benefits and claims (43 334) – – – – – – 14 – – (43 320)
Insurance claims recovered from reinsurers 12 193 – – – – – – (11) – – 12 182
Change in actuarial liabilities and related reinsurance
Change in long-term insurance contract liabilities (12 808) – – – – – – (4) – (190) (13 002)
Change in non-life insurance contract liabilities 77 – – – – – – – 1 – 78
Change in reinsurance assets 140 – – – – – – 2 – – 142
Fair value adjustments on investment contract liabilities (34 188) – – – – – – (3) (1) – (34 192)
Fair value adjustments on CIS liabilities (2 816) – – (275) – – – – – – (3 091)
Sales remuneration (6 989) – – – – – – – (204) – (7 193)
Other expenses (7 402) – – 15 – (109) – – – 190 (7 306)
Finance cost (909) 41 – (748) – – – – – – (1 616)
Earnings for the year 544 – – – – – – – – – 544
for the year ended 30 June 2021
Cash utilised in operations (6 998) (41) (642) 331 – – – – – – (7 350)
Interest received 15 442 – – 760 – – – – – – 16 202
Interest paid (897) 41 – (748) – – – – – – (1 604)
Dividends received 4 241 – 208 (26) – – – – – – 4 423
Cash resources and funds on deposit at beginning 31 621 – (1 292) 110 – – – – – – 30 439
Cash resources and funds on deposit at end 38 121 – (1 726) 427 – – – – – – 36 822
1
Finance costs correction relating to the elimination of an intercompany transaction. 30 June 2021 has been restated accordingly.
2
Investments held in share portfolios were previously incorrectly classified as cash and cash equivalents. These share portfolios have now been correctly split into the underlying assets. June 2021 and June 2020 has been restated accordingly. Additionally, realised
fair value gains on certain share portfolios incorrectly included dividends received. June 2021 has been restated accordingly.
3
The Group invests into Qualified Investor Hedge funds that, as a result of the requirements in IFRS 10 – Consolidated financial statements, are consolidated. As a result of a further detailed review of the financial instruments held by these hedge funds, a number of
refining correcting adjustments were required to the statement of financial position and income statement.
These adjustments do not impact the net asset value of the hedge fund nor that of MMH. The adjustments made in respect of the statement of financial position relate to the following:
1) the offset and classification of interest rate derivatives and carry positions.

2) the offset and recording of financed trade positions carried out in the funds.
June 2021 and June 2020 have been restated accordingly.
The adjustments made in respect of the income statement relate to the following:
1) inappropriate application of the offsetting criteria applied in respect of interest income and finance costs.
2) consolidation of the full income statement disclosures of the hedge funds, which resulted in a reclassification between the relevant lines of the income statement and fair value adjustments on CIS liabilities.
4
In accordance with the Financial Advisory and Intermediary Services Act 37 of 2002 as well as the Policyholder Protection Rules, there is an obligation to reintermediate clients that are not linked to a financial adviser. Accumulated balances that were due
to the financial advisers originally linked to policyholders, were previously reported as other payables. However, when these financial advisers went out of force, the balance was no longer contractually payable and therefore the payable should have been
changed to a provision for the expected cost of reintermediation that is required in order to settle the obligation towards policyholders. In previous reporting periods this balance was however reported as a payable and has therefore been retrospectively
corrected from a payable to a provision to provide for the cost that is required to reintermediate these clients with in-force policies, but no financial advisers. 30 June 2021 and 1 July 2020 have been restated accordingly.
5
Fee income correction relating to the over-elimination of asset management fees received on the CISs being consolidated into the Group. 30 June 2021 has been restated accordingly.
6
The initial accounting for the AFIN acquisition was provisionally determined and was presented as preliminary at 30 June 2021. The accounting has been finalised and 30 June 2021 has been restated accordingly.
7
Contingency policies were previously classified as insurance contracts in accordance with IFRS 4 – Insurance contracts. After reassessing the policy wording it was identified that there is no risk transfer as the policy benefits are limited to the funds available in
the policy comprising of premiums plus investment growth less claims and policy fees. These policies should therefore have been classified as investment contract liabilities in terms of IFRS 9 - Financial instruments. 30 June 2021 and 1 July 2020 have been
8
A cell previously classified as 1st party in terms of IFRS 9 – Financial instruments, has been reassessed based on the type of business underwritten in the cell to instead be classified in terms of IFRS 4 - Insurance contracts. 30 June 2021 and 1 July 2020 have
9
Long-term insurance companies are required to pay tax on behalf of policyholders according to the five-funds tax approach as required by section 29A of the South African Income Tax Act of 1962. The approach requires the insurer to collect taxation in respect
of policies held, determined by reference to different rates of tax (including effective capital gains tax rates) to be applied to different categories of policyholders. In practice, the collection of tax from policyholders and specifically capital gains tax, follows a more
simplistic approach than the calculation that is used for the income tax calculation when submitting a tax return to the South African tax authorities. This difference in methodology, resulted in over-recoveries from policyholders. The over-recovery was accounted
for as an other payable. Management has re-assessed the recognition of this balance and has created an actuarial data reserve. As such, the balance has subsequently been re-classified from other payables to insurance liabilities. 30 June 2021 has been
48 SIGNIFICANT GROUP ACCOUNTING POLICIES
GROUP REPORTS
48.1 New IFRS standards and amendments
Standards, amendments to and interpretations of published standards that are not yet effective and have not been early
adopted by the Group
• IFRS 3 (Amendments) – Reference to the Conceptual Framework (effective from annual periods beginning on or after 1 January 2022).
• IAS 16 (Amendments) – Proceeds before intended use (effective from annual periods beginning on or after 1 January 2022).
• IAS 37 (Amendments) – Costs of fulfilling a contract (effective from annual periods beginning on or after 1 January 2022)
• IAS 1 and IFRS Practice Statement 2 (Amendments) – Disclosure of Accounting Policies (effective from annual periods
beginning on or after 1 January 2023).
• IAS 1 (Amendments) – Classification of liabilities as current or non-current (effective from annual periods beginning on or after
1 January 2023).
• IAS 8 (Amendments) – Definition of accounting estimates (effective from annual periods beginning on or after 1 January 2023).
• IAS 12 (Amendments) – Deferred tax related to assets and liabilities arising from a Single Transaction (effective from annual
periods beginning on or after 1 January 2023).
• IFRS 17 – Insurance contracts (effective from annual periods beginning on or after 1 January 2023).
CONSOLIDATED ANNUAL
Improvements project amendments
• IFRS 9 – Financial instruments (effective from annual periods beginning on or after 1 January 2022).
Management is currently assessing the impact of these amendments, but it is not expected to be significant other than detailed below.
Discussions of impact of initial application of changes to standards and interpretations that are not yet effective and have not
been early adopted by the Group.
IFRS 17 – Insurance contracts
IFRS 17 – Insurance contracts (IFRS 17) will replace IFRS 4 – Insurance contracts (IFRS 4) in accounting for insurance contracts
issued, reinsurance contracts held and investment contracts with discretionary participation features and is effective for reporting
periods starting on or after 1 January 2023.
The effective date for the Group is 1 July 2023 and the 31 December 2023 interim financial statements will be the first interim
results, and the 30 June 2024 annual financial statements the first annual results, presented on an IFRS 17 basis.

Key objectives of IFRS 17 are comparable recognition and measurement of contracts in the scope of the standard, the recognition
of insurance service results based on the services provided to the policyholder and provision of disclosures that will enable the
users of the financial statements to assess the impact of these contracts on the financial position, financial results, and cash
flows of the entity.
Significant efforts are required to enable the production of IFRS 17 compliant financial statements, as the standard requires
actuarial model and process development as well as data enhancements. These efforts are largely coordinated by the Group,
although some subsidiaries are responsible for their own implementation projects.
Developments across life and non-life licenses have progressed, and significant areas of uncertainty have been addressed. Across
the group, the majority of development efforts have been concluded. The focus of activities is now shifting to enable business as
usual production incorporating IFRS17 as the group entered its period of parallel reporting on 1 July 2022.
The Group is actively participating in industry forums to ensure that the standard is interpreted and applied appropriately and
consistently.
The Group anticipates that some compulsory and discretionary margins might be released into equity on transition to IFRS 17.

48 SIGNIFICANT GROUP ACCOUNTING POLICIES CONTINUED

48.2 Consolidation
48.2.1 Subsidiaries
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the
Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group
until the day that control is lost. All material subsidiaries have financial years ending on 30 June and are consolidated to that date.
Subsidiaries with financial year ends other than 30 June are consolidated using audited or reviewed results (where necessary)
for the relevant period ended 30 June. The accounting policies for subsidiaries are consistent, in all material respects, with the
policies adopted by the Group. Separate disclosure is made of non-controlling interests. All intragroup balances and unrealised
gains and losses on transactions between group companies are eliminated.
Initial measurement
The acquisition method of accounting is used to account for the acquisition of subsidiaries/business combinations by the Group.
The cost of a business combination is the fair value of the assets given at the date of acquisition, equity issued and liabilities assumed
or incurred (including contingent liabilities). This includes assets or liabilities recognised from contingent consideration arrangements.
Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability is recognised in
accordance with IFRS 9 in profit and loss. Costs directly attributable to the business combination are expensed as incurred. The excess
of the cost of acquisition over the fair value of the Group’s share of the identifiable assets, liabilities and contingent liabilities acquired
is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is
recognised directly in the income statement. The Group recognises any non-controlling interest in the acquiree on an acquisition-
by-acquisition basis, either at fair value or at the non-controlling interest’s proportionate share of the recognised amounts of the
acquiree’s identifiable net assets. Total comprehensive income is attributed to the owners of the parent and to the non-controlling
interest shareholders even if this results in the non-controlling interest shareholders having a deficit balance.
Disposals
If the Group loses control of a subsidiary company, the gain or loss on disposal is calculated as the difference between the fair value
of the consideration received, and the carrying amount of the subsidiary's net assets and any non-controlling interest. Gains and
losses on disposal of subsidiaries are included in the income statement as net realised and unrealised fair value gains/(losses).
Any gains or losses in other comprehensive income that are allowed to be recycled to the income statement are reclassified. Other
comprehensive income amounts not reclassified to the income statement are directly transferred to retained earnings.
Transactions with non-controlling interest shareholders

Transactions with non-controlling interest shareholders are treated as transactions with equity participants of the Group.
Disposals to/acquisitions from non-controlling interest shareholders result in gains and losses for the Group that are recorded in
equity. Any difference between any consideration paid/received and the relevant share acquired/sold of the carrying amount of the
net assets of the subsidiary is recorded in equity.
Measurement – MMH separate financial statements

Investment in subsidiary companies are stated at cost less any impairment losses. The carrying amount of these investments is
assessed annually for impairment indicators. If an indicator exists, the investment is impaired to the higher of the investment’s fair
value less costs to sell and value in use.
48.2.2 Associates
Associates are all entities over which the Group has significant influence but not control. The Group’s investment in associates
includes goodwill, identified on acquisition, net of any accumulated impairment loss. The accounting policies for associates are
consistent, in all material respects, with the policies adopted by the Group.
Profits and losses resulting from transactions between group companies are recognised in the Group’s results to the extent of the
Group’s unrelated interests in the associates. Gains and losses arising on the dilution of investments in associates are recognised
in the income statement.
Measurement
Investments in associate companies are initially recognised at cost, including goodwill, and the carrying amount is increased
or decreased with the Group’s proportionate share of post-acquisition profits or losses, using the equity method of accounting.
Under this method, the Group’s share of the associate’s post-acquisition profits or losses is recognised in the income statement
and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income.
The cumulative post-acquisition profit or loss and movements in other comprehensive income are adjusted against the carrying
amount of the investments. The equity method is discontinued from the date that the Group ceases to have significant influence
over the associate. When significant influence is lost, any remaining interest in the entity is remeasured to fair value, and a gain or
loss is recognised in the income statement.

GROUP REPORTS
48.2 Consolidation continued
48.2.2 Associates continued
Measurement continued
Investments in CISs where the Group has significant influence are recognised at FVPL and are not equity accounted where
they back contract holder liabilities, based on the scope exemption in IAS 28 – Investments in associates and joint ventures for
investment-linked insurance funds. Initial measurement is at fair value on trade date, with subsequent measurement at fair value
based on quoted repurchase prices at the close of business on the last trading day on or before the reporting date. Fair value
adjustments on CISs are recognised in the income statement. The related income from these schemes is recognised as interest
or dividends received, as appropriate.
Impairment
Under the equity method, the carrying amount is tested for impairment at reporting dates by comparing the recoverable amount
with the carrying amount.
Measurement – MMH separate financial statements

Associated companies are carried at cost less impairment.
CONSOLIDATED ANNUAL
48.2.3 Joint arrangements
The Group applies IFRS 11 to all joint arrangements. Under IFRS 11 investments in joint arrangements are classified as either joint
operations or joint ventures depending on the contractual rights and obligations of each investor. Joint ventures are accounted for
using the equity method.
Measurement
Interests in joint ventures are initially recognised at cost and adjusted thereafter to recognise the Group’s share of the post-
acquisition profits or losses and movements in other comprehensive income.
Unrealised gains on transactions between the Group and its joint ventures are eliminated to the extent of the Group’s interest in
the joint ventures. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset
transferred. Accounting policies of the joint ventures have been changed where necessary to ensure consistency with the policies
adopted by the Group.

48.3 Foreign currencies
Functional and presentation currency
Items included in the financial statements of each entity in the Group are measured using the currency that best reflects the
primary economic environment in which the entity operates (the functional currency). The consolidated financial statements
are presented in South African rand (the presentation currency), which is the functional currency of the parent. The financial
statements have been rounded to the nearest R million.
Transactions and balances

Transactions in foreign currencies are translated into the functional currency using the exchange rates prevailing at the dates of
the transactions, or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of
such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognised in the income statement.
Translation differences on non-monetary financial assets and liabilities, measured at FVPL, are recognised as part of their fair
value gain or loss.
Subsidiary undertakings
Foreign entities are entities of the Group that have a functional currency different from the presentation currency. Assets and
liabilities of these entities are translated into the presentation currency at the rates of exchange ruling at the reporting date.
Income and expenditure are translated into the presentation currency at the average rate of exchange for the year.
On consolidation, exchange differences arising from the translation of the net investment in foreign entities are recognised in the
foreign currency translation reserve in other comprehensive income. On disposal, such exchange differences are recognised in the
income statement as part of net realised and unrealised fair value gains.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign
entity and translated at the closing rate.


48.4 Intangible assets
48.4.1 Goodwill
Recognition and measurement
Goodwill represents the excess of the cost of a business combination over the interest acquired in the net fair value of the
identifiable assets, liabilities and contingent liabilities at the acquisition date. Subsequent to initial measurement, goodwill is
carried at cost less accumulated impairment losses.
Goodwill on acquisition of subsidiaries is included in intangible assets whereas goodwill on acquisition of associates is included in
investment in associates.
When the interest acquired in the net fair value of the identifiable assets, liabilities and contingent liabilities exceeds the cost of the
business combination, the difference is recognised directly in the income statement.
Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.
Impairment
At the acquisition date, goodwill acquired in a business combination is allocated to CGUs that are expected to benefit from the
synergy of the combination in which the goodwill arose. CGUs to which goodwill has been allocated are assessed annually for
impairment, or more frequently if events or changes in circumstances indicate a potential impairment. An impairment loss is
recognised whenever the carrying amount of the CGU exceeds its recoverable amount, being the higher of value in use and the fair
value less costs to sell. Any impairment losses are allocated first to reduce the carrying amount of any goodwill allocated to a CGU
and then to reduce the carrying amount of other assets on a pro rata basis. Impairment losses on goodwill are not reversed.
48.4.2 Value of in-force business acquired

On acquisition of a portfolio of insurance or investment with DPF contracts, the Group recognises an intangible asset representing
the value of in-force business acquired (VOBA). VOBA represents the present value of future pre-tax profits embedded in the
acquired insurance or investment with DPF contract business. The VOBA is recognised gross of tax, with the deferred tax liability
accounted for separately in the statement of financial position.
Measurement
The fair value calculation of VOBA on acquisition is based on actuarial principles that take into account future premium and fee
income, claim outgo, mortality, morbidity and persistency probabilities together with future costs and investment returns on the
underlying assets. The profits are discounted at a rate of return allowing for the risk of uncertainty of the future cash flows. This
calculation is particularly sensitive to the assumptions regarding discount rate, future investment returns and the rate at which
policies discontinue.
The asset is subsequently amortised over the expected life of the contracts as the profits of the related contracts emerge.
Impairment
VOBA is reviewed for impairment losses through the liability adequacy test and written down for impairment if necessary.
48.4.3 Customer relationships

Customer relationships relate to rights to receive fees for services rendered in respect of acquired investment contract business,
group risk business with annually renewable contracts, administered retirement fund schemes, health administration and asset
administration. An intangible asset is recognised when rights can be identified separately and measured reliably and it is probable
that the cost will be recovered.
Measurement
The asset represents the Group’s right to benefit from the above services and is amortised on a straight-line basis over the period
in which the Group expects to recognise the related revenue, which is between three and 10 years.
Impairment
The right is reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amounts may
not be recoverable. An impairment loss is recognised in the income statement for the amount by which the carrying amount of the
asset exceeds its recoverable amount.

GROUP REPORTS
48.4 Intangible assets continued
48.4.4 Deferred acquisition costs (DAC)
On long-term investment business
Incremental costs that are directly attributable to securing rights to receive fees for asset management services sold with
investment contracts are recognised as an asset if the entity expects to recover them. The incremental costs of obtaining a
contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract
had not been obtained. The asset represents the contractual right to benefit from receiving fees for providing investment
management services, and is amortised over the policy term, as a constant percentage of expected gross profit margins
(including investment income) arising from the contract or on a straight-line basis. The pattern of expected profit margins
is based on historical and expected future experience and is updated at the end of each accounting period.
On non-life insurance business

Acquisition costs, which include commission and other related expenses, are recognised in the period in which they are incurred.
Deferred acquisition costs represent the portion of direct acquisition costs (ie commission) which is deferred and amortised over
the term of the contracts as the related services are rendered and revenue recognised.
CONSOLIDATED ANNUAL
Impairment
An impairment test is conducted annually at reporting date on the DAC balance to ensure that the amount will be recovered from
future revenue generated by the applicable remaining investment management contracts. An impairment loss is recognised for
the amount by which the carrying amount of the asset exceeds its recoverable amount.
48.4.5 Brand and broker network

Brand and broker network intangible assets have been recognised by the Group as part of a business combination. The assets
are recognised when they are separately identifiable, it is probable that the future economic benefits will flow to the Group and the
assets have a cost or value that can be measured reliably.
Measurement
The brand and broker networks are initially measured at fair value. As there is generally no active market for these intangibles, the
fair value is determined with reference to the price that would be received to sell an asset in an orderly transaction between market
participants at the measurement date, on the basis of the best information available. In determining this amount, the Group
considers the outcome of recent transactions for similar assets, for example, the Group applies multiples reflecting current market

transactions to factors that drive the profitability of the asset (such as operating profit and VNB).
Subsequently, the brand and broker networks are amortised over their expected useful lives using the straight-line method. The brands
are amortised over 15 to 20 years and the broker networks over five to 20 years.
Impairment
The brand and broker networks are reviewed for impairment losses whenever events or changes in circumstances indicate that
the carrying amounts may not be recoverable. An impairment loss is recognised for the amount by which the carrying amount of
the asset exceeds its recoverable amount, being the higher of value in use and fair value less cost to sell.
48.4.6 Computer software

Acquired computer software
Acquired computer software licences are capitalised on the basis of the cost incurred to acquire and bring to use the specific
software. These costs are amortised on the basis of an expected useful life of three to 10 years, which is assessed annually using
the straight-line method.
Internally developed computer software

Costs directly associated with developing software for internal use are capitalised if the completion of the software development
is technically feasible, the Group has the intent and ability to complete the development and use the asset, the asset can
be reliably measured and will generate future economic benefits. Directly associated costs include employee costs of the
development team and an appropriate portion of relevant overheads. Computer software development costs recognised as assets
are amortised over their useful lives, up to 10 years, using the straight-line method.
Costs associated with research or maintaining computer software programmes are recognised as an expense as incurred.
Impairment
Computer software not ready for use is tested for impairment annually. Computer software in use is reviewed for impairment
losses whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. An impairment
loss is recognised for the amount by which the carrying amount of the asset exceeds its recoverable amount, the latter being the
higher of the fair value less cost to sell and the value in use.


48.5 Owner-occupied properties
Owner-occupied properties are held for use in the supply of services or for administrative purposes. Where the Group occupies a
significant portion of the property, it is classified as an owner-occupied property.
Measurement
Owner-occupied properties are stated at revalued amounts, being fair value reflective of market conditions at the reporting date.
Fair value is determined using DCF techniques which present values the net rental income, discounted for the different types of
properties at the market rates applicable at the reporting date. Where considered necessary, significant properties are valued
externally by an independent valuator, at least in a three-year cycle, to confirm the fair value of the portfolio.
Increases in the carrying amount arising on revaluation of buildings are credited to a land and building revaluation reserve in other
comprehensive income. Decreases that offset previous increases in respect of the same asset are charged against the revaluation
reserve, and all other decreases are charged to the income statement.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured
reliably. All other repairs and maintenance costs are charged to the income statement during the financial period in which they
are incurred.
Depreciation
Owner-occupied property buildings are depreciated on a straight-line basis, over 50 years, to allocate their revalued amounts
less their residual values over their estimated useful lives. Property and equipment related to the buildings are depreciated over
five to 20 years. Land is not depreciated. The residual values and useful lives are reviewed at each reporting date and adjusted
if appropriate.
Accumulated depreciation relating to these properties is eliminated against the gross carrying amount of the properties and the
net amount is restated to the revalued amount. Subsequent depreciation charges are adjusted based on the revalued amount for
each property.
Disposals
When owner-occupied properties are sold or when the properties are no longer classified as owner-occupied, the amounts
included in the land and buildings revaluation reserve are transferred to retained earnings.
48.6 Investment properties

Investment properties are held to earn rentals or for capital appreciation or both and are not significantly occupied by the
companies of the Group. Investment properties include property under development for future use as investment property.
Measurement
Investment properties comprise freehold land and buildings and are carried at fair value, reflective of market conditions at the
reporting date, less the related cumulative accelerated rental income receivable. Fair value is determined as being the present
value of net rental income, discounted for the different types of properties at the market rates applicable at the reporting date. All
properties are internally valued on a bi-annual basis and where considered necessary, significant properties are valued externally
by an independent valuator, at least in a three-year cycle, to confirm the fair value of the portfolio. The accelerated rental income
receivable represents the cumulative difference between rental income on a straight-line basis and the accrual basis. Subsequent
expenditure is charged to the asset’s carrying amount only when it is probable that the future economic benefits associated with
the item will flow to the Group and the cost can be measured reliably. All other repairs and maintenance costs are charged to the
income statement during the financial period in which they are incurred.
Investment properties that are being redeveloped for continuing use as investment property, or for which the market has become
less active, continue to be measured at fair value.
Undeveloped land is valued at fair value based on recent market activity in the area.
Transfers to and from investment properties

If an investment property becomes owner-occupied, it is reclassified under owner-occupied properties, and its fair value at the
date of reclassification becomes its cost for subsequent accounting purposes, and vice versa.

GROUP REPORTS
48.6 Investment properties continued
Properties held under leases
Properties held under leases are classified as investment property right-of-use assets when the properties are sublet and not
occupied by the Group. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs
incurred, and lease payments made at or before the commencement date less any lease incentives received. These properties are
carried at fair value after initial recognition.
Gains and losses

Unrealised gains or losses arising on the valuation or disposal of investment properties are included in the income statement in
net realised and unrealised fair value gains and losses. These fair value gains and losses are adjusted for any double counting
arising from the recognition of lease income on the straight-line basis compared to the accrual basis normally assumed in the fair
value determination.
48.7 Financial assets

Classification
CONSOLIDATED ANNUAL
The Group classifies its financial assets in the following main categories:
• Financial assets at FVPL, including derivative financial assets

• Financial assets at amortised cost
The classification of financial instruments is based on contractual cash flows characteristics and models through which financial
instruments are managed (business model).
For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For
investments in equity instruments that are not held for trading, the Group has made an irrevocable election at the time of initial
recognition to not account for the equity investments at fair value through other comprehensive income (FVOCI).
The Group reclassifies debt investments when its business model for managing those assets changes.

• Debt instruments
There are three measurement categories into which debt instruments can be classified:
– Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortised cost.
– FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’
cash flows represent solely payments of principal and interest, are measured at FVOCI.
– FVPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured mandatorily at FVPL. The Group
designates debt securities and funds on deposit and other money market instruments at FVPL upon initial recognition when
it eliminates or significantly reduces a measurement or recognition inconsistency, referred to as an accounting mismatch,
that would otherwise arise as a result of movements in related liabilities being recorded in profit or loss.
• Equity instruments
The Group subsequently measures all equity investments at fair value. The Group’s management has elected to not present
fair value gains and losses on equity instruments in other comprehensive income. All fair value gains and losses on equity
instruments are recognised in the income statement.

A financial asset is recognised in the statement of financial position when, and only when, the Group becomes a party to the
contractual provisions of the instrument.
Purchases and sales of financial assets are recognised on trade date, being the date on which the Group commits to purchase or
sell the financial assets. These are recognised as unsettled trades until the settlement date occurs. Financial assets are initially
recognised at fair value plus, in the case of a financial asset not at FVPL, transaction costs that are directly attributable to the
acquisition of the asset. Transaction costs that are not recognised as part of the financial asset are expensed in the income
statement in net realised and unrealised fair value gains.
Financial assets at FVPL is subsequently carried at fair value. Financial assets at amortised cost is recognised initially at fair value
and subsequently carried at amortised cost, using the effective interest rate method less provision for impairment. Impairments
are included in depreciation, amortisation and impairment expenses in the statement of comprehensive income.


48.7 Financial assets continued
Impairment of financial assets
The Group assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at
amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk.
For financial assets at amortised cost, the Group determines at each reporting date whether there has been a significant increase
in credit risk since initial recognition of the financial asset by assessing the likelihood or risk of default occurring since initial
recognition based on all reasonable and supportable information that is indicative of significant increases in credit risk since initial
recognition. Where there is no significant increase in credit risk since initial recognition or for assets that have low credit risk at
reporting date, a 12 month expected credit loss is recognised. Where a significant increase in credit risk since initial recognition
occurred a lifetime expected credit loss is calculated.
The Group views financial assets at amortised cost to be low credit risk when there is a low risk of default and the borrower has
the strong capacity to meet its contractual cash flow obligations in the near term.
Impairment losses on financial assets at amortised cost, other than impairments relating to amounts due from agents, brokers
and intermediaries, are presented as net impairment losses within profit or loss. Impairment losses on amounts due from agents,
brokers and intermediaries, are presented as part of sales remuneration within profit and loss. Subsequent recoveries of amounts
previously written off are credited against the same line item.
Impairment – MMH separate financial statements

Intercompany loan impairment is calculated at each reporting date using probability of default and the loss given default rates.
Probability of default rates considers historical defaults as well as forward looking estimates based on macroeconomic factors
obtained from rating agencies. Loans without repayment terms consider any senior external or internal loans which need to be
repaid before the intercompany loan to determine a probability of default, since it reduces the liquid assets available to repay that
intercompany loan. Management applies its own judgement, on an individual loan basis, to adjust the prescribed LGD to include
forward-looking information. Balances are written off when there is no reasonable expectation of recovery.
Derecognition of financial assets

Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been
transferred and the Group has transferred substantially all the risks and rewards of ownership. The Group also derecognises a
financial asset when the Group retains the contractual rights of the assets but assumes a corresponding liability to transfer these
contractual rights to another party and consequently transfers substantially all the risks and benefits associated with the asset.
When the Group has transferred its rights to receive cash flows from an asset or entered into a corresponding liability it evaluates
if, and to what extent, it has retained the risks and rewards of ownership. The transferred asset and the associated liability are
measured on a basis that reflects the rights and obligations that the Group has retained. Any gain or loss arising on derecognition
of assets at amortised cost is recognised directly in the income statement and presented in net realised and unrealised fair value
gains together with foreign exchange gains and losses.
Realised and unrealised gains and losses

Realised and unrealised gains and losses arising from changes in the value of financial assets at FVPL are included in the income
statement in the period in which they arise. Interest and dividend income arising on financial assets are disclosed separately under
investment income in the income statement.
Offsetting
Financial assets and liabilities were set off and the net balance reported in the statement of financial position where there was
a legally enforceable right to set off, where it is the intention to settle on a net basis or to realise the asset and settle the liability
simultaneously, where the maturity date for the financial asset and liability was the same, and where the financial asset and
liability were denominated in the same currency.
Scrip lending
The equities or bonds on loan by the Group, and not the collateral security, are reflected in the statement of financial position of
the Group at year end. Scrip lending fees received are included under fee income. The Group continues to recognise the related
income on the equities and bonds on loan. Collateral held is not recognised in the financial statements unless the risks and
rewards relating to the asset have passed to the Group.

GROUP REPORTS
48.8 Derivative financial instruments
Derivatives are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently
remeasured at their fair value. The method of recognising the resulting fair value gain or loss depends on whether the derivative is
designated as a hedging instrument, and if so, the nature of the item being hedged. Fair values are obtained from quoted market
prices in active markets, including recent market transactions, and valuation techniques, including DCF and option pricing models,
as appropriate. All derivatives are carried as assets when fair value is positive and as liabilities when fair value is negative, subject
to the offsetting principles as described under the financial assets accounting policies above.
The best evidence of the fair value of a derivative at initial recognition is the transaction price (that is, the fair value of the
consideration given or received) unless the fair value of that instrument is evidenced by comparison with other observable current
market transactions in the same instrument (that is, without modification or repackaging), or is based on a valuation technique
whose variables include only observable market data.
When unobservable market data has an impact on the valuation of derivatives, the entire initial change in fair value indicated by
the valuation model is not recognised immediately in the income statement but over the life of the transaction on an appropriate
CONSOLIDATED ANNUAL
basis, or when the input becomes observable, or when the derivative matures or is closed out.
The subsequent fair value of exchange-traded derivatives is based on a closing market price while the value of OTC derivatives is
determined by using valuation techniques that incorporate all factors that market participants would consider in setting the price.
Changes in the fair value of derivative instruments are recognised immediately in the income statement within net realised and
unrealised fair value gains and losses.
Embedded derivative liabilities are separated and fair-valued through income when they are not closely related to their host
contracts and meet the definition of a derivative, or where the host contract is not carried at fair value.
48.9 Cash and cash equivalents

Cash and cash equivalents are carried in the statement of financial position at cost, which approximates fair value. Cash and cash
equivalents comprise cash on hand, deposits held at call with banks and other short-term, highly liquid investments with original
maturities of three months or less and are subject to an insignificant risk of change in value. Bank balances held to meet short-

term cash commitments are included in funds on deposit and other money market instruments with a maturity of three months or
less. Operating bank balances are included in bank and other cash balances.
48.10 Long-term and non-life insurance and investment contracts
The contracts issued by the Group transfer insurance risk, financial risk or both. As a result of the different risks transferred by
contracts, contracts are separated into investment and insurance contracts for the purposes of valuation and profit recognition.
Insurance contracts are those contracts that transfer significant insurance risk to the Group, whereas investment contracts only
transfer financial risk.
The classification of contracts is performed at the inception of each contract. The classification of the contract at inception
remains the classification of the contract for the remainder of its lifetime. There is one exception to this principle:
• If the terms of an investment contract change significantly, the original contract is derecognised and a new contract is
recognised with the new classification.
Classification of contracts
Investment contracts are those where only financial risk is transferred.
Financial risk is the risk of a possible future change in one or more of a specified interest rate, financial instrument price,
commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index or other variable, provided that in the
case of a non-financial variable, the variable is not specific to a party to the contract.
For cell captive business, contracts that transfer financial risk with no significant insurance risk are accounted for as financial
instruments (investment contracts designated at FVPL) eg first-party cells. For these arrangements, only contract management
fee income and investment income and net realised and unrealised fair value gains accruing to the promoter are included in the
Group’s income statement. On the statement of financial position, premium debtors and insurance liabilities relating to these
arrangements are excluded.


48.10 Long-term and non-life insurance and investment contracts continued
Classification of contracts continued
Insurance contracts
Insurance contracts are those under which the Group accepts significant insurance risk from another party (contract holder) by
agreeing to pay compensation if a specified uncertain future event (the insured event) adversely affects the contract holder.
Insurance risk is risk, other than financial risk, transferred from the holder of a contract to the issuer. Insurance risk is deemed
significant if an insured event could cause an insurer to pay benefits (net of accumulated income and account balances) on the
occurrence of an insured event that are significantly more than the benefits payable if the insured event did not occur.
For cell captive business, insurance policies are issued in third-party cell captive structures or contingency policies. The Group
also accepts insurance and reinsurance inwards risks directly, eg where the promoter cell shares in the underwriting experience of
selected cell arrangements. All items relating to these arrangements are included in the Group’s income statement and statement
of financial position, except for contract management fees.
Insurance contracts may transfer financial risk as well as insurance risk. However, in all instances where significant insurance risk
is transferred, the contract is classified as an insurance contract.
Contracts with DPF

The Group issues long-term insurance and investment contracts containing DPF. These contracts are smoothed bonus and
conventional with-profit business. All contracts with DPF are accounted for in the same manner as long-term insurance contracts.
Where a contract has both investment with DPF and investment components, the policy is classified as investment with DPF.
Long-term insurance contracts and investment contracts with DPF

Measurement
The liabilities relating to long-term insurance contracts and investment contracts with DPF are measured in accordance with the
FSV basis as set out in SAP 104 – Calculation of the value of the assets, liabilities and solvency capital requirement of long-
term insurers. The FSV basis is based on best estimate assumptions regarding future experience plus compulsory margins and
additional discretionary margins for prudence and deferral of profit emergence. Margins are set at product level.
Assumptions used in the valuation basis are reviewed on a regular basis, most commonly annually, and any non-economic
changes in estimates are reflected in the income statement as they occur. Economic changes in estimate are stabilised as they
occur, except for negative changes that exceed available stabilisation reserves in which case the excess is reflected in the income
statement and future positive changes are reflected in the income statement to the extent of any prior losses incurred. Where
stabilisation reserves are held, they are reflected in the income statement according to a specified release pattern.
The valuation bases used for the major classes of contract liabilities, before the addition of the margins described under the
heading of compulsory and discretionary margins below, are as follows:
• For group smoothed bonus business, the liability is taken as the sum of the fund accounts, being the retrospective accumulation
of premiums net of charges and benefit payments at the declared bonus rates.
• For individual smoothed bonus business, the liability is taken as the sum of the fund accounts less the present value of future
charges not required for risk benefits and expenses.
• For with-profit annuity business, the liability is taken as the discounted value of projected future benefit payments and expenses.
Future bonuses are provided for at bonus rates supported by the assumed future investment return.
• For the above three classes of business, BSAs are held in addition to the liabilities described above. In the case of smoothed
bonus business, the BSA is equal to the difference between the market value of the underlying assets and the fund accounts. In
the case of with-profit annuity business, the BSA is equal to the difference between the market value of the underlying assets and
the discounted value of projected future benefit payments and expenses. BSAs are included in contract holder liabilities.
• For conventional with-profit business, the liability is the present value of benefits less premiums, where the level of benefits is set
to that supportable by the asset share.
• For individual market-related business, the liability is taken as the fair value of the underlying assets less the present value of
future charges not required for risk benefits and expenses.
• For conventional non-profit business, including non-profit annuities and Group PHI business, the liability is taken as the difference
between the discounted value of future expenses and benefit payments and the discounted value of future premium receipts.
• Provision is made for the estimated cost of incurred but not yet reported (IBNR) claims for all relevant classes of business as at
the reporting date. IBNR provisions are calculated using run-off triangle methods or percentages of premium based on historical
experience or else implicit allowance is made where appropriate. Outstanding reported claims are disclosed in other payables.
• A number of contracts contain embedded derivatives in the form of financial options and investment guarantees. Liabilities
in respect of these derivatives are fair-valued in accordance with the guidelines in APN 110 – Allowance for embedded
investment derivatives. Stochastic models are used to determine a best estimate of the time value as well as the intrinsic value
of these derivatives.

GROUP REPORTS
Long-term insurance contracts and investment contracts with DPF continued
Compulsory and discretionary margins
In the valuation of liabilities, provision is made for the explicit compulsory margins as required by SAP 104 – Calculation of the
value of the assets, liabilities and solvency capital requirement of long-term insurers. Discretionary margins are held in addition
to the compulsory margins. These discretionary margins are used to ensure that profit and risk margins in the premiums are not
capitalised prematurely so that profits are recognised in line with product design, and in line with the risks borne by the Group.
The main discretionary margins utilised in the valuation are as follows:
• For certain books of business which are ring-fenced per historic merger or take-over arrangements, liabilities are held to ensure
appropriate capitalisation of future profits in line with the terms of the related agreements.
• Additional prospective margins are held in respect of premium and decrement assumptions and asset-related fees on certain
product lines to avoid the premature recognition of profits that may give rise to future losses if claims experience turns out to
be worse than expected. This allows profits to be recognised in the period in which the risks are borne by the Group.
CONSOLIDATED ANNUAL
• For certain books of business, future charges arising from the surrender of smoothed bonus individual policies are not
recognised until surrender occurs.
• Liabilities for immediate annuities are set equal to the present value of expected future annuity payments and expenses,
discounted using an appropriate market-related yield curve as at the reporting date. The yield curve is based on risk-free
securities (either fixed or CPI-linked, depending on the nature of the corresponding liability), adjusted for credit and liquidity
spreads of the assets actually held in the portfolio. Implicit allowance is made for expected credit losses to avoid a reduction in
liabilities caused by capitalisation of credit spreads.
• For cell captive business, the tax charged to each cell does not always equal the total tax liability of the company since certain
cells have calculated tax losses. Instead of crediting the cells with the resulting tax asset, the tax assets are accumulated in
a separate cell, and notionally allocated to their respective cells. The amount in this cell is raised as a discretionary margin.
In the event that a cell with a tax asset is able to utilise that asset against a future tax liability, the tax asset will be reduced or
eliminated accordingly.
Embedded derivatives

The Group does not separately measure embedded derivatives that meet the definition of an insurance contract and the entire
contract is measured as an insurance contract. All other embedded derivatives are separated and carried at fair value, in
accordance with APN 110, if they are not closely related to the host insurance contract but meet the definition of a derivative.
Embedded derivatives that are separated from the host contract are carried at FVPL.
Liability adequacy test

The FSV methodology meets the requirements of the liability adequacy test in terms of IFRS 4 – Insurance contracts. However, at
each reporting date the adequacy of the insurance liabilities is assessed to confirm that, in aggregate for each insurance portfolio,
the carrying amount of the insurance liabilities, measured in accordance with the FSV basis, less any related intangible asset and
present VOBA, is adequate in relation to the best-estimate future cash flow liabilities. Best-estimate liabilities are based on best-
estimate assumptions in accordance with the FSV basis, but excluding compulsory margins as described in SAP 104 as well as
all discretionary margins. If the liabilities prove to be inadequate, any VOBA or other related intangible asset is written off and any
further deficiency is recognised in the income statement.
Reinsurance contracts held

Contracts entered into by the Group with reinsurers under which the Group is compensated for losses on one or more contracts
issued by the Group and that meet the classification requirements for insurance contracts are classified as reinsurance contracts
held. Contracts that do not meet these classification requirements are classified as financial assets. The benefits to which the
Group is entitled under reinsurance contracts held are recognised as reinsurance assets. These assets consist of short-term
balances due from reinsurers (classified as receivables), as well as longer-term receivables (classified as reinsurance assets) that
are dependent on the expected claims and benefits arising under the related reinsured insurance contracts. Amounts recoverable
from or due to reinsurers are measured consistently with the amounts associated with the reinsured insurance contracts and in
accordance with the terms of each contract.
Reinsurance liabilities are amounts payable in terms of reinsurance agreements.


Long-term insurance contracts and investment contracts with DPF continued
Reinsurance contracts held continued
There are three types of reinsurance liabilities:
• The first consists of reinsurance liabilities which are payable to registered reinsurers, in terms of a reinsurance agreement and
includes premiums payable for reinsurance contracts which are recognised as an expense when due. These premiums are
included in other payables.
• The second type consists of reinsurance contracts which the Group has with third-party cell owners. The agreements in place
with these cell owners are such that the cell owner acts as reinsurer to the Group for the business which the cell brings to
the Group. The risks and rewards of insurance policies relating to these cells are passed on to the cell owner, and the Group
retains no insurance risk relating to these policies on a net basis. The Group therefore has an obligation to pay the net results
relating to the insurance business in the cell to the cell owner as a result of these agreements. This obligation is deemed to be
a reinsurance arrangement and is disclosed as part of insurance contract liabilities.
• The third type consists of a financial reinsurance agreement with a registered reinsurer, whereby the reinsurer provides upfront
funding to a cell within the Group, with the cell then repaying this funding over an agreed term. The liability associated with this
repayment is disclosed as part of reinsurance contract liabilities and is valued consistently with the DCF approach used for
insurance contract liabilities.
Impairment of reinsurance assets

If there is objective evidence that a reinsurance asset is impaired, the Group reduces the carrying amount of the reinsurance asset
to its recoverable amount and recognises that impairment loss in the income statement. The impairment loss is calculated using
the same method as that adopted for financial assets at amortised cost.
Long-term insurance premiums

Insurance premiums and annuity considerations receivable from long-term insurance contracts and investment contracts with
DPF are recognised as revenue in the income statement, gross of commission and reinsurance premiums and excluding taxes
and levies. Where annual premiums are paid in instalments, the outstanding balance of these premiums is recognised when due.
Receivables arising from insurance and investment contracts with DPF are recognised under insurance and other receivables.
Reinsurance premiums
Reinsurance premiums are recognised when due for payment.
Long-term insurance benefits and claims

Insurance benefits and claims relating to long-term insurance contracts and investment contracts with DPF include death,
disability, maturity, annuity and surrender payments and are recognised in the income statement based on the estimated liability
for compensation owed to the contract holder. Death, disability and surrender claims are recognised when incurred. These claims
also include claim events that occurred before the reporting date but have not been fully processed. Claims in the process of
settlement are recognised in other payables in the statement of financial position. Maturity and annuity claims are recognised
when they are due for payment. Outstanding claims are recognised in other payables. Contingency policy bonuses are included in
claims in the income statement.
Reinsurance recoveries
Reinsurance recoveries are accounted for in the same period as the related claim.
Acquisition costs
Acquisition costs, disclosed as sales remuneration, consist of commission payable on long-term insurance contracts and
investment contracts with DPF and expenses directly related thereto (including bonuses payable to sales staff and the Group’s
contribution to their retirement and medical aid funds). These costs are expensed when incurred. The FSV basis makes implicit
allowance for the recoupment of acquisition costs; therefore no explicit deferred acquisition cost asset is recognised in the
statement of financial position for contracts valued on this basis.

GROUP REPORTS
The Group designates investment contract liabilities at FVPL upon initial recognition as their fair value is dependent on the
fair value of underlying financial assets, derivatives and/or investment properties that are carried at FVPL. The Group follows
this approach because it eliminates or significantly reduces a measurement or recognition inconsistency, referred to as an
accounting mismatch, that would otherwise arise from measuring assets or liabilities or recognising the gains and losses on
them on different bases.
Measurement
The Group issues investment contracts without fixed terms and contracts with fixed terms and guaranteed terms.
Investment contracts without fixed terms are financial liabilities whose fair value is dependent on the fair value of underlying
financial asset portfolios that can include derivatives and are designated at inception as at FVPL.
For investment contracts without fixed terms, fair value is determined using the current unit values that reflect the fair value of
the financial assets contained within the Group’s unitised investment funds linked to the related financial liability, multiplied by the
CONSOLIDATED ANNUAL
number of units attributed to the contract holders at the valuation date.
A financial liability is recognised in the statement of financial position when, and only when, the Group becomes party to the
contractual provisions of the instrument. Financial liabilities are initially recognised at fair value.
The fair value of financial liabilities is never less than the amount payable on surrender, discounted for the required notice period,
where applicable.
For investment contracts with fixed and guaranteed terms (guaranteed endowments and term certain annuities), valuation
techniques are used to establish the fair value at inception and at each reporting date. The valuation model values the liabilities as
the present value of the maturity values, using appropriate market-related yields to maturity. If liabilities calculated in this manner
fall short of the single premium paid at inception of the policy, the liability is increased to the level of the single premium, to ensure
that no profit is recognised at inception. This deferred profit liability is recognised in profit or loss over the life of the contract
based on factors relevant to a market participant, including the passing of time.
For investment contracts where investment management services are rendered and the contracts provide for minimum

investment return guarantees, provision is made for the fair value of the embedded option within the investment contract liability.
The valuation methodology is the same as the methodology applied to investment guarantees on insurance contracts.
Deferred revenue liability (DRL)
A DRL is recognised in respect of fees paid at inception of the contract by the policyholder that are directly attributable to a contract.
The DRL is then released to revenue as the investment management services are provided over the expected duration of the contract,
as a constant percentage of expected gross profit margins (including investment income) arising from the contract. The pattern of
expected profit margins is based on historical and expected future experience and is updated at the end of each accounting period.
The resulting change to the carrying amount of the DRL is recognised in revenue and falls within the scope of IFRS 15.
Deferred acquisition costs (DAC)

Refer to the intangible assets section of the accounting policies.
Amounts received and claims incurred

Premiums received under investment contracts are recorded as deposits to investment contract liabilities and claims incurred are
recorded as deductions from investment contract liabilities.
Non-life insurance contracts

Premiums
Non-life insurance premiums are accounted for when received, net of a provision for unearned premiums relating to risk periods
that have not yet expired.
Claims
Claims incurred consist of claims and (un)allocated claims handling expenses paid during the financial year together with the
movement in the provision for outstanding claims. Outstanding claims comprise provisions for the Group's estimate of the
ultimate cost of settling all claims incurred but unpaid at the reporting date, whether reported or not. Estimates are calculated
based on the most recent cost experience of similar claims and include an appropriate risk margin for unexpected variances
between the actual cost and the estimate. Where applicable, deductions are made for salvage and other recoveries.


Non-life insurance contracts continued
Unearned premium provision
The provision for unearned premiums represents the proportion of the premiums written during the reporting period in question
that relate to unexpired risk periods, computed separately for each insurance contract using the 365th method.
Liability adequacy test

A liability adequacy test is performed annually for the gross liability recognised for insurance contracts and an additional unexpired
risk provision is recognised for any deficiencies arising when unearned premiums are insufficient to meet expected future claims
and expenses over the unexpired risk period. The expected claims are calculated having regard to events that have occurred prior
to the reporting date.
Deferred acquisition costs (DAC)

Acquisition costs comprise all costs arising from the inception of insurance contracts and these are expensed as and when
incurred. Deferred acquisition costs represent the portion of direct acquisition costs (ie commission) which is deferred and
amortised over the term of the contracts as the related services are rendered and revenue recognised.
Outstanding insurance contract claims

Provision is made using prescribed methods set out below:
• for claims notified but not settled at the reporting date, using case estimates determined on a claim-by-claim basis; and
• for claims IBNR claims at the reporting date, using generally accepted actuarial techniques.
Reinsurance recoveries
Reinsurance recoveries are accounted for in the same period as the related claim.
Cashback provisions
Certain insurance contracts offer cashback rewards to policyholders upon the fulfilment of predetermined criteria. A provision is
made for such cashback rewards based on the premium accrued by each policyholder at the reporting date, taking into account
the necessary decrements and, where applicable, the impact of future investment returns.
48.11 Financial liabilities

The Group classifies its financial liabilities into the following categories:

• Financial liabilities at amortised cost
The classification depends on the purpose for which the financial liabilities were acquired. Management determines the
classification of its financial liabilities at initial recognition.

This category has two sub-categories: financial liabilities held for trading and those designated at FVPL at inception.
A financial liability is classified as held for trading at inception if it is acquired principally for the purpose of selling in the short
term. Derivatives are classified as held for trading, unless they are designated as hedges. Derivatives held for trading are
classified as mandatorily at FVPL.
Financial liabilities are classified as at FVPL at inception if they are:
– eliminating or significantly reducing an accounting mismatch that would otherwise arise from measuring assets and
liabilities or recognising the gains and losses on them on different bases; or
– managed, with their performance being evaluated on a fair value basis; or
– a financial instrument that includes a significant embedded derivative that clearly requires bifurcation.
A financial liability is recognised in the statement of financial position when, and only when, the Group becomes a party to the
contractual provisions of the instrument.
Issues and settlements of financial liabilities are recognised on trade date, being the date on which the Group commits to issuing
or settling the financial liabilities.
The fair value of financial liabilities quoted in active markets is based on current market prices. Alternatively, where an active market
does not exist, fair value is derived from cash flow models or other appropriate valuation models allowing for the Group’s own credit
risk. These include the use of arm’s length transactions, DCF analysis, option pricing models and other valuation techniques commonly
used by market participants, making maximum use of market input and relying as little as possible on entity-specific input.
Financial liabilities are derecognised when they are extinguished, ie when the obligation specified in the contract is discharged,
cancelled or expires.

GROUP REPORTS
48.11 Financial liabilities continued
Recognition and measurement continued
Financial liabilities, such as callable notes which are listed on the JSE interest rate market, carry positions (refer below) and CIS
liabilities (representing the units in CISs where the Group consolidates the CISs and is required to disclose the value of the units not
held by the Group as liabilities) are managed, with their performance being evaluated on a fair value basis and designated at FVPL.
These financial liabilities are recognised initially at fair value, with transaction costs being expensed in the income statement, and are
subsequently carried at fair value. Realised and unrealised gains and losses arising from changes in the value of financial liabilities
at FVPL are included in the income statement in the period in which they arise. Changes in the fair value of the financial liability that
relates to changes in own credit risk is recognised in other comprehensive income if it does not create an accounting mismatch.
Interest on the callable notes and carry positions are disclosed separately as finance costs using the effective interest rate method.
Carry positions
Carry positions consist of sale and repurchase of assets agreements. These agreements contain the following instruments:
• Repurchase agreements: financial liabilities consisting of financial instruments sold with an agreement to repurchase these
CONSOLIDATED ANNUAL
instruments at a fixed price at a later date. These financial liabilities are classified as financial liabilities at FVPL.
• Reverse repurchase agreements: financial assets consisting of financial instruments purchased with an agreement to sell these
instruments at a fixed price at a later date. These financial assets are classified as financial instruments at FVPL.
Where financial instruments are sold subject to a commitment to repurchase them, the financial instrument is not derecognised
and remains in the statement of financial position and is valued according to the Group’s accounting policy relevant to that
category of financial instrument. The proceeds received are recorded as a liability (carry positions) carried at fair value where they
are managed on a fair value basis.
Conversely, where the Group purchases financial instruments subject to a commitment to resell these at a future date and the risk
of ownership does not pass to the Group, the consideration paid is included under financial assets carried at fair value where they
are managed on a fair value basis.
The difference between the sale and repurchase price is treated as finance cost and is accrued over the life of the agreement

using the effective interest rate method.
Financial liabilities at amortised cost
Financial liabilities that are neither held for trading nor at fair value are measured at amortised cost. Financial liabilities at
amortised cost are recognised initially at fair value, net of transaction costs incurred. These financial liabilities are then
subsequently carried at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption
value is recognised in the income statement over the period of the liability using the effective interest rate method.
Convertible redeemable preference shares and convertible bonds

Compound financial instruments issued by the Group comprise convertible preference shares that can be converted to
ordinary share capital at the option of the holder, and the number of shares to be issued does not vary with changes in their
fair value. At initial recognition, the fair value of the liability component of the convertible redeemable preference shares is
determined by discounting the net present value of future cash flows, net of transaction costs, at market rate at inception for
a similar instrument without the conversion option. This amount is recorded as a liability on the amortised cost basis, using
the effective interest rate method, until extinguished on conversion of the preference shares. The remainder of the proceeds is
allocated to the conversion option, which is recognised and included in shareholder equity. The value of the equity component
is not changed in subsequent periods. Any directly attributable transaction costs are allocated to the liability and equity
components in proportion to their initial carrying amounts. The dividends on these preference shares are recognised in the
income statement in finance costs.
Other payables
Other payables are initially carried at fair value and subsequently at amortised cost using the effective interest rate method.
Derecognition of financial liabilities

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing financial
liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the
recognition of a new liability. The difference in the respective carrying amounts is recognised in the income statement. Changes in
own credit risk allocated to other comprehensive income is not recognised in the income statement when derecognised, but rather
transferred within equity.


48.12 Deferred income tax
Measurement
Deferred income tax is provided for in full, at current tax rates and in terms of laws substantively enacted at the reporting date in
respect of temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting
purposes, using the liability method. However, if the deferred income tax arises from initial recognition of an asset or liability in
a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit
or loss, it is not accounted for. Deferred tax assets, including tax on capital gains, are recognised for tax losses and unused tax
credits and are carried forward only to the extent that realisation of the related future tax benefit is probable. The carrying amount
of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-
assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow
the deferred tax asset to be recovered.
Deferred income tax is provided for in respect of temporary differences arising on investments in subsidiaries and associates,
except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary
difference will not reverse in the foreseeable future.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are
recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity.
In respect of temporary differences arising from the fair value adjustments on investment properties, deferred taxation is provided
at the capital gains effective rate, as it is assumed that the carrying amount will be recovered through sale.
Offsetting
Deferred tax assets and liabilities are set off when the income tax relates to the same fiscal authority and where there is a legal
right of offset at settlement in the same taxable entity.
48.13 Current taxation

Measurement
Current tax is provided for at the amount expected to be paid, using the tax rates and in respect of laws that have been
substantively enacted at the reporting date. Management periodically evaluates positions taken in tax returns with respect to
situations in which applicable tax regulations are subject to interpretation, and establishes provisions where appropriate on the
basis of amounts expected to be paid to the tax authorities. Individual policyholder tax and corporate policyholder tax is included
in tax on contract holder funds in the income statement.
Offsetting
Current tax assets and liabilities are set off when a legally enforceable right exists and it is the intention to settle on a net basis or
to realise the asset and settle the liability simultaneously.
Dividend withholding tax (DWT)

DWT is levied on the shareholders (or beneficial owners) receiving the dividend, unless they are exempt in terms of the amended
tax law. DWT is levied at 20% of the dividend received. The DWT is categorised as a withholding tax, as the tax is withheld and
paid to tax authorities by the company paying the dividend or by a regulated intermediary and not by the beneficial owner of the
dividend. Where a non-exempt group company is a beneficial owner of the dividend, the DWT is recorded as an expense in the
income statement when the dividend income is earned.
48.14 Indirect taxation

Indirect taxes include various other taxes paid to central and local governments, including value added tax (amount that cannot be
claimed) and regional service levies. Indirect taxes are disclosed as part of operating expenses in the income statement.
48.15 Leases: accounting by lessee

The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to
control the use of an identified asset for a period of time in exchange for consideration.
The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-
value assets. The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use
the underlying assets.

GROUP REPORTS
48.15 Leases: accounting by lessee continued
Right-of-use asset
The Group recognises right-of-use assets at the commencement date of the lease (ie the date the underlying asset is available
for use). The Group mainly has leases for office buildings, IT equipment and investment property. The Group classifies its right-
of-use assets in a consistent manner to its property, plant and equipment. Right-of-use assets that are classified as owner-
occupied properties or property and equipment are measured at cost, less any accumulated depreciation and impairment losses,
and adjusted for any remeasurement of lease liabilities. Right-of-use assets that are classified as investment properties are
measured at fair value (refer to Investment properties accounting policy). The cost of right-of-use assets includes the amount of
lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any
lease incentives received. Right-of-use assets that are classified as owner-occupied properties and property and equipment are
depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:
Owner-occupied properties 50 years

Property and equipment Five – 20 years
CONSOLIDATED ANNUAL
If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase
option, depreciation is calculated using the estimated useful life of the asset.
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to
be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease
incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual
value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised
by the Group and payments of penalties for terminating the lease, if the lease term reflects the Group exercising the option to
terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses in the period in which
the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement
date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of

lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying
amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments
(eg changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change
in the assessment of an option to purchase the underlying asset.
The Group’s lease liabilities are included in financial liabilities at amortised cost.
Short-term leases and leases of low-value assets

The Group applies the short-term lease recognition exemption to its short-term leases (ie those leases that have a lease term of
12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value
assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term
leases and leases of low value assets are recognised as an expense on a straight-line basis over the lease term.



48.16 Leases: accounting by lessor
Operating leases
Investment property comprises a portfolio of retail, commercial and industrial properties that are leased to third parties.
These leases are classified as operating leases, because they do not transfer substantially all the risks and rewards incidental to
ownership of the assets. Each lease has a defined lease period and financial terms. Renewal negotiations with tenants commence
prior to expiry of their current lease agreement. Lease periods vary and are dependent on the tenant and property type.
When assets are leased out under an operating lease, the asset is included in the statement of financial position based on
the nature of the asset. Lease income on operating leases is recognised over the term of the lease on a straight-line basis.
Although the risks associated with rights that the Group retains in underlying assets are not considered to be significant,
the Group employs strategies to further minimise these risks. Properties are comprehensively insured against fire, destruction
and loss of income. Property income is secured by leases ranging from 3 to 10 years with comprehensive credit vetting and
deposits held to minimise the risk of recoverability of rental income. Expenses are managed in line with the consumer price
index with service level agreements negotiated over a 3 to 5 year period to minimise costs.
48.17 Provisions
Provisions are recognised when, as a result of past events, the Group has a present legal or constructive obligation of uncertain
timing or amount, and it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation, and a reliable estimate of the amount of the obligation can be made.
Provisions are measured as the present value of management’s best estimate of the expenditure required to settle the obligation
at the reporting date. The pre-tax discount rate used to determine the present value reflects current market assessments of the
time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised
as finance costs.
48.18 Contingent liabilities

Contingent liabilities are reflected when the Group has a possible obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control
of the Group, or it is possible but not probable that an outflow of resources will be required to settle a present obligation, or the
amount of the obligation cannot be measured with sufficient reliability.
48.19 Employee benefits

Pension and provident fund obligations
The Group provides defined benefit pension schemes as well as defined contribution pension and provident schemes. The schemes
are funded through payments to trustee-administered funds, determined by periodic actuarial calculations.
The asset or liability recognised in the statement of financial position in respect of defined benefit pension plans is the present
value of the defined benefit obligation at the reporting date less the fair value of plan assets. Plan assets exclude any insurance
contracts issued by the Group. The defined benefit obligation is calculated annually, using the projected unit credit method. The
liability balances have largely been settled and the plans are in the process of being closed.
Post-retirement medical aid obligations

The Group provides a subsidy in respect of medical aid contributions on behalf of qualifying employees and retired personnel.
An employee benefit obligation is recognised for these expected future medical aid contributions. This obligation is calculated
using the projected unit credit method, actuarial methodologies for the discounted value of contributions and a best estimate of
the expected long-term rate of investment return, as well as taking into account estimated contribution increases. The entitlement
to these benefits is based on the employees remaining in service up to retirement age. The expected costs of these benefits are
accrued over the period of employment. The actuarial gains and losses are recognised as they arise. The increase or decrease
in the employee benefit obligation for these costs is charged to other comprehensive income.
Termination benefits
The Group recognises termination benefits as a liability in the statement of financial position and as an expense in the income
statement when it has a present obligation relating to termination. Termination benefits are payable when employment is
terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange
for these benefits. The Group recognises termination benefits at the earlier of the following dates: (a) when the Group can no
longer withdraw the offer of those benefits; and (b) when the entity recognises costs for a restructuring that is within the scope
of IAS 37 and involves the payment of termination benefits. In the case of an offer made to encourage voluntary redundancy, the
termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than
12 months after the end of the reporting period are discounted to their present value.
Short-term benefits
Short-term benefits consist of salaries, accumulated leave payments, bonuses and other benefits such as medical aid contributions.
These obligations are measured on an undiscounted basis and are expensed as the service is provided. A liability is recognised for
the amount to be paid under bonus plans or accumulated leave if the Group has a present or constructive obligation to pay this
amount as a result of past service provided by the employee and the obligation can be estimated reliably.

GROUP REPORTS
48.19 Employee benefits continued
Share-based compensation
The Group operates equity-settled and cash-settled share-based compensation plans. For share-based payment transactions that are
settled in the equity of the parent or another group company or settled in cash where the amount is based on the equity of the parent
or another group company, the Group measures the goods or services received as either equity or cash-settled share-based payment
transactions by assessing the nature of the awards and its own rights and obligations. The Group measures the goods or services
received as an equity-settled share-based payment transaction when the awards granted are its own equity instruments or the Group
has no obligation to settle the share-based transaction in cash. In all other circumstances, the Group measures the goods or services
received as a cash-settled share-based payment transaction.
Equity-settled compensation plans

The fair value of the employee services received in exchange for the grant of the holding company shares is recognised as an expense.
The total amount to be expensed over the vesting period is determined by reference to the fair value of the shares granted at grant date,
excluding the impact of any non-market-related vesting conditions. Market and non-vesting conditions are reflected in the fair value
at grant date. Non-market-related vesting conditions, such as the resignation of employees and retrenchment of staff, are included in
assumptions regarding the number of shares expected to vest, which are revised at every reporting date. The impact of the revision of
original estimates, if any, is recognised in the income statement, and a corresponding adjustment is made to equity. The vesting of units
CONSOLIDATED ANNUAL
are accelerated by the entity in the event that the employee dies, is retrenched or retires. Any remaining element of the fair value of the
award is expensed immediately through profit or loss. Where an employee resigns any unvested units are forfeited by the employee.
The fair value of equity instruments granted is determined by using standard option pricing models. The valuation technique is
consistent with generally accepted valuation methodologies for pricing financial instruments, and incorporates all factors and
assumptions that knowledgeable, willing market participants would consider in setting the price of the equity instrument.
Cash-settled compensation plans

The Group recognises the value of the services received (expense), and the liability to pay for those services, as the employees
render service. The liability is measured, initially, and at each reporting date until settled, at the fair value appropriate to the
scheme, taking into account the terms and conditions on which the rights were granted, and the extent to which the employees
have rendered service to date, excluding the impact of any non-market-related vesting conditions. Non-market-related vesting
conditions are included in the assumptions regarding the number of units expected to vest. These assumptions are revised
at every reporting date. The impact of the revision of original estimates, if any, is recognised in the income statement, and a
corresponding adjustment is made to the liability.

Compensation plans valued on the projected unit credit method
The Group has certain schemes in place whereby employees are rewarded based on something other than the shares and related share
price of the holding company. In some instances the Group recognises a liability that has been measured with reference to a selling price
formula in a contract, the share price of an external company or the applicable EV of a subsidiary company, and that will be used to settle
the liability with the employees or to repurchase shares in a subsidiary from the employees. The liability in these cases is measured using
the projected unit credit method. Any change in the liability is charged to the income statement over the vesting period of the shares.
48.20 Assets and liabilities relating to disposal groups held for sale
Assets, liabilities or disposal group are classified as held for sale if their carrying amount will be recovered principally through a
sale transaction rather than continuing use. This classification is only met if the sale is highly probable and the assets, liabilities or
disposal groups are available for immediate sale.
In light of the Group’s primary business being the provision of insurance and investment products, non-current assets held as
investments for the benefit of policyholders are not classified as held for sale as the ongoing investment management implies
regular purchases and sales in the ordinary course of business.
Immediately before classification as held for sale, the measurement (carrying amount) of assets and liabilities in relation to a
disposal group is recognised based upon the appropriate IFRS standards. On initial recognition as held for sale, the assets and
liabilities are recognised at the lower of the carrying amount and fair value less costs to sell.
Any impairment losses on initial classification to held for sale are recognised in the income statement.
The assets, liabilities or disposal groups held for sale will be reclassified immediately when there is a change in intention to sell.
Subsequent measurement of the asset, liability or disposal group at that date will be the lower of:
• its carrying amount before the asset, liability or disposal group was classified as held for sale, adjusted for any depreciation,
amortisation or revaluations that would have been recognised had the asset, liability or disposal group not been classified as
held for sale; and
• its recoverable amount at the date of the subsequent decision not to sell.


48.21 Share capital
Share capital is classified as equity where the Group has no obligation to deliver cash or other assets to shareholders. Ordinary
shares with discretionary dividends are classified as equity. Preference shares issued by the Group are classified as equity when
there is no obligation to transfer cash or other assets to the preference shareholders. The dividends on these preference shares
are recognised in the statement of changes in equity. For compound instruments, eg convertible redeemable preference shares,
the component representing the value of the conversion option at the time of issue is included in equity.
Issue costs
Incremental external costs directly attributable to the issue of new shares are recognised in equity as a deduction, net of tax,
from the proceeds. All other share issue costs are expensed.
Treasury shares
Treasury shares are equity share capital of the holding company held by subsidiaries, consolidated CISs and share trusts,
irrespective of whether they are held in shareholder or contract holder portfolios. The consideration paid, including any directly
attributable costs, is eliminated from shareholder equity on consolidation until the shares are cancelled or reissued. If reissued,
the difference between the carrying amount and the consideration received for the shares, net of attributable incremental
transaction costs and the related income tax effects, is included in share premium.
48.22 Dividends declared

Dividends declared to shareholders of the Company are recognised on declaration date.
48.23 Puttable non-controlling interests

Puttable non-controlling interests represent put options granted to non-controlling interests of subsidiaries, entitling the non-
controlling interests to dispose of their interest in the subsidiaries to the Group at contracted dates.

A financial liability at FVPL is recognised, being the present value of the estimated purchase price value discounted from the
expected option exercise date to the reporting date. In raising this liability, the non-controlling interest is derecognised and the
excess of the liability is debited to retained earnings.
The estimated purchase price is reconsidered at each reporting date and any change in the value of the liability is recorded in
net realised and unrealised fair value gains in the income statement. Interest in respect of this liability is calculated using the
effective interest rate method and recorded within finance costs.
48.24 Income recognition

Income comprises the fair value of services, net of value added tax, after eliminating income from within the Group. Income is
recognised as follows:
48.24.1 Fee income

IFRS 15 sets out the principles of the timing of revenue recognition. Revenue is either recognised at a point in time or over time.
Revenue is recognised over time if one of the following criteria is met:
• The customer simultaneously receives and consumes the benefits provided by the entity’s performance as the entity
performs;
• The entity’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or
• The entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right
to payment for performance completed to date.
If none of the above criteria is met, revenue is recognised at a point in time.
Contract administration
Fees charged for investment management services provided in conjunction with an investment contract are recognised as income
as the services are provided over the expected duration of the contract, as a constant percentage of expected gross profit margins;
or as a constant percentage of assets under management; or as a fixed fee. Initial fees that exceed the level of recurring fees and
relate to the future provision of services are deferred and released on a straight-line basis over the lives of the contracts.
Trust and fiduciary fees received

Fees received from asset management, retirement fund administration and other related administration services offered by
the Group are recognised in the accounting period in which the services are rendered. Services are rendered over the expected
duration of the contract, except for performance fees which are recognised at a point in time when the performance obligations
are met. Where initial fees are received, these are deferred and recognised over the average period of the contract. This period is
reassessed annually.
Health administration fee income

Fees received from the administration of health schemes are recognised in the accounting period in which the services are
rendered. Services are rendered over the expected duration of the contract.

GROUP REPORTS
48.24 Income recognition continued
48.24.1 Fee income continued
Other fee income
Administration fees received and multiply fee income are recognised as the service is rendered. Services are rendered over the
expected duration of the contract.
Cell captive fee income includes management fees, which relates to the managing of the cell. Management fees are negotiated
with each cell shareholder and are generally calculated as a percentage of premiums received and/or as a percentage of assets.
Income is brought to account on the effective commencement or renewal dates of the policies and is recognised over the
duration of the contract. A portion of the income is deferred to cover the expected servicing costs, together with a reasonable
profit thereon and is recognised as a liability. The deferred income is brought to account over the servicing period on a
consistent basis reflecting the pattern of servicing activities.
Commission income in respect of insurance ceded to reinsurers is recognised on the commencement date of the policy. A
portion of the income is deferred when further servicing is required to be rendered. Deferred commission income is spread
evenly over the period of the policy. Profit commission negotiated with reinsurers is recognised on declaration by reinsurers.
CONSOLIDATED ANNUAL
Other fees received include scrip lending fees (which are based on rates determined per contract) and policy administration
fees that are also recognised as the service is rendered. Scrip lending fees are recognised over the duration of the contract.
Policy administration services are rendered either at a point in time or over the duration of the contract depending on when the
performance obligations are met.
48.24.2 Investment income

Interest income
Interest income is recognised in the income statement, using the effective interest rate method and taking into account the
expected timing and amount of cash flows. Interest income includes the amortisation of any discounts or premiums or other
difference between the initial carrying amount of an interest-bearing instrument and its amount at maturity, calculated on the
effective interest rate method.
Dividend income
Dividends received are recognised when the right to receive payment is established. Where it is declared out of retained earnings,
dividend income includes scrip dividends received, irrespective of whether shares or cash is elected. Dividend income is not

recognised when shares of the investee are received and the shareholders receive a pro rata number of shares, there is no
change in economic interest of any investor and there is no economic benefit associated with the transaction.
Rental income
Rental income is recognised on the straight-line method over the term of the rental agreement.
48.25 Expense recognition

48.25.1 Expenses
Other expenses include auditors’ remuneration, consulting fees, direct property expenses, information technology expenses,
marketing costs, indirect taxes and other expenses not separately disclosed, and are expensed as incurred.
48.25.2 Finance costs

Finance costs incurred on qualifying property assets are capitalised until such time as the assets are substantially ready for their
intended use. Qualifying assets are those that necessarily take a substantial period of time to get ready for their intended use.
Capitalisation is ceased when substantially all activities necessary to prepare the asset for intended use. All other finance costs
are recognised in the income statement, using the effective interest rate method, and taking into account the expected timing
and amount of cash flows.
Finance costs include the amortisation of any discounts or premiums or other differences between the initial carrying amount of
an interest-bearing instrument and its amount at maturity, calculated on the effective interest rate method.
48.26 Segmental reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-
maker. The chief operating decision-maker has been identified as the Group Executive Committee that makes strategic
decisions. Refer to segmental report for more details.

Annual Financial Statements 2022
Contents
193 Statement of financial position
193 Income statement
193 Statement of comprehensive income
194 Statement of changes in equity
195 Statement of cash flows
196 Notes to the financial statements

Statement of financial position
At 30 June 2022
2022 2021
GROUP REPORTS
Notes Rm Rm
Assets
Interest in subsidiary companies 2 27 659 27 233
Financial instruments 886 1 164
Financial assets at fair value through profit or loss 3 339 445
Financial assets at amortised cost 4 547 719
Non-financial assets 4 4
Total assets 28 581 28 686
Equity attributable to owners of the Company
Share capital and share premium 6 17 601 17 601
Other components of equity 7 177 103
Retained earnings 9 753 9 621
Total equity 27 531 27 325
Liabilities
CONSOLIDATED ANNUAL
Financial instruments 329 358
Financial liabilities at amortised cost 8.1 252 246
Financial guarantee contracts 8.2 77 112
Other payables 9 720 1 002
Current income tax liability 10.1 1 1
Total equity and liabilities 28 581 28 686
Income statement
For the year ended 30 June 2022

2022 2021
Notes Rm Rm
Investment income – amortised cost 37 41
Investment income – other 881 1 487
Other income 13 35 37
Net realised and unrealised fair value (losses)/gains 12 (144) 7
Net income 809 1 572
Impairment (reversal)/charge on loans (112) (17)
Impairment (reversal)/charge on investment in subsidiaries (55) 465
Other expenses 14 43 59
Expenses/(income) (124) 507
Results of operations 933 1 065
Finance costs 15 (37) (37)
Income tax 10.2 (16) (43)
Earnings for year attributable to owners of the Company 880 985
Statement of comprehensive income

2022 2021
Rm Rm
Earnings for year 880 985
Total comprehensive income for year attributable to owners of the Company 880 985

Statement of changes in equity
Total
Other attributable
Share Retained components to owners of
capital earnings of equity the Company
Rm Rm Rm Rm
Balance at 1 July 2020 17 601 9 010 78 26 689
Total comprehensive income – 985 – 985
IFRS 2 extension charge – – 25 25
Dividends declared – (374) – (374)
Balance at 1 July 2021 17 601 9 621 103 27 325
Total comprehensive income – 880 – 880
IFRS 2 extension charge – – 11 11
Dividends declared – (748) – (748)
Equity-settled share-based payments – – 63 63
Balance at 30 June 2022 17 601 9 753 177 27 531

2022 2021
GROUP REPORTS
Notes Rm Rm
Cash flow from operating activities
Cash utilised in operations 16.1 – (2)
Dividends received 11 826 659
Interest received 11 34 34
Income tax paid 16.2 – –
Interest paid 16.3 (37) (37)
Net cash inflow from operating activities 823 654
Cash flow from investing activities
Investment in subsidiary companies (308) (547)
Investment in financial assets – (402)
Proceeds from disposal of subsidiary companies – 47
Loans advanced to related parties (22) (12)
Loans repaid by related parties 311 345
Net cash outflow from investing activities (19) (569)
Cash flow from financing activities
CONSOLIDATED ANNUAL
Loans advanced from related parties 65 363
Loans repaid to related parties (374) –
Dividends paid (748) (374)
Net cash outflow from financing activities (1 057) (11)
Net cash flow (253) 74
Cash and cash equivalents at beginning 285 211
Cash and cash equivalents at end 5 32 285


Notes to the financial statements
1 BASIS OF PREPARATION AND ACCOUNTING POLICIES

The basis of preparation and accounting policies of the Company are the same as that of the Group, as set out in the Group
financial statements. These financial statements should be read in conjunction with the Group financial statements.
2 INTEREST IN SUBSIDIARY COMPANIES

2022 2021
Rm Rm
Cost less impairment 27 656 27 230
Loans to subsidiary companies (note 42) 3 3
27 659 27 233
Opening balance 27 233 26 149
Cost of interest in subsidiaries acquired 308 1 902
Equity-settled share-based payments Investment 63 –
Less: disposals – (47)
Movements in loans to subsidiary companies – (321)
Less: Impairment reversal/(expense) of investment in subsidiaries 55 (450)
Closing balance 27 659 27 233
General
Details of interests in subsidiary companies are disclosed in note 42 of the Group financial statements.
Additions to the cost of subsidiaries and other movements
Momentum Metropolitan Strategic Investments Pty Ltd (MMSI): The Company acquired additional shares in MMSI for
R308 million during the current year (2021:R1 743 million). The capital injection into MMSI in the current year was fully
funded through cash.
MIH: The Company acquired additional shares in MIH for R151 million during the prior year.
The Company acquired R8 million additional shares in MET Collective Investments (RF) (Pty) Ltd in the prior year.
Equity-settled share-based payment
Momentum Metropolitan has made available an Employee Share Ownership Plan to its employees through the iSabelo Trust.
iSabelo is structured to benefit all permanent employed South African based employees to promote inclusivity.
These units are allocated on a deferred delivery basis over a seven-year period. All units need to be held for an initial period of
ten years (lock in period) before they can be redeemed for MMH shares. At the end of the lock in period, the iSabelo Trust will
exchange the units for MMH shares.
The investment in subsidiaries is as a result of the iSabelo share-based transaction, for which the Company has the responsibility
to provide its own shares to the employees of the respective subsidiaries.
Refer to note 17.6 of the MMH Group AFS for the Share-based payment disclosures.
Disposals
In the prior year Momentum Life International (Pty) Ltd (MLI) commenced its process for deregistration as a legal entity.
MLI paid a final liquidation of R47 million to the Company as a return of capital to its parent.
There were no disposals in the current year.
Loans to subsidiary companies
The loans to subsidiary companies are not of a commercial nature and are therefore interest-free, with no fixed repayment terms.
These loans are intended to provide the subsidiaries with a long-term source of additional capital and are disclosed as part of
the investment in subsidiary. The Company can recall these loans when cash is required. The additional loans to subsidiaries
that are of an operational nature are disclosed as loans to subsidiaries at amortised cost. Loans to subsidiaries are measured
at amortised cost. Refer to note 4 for disclosure of loans to subsidiaries.
Impairment
Investments in subsidiaries are measured at cost less accumulated impairment and are assessed for impairment when there is an
indication of impairment. Investments in subsidiaries are considered impaired where the recoverable amount is below its carrying
amount. The recoverable amount of a subsidiary is the higher of its value in use, reflected in the directors' value for that entity, and
its fair value less cost to sell.
Where the directors' valuations were used, the valuations used cash flow projections which are based on financial budgets
approved by management and the Board covering a five-year period. In 2022, the expected cash flows were discounted at a risk
discount rate of 17.75% (2021: 16.25%).
In the prior year, MHH commenced its process for deregistration and as a result its fair value was nil. The investment was
subsequently impaired by R448 million in 2021. MET Collective Investments (RF) (Pty) Ltd (MetCI) and Momentum Trust (Pty) Ltd
(Mom Trust) were impaired by R 214K (2021: R17 million) and R978K (2021: R7 million), respectively in the current year. These
investments were impaired to their fair value based on their underlying net assets i.e. net asset value. The lower net asset value in
MetCI was as a result of decreased earnings in the current year. Reduced asset balances contributed to a reduction in net assets
in Mom Trust in the current year.

2 INTEREST IN SUBSIDIARY COMPANIES CONTINUED
GROUP REPORTS
Impairment continued
A provision for impairment of R14.6 million in Momentum Metropolitan Infrastructure & Operations (Pty) Ltd (MM I&O) was reversed
in the current year (2021: R7 million) as well as a provision for impairment of R42 million in Momentum Metropolitan Finance
Company (Pty) Ltd (2021: Rnil). Refer to note 42 of the Group financial statements for the recoverable amounts of the investments.
The impairment reversals were due to an increase in the net asset value. The net asset value of Momentum Metropolitan Finance
Company (Pty) Ltd movement was due to profits generated from interest, commitment fees and a sale of loan to Momentum
Metropolitan Strategic Investments (Pty) Ltd.
3 FINANCIAL ASSETS AT FVPL

2022 2021
Rm Rm
Equity securities 16 15
Preference shares1 318 417
Loans to related party
Equity linked derivative – Empowerment partners2 5 13
339 445
CONSOLIDATED ANNUAL
Current 5 13
Non-current 334 432
339 445

1
In the prior year, the Company subscribed to 402 313 redeemable preference shares for R1 per share in Momentum Metropolitan iSabelo (Pty) Ltd SPV (iSabelo) as
part of a capital contribution into the Employee Share Option Program (ESOP) Trust. The preference shares accrue interest at 120% of prime, compounded semi-
annually and mature on 28 January 2025. The preference shares are unsecured however full settlement of the receivable is dependent on the value of the shares
held in the trust at the time of settlement. Refer to note 17.6 of the Group financial statements for details on the ESOP transaction.
2
The Company subscribed to a participating, cumulative, redeemable A4 preference share from Kagiso Tiso Holdings Ltd (KTH) on 30 June 2019 with a
nominal value of R100. The share is redeemable on 30 November 2022.
The A4 preference share earns a dividend of R1.32 per share less: MMH's ordinary dividend, a facilitation cost of R1 million per month and fund preference
share dividend rate differential of 3% of prime. The preference share's returns are impacted by a number of variables, including the Company's ordinary
dividend, and as such, the share is classified as an equity derivative held for trading.
The dividends on the A4 preference share align the A3 preference share dividend to the ordinary dividend.
A schedule of equity securities is available for inspection at the Company’s registered office.

4 FINANCIAL ASSETS AT AMORTISED COST
2022 2021
Rm Rm
Loans to related parties 547 719
Loans to subsidiary companies (note 42) 252 539
Less: provision for impairment on loans to subsidiary companies (2) (114)
Loans to associates 1 1
Preference shares 34 31
Empowerment partners 262 262
Total financial assets at amortised cost 547 719
Current 546 718
Non-current 1 1
547 719
Terms and conditions of material loans

• Loans to subsidiary companies are generally interest-free, unsecured and have no repayment terms. The loans are payable on
demand. The carrying value therefore approximates fair value.
• Preference shares:
– MMH holds class B preference shares in Eris Property Fund (Pty) Ltd (EPF). These preference shares are subject to dividends
(at risk-free rate of 6.907% plus 5%) compounded semi-annually, disclosed as part of interest income. Interest for the period is
R3 million (2021: R3 million). The preference shares were extended for a further year and will be redeemed in May 2023. The
carrying value approximates fair value.
• Loans to empowerment partners:

– The loans to empowerment partners is R262 million (2021: R262 million) at 30 June 2022, which relates to preference shares
acquired on 2 December 2011 in Off the Shelf Investments (Pty) Ltd (a KTH subsidiary) for R316 million. Given the financial
substance of the KTH subsidiary and the commercial terms attached to the funding arrangement, there is sufficient security
in the Company that the Group does not carry and has not carried the risks and rewards of the shares that are funded by
the loan. The loan is therefore not accounted for as an option under IFRS 2 - Share-based payments - and is recognised as a
receivable carried at amortised cost. Interest is charged at 85% of the prime interest rate of South Africa and the preference
shares have a repayment date of 30 November 2022 (after extending the terms for a further 5 months in the current year). The
extension does not constitute a significant modification, the extinguishment of the instrument or result in the recognition of a
new instrument and was therefore accounted for as a change in the expected future cash flows.
The fair value of loans to empowerment partners at 30 June 2022 approximates the carrying value as the repayment date is
within one year.

4 FINANCIAL ASSETS AT AMORTISED COST CONTINUED

Impairment
The impairment for provision on loans to subsidiaries and accounts receivable was reduced by R112 million (2021: R17 million) in
the current year. There has been a significant decrease in the expected credit loss allowances because the Momentum Metropolitan
Strategic Investments (Pty) Ltd loan receivable of R310 million was settled and the Metropolitan Capital Ltd expected credit loss
decreased significantly due to a decrease in the Probability of Default (PD) from prior year, the PD decreased from 100% to 1.93%.
The PD was 100% in the prior period as the entity followed a very conservative approach of accounting for expected losses, in
the current period the approach was updated to produce a PD that is aligned with whether the counterparty's NAV was positive
or negative. Metropolitan Capital Ltd had a positive NAV which indicated its ability to settle the loan amount when it is due, hence
the PD for the current period was 1.93%.
Impairment of loans to subsidiaries are impaired if the borrowing company does not have sufficient accessible highly liquid assets
available at reporting date. The expected credit loss is calculated by considering the means of the loan recovery, the quality of the
subsidiary’s underlying investments, as well as profitability expectations.
To determine a significant increase in credit risk, the following factors are considered: changes in the net asset value of the
borrower, changes in management and organisational structure during the year, stability of industry and resilience to volatility and
regulatory changes, the type of funding provided to the entity and the repayment behaviour of the borrower.
Loans with repayment terms considers the net asset value, frequency in management changes, subordination of the loan and
sufficiency of liquid assets of the borrower as well as the remaining repayment term to determine a probability of default.
Loans without repayment terms consider whether the borrower has sufficient accessible highly liquid assets available to
determine a probability of default.
The probabilities of default is extracted from a report issued by Moody's. Loss given default rates applied are extracted from SAM
Loss Given Default (LGD) tables prescribed for insurers and adjusted accordingly by management to incorporate forward-looking
information.
4.1 Credit risk balances – expected credit loss

Stage 1 Stage 2 Stage 3 Total
Rm Rm Rm Rm
2022
Assets
Loans to related parties 547 – – 547
Loans to subsidiary companies (note 42) 252 – – 252
Less: provision for impairment on loans to subsidiary
companies (2) – – (2)
Empowerment partners1 262 – – 262
Preference shares 34 – – 34
Loans to associates 1 – – 1
Total financial assets at amortised cost 547 – – 547

2021
Assets
Loans to related parties 719 – – 719
Loans to subsidiary companies (note 42) 539 – – 539
Less: provision for impairment on loans to subsidiary
companies (114) – – (114)
Empowerment partners1 262 – – 262
Preference shares 31 – – 31
Loans to associates 1 – – 1
Total financial assets at amortised cost 719 – – 719

1
The terms of the loan provide that dividends received from MMH on ordinary shares held by KTH will be used to settle the loan provided to empowerment
partners. PD on the loan is thus considered unlikely and as such no expected credit loss has been raised on the receivable.

GROUP REPORTS
4.2 Credit risk balances – reconciliation of expected credit losses
Related
Accounts party
receivable loans1 Total
Rm Rm Rm
2022
Balance at beginning – (114) (114)
Reversed – 112 112
Balance at end – (2) (2)
2021
Balance at beginning (7) (124) (131)
Reversed 7 10 17
Balance at end – (114) (114)
1
Expected credit losses on loans to related parties include loans disclosed in note 2 and note 4.1.
CONSOLIDATED ANNUAL
12 month Lifetime
expected expected
credit losses credit losses
Stage 1 Stage 3 Total
Rm Rm Rm
2022
Related party loans
Opening balance (114) – (114)
Movement recognised in the income statement 112 – 112
Closing balance (2) – (2)
2021
Accounts receivable
Opening balance – (7) (7)
Movement recognised in the income statement – 7 7

Closing balance – – –
Related party loans
Opening balance (117) (7) (124)
Movement recognised in the income statement 3 7 10
Closing balance (114) – (114)


4.2 Credit risk balances – reconciliation of expected credit losses continued
Basis for
recognition of
Staging expected credit
definitions Staging definitions loss provision
Stage Accounts receivable Loans
Stage 1 • Low risk of default • No significant decrease in NAV since initial 12 months
(Performing) • Strong capability to meet recognition of loan expected losses
contractual payments • No management and organizational structure
changes in the year
• Loans are recoverable and at an entity level is
specifically evidenced by:
– Repayment of interest and capital (where
applicable) in terms of agreements done on dates
and amounts as agreed in legal agreement
– No restructuring of the loan has occurred
– No significant deterioration in credit quality
• Strong/Adequate capability to meet commitments in
terms of the loan agreement
Stage 2 • Significant increase in credit risk • Significant decrease in NAV initial recognition of loan Lifetime expected
(Under- • Repayments are more than 30 • No objective evidence of impairment. losses
performing) days and less than 90 days past • Some management and organizational structure
due changes but not a majority
• Loans are recoverable and at an entity level is
– Positive Net Asset Value for company
– Repayment of interest and capital is significantly
in line with the terms of agreements i.e. not more
than 30 days past due
– Some loans may be restructured based on
operational needs, but with no effect on interest
and capital repayment ability i.e. credit quality has
deteriorated based on the need for restructure, but
adequate repayment plans in place
– Deterioration of credit quality.
• More vulnerable to changes in conditions that may
result in reduction of capacity to meet commitments
Stage 3 • Significant increase in credit risk • Significant decrease in NAV since initial recognition Lifetime expected
(Non- • Repayments are more than 90 of loan losses
performing) days past due • Objective evidence of impairment
• Various management and organizational structure
changes
• Loans are partially recoverable and at an entity level is
– Significant deterioration in credit quality and
impaired credit quality
– Negative Net Asset Value for company
– Loan is in default, i.e. repayment of interest and
capital is not in compliance with the terms of the
agreement and default does not occur later than
90 days past due.
• Restructured Debt
Written off Long outstanding amounts due are evaluated on a case by case basis and would generally be written off when
there is no alternative for the debtor to return to solvency and/or legal action taken was unsuccessful.

GROUP REPORTS
4.2 Credit risk balances – reconciliation of expected credit losses continued
Significant increase in credit risk Criteria
Accounts receivable and loans To determine a significant change in credit risk both historical data and forward
looking information is taken into account. This includes existing or expected adverse
changes in business, financial or economic conditions that are expected to cause a
significant change in the borrower’s ability to meet its debt obligations, a breach of
contract, significant changes in the value of any collateral supporting the obligation and
reductions in financial support from a parent entity.
Financial asset Impairment information
Accounts receivable Impairment of accounts receivable is based on the recoverability of balances grouped
together based on shared credit risk characteristics, e.g. instrument type. Balances generally
relate to amounts where the timing of settlement is within one month. Historic payments as
well as forward looking information is also taken into account.
Loans For related party loans the solvency of the counterparty is taken into account as well as
any collateral held.
CONSOLIDATED ANNUAL
Sensitivities
Accounts receivable No expected credit loss has been raised in the current year. Impairment expenses in
stage 3 in the prior year were not considered to be sensitive to changes in the forward
looking information.
Loans Most of the loan balances outstanding are considered to have low credit risk as the
borrower has a strong capacity to meet its obligations and has a low risk of default. The
expected credit loss is therefore not considered to be sensitive to changes in forward
looking information.
4.3 Credit risk balances – credit quality

AAA AA Unrated Total
Rm Rm Rm Rm

2022
Equity securities – – 16 16
Preference shares – – 318 318
Equity linked derivative – Empowerment Partners – – 5 5
Cash and cash equivalents 32 – – 32
Loans to subsidiary companies (note 42) – – 252 252
Empowerment partners – – 262 262
Loans to associates – – 1 1
32 – 888 920
2021
Equity securities – – 15 15
Equity linked derivative – Empowerment Partners – – 13 13
Cash and cash equivalents 285 – – 285
Loans to subsidiary companies (note 42) – – 539 539
Empowerment partners – – 262 262
Loans to associates – – 1 1
285 – 1 278 1 563
2022 2021
Rm Rm
5 CASH AND CASH EQUIVALENTS
Bank and other cash balances 32 285
Expected credit loss on cash and cash equivalents is immaterial.
The carrying value approximates fair value due to its short-term nature.

6 SHARE CAPITAL AND SHARE PREMIUM

Authorised share capital of MMH
2 billion ordinary shares of 0.0001 cents each.
129 million (76 million A1, 13 million A2 and 40 million A3) variable rate cumulative redeemable convertible preference shares
of 0.0001 cents each.
Issued share capital of MMH

1.5 billion ordinary shares of 0.0001 cents each
28 million A3 variable rate cumulative redeemable convertible preference shares of 0.0001 cents each in issue
Number of shares in issue (million) 2022 2021

2022 2021
Share capital and share premium Rm Rm
Further details of the preference shares disclosed in note 16 respectively of the Group financial statements.
2022 2021
Rm Rm
7 OTHER COMPONENTS OF EQUITY
7.1 Preference shares (Equity settled share scheme) 114 103
7.2 Equity-settled share-based payment arrangements 63 –
177 103
7.1 Preference shares (Equity settled share scheme)
IFRS 2 extension charge 11 25
7.2 Equity-settled share-based payment arrangements
Balance at beginning – –
Share schemes – value of services provided 63 –
Balance at end 63 –
8 FINANCIAL LIABILITIES
8.1 Financial liabilities at amortised cost
Cumulative redeemable convertible preference shares – Current 252 246
Due at the beginning 246 254
Modification 6 (8)
Due at the end 252 246
Details of the cumulative redeemable convertible preference shares are disclosed in note 12.2 of the Group financial statements.
The Company issued 28 million A3 preference shares to KTH in June 2010. The preference shares are convertible at the option
of the holder into MMH ordinary shares at any time before the compulsory redemption date. The preference shares had an
initial redemption date of December 2011, the terms of which have been extended previously, with the most recent extension
in June 2022 (for a further 5 months). The preference shares accrue a dividend of R1.32 per share. The extension does not
constitute a significant modification, the extinguishment of the liability or result in the recognition of a new liability and was
therefore accounted for as a change in the expected future cash flows. The change in the expected cash flows resulted in an
R6 million loss recognised in profit or loss in the current year (2021: R8 million gain). In addition, the change in the expected
cash flows before and after the extension resulted in an IFRS 2 – Share-based payment B-BBEE expense of R11 million being
recognised in the current year (2021: R25 million).
The estimated fair value of the A3 preference shares is R400 million (2021: R558 million) and is based on the market value of
the listed ordinary shares, adjusted for the differences in the estimated dividend cash flows between the valuation and conversion
dates. As the preference shares are already convertible, the market value is deemed to be the minimum value. In 2022, the
expected cash flows were discounted at a current market rate of 14% (2021: 13%) (level 2). The conversion of the preference
shares is at the option of the preference shareholder; the date of conversion was estimated based on the most beneficial
dividend stream to the holder.

2022 2021
GROUP REPORTS
Rm Rm
8.2 Financial guarantee contracts 77 112
Due at the beginning 112 141
New guarantees entered into – –
Net amortisation (35) (29)
Due at the end 77 112
Current 41 35
Non-current 36 77
77 112
Financial guarantees have been issued to RMB and Sanlam Alternative Income Fund on behalf MMSI. The agreements guarantee
repayment of preference shares issued to them in the event that MMSI is unable to meet its commitment. On initial recognition,
the financial guarantees are measured at fair value.
The fair value of a financial guarantee contract is the present value of the difference between the net contractual cash flows
required under a debt instrument, and the net contractual cash flows that would have been required without the guarantee.
On initial recognition of the guarantee, the investment in subsidiary is debited with the fair value of the guarantee.
CONSOLIDATED ANNUAL
Subsequently at the end of each reporting period, the guarantees will be measured at the higher of the amount of the expected
credit loss and the amount initially recognised less the cumulative amortisation, where appropriate.
2022 2021
Rm Rm
9 OTHER PAYABLES
Other payables 20 20
Loans from subsidiary companies (note 42) 700 982
720 1 002
Current 720 1 002
For accounts payable, the carrying value approximates fair value due to its short-term nature.
Loans from subsidiary companies are interest-free, unsecured and payable on demand. The carrying value therefore approximates
fair value.

2022 2021
Rm Rm
10 INCOME TAX
10.1 Current income tax liability
Movement in liability
Charged to income statement 2 1
Settled during year (2) (1)
Balance at end 1 1
Current tax is paid on behalf of the Company by its subsidiary through an intercompany loan
account facility.
No deferred tax is recognised as the Company receives passive income. Tax adjustments are
permanent in nature and are not directly related to the generation of taxable income.
10.2 Income tax expense
Current taxation
Current year
South African normal tax 2 1
Foreign countries – withholding tax1 14 42
16 43
1
Foreign dividends withholding taxes in the current year were due to dividends received from Metropolitan Life of Botswana Ltd. Refer to note 17.3 for
transactions with related parties.
2022 2021
% %
Tax rate reconciliation
Tax calculated at standard rate of South African tax on earnings 28.0 28.0
Foreign tax 2.0 4.0
Non-taxable income1 (30.0) (42.0)
Non-deductible expenses2 2.0 14.0
Effective rate 2.0 4.0
1
The Company only receives exempt dividends and passive income in the form of interest; its expenses are therefore not in the production of income and
therefore non-deductible.
2
Non-deductible expenses comprise of operating expenses incurred in the ordinary course of business which include directors’ fees, audit fees and interest
paid on preference shares. The Company receives non-taxable income and as such, expenses that it incurs are non-deductible.

2022 2021
Rm Rm
11 INVESTMENT INCOME
Dividend income – subsidiary companies1 842 1 472
Interest income – amortised cost using effective interest rate method 37 41
Cash and cash equivalents 6 4
Other income
Financial assets at fair value through profit or loss2 39 15
918 1 528
1
Included in dividend income in the prior year is a dividend in-specie of R767 million received from Momentum
Metropolitan Life Limited in the form of a loan repayment. All dividends in the current year were cash.
Dividend income from foreign subsidiaries is disclosed gross of foreign dividends withholding taxes of
R14 million (2021: R42 million).
2
Interest income on preference shares held in the iSabelo SPV. Refer to note 3.
12 NET REALISED AND UNREALISED FAIR VALUE GAINS

Financial assets at fair value through profit or loss1 (137) (1)
Derivative financial instrument: held for trading (7) 8
(144) 7
1
Fair value loss of R138 million on the iSabelo Preference Shares (2021: Rnil). Refer to note 3.
13 OTHER INCOME
Amortisation on financial guarantee contracts 35 29
Financial liabilities at amortised cost1 – 8
35 37
1
Modification gain of R8 million recognised on A3 preference shares due to an extension of the redemption
date in the prior year. Refer to note 8.1.
14 OTHER EXPENSES
Share-based payment expense1 11 25
Directors’ remuneration 15 15
Loss on loans written off – 8
Auditors’ remuneration 6 4
Consulting fees 3 2
Other indirect taxes 2 2
Financial liabilities at amortised cost2 6 –
Realised forex losses – 3
43 59
1
IFRS 2 expense due to the extension of the A3 KTH preference shares. Refer to note 8.1.
2
Modification loss of R6 million recognised on A3 preference shares due to an extension of the redemption date.
Refer to note 8.1.
15 FINANCE COSTS
Interest expense on liabilities at amortised cost
Redeemable preference shares 37 37
37 37

2022 2021
GROUP REPORTS
Rm Rm
16 CASH FLOW FROM OPERATING ACTIVITIES

16.1 Cash generated/(utilised) by operations
Adjusted for
Items presented separately on the face of the statement of cash flow
Dividends income (842) (1 472)
Interest income (76) (56)
Finance costs 37 37
Non-cash-flow items
Impairment charges (reversals) (167) 449
Share-based payments 11 25
Financial assets at FVPL 144 (4)
Changes in operating assets and liabilities
Financial liabilities at amortised cost 6 (8)
Other operating liabilities (9) (1)
– (2)
CONSOLIDATED ANNUAL
16.2 Income tax paid
Due at beginning 1 1
Charged to income statement 2 1
Paid by subsidiary on behalf of the Company (2) (1)
Due at end 1 1
16.3 Interest paid

Redeemable preference shares
Paid 30 September (19) (19)
Paid 31 March (18) (18)
(37) (37)
17 RELATED PARTY TRANSACTIONS

17.1 Holding company
Shares in MMH, the ultimate holding company in the Group, are widely held by public and non-public shareholders; refer to the

shareholder profile on page 160 of the Integrated Report. Significant subsidiary companies are listed in note 42 of the Group
financial statements. Other related parties include directors, key personnel and close members of their families. As a result of
RMI unbundling its shareholding in the Company on 25 April 2022, RMI is no longer a related party of that date. Refer to note 31.1
in the Group financial statements for more details.
17.2 Transactions with directors

Remuneration is paid in the form of fees to non-executive directors and remuneration to executive directors and key personnel of the
Company. The remuneration, shares held and transactions of the Group Executive Committee members are disclosed in note 45 of
the Group financial statements.
17.3 Transactions with related parties

Loans are advanced between MMH and its subsidiaries and associates as funding. The loans to subsidiary companies included in
loans in the statement of financial position are detailed in note 42 of the Group financial statements. The loans to associates are
included in note 4.
Details of other transactions with related parties included in the financial statements are listed below.
2022 2021
Rm Rm
Dividends from subsidiaries – MML 700 1 030
Dividends from subsidiaries – Metropolitan Life of Botswana Ltd 56 76
Dividends from subsidiaries – Metropolitan Lesotho Ltd 85 360
Dividends from subsidiaries – Eris Property Group (Pty) Ltd 1 2
Dividends from subsidiaries – MLI – 2
Dividends from subsidiaries – Momentum Metropolitan Finance Company (Pty) Ltd1 – –

Dividends from subsidiaries – MHH – 3
Interest received – EPF 3 3
Interest received – Off the Shelf Investments (Pty) Ltd 28 34
Finance costs – KTH 37 37
1
Dividend of R79 164 declared in the current year (2021: R210 273).
Refer to notes 2, 3 and 4 for loans and receivables with related parties.
Refer to note 45 of the Group financial statements for further details on related party transactions with directors and key
management personnel.

Expected credit loss Impairment expense(reversal)

2022 2021 2022 2021
Rm Rm Rm Rm
17 RELATED PARTY TRANSACTIONS CONTINUED

17.4 Expected credit loss on loans due from related parties
Metropolitan Capital (Pty) Ltd 2 103 (101) 4
MMSI – 11 (11) 1
MIH – – – (12)
MHH – – – (3)
EPF – – – –
MM I&O – – – –
Metropolitan International Support (Pty) Ltd – – – –
C Shell 448 (Pty) Ltd – – – –
2 114 (112) (10)
18 CONTINGENT LIABILITIES
Contingent liabilities are reflected when the Company has a possible obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the Company, or it is possible but not probable that an outflow of resources will be required to settle a present obligation,
or the amount of the obligation cannot be measured with sufficient reliability. No contingent liabilities arose in both the current
and prior years.
19 CAPITAL COMMITMENTS
The Company has given a guarantee in favour of RMB and Sanlam Alternative Income Fund that MMSI will repay its obligations
due to them. The details of this guarantee have been disclosed in note 8.2.
20 RISK MANAGEMENT POLICIES

Details of financial instruments and risk management strategies are disclosed in note 7 and 35 of the Group financial statements.
The more significant financial risks to which the Company is exposed are credit risk and interest rate risk.
The Company’s capital is managed with that of the Group. The capital management of the Group is discussed in note 36 of the Group
financial statements.
20.1 Classes of financial assets and liabilities

The following table reconciles the assets and liabilities in the statement of financial position to the classes and portfolios of
assets managed in terms of mandates.
2022 2021
Rm Rm
Assets
Carried at fair value through profit or loss 339 445
Equity linked derivative 5 13
Unlisted equity securities 16 15
Carried at amortised cost 547 719
Loans 547 719
Accounts receivable – –
Investment in subsidiary companies1 27 659 27 233
Total assets 28 577 28 682
Liabilities
Carried at amortised cost 252 246
Cumulative redeemable preference shares 252 246
Other payables 720 1 002
Loans from subsidiary companies 700 982
Financial guarantee contracts 77 112
Other liabilities 1 1
1
Included in investments in subsidiaries are loans to subsidiaries of R3 million (2021: R3 million). These loans are measured at amortised cost.
The definitions of classes of financial assets and liabilities are disclosed in note 48 of the Group financial statements.

20 RISK MANAGEMENT POLICIES CONTINUED
GROUP REPORTS
20.2 Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an
obligation.
The credit risk of the Company is managed similarly to that of the Group as disclosed in note 40 in the Group financial statements.
The Company’s maximum exposure to credit risk is through the following classes of assets:
Restated1
2022 2021
Rm Rm
Financial assets at fair value through profit or loss 323 430
Equity linked derivative 5 13
CONSOLIDATED ANNUAL
Loans 547 719
Accounts receivables – –
Total assets bearing credit risk 902 1 434
Financial guarantee contracts 2 025 2 022

Financial liabilities at amortised cost
Cumulative redeemable preference shares 267 283
Other payables 721 1 003
Loans from subsidiary companies 700 982
Total liabilities bearing credit risk 3 013 3 308

1
The financial guarantee contract as well as the cumulative redeemable preference shares values were restated to provide the maximum exposure. Financial
assets measured at fair value were also included as they are exposed to credit risk.

Security and credit enhancements
• For cash and cash equivalents, the credit risk is managed through the Group’s credit risk exposure policy described in the
Group financial statements.
• Security held on loans is disclosed in note 4.
Using S&P ratings (or the equivalent thereof when S&P ratings are not available), cash and cash equivalents have a AAA (2021: AAA)
credit rating. Financial assets at amortised cost consist mainly of loans to related parties. Apart from cash and cash equivalents, the
financial assets and liabilities are unrated.
20.3 Financial assets hierarchy

The following table provides an analysis of the assets at fair value into the various levels:

Rm Rm Rm Rm
2022
Equity securities – 7 9 16
Preference shares – 318 – 318
Derivatives financial instrument held for trading – – 5 5
– 325 14 339
2021
Equity securities – 5 10 15
Preference shares – 417 – 417
Derivatives financial instrument held for trading – – 13 13
– 422 23 445


The following table provides a reconciliation of the fair value of the level 3 assets:
Derivative
Equity financial
securities instrument Total
Rm Rm Rm
2022
Opening balance 10 13 23
Transfer from other asset classes – – –
Total unrealised gains/(losses) in the income statement (1) (8) (9)
Transfers into level 3 – – –
Closing balance 9 5 14
2021
Opening balance 10 – 10
Transfer from other asset classes – 5 5
Total unrealised gains/(losses) in the income statement – 8 8
Transfers into level 3 – – –
Closing balance 10 13 23
20.4 Valuation techniques

The valuation of the Company’s assets has been classified using a fair value hierarchy that reflects the significance of the inputs
used in the valuation. The fair value hierarchy has the following levels:
• Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
• Input other than quoted prices included within level 1 that are observable for the asset, either directly (i.e. prices) or indirectly
(i.e. derived from prices) (level 2)
• Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3)
The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the
basis of the lowest level input that is significant to the fair value measurement in its entirety. If a fair value measurement uses
observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement.
Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering
factors specific to the asset or liability.
The following are the methods and assumptions for determining the fair value when a valuation technique is used in respect of
instruments classified as level 2.

Equity instrument External valuation Net asset value (assets and liabilities are carried at fair value)
Preference shares Option pricing based Share price, MMH ordinary dividend, Nominal prime rate
approach
Information about fair value measurements using significant unobservable inputs (level 3)
Range of Relationship of
Valuation Unobservable unobservable unobservable
Financial asset technique Observable input inputs inputs inputs to fair value
Derivative financial DCF Prime Risk- free rate, Could vary due to The higher the MMH
instrument held for MMH ordinary range of ordinary ordinary dividend, the
trading dividend, facilitation dividend declared: lower the value of the
cost, preference 0 cents to 40 cents derivative
share dividend Facilitation costs :
R1 million

GROUP REPORTS
20.4 Valuation techniques continued
20.4.1 Valuation techniques – sensitivity analysis – level 3 instruments
The fair value of the derivative instrument is largely driven by the ordinary dividend declared by the Company. Dividends were
declared in the current year and it has been assessed that this trend is likely to continue until redemption date.
The following table shows the impact of a change in the dividend declaration and prime rate on the fair value of the derivative.
Prime –1% Base Prime +1%

Dividend + 10 cents 4 517 549 4 483 968 4 450 386
Base 4 544 438 4 510 656 4 476 874
Dividend - 10 cents 4 574 245 4 540 241 4 450 386
20.5 Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that
are settled by delivering cash or another financial asset, arising from the possibility that the Company could be required to pay its
CONSOLIDATED ANNUAL
liabilities earlier than expected.
Liabilities at amortised cost

It is expected that the A3 preference shares will convert into ordinary shares and that there will therefore be no cash outflow on
conversion; however, if the shares are not converted, an outflow at redemption value on the redemption date, 30 November 2022
(extended by 5 months in the current year), is assumed. The Company has a further obligation to pay preference share dividends.
The cash flows for these dividends are those expected up to redemption date, even though the conversion of the preference
shares is at the option of the preference shareholder.
Other payables
Other payables include loans from subsidiary companies which are payable on demand.
The following table indicates the maturity analysis of the liabilities:

Undiscounted cash flows
Carrying
value Total 0 to 1 year 1 to 5 years
Rm Rm Rm Rm
2022
Amortised cost
Cumulative redeemable preference shares 252 267 267 –
Other payables 720 720 720 –
Financial guarantee contracts1 77 2 025 – 2 025
Total liabilities 1 049 3 012 987 2 025
2021
Amortised cost
Cumulative redeemable preference shares 246 283 37 246
Other payables 1 002 1 002 1 002 –
Other liabilities – 1 1 –
Financial guarantee contracts 112 2 022 – 2 022
Total liabilities 1 360 3 308 1 040 2 268
1
The carrying value of the financial guarantee contracts is R77 million. The liquidity exposure related to this financial guarantee is R2,025 billion, which is the
carrying value of the preference shares held by MMSI as at 30 June 2022. Refer to note 8.2.


20.6 Market risk
Introduction
• Market risk is the risk that the fair value of future cash flows of financial instruments will fluctuate as a result of changes in
market prices.
• The key component of market risk applicable to the Company is interest rate risk.
20.6.1 Interest rate risk

Interest rate risk is the risk that the value and/or future cash flows of financial instruments held will fluctuate as a result of
changes in interest rates.
Changes in market interest rates have a direct effect on the contractually determined cash flows associated with floating rate
financial assets and financial liabilities, and on the fair value of other investments. Fair values of fixed maturity investments included
in the Company’s investment portfolios are subject to changes in prevailing market interest rates. Additionally, relative values of
alternative investments and the liquidity of the instruments invested in could affect the fair value of interest rate market-related
investments. The ongoing assessment by an investment research team of market expectations within the South African interest rate
environment drives the process of asset allocation in this category.
The Company is exposed to floating interest rates that result in cash flow interest rate risk. Financial assets at amortised cost
(empowerment loans) have a weighted average interest rate of 7.2% (2021: 7%). Cash and cash equivalents have a weighted
average interest rate of 19% (2021: 3.1%).
20.6.2 Sensitivity to market risks

The Company’s earnings and net asset value are exposed to market risks. The Company has identified that changes in interest
rates have the most significant effect on earnings and equity.
The Company is exposed to floating interest rate changes only. Cash requirements fluctuate during the course of the year and
are therefore of a short-term nature. Interest rate changes with respect to cash and cash equivalents will therefore not have a
significant impact on earnings.
The Company has foreign currency exposure in so far as it relates to foreign dividends declared by its subsidiaries. The Company
has no other foreign currency exposure.
21 FINANCIAL ASSETS MEASUREMENT

Fair value
through
profit or loss Amortised
Mandatorily cost1 Total
Financial assets summarised by measurement category in terms of IFRS 9 Rm Rm Rm
2022
Equity securities 16 – 16
Loans to associates – 1 1
Preference shares 318 34 352
Empowerment partners – 262 262
Equity linked derivative 5 – 5
Intercompany loans to subsidiaries2 – 252 252
Provision for impairment on loans to subsidiary companies – (2) (2)
Cash and cash equivalents – 32 32
Total financial assets 339 579 918
2021
Equity securities 15 – 15
Loans to associates – 1 1
Preference shares 417 31 448
Empowerment partners – 262 262
Equity linked derivative 13 – 13
Intercompany loans to subsidiaries2 – 539 539
Provision for impairment on loans to subsidiary companies – (114) (114)
Cash and cash equivalents – 285 285
Total financial assets 445 1 004 1 449
1
The carrying amount of financial assets and liabilities carried at amortised cost approximates fair values.
2
Loans to subsidiaries included in note 2 are measured at amortised cost.

22 FINANCIAL LIABILITY MEASUREMENT
GROUP REPORTS
Fair value
through Other
profit or loss Amortised measurement
Financial liabilities summarised by measurement category Mandatorily cost1 basis Total
in terms of IFRS 9 Rm Rm Rm Rm
2022
Cumulative redeemable preference shares – 252 – 252
Financial guarantee contracts – – 77 77
Intercompany loans from subsidiaries – 700 – 700
Other payables – 20 – 20
Total financial liabilities – 972 77 1 049
2021
Cumulative redeemable preference shares – 246 – 246
Financial guarantee contracts – – 112 112
Intercompany loans from subsidiaries – 982 – 982
Other payables – 20 – 20
CONSOLIDATED ANNUAL
Total financial liabilities – 1 248 112 1 360
1
The carrying amount of financial assets and liabilities carried at amortised cost approximates fair values, apart from the Cumulative redeemable preference
shares as the FV is R400 million.
23 EVENTS AFTER THE REPORTING PERIOD

The redemption period of the class B preference shares in Eris Property Fund (Pty) Ltd (EPF) was extended to 15 May 2023
(refer to note 4). The resolutions were signed by a majority shareholding during September 2022.
No other material events occurred between the reporting date and the date of approval of these results.


Annexure A
Abbreviations and definitions
ABBREVIATIONS
A2X A2X Markets JIBAR Johannesburg Interbank Average Rate
ABHIL Aditya Birla Health Insurance Company Ltd JSE Johannesburg Stock Exchange
AFI Alexander Forbes Insurance KAM Key audit matters
AFIN Alexander Forbes Insurance Company KTH Kagiso Tiso Holdings (Pty) Ltd
Namibia Ltd LTIP Long-term Incentive Plan
AFS Annual Financial Statements MAFR Mandatory Audit Firm Rotation
ALBI All Bond Index MGIM Momentum Global Investment
Aluwani Aluwani Capital Partners (Pty) Ltd Management Ltd
ANW Adjusted net worth MHC Metropolitan Health Corporate (Pty) Ltd
APE Annual premium equivalent MHS Momentum Health Solutions (Pty) Ltd
APN Advisory practice note MHNA Methealth Namibia Administrators
ASISA Association for Savings and Investment (Pty) Ltd
South Africa MIH Metropolitan International Holdings (Pty) Ltd
ASSA Actuarial Society of South Africa MMH/the Company Momentum Metropolitan Holdings Ltd
aYo aYo Holdings Ltd MMI&O Momentum Metropolitan Infrastructure
B-BBEE Broad-based black economic empowerment and Operations (Pty) Ltd
BSA Bonus stabilisation accounts MML Momentum Metropolitan Life Ltd
CAE Chief Audit Executive MMSI Momentum Metropolitan Strategic
CFA Chartered Financial Analyst Investments (Pty) Ltd
CFD Contract for Differences Momentum MMH and its subsidiaries
Metropolitan/
CGU Cash-generating unit the Group
CIC Capital and Investment Committee MRKT MRKT Energy Holdings (Pty) Ltd
CIS Collective investment scheme MSPS Momentum Sales Phantom Shares
CPI Consumer Price Index MSTI Momentum Short-term Insurance
DAC Deferred Acquisition Costs NSX Namibian Stock Exchange
DCF Discounted cash flow OCR Outstanding Claims Reserve
DPF Discretionary participation features OTC Over-the-counter
DRL Deferred revenue liability PA Prudential Authority
DV Director's valuation PPFM Principles and practices of financial
DWT Dividend withholding tax management
ERM Enterprise Risk Management PVP Present value of future premiums
EV Embedded value RDR Risk discount rate
FASSA Fellow of the Actuarial Society RMB Rand Merchant Bank
FCTR Foreign Currency Translation Reserve RMI Rand Merchant Investment Holdings Ltd
FIA Fellow of the Institute of Actuaries RMIA RMI Investment Managers Affiliates 2
FSCA Financial Sector Conduct Authority (Pty) Ltd
FSV Financial Soundness Valuation ROEV Return on Embedded Value
FTSE Financial Times Stock Exchange S&P Standard & Poor’s
FVOCI Fair value through other comprehensive SAICA South African Institute of Chartered
income Accountants
FVPL Fair value through profit and loss SAM Solvency Assessment and Management
GCR Global Credit Ratings SAP Standard of Actuarial Practice
GIA Group Internal Audit SARB South African Reserve Bank
GLTD Group long-term disability table SAR Share Appreciation Right
HAFs Heads of the Actuarial Function SASAII South African Student Accommodation
IAS International Accounting Standards Impact Investments (Pty) Ltd
IBNR Incurred but not yet reported SAVCA South African Venture Capital and Private
Equity Association
IFRIC IFRS Interpretations Committee
SCR Solvency Capital Requirement
IFRS International Financial Reporting Standards
SENS Stock Exchange News Service
IFS Insurer Financial Strength
UK United Kingdom
IMA Investment management agreement
VIF Present value of in-force covered business
Inniu Inniu Underwriting Services (Pty) Ltd
VOBA Value of in-force business acquired
ISDA International Swaps and Derivatives
Agreements VNB Value of new business
ISRE International Standard on Review VWAP Volume Weighted Average Price
Engagements

DEFINITIONS
GROUP REPORTS
Adjusted net worth (ANW)
The ANW is the excess of assets over liabilities on the IFRS basis. Certain deductions for disregarded assets and impairments have been
added back.
Advisory practice notes (APNs)

ASSA issues APNs applicable to various areas of financial reporting and practice that require actuarial input. The APNs are available on the
ASSA website (www.actuarialsociety.org.za).
Annual premium equivalent (APE)

The APE is a common life industry measure of new business sales. It is calculated as annualised new recurring premiums plus 10% of
single premiums.
Basis changes
Basis and other changes are the result of changes in actuarial assumptions and methodologies, reviewed at the reporting date and used in
the reporting basis. These changes are reflected in the income statement as they occur.
CONSOLIDATED ANNUAL
Bonus stabilisation accounts (BSAs)
BSAs are the difference between the fund accounts of smoothed bonus business, or the discounted value of projected future benefit
payments for with-profit annuity business, and the market values of the underlying assets. BSA is an actuarial term that constitutes either
an asset or liability in accounting terms. The BSAs are included in contract holder liabilities.
Capitation contracts
Capitation contracts are those under which the Group accepts significant health benefit risk from medical schemes (the contract holder)
by agreeing to indemnify the scheme against a defined set of the scheme benefits (the covered event) in return for a capitation fee.
Carry positions
Carry positions consist of sale and repurchase of assets agreements containing the following instruments:
• Repurchase agreements: financial liabilities consisting of financial instruments sold with an agreement to repurchase these

instruments at a fixed price at a later date.
•
Reverse repurchase agreements: financial assets consisting of financial instruments purchased with an agreement to sell these
instruments at a fixed price at a later date.
Cash-generating units (CGUs)

A CGU is the smallest identifiable group of assets that generates cash inflows largely independent of the cash flows from other assets or
groups of assets.
Cell captive
A cell captive is a contractual arrangement entered into between the insurer (referred to as the “cell provider” or “promoter”) and the
cell shareholder whereby the risks and rewards associated with certain insurance activities accruing to the cell shareholder, in relation
to the insurer, are specified. Cell captives allow clients to purchase cell owner ordinary shares (or a “cell”) in the registered insurance
company which undertakes the professional insurance and financial management of the cell including underwriting, reinsurance, claims
management, actuarial and statistical analyses, investment and accounting services. The terms and conditions of the cell are governed by
the cell owner shareholders agreement.
Cell captive arrangements include:
• “First-party” cell arrangements where the risks that are being insured relate to the cell shareholder’s own operations or operations
within the cell shareholder’s group of companies; and
• “Third-party” cell arrangements where the cell shareholder provides the opportunity to its own client base to purchase branded
insurance products. For third-party arrangements the cell shareholders agreement meets the definition of a reinsurance contract and is
accounted for as such.
• Contingency policy: An insurance contract to provide entry-level insurance cover for first-party risks. These policies provide for payment
of a profit share to the insured based on claims experience and related expenses at the end of the policy period.
• “Promoter cell” includes assets and liabilities of the Group shareholders. Assets, liabilities, and equity of the first and third-party cell
arrangements are excluded.

Annexure A continued
DEFINITIONS CONTINUED
Compulsory margins
Life insurance companies are required to hold compulsory margins in terms of the FSV basis prescribed in SAP 104 – Calculation of the
value of the assets, liabilities and capital adequacy requirement of long-term insurers. These margins are explicitly prescribed and held as
a buffer to cover uncertainties with regard to the best-estimate assumptions used in the FSV basis. These margins are held in the contract
holder liabilities and released over time in the operating profit should experience be in line with these best-estimate assumptions.
Cost of required capital

The cost of required capital is the difference between the amount of required capital and the present value of future releases of this
capital, allowing for future net of tax investment returns expected to be earned on this capital.
Covered business
Covered business is defined as long-term insurance business written by the life insurance subsidiaries (excluding Guardrisk); including
individual smoothed bonus, linked and market-related business, reversionary bonus business, group smoothed bonus business, annuity
business and other non-participating businesses.
Discretionary margins
In addition to compulsory margins, insurance companies may hold further discretionary margins where the HAFs believe that:
• the compulsory margins are insufficient for prudent reserving; or

• company practice or policy design justifies the deferral of profits.
Discretionary participation feature (DPF)

A DPF is a contractual right to receive, as a supplement to guaranteed benefits, additional benefits or bonuses:
• that are likely to be a significant portion of the total contractual benefits;

• whose amount or timing is contractually at the discretion of the issuer; and
• that are contractually based on:
– the performance of a specified pool of contracts or a specified type of contract;
– the realised and/or unrealised investment returns on a specified pool of assets held by the issuer; or
– the profit or loss of the company, fund or other entity that issues the contract.
Effective exposure
The exposure of a derivative financial contract or instrument to the underlying asset by also taking delta (the ratio comparing the change
in the price of the underlying asset to the corresponding change in the price of a derivative) into account where applicable.
Effective interest rate

The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts over the expected life of the
financial instrument, or when appropriate a shorter period, to the net carrying amount of the financial asset or liability.
Effective interest rate method

The effective interest rate method is a method of calculating the amortised cost of a financial asset or liability and of allocating the
interest income or interest expense over the relevant period.
Embedded value (EV)

An EV represents the discounted value of expected after-tax future profits from the current business. The EV is defined as:
• the ANW of covered and non-covered business;

• plus the VIF less the opportunity cost of required capital; and
• plus the write-up to directors’ value of non-covered business.
EV earnings
EV earnings is defined as the change in EV (after non-controlling interests) for the year, after adjustment for any capital movements such
as dividends paid, capital injections and cost of treasury shares acquired or disposed of for the year.
Financial soundness valuation (FSV)

The FSV basis is prescribed by SAP 104 – Calculation of the value of the assets, liabilities and solvency capital requirement of long-term
insurers – and uses best estimate assumptions regarding future experience together with compulsory and discretionary margins for
prudence and deferral of profit emergence. For IFRS reporting purposes, this basis is used for the valuation of insurance contracts and
investment contracts with DPF.

GROUP REPORTS
Fund account
The fund account is the retrospective accumulation of premiums, net of charges and benefit payments at the declared bonus rates or at
the allocated rate of investment return.
Investment variances
Investment variances represent the impact of higher/lower than assumed investment returns on after tax profits.
New business profit margin

New business profit margin is defined as the VNB expressed as a percentage of the PVP. New business profit margin is also expressed as
a percentage of APE.
Non-covered business includes the directors’ valuations of the investment management entities, South African health operations, non-life
insurance operations, the Guardrisk entities, as well as other non-insurance entities. The Group EV is also adjusted to allow for future
holding company and international support expenses.
Normalised headline earnings
CONSOLIDATED ANNUAL
Normalised headline earnings adjust the JSE definition of headline earnings for the dilutive impact of finance costs related to preference
shares that can be converted into ordinary shares of the Group, the impact of treasury shares held by policyholder funds and the iSabelo
Trust, the amortisation of intangible assets arising from business combinations and B-BBEE costs. Additionally, the iSabelo special
purpose vehicle, which houses preference shares issued as part of the employee share ownership scheme's funding arrangement is
deemed to be external from the Group and the discount at which the iSabelo Trust acquired the MMH treasury shares is amortised over
a period of 10 years and recognised as a reduction to normalised headline earnings.
Objective evidence of impairment

Objective evidence of impairment is related to the specific circumstances of each individual asset and can be the combined effect of
several events. Objective evidence includes, but is not limited to:
• Significant financial difficulty of the issuer or debtor.

• A breach of contract, such as a default or delinquency in payment.
• It becomes probable that the issuer or debtor will enter bankruptcy or other financial reorganisation.

• The disappearance of an active market for that financial asset because of financial difficulties.
• Observable data that there is a measurable decrease in the estimated future cash flows from the asset since the initial recognition of
the asset.
Open-ended instruments
The open-ended category includes financial instruments with no fixed maturity date as management is unable to provide a reliable
estimate given the volatility of equity markets and policyholder behaviour.
Prescribed officers
Prescribed officers as referred to in the Companies Act, 71 of 2008, are defined as follows – despite not being a director of a particular
company, a person is a prescribed officer of the company if that person:
• exercises general executive control over and management of the whole, or a significant portion, of the business and activities of the
company; or
• regularly participates to a material degree in the exercise of general executive control over and management of the whole, or a
significant portion, of the business and activities of the company.
The Group does not consider any employee that is not a director to be a prescribed officer as the functions of general executive control
over significant portions of the business are performed by the executive directors.
Present value of future premiums (PVP)

The PVP is the present value of future premiums in respect of new business discounted using the RDR. The future premiums are net of
reinsurance and are based on best-estimate assumptions such as future premium growth, mortality and withdrawal experience.
Present value of in-force covered business (VIF)

The gross VIF is the discounted present value of expected future after-tax profits as determined on the IFRS basis, in respect of covered
business in force at the valuation date. The net VIF is the gross VIF less the cost of required capital. No account is taken of dividend
withholding tax.
Related party transactions – key management personnel

Key management personnel are those persons, including close members of their families, having authority and responsibility for planning,
directing and controlling the activities of the Group, directly or indirectly, including any director (whether executive or otherwise) of the Group.

Annexure A continued
Reporting basis
Reporting basis is the basis on which the financial statements are prepared.
Required capital
Required capital includes any assets attributed to covered business over and above the amount required to back covered business
liabilities whose distribution to shareholders is restricted.
Return on EV
Return on EV is the EV earnings over the period expressed as a percentage of the EV at the beginning of the period, adjusted for capital
movements during the year.
Risk discount rate (RDR)

The RDR is the rate at which future expected profits are discounted when calculating the value of in-force business or the VNB. The RDR
is determined based on the weighted average cost of capital of the Company. This has taken into account the sources of capital used
to fund the covered business, ie shareholder equity and subordinated debt finance. The required return on equity was derived through
application of the capital asset pricing model. The cost of debt financing was based on current financing costs.
Significant influence
Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control over
those policies.
Unit-linked investments consist of investments in CISs, private equity fund investments and other investments where the value is
determined based on the value of the underlying investments.
Unrated
The Group invests in unrated assets where investment mandates allow for this. These investments are, however, subject to internal credit
assessments.
Useful life
Useful life is the period over which an asset is expected to be available for use by the Group.
Value of new business (VNB)

The VNB is the discounted present value of expected future after-tax profits from new business at point of sale less the cost of required
capital at risk. No allowance is made for the impact of dividend withholding tax. Allowance is made for all expenses associated with
underwriting, selling, marketing and administration incurred in the effort of obtaining new business.
CREDIT RISK DEFINITIONS

AAA
National scale ratings denote the highest rating that can be assigned. This rating is assigned to the best credit risk relative to all other issuers.
AA
National ratings denote a very strong credit risk relative to all other issuers.
A
National ratings denote a strong credit risk relative to all other issuers.
BBB
National ratings denote an adequate credit risk relative to all other issuers.
BB
National ratings denote a fairly weak credit risk relative to all other issuers.
B
National ratings denote a significantly weak credit risk relative to all other issuers.
CCC
National ratings denote an extremely weak credit risk relative to other issuers.

Annexure B
Additional information
Restated
GROUP REPORTS
2022 20212
Analysis of assets managed and/or administered1 Rm Rm
Managed and/or administered by Investments
Financial assets 502 218 477 068
Momentum Manager of Managers 150 285 90 087
Equilibrium Investment Management (previously Momentum Investment Consultants) 13 607 10 922
Momentum Collective Investments 96 744 92 454
Momentum Asset Management 137 071 165 627
Momentum Global Investments 70 000 77 071
Momentum Alternative Investments 8 763 7 682
Momentum Securities3 25 748 33 225
Properties – Eris Property Group 16 509 15 588
On-balance sheet 4
9 302 9 410
Off-balance sheet4 7 207 6 178
Momentum Wealth linked product assets under administration 206 630 198 829
CONSOLIDATED ANNUAL
On-balance sheet 135 121 129 387
5, 6
Off-balance sheet 71 509 69 442

Managed internally or by other managers within the Group (on-balance sheet) 86 440 85 787
Managed by external managers (on-balance sheet) 14 397 16 993
Properties managed internally or by other managers within the Group or externally4 2 761 2 528
Non-life Insurance – cell captives on-balance sheet7 30 377 25 541
Total assets managed and/or administered 859 332 822 334
Managed and/or administered by Investments
On-balance sheet 258 141 231 703
Off-balance sheet 244 077 245 365
502 218 477 068
Admin and brokerage assets 119 350 135 882
Other assets 382 868 341 186
502 218 477 068

1
Assets managed and/or administered, other than CIS assets, are included where an entity earns a fee on the assets. The total CIS assets are included in Momentum
Collective Investments only as this is where the funds are housed. Non-financial assets (except properties) have been excluded.
2
Refer to note 47 for more information on the restatements other than footnotes 3, 4, 5, 6 and 7.
3
R346 million restatement relates to a market value movement that was not included in the June 2021 closing balance for Momentum Securities.
4
R1.5 billion was misallocated between on- and off-balance sheet assets. June 2021 has been restated accordingly.
5
Upon further investigation it was noted that R11 billion on-balance sheet assets were better suited to be disclosed as Momentum Wealth linked assets rather than
Managed internally or by other managers within the Group. 30 June 2021 has been restated accordingly.
6
R7 billion in on-balance sheet assets were incorrectly calculated in Momentum Wealth linked assets. 30 June 2021 has been restated accordingly.
7
R5 billion restatement relates to a calculation error in the closing balance of cell captives on-balance sheet assets.

Annexure B continued
Additional information
Gross
Gross single recurring Net inflow/
inflows inflows Gross inflow Gross outflow (outflow)
Net funds received from clients1 Rm Rm Rm Rm Rm
12 mths to 30.06.2022
Momentum Life 497 9 392 9 889 (11 250) (1 361)
Momentum Investments 29 863 869 30 732 (27 035) 3 697
Metropolitan Life 1 789 6 450 8 239 (6 485) 1 754
Momentum Corporate 4 711 12 798 17 509 (19 917) (2 408)
Momentum Metropolitan Health – 1 186 1 186 (724) 462
Non-life Insurance 3 128 10 907 14 035 (6 373) 7 662
Momentum Metropolitan Africa 1 605 4 015 5 620 (3 418) 2 202
Long-term insurance business fund flows 41 593 45 617 87 210 (75 202) 12 008
Off-balance sheet fund flows
Managed and/or administered by Investments 97 003 (99 080) (2 077)
Properties – Eris Property Group 1 119 (90) 1 029
Momentum Wealth linked product assets under
administration 13 289 (10 702) 2 587
Total net funds received from clients 198 621 (185 074) 13 547
Restated
12 mths to 30.06.20212
Momentum Life 540 8 976 9 516 (10 718) (1 202)
Momentum Investments 31 595 766 32 361 (29 551) 2 810
Metropolitan Life 1 424 6 233 7 657 (6 564) 1 093
Momentum Corporate 2 518 12 346 14 864 (18 102) (3 238)
Momentum Metropolitan Health 1 931 932 (633) 299
Non-life Insurance 1 855 9 291 11 146 (6 840) 4 306
Momentum Metropolitan Africa 972 3 867 4 839 (2 701) 2 138
Long-term insurance business fund flows 38 905 42 410 81 315 (75 109) 6 206
Off-balance sheet fund flows
Managed and/or administered by Investments 90 706 (85 073) 5 633
Properties – Eris Property Group 763 (2 917) (2 154)
Momentum Wealth linked product assets under
administration 12 853 (9 823) 3 030
Total net funds received from clients 185 637 (172 922) 12 715
1
Assets managed and/or administered, other than CIS assets, are included where an entity earns a fee on the assets. The total CIS assets are included in Momentum
Collective Investments only as this is where the funds are housed. Non-financial assets (except properties) have been excluded.
2

2022 2021
GROUP REPORTS
Analysis of assets backing shareholder excess Rm % Rm %
Equity securities 1 161 4.7 1 659 7.7
Preference shares 356 1.4 859 4.0
CISs 966 3.9 1 059 4.9
Debt securities 7 208 29.3 7 030 32.6
Properties 3 850 15.7 3 761 17.4
Owner-occupied properties 2 477 10.1 2 454 11.4
Investment properties 1 373 5.6 1 307 6.1
Cash and cash equivalents and funds on deposit 10 400 42.2 5 172 24.0
Intangible assets 4 617 18.8 5 168 24.0
Other net assets 2 690 10.9 3 004 13.8
31 248 126.9 27 712 128.4
Redeemable preference shares (252) (1.0) (245) (1.1)
Subordinated redeemable debt (5 327) (21.6) (4 429) (20.5)
Treasury shares held on behalf of employees (641) (2.6) (876) (4.1)
Treasury shares held on behalf of contract holders (407) (1.7) (587) (2.7)
CONSOLIDATED ANNUAL
Shareholder excess per reporting basis 24 621 100.0 21 575 100.0
Number of employees 2022 2021

Indoor staff 9 940 9 882
SA 8 867 8 841
International 1 073 1 041
Field staff 6 618 6 601
Momentum Life and Investments 1 430 1 105
International 1 186 1 288
Total 16 558 16 483


Shareholder profile
Number
of share- % of issued Shares held
Shareholder holders share capital (million)
Non-public
Directors 6 0.1 2
Kagiso Tiso Holdings (Pty) Ltd 1 7.4 114
Government Employees Pension Fund 5 14.5 221
Public
Private investors 29 732 5.8 89
Pension funds 355 5.6 85
CISs and mutual funds 2 468 61.7 940
Banks and insurance companies 95 4.9 75
Total 32 662 100.0 1 526
An estimated 249 million shares (2021: 153 million shares) representing 16.3% (2021: 10.0%) of total shares are held by foreign investors.
Number % of total
of share- share- Shares held % of issued
Size of shareholding holders holders (million) share capital
1 – 5 000 29 850 91.4 17 1.1
5 001 – 10 000 911 2.8 7 0.4
10 001 – 50 000 1 034 3.2 23 1.5
50 001 – 100 000 253 0.8 18 1.2
100 001– 1 000 000 482 1.5 147 9.7
1 000 001 and more 132 0.3 1 314 86.1
Total 32 662 100.0 1 526 100.0
Shares held % of issued

Beneficial owners (million) share capital
Government Employees Pension Fund 221 14.5
Remgro Ltd 123 8.1
Kagiso Tiso Holdings (Pty) Ltd 114 7.4
Total 458 30.0
Pursuant to the provisions of section 56(7)(b) of the Companies Act, 71 of 2008, as amended, beneficial shareholdings exceeding 5% in
aggregate, as at 30 June 2022, are disclosed.

Stock exchange performance
2022 2021
GROUP REPORTS
12 months
Value of listed shares traded (Rm) 15 944 18 628
Volume of listed shares traded (million) 885 1 156
Shares traded (% of average listed shares in issue) 62 81
Trade prices
Highest (cents per share) 2 270 2 098
Lowest (cents per share) 1 405 1 282
Last sale of year (cents per share) 1 426 1 950
Percentage (%) change during year (27) 11
Percentage (%) change – life insurance sector (J857) (8) 9
Percentage (%) change – top 40 index (J200) – 20
30 June
Price normalised headline earnings (segmental) ratio 5.0 29.1
Dividend yield % (dividend on listed shares) 7.0 2.1
Dividend yield % – top 40 index (J200) 3.8 2.4
Total shares issued (million)
CONSOLIDATED ANNUAL
Ordinary shares listed on JSE 1 498 1 498
Treasury shares held on behalf of employees (45) (45)
Treasury shares held on behalf of contract holders (29) (30)
Basic number of shares in issue 1 424 1 423
Adjustment to employee share scheme1 7 –
Convertible redeemable preference shares2 28 –
Diluted number of shares in issue 1 459 1 423
Adjustment to employee share scheme shares1 (7) –
Convertible redeemable preference shares2 – 28
Diluted number of shares in issue for normalised headline earnings purposes3 1 526 1 526
Market capitalisation at end (Rbn)4 22 30
1
The diluted number of shares in issue includes the dilutive potential ordinary shares from the iSabelo employee scheme. The diluted number of shares in issue for

normalised headline earnings does not include this adjustment as these shares are deemed to be issued.
2
On a diluted basis, the KTH preference shares were anti-dilutive in the prior year. For diluted earnings and headline earnings, these preference shares were therefore
ignored in accordance with IAS 33 for that year. Normalised headline earnings treats the preference shares as if they were ordinary equity. This treatment is consistent
with how the preference shares are treated when dilutive.
3
The diluted number of shares in issue takes into account all issued shares, assuming conversion of the convertible redeemable preference shares, and includes the
treasury shares held on behalf of contract holders as well as the treasury shares held on behalf of employees.
4
The market capitalisation is calculated on the fully diluted number of shares in issue.

Shareholder diary
Financial year end 30 June 2022

Reporting Interim results 9 March 2022
Trading update for the 9 months to March 2022 30 May 2022
Announcement of year-end results 14 September 2022
Annual report published 14 September 2022
Trading update for the 3 months to September 2022 22 November 2022
Annual general meeting 24 November 2022
Administration
Group Company Secretary and registered office Sponsor – South Africa

Gcobisa Tyusha Merrill Lynch South Africa (Pty) Ltd t/a BofA Securities
268 West Avenue
Centurion Transfer secretaries – South Africa
Telephone: +27 12 673 1931 Link Market Services SA (Pty) Ltd
[email protected] 13th Floor
19 Ameshoff Street
Investor relations Braamfontein
[email protected] 2001
PO Box 4844, Johannesburg 2000
Company registration
2000/031756/06 Sponsor – Namibia
Simonis Storm Securities (Pty) Ltd
Internet address
http://www.momentummetropolitan.co.za Transfer secretaries – Namibia
Transfer Secretaries (Pty) Ltd
Auditors 4 Robert Mugabe Avenue
Ernst & Young Inc. Burg Street Entrance
Windhoek, Namibia
Share codes PO Box 2301, Windhoek, Namibia
JSE – MTM
A2X – MTM Debt sponsor
NSX – MMT Rand Merchant Bank

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MOMENTUM METROPOLITAN

Audited Annual Financial Statements

CONSOLIDATED ANNUAL FINANCIAL STATEMENTS

192 MOMENTUM METROPOLITAN HOLDINGS LTD ANNUAL FINANCIAL STATEMENTS

Our reporting for the year ended 30 June 2022

RESPONSIBILITY FOR FINANCIAL STATEMENTS

To enable the Board to meet these responsibilities:

MOMENTUM METROPOLITAN HOLDINGS LTD

Centurion, 12 September 2022 Centurion, 12 September 2022

MOMENTUM METROPOLITAN HOLDINGS GROUP ANNUAL FINANCIAL STATEMENTS 2022 | 1

Hillie Meyer Risto Ketola

Centurion, 12 September 2022 Centurion, 12 September 2022

Certificate by the Group Company Secretary

Centurion, 12 September 2022

2 | MOMENTUM METROPOLITAN HOLDINGS GROUP ANNUAL FINANCIAL STATEMENTS 2022

REPORT ON THE AUDIT OF THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

Basis for Opinion

Key Audit Matters

MOMENTUM METROPOLITAN HOLDINGS LTD

MOMENTUM METROPOLITAN HOLDINGS GROUP ANNUAL FINANCIAL STATEMENTS 2022 | 3

The disclosures around the key assumptions and methodologies

We have split the risks relating to the valuation of insurance

4 | MOMENTUM METROPOLITAN HOLDINGS GROUP ANNUAL FINANCIAL STATEMENTS 2022

MOMENTUM METROPOLITAN HOLDINGS LTD

MOMENTUM METROPOLITAN HOLDINGS GROUP ANNUAL FINANCIAL STATEMENTS 2022 | 5

6 | MOMENTUM METROPOLITAN HOLDINGS GROUP ANNUAL FINANCIAL STATEMENTS 2022

• Directors’ responsibility and approval

MOMENTUM METROPOLITAN HOLDINGS LTD

MOMENTUM METROPOLITAN HOLDINGS GROUP ANNUAL FINANCIAL STATEMENTS 2022 | 7

8 | MOMENTUM METROPOLITAN HOLDINGS GROUP ANNUAL FINANCIAL STATEMENTS 2022

Director: JC de Villiers CA(SA)

102 Rivonia Road

MOMENTUM METROPOLITAN HOLDINGS GROUP ANNUAL FINANCIAL STATEMENTS 2022 | 9

EMPHASIS OF MATTER – BASIS OF ACCOUNTING

Director: JC de Villiers CA(SA)

102 Rivonia Road

10 | MOMENTUM METROPOLITAN HOLDINGS GROUP ANNUAL FINANCIAL STATEMENTS 2022

MOMENTUM METROPOLITAN LIFE LTD REQUIRED CAPITAL

OTHER COVERED BUSINESS

ASSETS BACKING REQUIRED CAPITAL

MOMENTUM METROPOLITAN HOLDINGS GROUP ANNUAL FINANCIAL STATEMENTS 2022 | 11

Diluted embedded value – non-covered business 12 198 11 430

12 | MOMENTUM METROPOLITAN HOLDINGS GROUP ANNUAL FINANCIAL STATEMENTS 2022

Net value of in-force business 20 650 20 706

Adjusted Net value Restated

MOMENTUM METROPOLITAN HOLDINGS LTD

Total covered business 12 580 20 650 33 230 29 898

Required capital 10 936 10 881

Operating segments embedded value 31 586 31 587

MOMENTUM METROPOLITAN HOLDINGS GROUP ANNUAL FINANCIAL STATEMENTS 2022 | 13

Total non-covered business 9 899 2 299 12 198 11 430

14 | MOMENTUM METROPOLITAN HOLDINGS GROUP ANNUAL FINANCIAL STATEMENTS 2022

Embedded value profit/(loss) from operations 3 127 682 17 3 826 (545)

MOMENTUM METROPOLITAN HOLDINGS LTD

MOMENTUM METROPOLITAN HOLDINGS GROUP ANNUAL FINANCIAL STATEMENTS 2022 | 15

Adjusted Gross value Cost of

16 | MOMENTUM METROPOLITAN HOLDINGS GROUP ANNUAL FINANCIAL STATEMENTS 2022

MOMENTUM METROPOLITAN HOLDINGS LTD

MOMENTUM METROPOLITAN HOLDINGS GROUP ANNUAL FINANCIAL STATEMENTS 2022 | 17