Major South African Medical Aid Undergoes Big Change After 43 Years

• Momentum Health will take over the administration of Bonitas Medical Fund from June 2026
• The agreement reportedly marks a record shift in South Africa's medical scheme administration sector
• Momentum forecasts growth despite economic challenges, aiming for R7 billion in headline earnings by 2027

Justin Williams, a journalist at Briefly News since 2024, covers South Africa’s current affairs. Before joining Briefly News, he served as a writer and chief editor at Right for Education Africa’s South African chapter.

Momentum Health will assume administration of Bonitas Medical Fund from 1 June 2026, in what has been described as the largest transfer of a medical scheme between administrators in South Africa.

Partnership will end on 31 May

According to BusinessTech, the agreement will see Momentum Health provide a full suite of administrative services, replacing Medscheme, whose 43-year partnership with Bonitas will end on 31 May 2026. Momentum Group chief executive Jeanette Marais said the appointment confirmed the group's position in the health administration market and marked a record shift in the sector. The deal will add more than 750,000 beneficiaries to Momentum's administration base and increase its market share from 22% to 30%, making it the second-largest medical scheme administrator after Discovery.

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The update formed part of Momentum's interim results for the six months to December 2025, during which the group reported an 8% increase in normalised headline earnings to R3.7 billion. Momentum said the growth reflected disciplined execution of its strategy and the resilience of its diversified operations. The group declared a dividend of 110 cents per share, up 29%, supported by contributions from several business units, including life annuities in Momentum Investments, improved new business profitability in Metropolitan Life, higher group risk earnings in Momentum Corporate, strong underwriting performance in Momentum Insure and results from Guardrisk.

On track to meet its financial targets

Momentum said the outlook for South Africa pointed to modest but improving growth, supported by lower inflation targets, improved energy supply and stronger investor sentiment. It added that the country's removal from the Financial Action Task Force grey list and a recent credit rating upgrade were positive developments, although high unemployment, logistical constraints and cost-of-living pressures continued to weigh on growth and margins. The group said global conditions remained volatile due to geopolitical tensions, contributing to higher energy prices and inflationary pressures.

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Momentum added that it remained on track to meet its financial targets for the 2027 financial year, including normalised headline earnings of R7 billion, a return on equity of 20% and a value of new business margin of between 1% and 2%. Headline earnings per share increased by 13% to 274.4 cents, while basic earnings per share rose by 6% to 259.9 cents. By March 2026, the group had repurchased 21.7 million shares at an average price of R36.73 per share, for a total consideration of R796 million, representing a discount of 17.5% to the embedded value of R44.55 per share as at 31 December 2025.

Make or break year for Volkswagen South Africa

In other business-related news, Briefly News reported that Volkswagen South Africa warned that 2026 is crucial for its future, amidst uncertainty in local investment.

MD Martina Biene highlighted the urgent need for policy changes to safeguard the automotive industry in SA.

Source: Briefly News