MMI Holdings, the JSE-listed life insurer, is expecting a surge of 60 and 80 percent in earnings a share and diluted headline earnings a share respectively for the six months to December, it said on Wednesday.

The company, which is the third biggest life assurer on the JSE and was formed after the merger of Metropolitan and Momentum, said earnings per share and diluted headline earnings per share are expected to be between 85 and 100 cents a share respectively.

In 2010, Metropolitan Holdings and FirstRand‘s Momentum merged by way of FirstRand selling the entire issued ordinary share capital of Momentum to Metropolitan. And Metropolitan issued new Metropolitan ordinary shares to FirstRand.

Following the implementation of the merger, FirstRand unbundle all its shares in the merged entity to its shareholders and no longer has a direct shareholding in Momentum.

As a result, FirstRand shareholders own around 60 percent and current Metropolitan shareholders about 40 percent of the entity.

The transaction was seen by the parties as a way for the new combined entity to create the third largest listed insurance player and a way for FirstRand to unlock value for shareholders.

Core headline earnings are a measure of performance used by MMI in addition to earnings and headline earnings. Core headline earnings are regarded by the directors of MMI as an appropriate measure of longer-term operational performance, given that items of both a once-off and an inherently volatile nature are eliminated.

MMI will be releasing interim results for the six months ended 31 December 2012 on 6 March 2013.