Rand Merchant Investment Holdings

Rand Merchant Investment Holdings, also referred to as RMI Holdings, is a listed financial services investment holding company[1] that holds various insurance brands in South Africa, Australia, China, Mauritius, New Zealand, Republic of Ireland, Singapore, the United Kingdom and the United States of America.[2]

Rand Merchant Investment Holdings
TypePublic
JSE: RMIJ
IndustryInsurance & Financial services
Founded2010
HeadquartersRosebank, South Africa
Key people
Jannie Durandt - Chairman
Hermanus Bosman - CEO
ProductsInsurance and Asset Management
Revenue ZAR: 13.69 billion (2015)
ZAR: 3.51 billion (2015)
Total assets ZAR: 32.32 billion (2015)
Total equity ZAR: 18.08 billion (2015)
WebsiteHomepage

Overview

RMI Holdings is listed on the JSE and insurance and investment products and services to retail, commercial, corporate and public sector customers. The group has its headquarters in Sandton, South Africa.

History

RMI Holdings was incorporated and registered in South Africa on 24 March 2010 as a wholly owned subsidiary of RMB Holdings.[3] On 7 March 2011, RMB Holdings (RMBH), Remgro and FirstRand span off their insurance assets to RMI Holdings and separately listing it on the JSE.

RMB Holdings Restructure

The RMB Holdings restructure was announced on 10 December 2010. Its aim was to create separate focused insurance and banking entities. Prior to the restructure RMB Holdings portfolio comprised[4]

  • FirstRand – 30% Shareholding.
  • OUTsurance – 58.5% Shareholding – RMB Holdings held 45% of OUTsurance directly and an additional 45% through FirstRand bring the total control to 58.5%.
  • Momentum Metropolitan Holdings – 18% Shareholding.
  • Discovery – 25% Shareholding.
  • RMB-Structured Insurance – 76% Shareholding.

The restructure was aimed at separating of RMBH's insurance and banking interests and was executed as follows:[4]

  • The transfer of the RMBH, Remgro and FirstRand's insurance interests to its newly incorporated wholly owned subsidiary, RMI Holdings. These insurance assets were transferred in exchange of additional shares in RMI Holdings.
  • The unbundling of RMBH's shares in RMI Holdings to RMBH shareholders and the separate listing of RMI Holdings on the JSE by way of introduction. RMI Holdings would then become an insurance-focused investment entity.

Post Restructure

The RMBH restructure was completed on 7 March 2011[5] and the shares of RMIH started trading at the JSE on the same day.[6] This restructure was made possible due to the common shareholding in RMB Holding, Remgro and FirstRand. However, to date RMB Holdings and RMI Holdings share the same management team and resources under a management contract.[7]

In January 2016, the firm changed its name to Rand Merchant Investment Holdings. This was in line with the firm's strategy to invest in the broader financial services sector and beyond the insurance industry.[8] In the same year, RMI Holdings announced that it would be selling its entire shareholding in RMB-SI to Santam.[9]

Member companies

The companies that compose RMI Holdings are divided into two categories:[10]

Listed investments
  1. Discovery Limited – South Africa – 25.8% Shareholding[11] – This is an integrated financial services organisation operating in the health insurance, life assurance, investment and health and wellness markets. Discovery operates in South Africa, the United Kingdom, China, Singapore and the United States through various brands.[12] Discovery Limited's stock is listed on the JSE
  2. MMI Holdings Limited – South Africa – 25.2% Shareholding[13] – MMI Holdings was formed through the merger of Momentum and Metropolitan. It is a leading financial services group conducting business in South Africa and elsewhere in Africa providing life insurance, short-term insurance, healthcare administration, asset management, investment and employee benefit programmes. Its stock is listed on the JSE.[14]

Unlisted investments

RMI Holdings unlisted investments include:

  1. OUTsurance Holdings Limited – South Africa – 83.6% Shareholding – OUTsurance is a holding company with subsidiaries that conduct both short and long-term insurance activities.[15] Its subsidiaries include:[16]
    • OUTsurance Life Insurance Company – South Africa – 100% Shareholding – Offering Life Insurance to the South African public.
    • OUTsurance Insurance Company Limited – South Africa – 100% Shareholding – Offering General Insurance.
    • Youi (Proprietary) Limited – Australia – 93% Shareholding – Offering General Insurance
    • Youi New Zealand – New Zealand – 93% Shareholding – Offering General Insurance
    • OUTsurance Namibia Insurance Company Limited – Namibia – 49% Shareholding – Offering General Insurance. FNB Namibia owns 51% of the venture.
  2. RMI Investment Managers – South Africa – 100%Shareholding – The Investment advisory arm of the group.
  3. Hastings Group Holdings plc – UK – 29.9% Shareholding – A general insurance provider listed on the LSE.[17]
  4. Entersekt – South Africa – 25.1%Shareholding – An online banking security company.
  5. AlphaCode – South Africa – 100%Shareholding – A technology venture capital firm in South Africa.
  6. Merchant Capital – South Africa – 25.1%Shareholding – A provider of working capital finance to SMEs in South Africa.[18] Held through AlphaCode.
  7. Prodigy Finance – UK – 3.5% Shareholding – an online platform that enables financing for international postgraduate students whilst delivering financial returns to investors.

Former investments
  1. RMB-SI Investments Proprietary Limited – South Africa – RMB-SI trades in the short term and long term insurance sectors.[19] RMIH sold its entire 76% Shareholding in RMB-SI to Santam in March 2017.[20] RMB-SI included the following investments:[21][22]
    • RMB Structured Insurance Limited – South Africa – 100% Shareholding
    • RMB Structured Life Limited – South Africa – 100% Shareholding
    • RMB-SI Investments Mauritius Limited – Mauritius – 100% Shareholding
    • RMB Financial Services Limited – Republic of Ireland – 100% Shareholding
    • HCV Underwriting Managers Proprietary Limited – South Africa – 30% Shareholding
    • Truffle Capital Proprietary Limited – South Africa – 23.4% Shareholding
    • CIB Insurance Administrators Proprietary Limited – South Africa – 10.4% Shareholding
    • Cyan Capital Proprietary Limited – South Africa – 10.44% Shareholding

Ownership

The shares of RMI Holdings are listed on the JSE. As of 30 June 2017 the shareholding of RMI Holdings was as follows:[23]

Rand Merchant Investment Holdings
RankName of OwnerPercentage Ownership
1Financial Securities Limited129.9
2Royal Bafokeng Holdings Proprietary Limited214.8
3Allan Gray8.0
4Public Investment Corporation7.0
5Others Local and International Investors 40.3
Total100.00

1→ Financial Securities Limited is a wholly owned subsidiary of Remgro.

Governance

RMI Holdings is governed by a sixteen-person board of directors with Gerrit Thomas Ferreira as the chairman of the board and Hermanus Lambertus Bosman as the CEO.[23] RMI Holdings shares a board with RMB Holdings.

See also

References
  1. "RMI Holdings Details". Bloomberg Business Week. Bloomberg L.P. Retrieved 13 December 2014.
  2. "RMIH - Key facts". Rand Merchant Insurance Holdings. Retrieved 13 December 2014.
  3. "RMIH - History". Rand Merchant Insurance Holdings. Retrieved 13 December 2014.
  4. "RMB Holdings Limited - Circular to shareholders regarding the RMBH restructuring" (PDF). RMB Holdings Limited. 3 February 2011. Retrieved 13 December 2014.
  5. "Pre-listing statement of RMI Holdings relating to the listing of RMI Holdings on the JSE with effect from the commencement of business on 7 March 2011" (PDF). Rand Merchant Insurance Holdings. 3 February 2011. Retrieved 13 December 2014.
  6. "Rand Merchant Insurance makes JSE debut". Fin24. Fin24. 7 March 2011. Retrieved 13 December 2014.
  7. Cairns, Patrick (8 February 2012). "The Investment Case – Rand Merchant Insurance Holdings Ltd". Moneyweb. Moneyweb Holdings. Retrieved 13 December 2014.
  8. "RMI to trade under new name". BDLive. 18 January 2015. Retrieved 19 January 2015.
  9. "RMI and Santam announce the acquisition of 100% of RMB-SI Investments Proprietary Limited ("RMB-SI")" (PDF). RMIH. 23 August 2016. Retrieved 7 December 2016.
  10. "RMIH - Investment portfolio". RMIH. Retrieved 26 December 2017.
  11. "Discovery Limited 2014 Annual Report" (PDF). Discovery Limited. 30 June 2014. Retrieved 13 December 2014.
  12. "Discovery Limited". Discovery Limited. Retrieved 13 December 2013.
  13. "MMI Holdings Integrated Report 2013". MMI Holdings. 30 June 2013. Retrieved 13 December 2014.
  14. "MMI Holdings - About us". MMI Holdings. Retrieved 13 December 2014.
  15. "History and Culture at OUTsurance". OUTsurance Holdings Limited. Retrieved 13 December 2014.
  16. "OUTsurance Holdings Limited - 2013 Annual Report". OUTsurance Holdings Limited. 30 June 2013. Retrieved 13 December 2014.
  17. "Statement re: Acquisition of up to 29.9% holding in the Company by RMI". 14 December 2016. Retrieved 26 December 2017.
  18. "Merchant Capital - About us". Merchant Capital. Retrieved 19 January 2016.
  19. "RMB-SI - About Us". RMB-SI Investments Proprietary Limited. Retrieved 14 December 2014.
  20. "Santam enhances structured solutions offering with RMB-SI acquisition". Santam. 22 March 2017. Retrieved 26 December 2017.
  21. "RMB-SI - Strategic Investments". RMB-SI Investments Proprietary Limited. Retrieved 13 December 2014.
  22. "RMB-SI Group Structure". RMB-SI Investments Proprietary Limited. Retrieved 13 December 2014.
  23. "Rand Merchant Insurance Holdings 2017 Integrated report" (PDF). Rand Merchant Insurance Holdings. 30 June 2017. Retrieved 26 December 2017.
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