Open main menu

MMI Holdings Limited

MMI Holdings Limited, commonly referred to as MMI Holdings, is a South African based financial services group that is listed on the Johannesburg Stock Exchange.[1]

MMI Holdings Limited
Public
Traded asJSE:MMI
IndustryInsurance & Financial services
Founded2010
HeadquartersCenturion, South Africa
Key people
Johnson Njeke - Chairman
Hillie Meyer - CEO
ProductsInsurance and Asset Management
RevenueIncrease ZAR: 28.1 billion (2014)
Increase ZAR: 3.3 billion (2014)
Total assetsIncrease ZAR: 414 billion (2014)
Total equityIncrease ZAR: 25.2 billion (2014)
Number of employees
17,976
WebsiteHomepage

Contents

OverviewEdit

MMI Holdings Limited engages in long and short-term insurance, asset management, savings, investment and employee benefits through its various brands. The Group has subsidiaries in Botswana, Ghana, Gibraltar, Guernsey, Kenya, Lesotho, Mauritius, Namibia, Nigeria, UK, South Africa, Swaziland and Zambia.[2]

HistoryEdit

MMI Holdings was formed in 2010 when Metropolitan Holdings and Momentum Group, two insurance and financial services companies in South Africa, merged their operations.[1]

Pre-Merger HistoryEdit

Metropolitan Holdings LimitedEdit

Metropolitan was founded in 1898 as Homes Trust Limited and was later acquired by Sanlam in 1918. Sanlam merged Homes Trust Limited with Metropolitan Life Insurance Company Limited (another one of its subsidiaries) to form Metropolitan Homes Trust Life Limited in 1979.[3]

In 1985, Metropolitan Homes Trust Life Limited changed its name to Metropolitan Life Limited (Metlife). Metlife was then listed on the JSE in 1986 and cross listed on the NSX in 1996. The group name was changed to Metropolitan Holdings Limited in 2003.[3] As at the merger date, Metropolitan Holdings was listed on the JSE.

Momentum Group LimitedEdit

Momentum traces its roots from Momentum Life Assurers Limited that was established in 1966 as a life assurance company and Southern Life Association Limited that was incorporated in 1904 as African Life Assurance Society. In 1992, RMB Holdings (RMBH) acquired interest in Momentum Life Assurers Limited.[3]

On April 1, 1998, Anglo American Corporation of South Africa Limited (now Anglo American plc) merged its financial services interests with RMBH in order to achieve the objective of a unified financial services grouping known as First Rand.[4] The transaction required that the business of Momentum Life Assurers Limited was transferred to the Southern Life Association Limited which was renamed FirstRand Insurance Company Limited and much later renamed Momentum Group Limited.[3] As at the merger date, Momentum Group was a wholly owned subsidiary of First Rand.

In 2003 Momentum Group Limited transferred its investment in Discovery Limited to FirstRand Limited for R740 million. This stake was later on unbundled to FirstRand's shareholders including RMBH.[5]

The MergerEdit

On March 31, 2010, Metropolitan Holdings, First Rand and Momentum Group entered into a Merger Agreement that would see the amalgamation of Momentum’s business with Metropolitan.[3] FirstRand sold its entire shareholding in Momentum to Metropolitan in consideration for which Metropolitan will issue new Metropolitan ordinary shares to FirstRand.[6] This made Momentum a wholly owned subsidiary of Metropolitan. Metropolitan then transferred its insurance business to Momentum and was renamed MMI Holdings with FirstRand as the largest shareholder.[7]

Post Merger HistoryEdit

On 7 March 2011, RMB Holdings (RMBH), Remgro and FirstRand spun off their insurance assets to RMI Holdings and separately listing it on the JSE. This process led to the transfer of FirstRand's entire shareholding in MMI Holdings to RMI Holdings.[8]

OwnershipEdit

The shares of the stock of MMI Holdings are traded on the JSE, under the symbol: MMI. As at June 2014, the shareholding in the group's stock was as depicted in the table below:[2]

MMI Holdings Limited Stock Ownership
Rank Name of Owner Percentage Ownership
1 Rand Merchant Investment Holdings 24.50
2 Government Employees Pension Fund 10.10
2 Other Local & International Investors 65.40
Total 100.00

GovernanceEdit

MMI Holdings Limited is governed by an eighteen-person board of directors with Johnson Njeke serving as the chairman and Hillie Meyer serving as the Group Chief Executive Officer.[9]


ControversiesEdit

Momentum Group, a subsidiary of MMI Holdings, was the subject of a national controversy in 2018 when it rejected the life insurance claim to the family of Denise Ganas. Ganas was shot and killed in an attempted hijacking. Momentum controversially refused to payout the R2.4 million claim arguing that Ganas had a previously undisclosed health condition (high blood sugar levels).[10] The resulting public outcry resulted in Momentum granting the claim to Ganas' family and discussions with the South African Financial Sector Conduct Authority so as to avoid similar situations in the future. Momentum agreed to amend its policy to payout life insurance claims up to R3 million resulting from violent crime regardless of pre-existing medical conditions.[11]

See alsoEdit

ReferencesEdit

  1. ^ a b "MMI Holdings Limited - About Us". MMI Holdings. Retrieved 2015-03-23.
  2. ^ a b "MMI Holdings Limited - 2014 Integrated Report" (PDF). MMI Holdings Limited. 2014-06-30. Retrieved 2015-03-23.
  3. ^ a b c d e "MMI Holdings Limited - Revised Listing Particulars" (PDF). MMI Holdings Limited. September 6, 2010. Retrieved March 27, 2010.
  4. ^ "First Rand - Abridged Revised Listing Particulars". Imara Investing in Africa. First Rand Limited. May 25, 1998. Archived from the original on 29 November 2014. Retrieved November 16, 2014.
  5. ^ Stokes, Gareth (14 September 2007). "Rand Merchant Bank to top Discovery shareholder list". FA News. Retrieved 2015-12-28.
  6. ^ "Metropolitan Holdings Limited - Circular to Metropolitan Shareholders" (PDF). Metropolitan Holdings Limited. September 6, 2010. Retrieved March 27, 2015.
  7. ^ "Detailed cautionary announcement in relation to the proposed merger of Momentum and Metropolitan and the subsequent unbundling by FirstRand of its shares in Metropolitan" (PDF). MMI Holdings Limited. Retrieved 2015-03-27.
  8. ^ "RMB Holdings Limited - Circular to shareholders regarding the RMBH restructuring" (PDF). RMB Holdings Limited. 3 February 2011. Retrieved 13 December 2014.
  9. ^ "Hillie Meyer to replace MMI CEO Nicolaas Kruger". Business Day South Africa. Retrieved 2018-02-20.
  10. ^ "Momentum to pay out death benefit to widow of slain policy holder". Fin24. 2018-11-20. Retrieved 2018-12-05.
  11. ^ "Regulators will engage with insurers following Momentum fiasco". Fin24. 2018-11-23. Retrieved 2018-12-05.