Early Redemption Of R401 Million Redeemable Preference Share Funding, Acquisition Of Additional Ordinary Shares In M RAND MERCHANT INSURANCE HOLDINGS LIMITED (Incorporated in the Republic of South Africa) Registration number: 2010/005770/06 ISIN: ZAE000153102 Share code: RMI ("RMI") EARLY REDEMPTION OF R401 MILLION REDEEMABLE PREFERENCE SHARE FUNDING, ACQUISITION OF ADDITIONAL ORDINARY SHARES IN MMI HOLDINGS LIMITED AND CONFIRMATION OF MAKE-UP OF RMI INVESTMENT PORTFOLIO 1. EARLY REDEMPTION OF R401 MILLION REDEEMABLE PREFERENCE SHARE FUNDING Shareholders are advised that OUTsurance Holdings Limited utilised internally generated resources to repurchase R401 million preference shares that it had previously issued to RMI. The proceeds arising were utilised by RMI for the early redemption of R401 million variable rate, cumulative redeemable preference shares. After the redemption, RMI’s core term funding comprises: - R299 million variable rate, cumulative redeemable preference shares due for redemption on 15 June 2016, paying six monthly dividends at 80.85% of the prime interest rate per annum; and - R750 million fixed rate, cumulative redeemable preference shares due for redemption on 15 June 2016, paying six monthly dividends at 9.14% per annum. 2. ACQUISITION OF ADDITIONAL ORDINARY SHARES IN MMI HOLDINGS LIMITED Shareholders are advised that RMI had acquired an additional 825 000 ordinary shares in MMI Holdings Limited, thereby restoring its shareholding to 25% of the issued ordinary share capital of MMI Holdings Limited. 3. MAKE-UP OF RMI INVESTMENT PORTFOLIO To facilitate greater transparency and to assist shareholders in evaluating the RMI investment portfolio, the following analysis of the current make-up of RMI`s investment portfolio is provided: Ordinary Percentage shares held of issued (million) capital Listed equities: - Discovery Limited 148.0 25.0% - MMI Holdings Limited 392.5 25.0% Unlisted equities: - OUTsurance Holdings Limited 2 933.3 83.4% - RMB-SI Investments(Pty)Limited 200.0 76.4% Other assets / investments R971 million Other liabilities / borrowings (R1 083 million) Sandton 14 December 2012 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 14/12/2012 02:16:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.