Alexander Forbes and MMI Holdings Announce Guardrisk Transaction MMI Holdings Limited (Incorporated in the Republic of South Africa) Registration Number: 2000/031756/06 ISIN Code: ZAE000149902 JSE Share Code: MMI NSX Share Code: MIM ("MMI" or "the Company") Media Release 4 November 2013 ALEXANDER FORBES AND MMI HOLDINGS ANNOUNCE GUARDRISK TRANSACTION • Alexander Forbes sells Guardrisk to MMI Holdings Limited • Transaction follows expressions of interest received from several potential investors in Guardrisk • Alexander Forbes Group Chief Executive Edward Kieswetter hails sale as an important step towards further aligning the business with the Alexander Forbes Group’s strategic intent to target the growth sectors of retail (individuals), the public sector and sub-Saharan Africa by leveraging off its existing institutional client base • MMI Holdings Group Chief Executive Officer Nicolaas Kruger says the Guardrisk transaction is an important milestone which supports MMI’s diversification strategy. It enables MMI to provide a comprehensive suite of specialist insurance solutions. Johannesburg, South Africa – Financial services groups, Alexander Forbes and MMI Holdings Limited (MMI) have announced that they have reached agreement on the sale of Guardrisk (including Euroguard) to MMI for R1.6 billion. The conclusion of the transaction is subject to, inter alia, regulatory approvals by the Financial Services Board and the competition authorities. MMI, a JSE-listed financial services group, is the successful bidder from a list of several investors who expressed an interest in acquiring Guardrisk, a wholly owned subsidiary of Alexander Forbes. Announcing the sale, Edward Kieswetter said: “The sale of Guardrisk was considered in the context of positioning the Alexander Forbes Group for growth in its employee benefits, investment and risk benefits institutional businesses, as well as leveraging off that established client base into three key growth markets: retail (individuals), the public sector and sub-Saharan Africa. This transaction will further enable us to deliver on our promise of securing the financial well-being of our clients – now and into the future.” Nicolaas Kruger, Group CEO of MMI says: “The acquisition of Guardrisk is an important milestone to support our strategic intent to diversify our business to enable further growth. The Guardrisk transaction enables MMI to provide a comprehensive and exciting suite of specialist insurance solutions in the alternative risk transfer space to our large corporate clients and brokers. This enhanced product offering will be complementary to the innovative product offering of Momentum Employee Benefits.” Herman Schoeman, Guardrisk Managing Director, who will continue to lead the company along with his current management team, said he is excited about the future prospects of Guardrisk under the MMI umbrella: “We have been a leader in the specialised insurance industry since our inception and we look forward to unlocking synergies and providing value enhancing products and services to our current and future clients. Our highly experienced employees will also have the opportunity to contribute their unique skill set to MMI.” The purchase price of R1.6 billion will be funded from MMI’s capital buffer, which remains healthy to fund other strategic growth initiatives. “We are comfortable that we will extract revenue synergies from the Guardrisk transaction, which are expected to enhance MMI’s earnings and grow embedded value over time,” concludes Kruger. Ends/ FOR FURTHER INFORMATION: MMI Holdings Dan Moyane, Group Executive: Corporate Affairs Tel: +27 12 673 7105 Mobile: +27 71 851 6882 Email: dan.moyane@mmiholdings.co.za Lerato Mametse, External Communications Manager Tel: +27 12 671 8818 Mobile: +27 84 406 8272 Email: lerato.mametse@mmiholdings.co.za Alexander Forbes Lynn Stevens, Group Executive: Brand, Marketing & Communications Tel: +27 11 269 0024 Mobile: +27 82 658 3408 Email: stevensly@aforbes.co.za Sure Kamhunga, Corporate Image Tel: +27 11 269 1212 Mobile: +27 83 544 4392 Email: sure@corporateimage.co.za Sponsor to MMI in South Africa Merrill Lynch South Africa (Proprietary) Limited Sponsor to MMI in Namibia Simonis Storm Securities (Proprietary) Limited Date: 04/11/2013 08:05:00 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.