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MMI HOLDINGS LIMITED - Alexander Forbes and MMI Holdings Announce Guardrisk Transaction

Release Date: 04/11/2013 08:05
Code(s): MMI     PDF:  
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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

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