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Metropolitan International acquires Kenyan insurer Cannon
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")
Media Release
Metropolitan International
24 February 2014
Metropolitan International acquires Kenyan insurer Cannon
South African listed insurance-based financial services group MMI Holdings Limited (MMI),
announced today that its Metropolitan International division has acquired a significant majority
stake in Kenyan insurer Cannon Assurance Limited (Cannon). The acquisition is subject to regulatory
and other required approvals. The shareholders of Cannon will in turn acquire a minority stake in
Metropolitan Life Kenya. This transaction will enable a merger of the two companies with the
consolidation of the life licences into one and a standalone short-term insurance licence and
business.
Metropolitan International, which operates in 12 African countries outside South Africa, has a
presence in Kenya through Metropolitan Life Kenya, offering long-term insurance products. The
acquisition of Cannon will enable Metropolitan International to broaden its product offering to
include short-term insurance and asset management.
Established in 1974, Cannon has a wide footprint in Kenya with offices in Mombasa, Nairobi, Nakuru
and Thika. Cannon services both retail and corporate clients and has established a Sharia compliant
suite of insurance products.
Nicolaas Kruger, group CEO of MMI says, “Africa is an important strategic growth area for MMI. The
acquisition of Cannon represents an important milestone to fast track MMI’s organic growth
strategy in Africa and strengthens MMI’s presence in East Africa. MMI is investing around ZAR300m
on the acquisition of a majority stake in Cannon, which will be funded from the ZAR500m set aside
by MMI’s Board for strategic growth initiatives in Africa”.
Mervyn Cookson, CEO of Metropolitan International says, “As part of our expansion strategy, we
have identified East Africa as a key region for growth. With a combined population exceeding 235
million the East Africa region presents significant expansion opportunities, and this acquisition
strengthens our position to become a meaningful financial services player in Kenya and to enhance
our strategic positioning in East Africa”.
Kenya has the most established economy in the region; the most developed infrastructure in East
Africa; the largest pool of skilled, English-speaking workforce and Nairobi is considered a strategic
location as a regional financial, communications and transportation hub.
“Although Metropolitan Life (Kenya) has operated in the Kenyan market for eight years, our share of
the large Kenyan market is still small. The acquisition of Cannon will allow both Cannon and
Metropolitan to leverage off each other. Cannon has a wider presence and a well-established brand
in the Kenyan market, whilst Metropolitan International can bring additional innovative products as
well as technical and distribution skills to this market,” concludes Cookson.
Ends
Distributed by Ogilvy Public Relations on behalf of MMI Holdings:
Phumeza Mzaidume
Ogilvy Public Relations
T: 011 700 5408
C: 083 293 6037
phumeza.mzaidume@ogilvypr.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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