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MMI HOLDINGS LIMITED - MMI delivers strong operating performance while pursuing growth

Release Date: 05/03/2014 07:06
Code(s): MMI     PDF:  
Wrap Text
MMI delivers strong operating performance while pursuing growth

MMI Holdings Limited Group
Incorporated in South Africa
(Registration number 2000/031756/06)
JSE share code (primary listing): MMI
NSX share code: MIM
ISIN NO. ZAE0001149902
"MMI Holdings" or "the Company"

MMI DELIVERS STRONG OPERATING PERFORMANCE WHILE PURSUING GROWTH

- Comparable VALUE of NEW BUSINESS up 23% to R378 million
- Annualised RETURN on EMBEDDED VALUE OF 20%
- Profits from OPERATING DIVISIONS UP 24%
- Diluted CORE HEADLINE EARNINGS UP 13% TO R1.7 billion
- Interim DIVIDEND UP 12% TO 57 CENTS PER SHARE

MMI Holdings Limited (MMI) today announced its interim results for the six months to 31 December 2013,
delivering a solid performance and impressive annualised return on embedded value of 20% for 
shareholders. Core headline earnings grew by 13% to R1 656 million, while the group declared an 
interim dividend of 57 cents per share, representing a 12% increase when compared to the same period 
of last year. 

MMI remains firmly focused on delivering consistent strong operating performance. The group reported 
a 24% increase in profits from operating divisions, which was helped by strong double digit growth
across most divisions for the six months under review.  In addition, strategic growth initiatives 
within each division, combined with plans and processes to identify and optimise business 
opportunities, position the group well for future success. 

All divisions focused on acquiring high quality new business.  MMI’s value of new business increased 
by 23% to R378 million, with very strong growth in the value of new business of the Momentum Retail 
and Momentum Employee Benefits divisions.

“While conditions have remained economically challenging and highly competitive, we have delivered 
against our strategic commitments. MMI’s strong growth of 23% in the value of new business makes us 
confident that we have identified the right strategies in unlocking value for our shareholders,” said
Nicolaas Kruger, MMI CEO.

MMI recently announced the acquisition of a majority stake in Kenyan insurer, Cannon Assurance 
Limited. The Cannon deal, which is still subject to some conditions, will enable Metropolitan 
International to broaden its product offering to include short-term insurance and asset management in
 Africa. “GDP growth in the rest of Africa remains resilient and the group is strongly positioned to 
deliver client-centric products and services that meet the increased appetite for insurance and 
savings among consumers,” said Kruger. 

The acquisition of Guardrisk was finalised in February 2014, with the approval of the Financial 
Services Board and the competition authorities. 

The latest acquisitions, together with organic growth initiatives, demonstrate the group’s strategic
intent to expand its business through diversification; as it pursues growth both locally and outside 
of South Africa.

“We are focusing on growth, excellence and being client-centric to achieve our strategic 
aspirations,” concludes Kruger. 

Ends

5 March 2014

On behalf of: MMI Holdings 
Contact: Lerato Mametse 
Telephone: 012 671 8818 / 084 406 8272
Email: lerato.mametse@mmiholdings.co.za

SPONSOR: Merrill Lynch South Africa (Pty) Ltd


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