Trading statement: Year ended 30 June 2014 RAND MERCHANT INSURANCE HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number: 2010/005770/06) JSE ordinary share code: RMI ISIN: ZAE000153102 ("RMI" or "the Group") TRADING STATEMENT: YEAR ENDED 30 JUNE 2014 INTRODUCTION The JSE Limited Listings Requirements prescribe that an issuer must publish a trading statement as soon as it becomes apparent with a reasonable degree of certainty that Earnings per Share (“EPS”) and/or Headline Earnings per Share (“HEPS”) for the next reporting period are expected to differ by at least 20% from those of the previous corresponding reporting period. RMI regards Normalised EPS (which excludes non-operational items and accounting anomalies) as the key indicator of the Group’s operational performance. RESTATEMENT OF PRIOR YEAR COMPARATIVE Shareholders are advised that following a change in accounting policy by a subsidiary, the Group’s Normalised EPS, HEPS and EPS for the prior year ended 30 June 2013 have been restated as follows: As originally Year ended 30 June 2013 published As restated Normalised EPS(cents) 169.9 172.6 HEPS(cents) 148.4 151.1 EPS(cents) 149.2 152.0 Further analysis of the restatement will be provided in RMI’s audited results for the year ended 30 June 2014. EARNINGS GUIDANCE FOR THE YEAR ENDED 30 JUNE 2014 The following guidance is provided to shareholders regarding the expected outcome for the year ended 30 June 2014: A. WHEN COMPARED TO THE RESULTS FOR THE YEAR ENDED 30 JUNE 2013 AS ORIGINALLY PUBLISHED ORIGINAL: Year ended Guidance: Year ended 30 June 2013 30 June 2014 Normalised EPS(cents) 169.9 17% to 23% increase HEPS(cents) 148.4 28% to 34% increase EPS(cents) 149.2 35% to 41% increase B. WHEN COMPARED TO THE RESULTS FOR THE YEAR ENDED 30 JUNE 2013 AFTER RESTATEMENT RESTATED: Year ended Guidance: Year ended 30 June 2013 30 June 2014 Normalised EPS(cents) 172.6 15% to 21% increase HEPS(cents) 151.1 25% to 31% increase EPS(cents) 152.0 32% to 38% increase The financial information on which this trading statement is based has not been reviewed and reported on by the Group’s external auditors. RMI’s audited results for the year ended 30 June 2014 are expected to be released on SENS on Thursday, 11 September 2014. Sandton 29 August 2014 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 29/08/2014 10:53:00 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.