RAND MERCHANT INSURANCE HLDGS LTD - Trading statement: six months ended 31 December 2014

Trading statement: six months ended 31 December 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: SIX MONTHS ENDED 31 DECEMBER 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.

RMI shareholders are referred to the unaudited interim results
announcement of Discovery Limited ("Discovery") released on the
Stock Exchange News Service ("SENS") on 24 February 2015 and to
the trading statement released on SENS by MMI Holdings Limited
("MMI") on 26 February 2015. At Discovery, the release of the put
option liability following the acquisition of Prudential Assurance
Company’s remaining 25% shareholding in Prudential Health Holdings
Limited impacted positively on EPS and HEPS, but was excluded from
normalised EPS. At MMI, the impact of movements in investment
markets on shareholder assets and investment variances resulted in
a negative impact on EPS and HEPS. These fair value movements were
excluded from normalised EPS.

TRADING STATEMENT: SIX MONTHS ENDED 31 DECEMBER 2014

The following guidance is provided to RMI shareholders regarding
the expected outcome for the six months ended 31 December 2014:

A. WHEN COMPARED TO THE RESULTS FOR THE SIX MONTHS ENDED
   31 DECEMBER 2013 AS ORIGINALLY PUBLISHED

                   ORIGINAL:
                  Six months    Guidance for the six months ended
                       ended             31 December 2014
                 31 December
                        2013
                     (cents)        % increase         Range (cents)

Normalised EPS          90.1        14% to 20%         102.6 to 108.2
HEPS                    94.8        26% to 32%         119.5 to 125.3
EPS                    104.7        14% to 20%         119.6 to 125.8

B. WHEN COMPARED TO THE RESTATED RESULTS FOR THE SIX MONTHS ENDED
   31 DECEMBER 2013

Following a change in accounting policy relating to the treatment
of deferred acquisition costs in the second half of the 2014
financial year, the group’s normalised EPS, HEPS and EPS for the
prior period ended 31 December 2013 have been restated. Details on
the change in accounting policy are contained in RMI’s 2014 annual
integrated report and an analysis of the restatements as per the
table below will be provided in RMI’s unaudited summarised results
announcement for the six months ended 31 December 2014.

                     RESTATED:
                    Six months   Guidance for the six months ended
                         ended            31 December 2014
                   31 December
                          2013
                       (cents)       % increase      Range (cents)

Normalised EPS            92.8       11% to 17%     102.6 to 108.2
HEPS                      97.6       22% to 28%     119.5 to 125.3
EPS                      107.5       11% to 17%     119.6 to 125.8

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 unaudited summarised results for the six months ended
31 December 2014 are expected to be released on SENS on Thursday,
5 March 2015.

DISCOVERY RIGHTS ISSUE DECLARATION ANNOUNCEMENT

RMI shareholders are referred to Discovery’s rights issue
declaration announcement released on SENS on 24 February 2015. RMI
has irrevocably committed to follow its rights relating to its 25%
shareholding in Discovery. Directors and senior management of
Discovery, who collectively hold 12.1% of Discovery’s shares, have
also irrevocably committed to follow their rights pursuant to the
rights issue. The 62.9% balance of the rights issue has been
underwritten by RMI. This does not have an impact on RMI’s results
for the six months ended 31 December 2014, but could impact on
RMI’s percentage shareholding in Discovery in future.


Sandton
26 February 2015

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 26/02/2015 04:35:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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