Trading statement in terms of the JSE Listings Requirements MMI Holdings Limited Incorporated in the Republic of South Africa Registration Number: 2000/031756/06 JSE share code: MMI NSX share code: MIM ISIN: ZAE000149902 ("MMI" or "the company") Trading statement in terms of the JSE Listings Requirements Shareholders are advised that the core headline earnings per share, the group’s main earnings measure to monitor the operational performance of the group, are expected to be down by between 0 and 10 percent for the six month period. Core headline earnings continue to be affected by weak underwriting experience on group disability business (approximately R60m lower than in prior period) and by decline in health administration operating earnings following the loss of two large clients subsequent to 1H16 reporting period (approximately R70m lower than in prior period). The weak investment return on policyholder assets has also negatively affected the growth in asset-based fee income across the group. Persistency remains broadly in line with actuarial assumptions whereas retail risk experience remains ahead of actuarial assumptions. MMI remains well capitalised at 31 December 2016. Shareholders are further advised that the group's interim period basic earnings per share are expected to be between 59 cents and 69 cents compared to 98.7 cents, a decrease of between 30 and 40 percent to the comparative period. Basic headline earnings per share are expected to be between 59 cents and 68 cents compared to 91.3 cents, showing a decrease of between 25 and 35 percent on the comparative period results. The difference between the expected decline in core headline earnings and in basic earnings is largely driven by two items. Firstly, a significant (approximately R130m) decline in level of fair value gains earned on shareholders’ investment portfolio. The decline in fair value gains includes the impact of currency movements on foreign assets over the two relevant time periods. Secondly, there was a material (approximately R140m) year-on-year change in earnings arising from the technical IFRS treatment of MMI shares held in policyholder funds as treasury shares. Note that MMI excludes fair value gains, movement in value of MMI shares held in policyholder funds, investment variances and non-recurring items from core headline earnings whereas basic earnings include all these non- operational items. The financial information on which this trading statement is based has not been reviewed and reported on by MMI's external auditors. MMI will be releasing interim results for the six months ending 31 December 2016 on 2 March 2017. Centurion 20 February 2017 Sponsor: Merrill Lynch South Africa (Pty) Ltd Date: 20/02/2017 08:00:00 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.