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MMI HOLDINGS LIMITED - MMI Holdings and African Bank partnership

Release Date: 12/06/2017 12:00
Code(s): MMI     PDF:  
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MMI Holdings and African Bank partnership

MMI Holdings Limited
Incorporated in the Republic of South Africa
Registration Number: 2000/031756/06
ISIN: ZAE000149902
NSX share code: MIM
JSE share code: MMI
("MMI Holdings" or "MMI")

MMI Holdings and African Bank partnership

MMI Holdings and African Bank have entered into an agreement where they will
offer expanded financial services solutions to their respective customers to
facilitate financial wellness. The agreement is subject to regulatory approval.
The two companies envisage that investing in this symbiotic relationship will
enable them to provide a wider range of products and services to their customers
and expand their service footprint; ultimately leading to an improved client
experience. To this end, MMI Holdings and African Bank will enter into mutually
beneficially relationships on 3 fronts:

•   African Bank will provide the capabilities to enable a credit (lending)
    solution to MMI clients, for distribution via MMI’s established sales
    channels. African Bank will be the exclusive provider of consumer credit
    products to MMI, for solutions falling within its product range.

•   Over time, MMI’s full range of insurance products (appropriate to the
    relevant target market) will, on an exclusive basis, be made available to
    African Bank’s customer base through its branch infrastructure and other
    distribution channels at its disposal.

•   African Bank will act as sponsoring bank to facilitate deposit-taking and
    extend transactional banking capabilities that MMI wishes to offer to its
    clients.

For the lending solution, our plan is to build up a loan book in excess of R10bn
over the next five years. The plan for the insurance initiative is to build a
distribution channel able to generate in-force premiums in excess of R1bn within
five years from inception of the venture. On both lending and insurance, profits
will be shared 50/50 between the partners.

The first phase of the insurance co-operative venture is expected to go live in
the second half of 2017, with lending activities becoming fully functional
during the first half of 2018.

Presentation to analysts on the partnership is available on the MMI Holdings
website in the investor relations section of the website
(http://www.mmiholdings.co.za/en/investor-relations/presentations).

Centurion
12 June 2017

Sponsor:
Merrill Lynch South Africa (Pty) Ltd

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