Trading Statement 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") MMI Trading statement – 25 August 2017 Shareholders are advised that the diluted core headline earnings per share, the group's main earnings measure to monitor the operational performance of the group, are expected to change by between -5 and 5 percent relative to the previous year. This equates to a range from 190cps to 210cps for F2017. Diluted core headline were 200cps in F2016. The core headline earnings result was impacted negatively by ongoing pressure on revenue growth due to weak returns from investment markets over the past two years. Core headline earnings also continue to be affected by weak underwriting experience on group disability business. Persistency experience deteriorated in 4Q17 in Metropolitan Retail compared to actuarial assumptions, whereas persistency experience in Momentum Retail remained positive. Strong mortality profits across the retail and corporate business and ongoing positive expense variances aided core earnings. MMI remains adequately capitalised at 30 June 2017. Shareholders are further advised that the group's basic earnings per share are expected to decrease by between 20 and 30 percent (110cps and 96cps) relative to 138cps for the comparative period. Headline earnings per share are expected to show a decrease of between 5 and 15 percent (127cps and 114cps) relative to 134cps for the comparative period results. The difference between the expected decline in core headline earnings and in headline earnings is largely driven by a significant (approximately R200m) decline in the level of fair value gains earned on the shareholders' investment portfolio. Foreign currency effects explain around half of the decline in fair value gains. For basic earnings there is an additional impact from impairment of intangibles (software and goodwill) which results in an additional negative impact on earnings of approximately R180m. Note that MMI excludes fair value gains, impairment of intangibles, movement in the value of MMI shares held in policyholder funds, investment variances and non-recurring items from core headline earnings, whereas basic earnings include all these items. MMI will be releasing final results for the year ended 30 June 2017 on 6 September 2017. The forecast financial information contained in this trading statement to shareholders is based on information available at the time of publication and has not been reviewed and reported on by the Company’s auditors. Centurion Sponsor: Merrill Lynch South Africa (Pty) Ltd Date: 25/08/2017 05:00:00 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.