Rand Merchant Investment (RMI) Holdings is an investment holding company with a portfolio of insurance and investment products targeted at the commercial, corporate, retail and public sector. The group’s history can be traced back to 2010 with the spinning off of insurance assets from Rand Merchant Bank (RMB) Holdings, FirstRand and Remgro. RMI Holdings shares were subsequently listed separately on the Johannesburg Stock Exchange (JSE), although RMB Holdings and RMI Holdings still share the same management team.

In order to diversify its traditional financial services offerings, RMI Holdings recently decided to buy into asset management through RMI Investment Managers, and significant stakes in Discovery (25%), MMI (25.5%), OUTsurance (84%) and Merchant Capital (25%). The group will also buy into next generation businesses in the fintech sector, and has established AlphaCode, an innovative financial services platform bringing together various roleplayers to advance the fintech industry.

RMI Holdings has a JSE market cap of around R60 billion, with RMI Holdings shareprice enjoying a strong showing on the bourse.

RMI Holdings had a subdued performance in the 2016 financial year, due to rising inflation, interest rate cycles and muted GDP growth in South Africa. The group recorded an 8% increase in normalised earnings, up to R3.3 billion. Discovery increased its earnings by 7%, driven by increases in Discovery Health, Discovery Life and Discovery Investment, although overall growth was stifled by a 73% increase in investments in new initiatives. Merchant Capital also continued its strong operational performance, whilst investing in core operations and product development.

MMI registered disappointing data for the year, with a 16% decrease in normalised earnings driven by low underwriting profits, muted equity investment growth and operational challenges. OUTsurance continued on its upward growth path with a better than anticipated 43% increase in normalised earnings, thanks to improvement in contributions from the Youi Group and good results from operations in South Africa.

One of the group’s newest offerings, RMI Investment Managers offers a unique affiliate investment manager model involving investment in and partnership with independent investment managers and specialist investment teams. The company completed its first year of operations, with activities including the appointment of a distribution and operations team, establishing a corporate structure and obtaining regulatory approvals. Investment in next generation businesses will continue to be a focus going forward, expecting to contribute increasingly to profits.

RMI Holdings share price has had an impressive showing on the JSE, with the live online stocks chart highlighting a rise from R22.35 in 2013 to more than R40 in October 2016, although the shares have taken a dip recently due to the stifled economic climate in South Africa. But the company has proven to be a perennially solid contender in the financial services trade, making RMI Holdings shares a worthwhile buy for investors.

Financials

Insurance

P&C Insurance

We have made it simple to buy JSE listed firm shares online.

1. Open a FREE Trading Account here
2. Verify account via email or phone number.
3. Set up 2FA (Two Factor Authentication)
4. KYC your profile to get verified.
5. Explore and get acquainted with the trading dashboard.
6. Deposit fiat into your trading account.
7. Invest and trade in stocks that you want in your portfolio.

Buying JSE shares has never been this convenient and easy. #myfirstshare

View more JSE shares for sale – here.