Outsurance takes over RMI’S JSE listing

Short-term insurer Outsurance has taken over the JSE listing of its former parent Rand Merchant Investment Holdings (RMI), which in turn has rebranded under the moniker of its biggest asset.

Outsurance started trading on the JSE under the share code OUT on Wednesday, with RMI shares replaced by those of Outsurance. The collapse of the RMI holding company structure has been in the making since at least 2021, when the group announced the unbundling of its stakes in Discovery and Momentum Metropolitan. RMI sold its 30% stake in UK insurer Hastings Plc, with the W:22.841mm proceeds of about R14.6bn helping it avoid a planned rights issue needed to pay debt.

“I am incredibly proud of our team to have reached this milestone and would like to thank RMI/RMB for a brilliant 25year partnership,” said Outsurance CEO Marthinus Visser. “We have an experienced team with a clear strategy, and we are leveraging our established track record and significant footprint to continue building and returning value to our clients, shareholders, staff, service providers and communities. We look forward to life as a public company.”

The unbundling was designed to address the gaping discount between the holding company’s Jse-listed market value and that of its underlying assets. By listing Outsurance, shareholders get direct access to one of the biggest insurance brands in SA through a more efficient and well-capitalised structure. RMI’S phased collapse and reduction in personnel costs will continue until March 2023 when the costs will be only those of the listed entity, Outsurance Group. Outsurance will be directly accountable to shareholders.