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Rand Merchant Investment Holdings Limited. JSE: RMI

RMIH shares

Background of RMI Holdings

  • 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 Shares Growth Driver

  • 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 Group Investor Tip

  • 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.

RMI Holdings Major Shareholders

Financial Securities Ltd. (Remgro), Royal Bafokeng Holdings (Pty) Ltd, Public Investment Corporation and Allan Gray clients.

  • Sector

    Financials

  • Industry

    Insurance

  • Sub industry

    P&C Insurance

How to buy RMI Holdings Group Shares

  • RMI Holdings : How to buy RMI Holdings Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy RMI Holdings Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in RMI Holdings Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase RMI Holdings Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in RMI Holdings Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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<a href="https://www.sashares.co.za/rmi-holdings-shares">Credits: SA Shares™</a>
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