RMI posts double-digit profit growth, thanks to Outsurance and Discovery
Rand Merchant Investment Holdings (RMI) — which owns stakes in Discovery, MMI, Outsurance and UK insurer Hastings — delivered double-digit growth in normalised earnings from continuing operations for the year to June, thanks to strong earnings growth in Discovery and Outsurance. RMI’s normalised earnings increased 18% to R3.9bn for the year to June, the investment holdings company said on Tuesday. RMI owns 25% stakes in each of Discovery and MMI, as well as an 87.7% stake in direct insurer Outsurance. With roots in the FirstRand stable, RMI has played an important role in funding and launching some of SA’s most successful insurance start-ups. It has also diversified into financial technology (fintech), launching a club for fintech entrepreneurs called AlphaCode. In March, RMI purchased a 30% stake in UK insurer Hastings. For the year to June, Outsurance grew normalised earnings by 25% to R2.5bn, largely due to favourable claims experience. Discovery’s 8% increase in normalised earni...
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