MANAGEMENT SHAKEUP
Investors cheer return of Meyer as MMI boss
The market’s reaction will come as a blow to veteran CEO Nicolaas Kruger, who oversaw disappointing returns and humdrum results
MMI’s shareholders cheered news of CEO Nicolaas Kruger’s imminent replacement by former Momentum MD Hillie Meyer, sending the stock 7.43% higher on Tuesday to R21.70 as buyers expected a rerating on the leadership change. The market’s reaction will come as a blow to Kruger, who dedicated the past 26 years to the insurance group, formed out of the 2010 merger between Momentum and Metropolitan — the past nine years as CEO. The group has delivered disappointing returns to shareholders and posted humdrum results in recent years, partly due to staid new business growth at its largest units. It has also experienced a number of executive leadership changes in the past six months – a challenge that other life companies have endured amidst a tough operating environment. That MMI is bringing back Meyer, who was CEO of Momentum from 1996 to 2005, makes the changes look akin to a rescue effort. But Herman Bosman, CEO of 25.5%-shareholder Rand Merchant Investment Holdings said that as one of the...
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