RMI investors take dividend hit, after MMI’s decision not to pay an interim dividend
Rand Merchant Investment Holdings (RMI) cut its interim dividend by 26% to 39c for the six months to end-December — a knock-on effect of MMI’s decision not to pay an interim dividend. RMI holds 25.5% of MMI’s JSE-listed shares along with 25% of competing insurer Discovery’s JSE-listed shares. It also owns 87.7% of unlisted short-term insurer OUTsurance. Monday’s results statement included its holding in London-listed insurer Hastings for the first time. RMI announced in February 2017 it was acquiring 29.9% of Hastings, paying up to £499.5m depending on the UK insurer meeting profit targets. RMB Structured Insurance, which was sold in March 2017, was accounted for as a discontinued operation. The group reported its normalised earnings from continuing operations grew 26% to R2.3bn. About half of this was contributed by OUTsurance. OUTsurance’s normalised earnings increased by 11%, mainly driven by its Australian subsidiary Youi’s 60% growth in operating profit, the results statement s...
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