OUTsurance replaces parent as it starts trading on JSE

Short-term insurer OUTsurance has taken over the JSE listing of former parent Rand Merchant Investment Holdings (RMI), the investment holding company that 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 also sold its 30% stake in UK insurer Hastings Plc, with the proceeds of R14.6bn helping it to avoid a previously planned rights issue.

“I am incredibly proud of our team to have reached this milestone and would like to thank RMI/RMB for a brilliant 25-year partnership,” said OUTsurance CEO Marthinus Visser.

UNBUNDLING

“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 ahead as a public company.”

The unbundling was also designed to address the gaping discount between the holding company’s JSE-listed market value and that of its underlying assets. By listing OUTsurance, RMI’s most valuable asset, shareholders get direct access to one of the biggest insurance brands in SA through a more efficient and well-capitalised operational structure.

RMI’s phased collapse and the associated reduction in personnel costs will continue until March 2023 when the costs will be only those of the listed entity, OUTsurance Group. The process means the OUTsurance management team will be directly accountable to shareholders.