RMI interim earnings fall, partly due to Discovery death claims

Rand Merchant Investment Holdings , which owns Outsurance and has stakes in Discovery and MMI, said on Monday that its consolidated normalised earnings fell 8% to R2.1bn in the six months ended December.

The decline was mainly due to higher spend on “new strategic initiatives”, a “spike” in large mortality claims at Discovery, an increase in the claims ratio of the short-term insurance operations, and investments into Outsurance.RMI's shares were 2.1% lower at R32.25 on Monday morning. The group, headed by CEO Herman Bosman and chair Jannie Durand, said that the macroeconomic environment “is experiencing significant turbulence”.

“This year is shaping up to be another challenging one for the South African economy. Headwinds include a slowing global economy, Eskom — and other state-owned entity — challenges, adverse domestic weather conditions in the western maize-growing areas of the country, prolonged strike activity in the gold-mining sector and the uncertainty created by the upcoming national election,” RMI said.

The group owns 25% of Discovery, 29.9% of UK-listed insurer Hastings, 27.3% of MMI, 89.1% of Outsurance, and all of RMI Investment Managers and AlphaCode.

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Healthy underwriting results lift MMI’s interim earningsCEO Hillie Meyer says the results are unlikely to be repeated in the next six months, given stock markets’ recent performance and the tough economic environment
Source: BDliveSA - 🏆 12. / 63 Read more »

Sanlam’s earnings fall on weak equity and bond marketsThe metal is hardly changed amid risk-off sentiment, while the firm dollar limits gains ahead of the European Central Bank’s policy meeting
Source: BDliveSA - 🏆 12. / 63 Read more »

Afrox cuts final dividend by more than half as earnings fallThe company says growth in strategic markets, price cost inflation recovery and productivity gains from various efficiency projects have helped mitigate the cost increases
Source: BDliveSA - 🏆 12. / 63 Read more »

Sanlam earnings fallThe South African financial services group posted an 8 percent fall in full-year headline earnings.
Source: eNCA - 🏆 49. / 51 Read more »

Capitec shares fall despite reporting higher earningsHeadline earnings for the year to end-February rose between 17% and 20%, versus 18% a year before Why would the shares fall if they are making more profit?
Source: BDliveSA - 🏆 12. / 63 Read more »

Maimane claims Ramaphosa has something to hide over son's Bosasa earnings | IOL NewsPresident Cyril Ramaphosa's refusal to disclose the fee Bosasa paid his son, Andile Ramaphosa, for advisory services, showed ...
Source: IOL - 🏆 46. / 51 Read more »

Stadio’s shares jump 13.2% on earnings reportThe education group grew net profit to R77.3m thanks to new brands, and aims to have 100,000 students in its institutions
Source: BDliveSA - 🏆 12. / 63 Read more »