With the listing of MMI Holdings on the Johannesburg Stock Exchange on December 1, 2010, the merger between Swiss Life Network Partner Momentum and Metropolitan became official. The new company is a major insurer in South Africa with strong prospects and a world of opportunity.
The name refers to the combination of well-established and well-respected operating brands – Metropolitan and Momentum – which will continue to be used at a client-facing business level, with MMI the investor brand. Momentum accounts for 59.3% of the ZAR 30 billion embedded value (estimated economic worth) of the business, and Metropolitan 40.7%.
Momentum and Metropolitan operate in different markets, with Momentum’s key area of focus the upper-income market segment, and Metropolitan focusing predominantly on the low to middle-income markets.
Significant value should be realised for clients, staff, shareholders and other stakeholders as a result of the merger:
- the combination of Momentum and Metropolitan will expand the merged entity’s target markets and create a leading competitive, insurance-based financial services group with businesses in life insurance, healthcare administration, asset management, short-term insurance and employee benefits, both locally and elsewhere in Africa;
- the merged entity will benefit from enhanced growth opportunities, revenue synergies and economies of scale;
- cross-selling of insurance-based financial products and loyalty programmes into the large combined retail and group client bases of Momentum and Metropolitan;
- capital efficiencies through the further diversification of risks as part of an ongoing capital management programme;
- with its enlarged footprint the merged entity will be well positioned to expand its activities outside South Africa; and
- the merged entity will have a material black empowerment shareholding.
Etienne de Waal, CEO of Momentum’s employee benefits division, has been appointed CEO of the merged employee benefits business.
Fore more information
please visit www.momentum.co.za
Momentum and Metropolitan operate in different markets, with Momentum’s key area of focus the upper-income market segment, and Metropolitan focusing predominantly on the low to middle-income markets.
Significant value should be realised for clients, staff, shareholders and other stakeholders as a result of the merger:
- the combination of Momentum and Metropolitan will expand the merged entity’s target markets and create a leading competitive, insurance-based financial services group with businesses in life insurance, healthcare administration, asset management, short-term insurance and employee benefits, both locally and elsewhere in Africa;
- the merged entity will benefit from enhanced growth opportunities, revenue synergies and economies of scale;
- cross-selling of insurance-based financial products and loyalty programmes into the large combined retail and group client bases of Momentum and Metropolitan;
- capital efficiencies through the further diversification of risks as part of an ongoing capital management programme;
- with its enlarged footprint the merged entity will be well positioned to expand its activities outside South Africa; and
- the merged entity will have a material black empowerment shareholding.
Etienne de Waal, CEO of Momentum’s employee benefits division, has been appointed CEO of the merged employee benefits business.
Fore more information
please visit www.momentum.co.za