This announcement marks the end of an era for RMI as an active investor in a portfolio of financial services businesses, with the final step being the process of transitioning and rebranding from RMI to “OUTsurance Group Limited” (the OUTsurance Listing).

Note from The Finance Ghost:

This has been a textbook value unlock story. RMI unbundled its investments in Discovery and Momentum Metropolitan and sold the stake in Hastings. The primary asset is now OUTsurance, a business that is ready to fly.

A detailed circular will be released on 11 October. In the meantime, we know that the soon-to-be renamed group is the proud owner of 89.3% in OUTsurance, with the rest held by management. The idea is to flip management to the top of the structure once the proposed transactions are completed.

This is a massive business, with gross written premium of R23.5 billion and normalised earnings of R2.3 billion. Let’s face it: everyone knows the OUTsurance brand.

This is exciting news for the local market, as it will effectively bring another pure-play opportunity (well, almost – there are other small assets in the group) to the insurance sector.

Here are the full details: