Contribution to headline earnings 30 June
R million
30 June
R million
RMI 796 898
Business Partners 70 23
866 921


RMI used to take stakes in emerging and established financial services businesses, becoming long-term partners who allow management teams the individuality to operate their businesses as owners. Over the last two years, RMI has been evaluating the creation of a portfolio of unlisted, non-competing and collaborative businesses in the short-term insurance industry. As there were no actionable investment opportunities which meet RMI’s expectations around asset quality, price and availability, RMI will embark on an orderly and managed transition to a structure that represents an effective listing of OUTsurance.


Market cap at 30 June 2022 R42 646 million
Listed on the JSE Limited
Chief Executive Officer H L Bosman
Remgro nominated directors J J Durand, F Knoetze (alternate)


RMI is an investment holding company. For more information on its major underlying investment, refer to the website of OUTsurance:
30 June 2022
R million %
Income 21 429 12.7
Headline earnings 2 591 (11.5)
Normalised headline earnings 2 947 (16.9)

Rand Merchant Investment Holdings Limited (RMI)

RMI’s contribution to Remgro’s headline earnings decreased by 11.4% to R796 million (2021: R898 million).

The underlying investments of RMI comprise of OUTsurance (89.0%), RMI Investment Managers (100%) and AlphaCode (100%). Discovery and Momentum Metropolitan were unbundled on 8 December 2021. Hastings was sold on the effective date of 8 December 2021. All three of these investments were treated as discontinued operations as at 8 December 2021.

RMI regards normalised earnings as the appropriate basis to evaluate business performance as it eliminates the impact of non-recurring items and accounting anomalies.

Normalised earnings from OUTsurance, excluding its stake in Hastings, decreased by 11% for the year ended 30 June 2022 to R2 039 million.

Normalised earnings from OUTsurance’s South African operations were negatively impacted by an increased claims ratio because of wetter weather conditions, increased nonmotor claims costs, the further normalisation of motor claims frequencies and claims related to the extensive damage caused by the flooding in KwaZulu-Natal.

At Youi, the claims ratio increased significantly due to the extent of natural catastrophe events experienced which included the Melbourne earthquake and various hail and flood events. Although the claims related to the flooding experienced during the second half of this financial year were mostly covered by the reinsurers, each separate event resulted in a retained loss of AUS$2 million.

The operating loss of new ventures increased from R485 million in 2021 to R631 million in 2022.

The operational loss relating to new ventures represented 19% (2021: 13%) of the operating profit generated by profitable segments. The group’s target over time for this measure is set at 10%.

Normalised earnings generated in the prior year by RMI Investment Managers included a significant amount for performance fees earned. Although the investment performance and growth in assets under management during the year under review were pleasing, the same level of performance fees was not repeated. RMI Investment Managers is largely in the consolidation phase of its business model evolution and has, therefore, focused its efforts on optimising the existing portfolio.

The AlphaCode portfolio continues to perform in line with expectations.


Business Partners is principally engaged in investing capital, knowledge and skill in viable small and medium-sized enterprises (SMEs). The company invests in SMEs by providing funding, support and mentoring to entrepreneurs.


Equity valuation at 30 June 2022 R2 706 million
Chief Executive Officer B Bierman
Remgro nominated directors C W Ceasar, M Lubbe, N J Williams


CSI/Training spend R6 million
Number of employees 269
BBBEE status Level 2
31 March 2022
R million %
Revenue 601 27.6
Operating profit 352 156.9
Headline earnings 158 203.8

Business Partners Limited (Business Partners)

Business Partners has a March year-end and therefore its results for the 12 months to 31 March 2022 have been equity accounted in Remgro’s results for the year under review. Headline earnings attributable to Remgro for the year under review amounted to R70 million (2021: R23 million).

Business Partners’ headline earnings for the 12 months ended 31 March 2022 amounted to R158 million (2021: R52 million), while profit attributable to shareholders increased by 174.5% from R94 million to R258 million. The increase in profit is mainly due to an improvement in credit risk and expected credit losses as well as an increase in investment income and realisation gains.

The turnaround in credit losses recorded was a significant contributor to the exceptional financial results. The improvement in credit risk and expected credit losses were the consequence of three primary factors. Firstly, the patient approach adopted in supporting the recovery of clients provided them with the breathing space to reposition their businesses. Secondly, technical assistance, mentorship and other support facilitated and provided improved the recovery efforts of a number of clients. And lastly, the resilience and adaptability of entrepreneurs in the face of the many challenges they encountered and thus far exceeded the credit loss expectations and views that were prevalent at the onset of the pandemic.

A second contributor to the exceptional financial results was the investment gains recorded this past year when compared to two years of below-par performance.

The management of the investment property portfolio tracked expectations with a strong recovery in placing tenants and revenue collections.