Call Centre script:
- MMI Holdings Limited (MMI Holdings) has strived to achieve tangible and sustainable synergies through the merger of Momentum and Metropolitan.
- As part of this aim, MMI Group is in the process of applying to amalgamate the long-term insurance licences of Momentum Group Limited (Momentum Group) and Metropolitan Life Limited (Metropolitan Life).
- The amalgamation has to be approved by the Financial Sector Conduct Authority and the High Court of South Africa. Once approved, Metropolitan and Momentum will operate under a single long-term insurance licence known as MMI Group.
- The amalgamation will provide administrative clarity and convenience, but will have no effect on our clients or on us as employees.
- The client-facing brands Momentum and Metropolitan will continue to be used and will be divisions within MMI Group.
- The only difference that clients will notice, will be that all Momentum and Metropolitan policies will be underwritten by MMI Group – which will be the regulated legal entity holding the long-term insurance licence.
- You will hear people referring to Section 37 or 38 when they talk about this amalgamation.
- That is because MMI applies for this amalgamation in terms of Section 37 and 38 of the Long-term Insurance Act of 1998.
- Copies of documents relating to the amalgamation shall be available for inspection for a period of 15 days commencing on 11 March 2013 until 25 March 2013 at the offices of Metropolitan at Building 8, Parc du Cap Complex, Mispel Road, Bellville, Cape Town and MMI Group at 268 West Avenue, Centurion 0157.
- MMI Group intends to apply for this amalgamation on 20 May 2013.
- For more information, please visit www.mmiholdings.com, www.momentum.co.za and www.metropolitan.co.za.
- Alternatively, please direct your enquiries to the Registrar of Long-term Insurance for attention Johan Heyneke of the, Financial Sector Conduct Authority at [email protected].
Frequently asked questions:
What is the amalgamation all about?
- The life insurance business of Metropolitan Life Limited (Metropolitan Life) will be amalgamated with that of MMI Group Limited (MMI Group, previously known as Momentum) as a result of the merger between Metropolitan and Momentum.
- The amalgamation, once approved by the Financial Sector Conduct Authority and the High Court of South Africa, will mean that all Metropolitan policies will now be underwritten by MMI Group.
Who or what is MMI Group Limited?
- MMI Group is a fully owned subsidiary of MMI Holdings Limited (MMI Holdings), which is the third largest insurance group in South Africa, and is listed on the JSE with a market capitalisation of R29 billion (as at June 2012).
- MMI Group is a licensed South African life insurance company.
What will happen to my policy?
- Your policy and your policy benefits will remain unchanged.
- The only change is that all Metropolitan policies will be underwritten by MMI Group and no longer by Metropolitan Life.
- Your policy will continue to be serviced by Momentum and all contact regarding your policy and policy benefits must continue to be with Momentum.
What is the background to the decision to amalgamate Long-term Insurance licences?
- Following the creation of MMI Holdings, the group-owned duplicate licensed entities and IT systems.
- The consolidation of IT systems is underway, with a view to realise the efficiencies and cost effectiveness that were anticipated with the merger.
- The proposed legal amalgamation (in terms of Section 38 of the Long-term Insurance Act) is a major step towards the rationalisation of MMI Holdings’ legal entities.
Is approval required for this amalgamation?
- Once approved by the Financial Sector Conduct Authority (FSCA), and following approval by the High Court of South Africa, the long-term insurance policies of Metropolitan and Momentum will be underwritten by the long-term insurance licence of MMI Group.
- In terms of Part V of the Long-term Insurance Act, 1998, the High Court of South Africa has to approve amalgamation before it may be implemented.
- Metropolitan Life and MMI Group intend to apply to the High Court of South Africa, in Pretoria for approval of the transaction on the 20 May 2013.
Queries regarding the amalgamation
- Documents, as prescribed by the FSCA, about the proposed amalgamation are available on the websites of MMI Holdings www.mmiholdings.com and Metropolitan www.metropolitan.co.za and Momentum www.momentum.co.za.
- Documents with all the information will also be available at the Momentum (268 West Avenue, Centurion, Gauteng) and Metropolitan (Building 8, Parc du Cap Complex, Mispel Road, Bellville, Cape Town) offices for a period of 15 days from 11 March 2013 to 25 March 2013.
- Should you have any further queries regarding this, you can e-mail your queries to Johan Heyneke of the FSCA at [email protected]