Insurance group OUTsurance finally lists on JSE after months of anticipation

OUTsurance Group has finally listed on the Johannesburg Stock Exchange on Wednesday following months of waiting and anticipation.

This massive development follows months of anticipation and OUTsurance Group listed is now officially listed on the JSE as of Wednesday with the code OUT.

Based in Centurion, OUTsurance officially swapped places with its parent company, Rand Merchant Investment Holdings (RMI), which is no longer listed on the exchange as of December 07.

On behalf of OUTsurance, CEO Marthinus Visser welcomed the news and said the milestone marks a new and exciting chapter in OUTsurance’s history.

“I am incredibly proud of our team to have reached this milestone and would like to thank RMI/RMB for a brilliant 25-year partnership,” said Visser.

We have an experienced team with a clear strategy, and we are leveraging our established track record and significant footprint to continue building and returning value to our clients, shareholders, staff, service providers, and communities.”

News24’s Fin24 has it that RMI has been preparing for this since 2021 when it started unbundling its stake in Momentum and Discovery to primarily focus only on its short-term insurance investments.

However, the company later sold its stake in the United Kingdom tech-based insurer, Hastings, to only concentrate on OUTsurance and its Australian sister company, Youi.

With only that investment in its portfolio and the big share price discounts that investment holding companies such as RMI have been battling with in recent years, it made sense to let OUTsurance take the spotlight since operating companies’ share prices have fared better on the JSE.

“After Wednesday’s listing, the two companies said shareholders would now own a stake in a company with an efficient and well-capitalised corporate structure,” Fin24 reports.

“Other benefits they will reap from this listing swap include a cost-effective way to complete an initial public offering (IPO), a higher dividend payout ratio, and a phased reduction of the holding company and personnel costs at RMI until March 2023.”