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The Country’s Premium Family Magazine

February 2018 • Vol 2 Issue 3 • N$20

Inside the N$8.5m Quanta/ MMI deal

A strategydriven transaction focusing on inorganic growth

FEB 2018 • VOL.2 ISSUE 03 • N$20

Johan Barnard | Momentum Short Term Insurance Managing Director

Jason Nandago | MMI Group Chief Executive Officer

QUANTUM LEAP Introducing Momentum Short Term Insurance


xygen_01_2018

Quanta gains Momentum Sometimes you have to risk it all, to win it all. Momentum Short Term Insurance - because life happens!

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short-term insurance


ABOUT MMI HOLDINGS NAMIBIA MMI Holdings Namibia is one of the leading players in the non-banking financial sector and has since its inception accommodated the low, middle and highincome earners with their numerous risk management and medical aid administration products. MMI Holdings Namibia was formed by a merger between Metropolitan and Momentum. It consists of the following brands: Metropolitan Namibia/ Swabou Life, Momentum Namibia, Momentum Asset Management and Methealth Namibia Administrators. Metropolitan Namibia/Swabou Life provides life assurance, investment and savings needs to the lower
to middle-income market, whereas Momentum Namibia’s offering consists of employee benefits, retirement benefit solutions, life assurance as well as savings and investment products for the middle to higher-income markets. Methealth Namibia Administrators provide healthcare fund administration, while Momentum Asset Management Namibia caters for the asset management needs of clients. That, in a nutshell, is MMI Holdings Namibia in terms of market share. Arguably the third-largest financial services’ group in the country, MMI Holdings Namibia itself is not a clientfacing brand. It is an investor brand

and is listed on the Namibian Stock Exchange (NSX). The Metropolitan/Swabou brand purely operates in
 the low to mediumincome market while the Momentum brand on the retail side operates in the middle to high-end of the market, providing a myriad of risk products. The Momentum brand medium to the higher net-worth market, which means its products compete directly with companies like Sanlam and Old Mutual to the top-end of the market. Moment Asset Management is an investment arm with assets under management to the value of approximately N$9 billion. Client centricity is the DNA of how MMI Namibia does business, by not dictating to the client their needs, the client tells us what it is that they aspire to. We walk together with them to make those financial wellness aspirations and come to realise and therefore our existing clients, our clients have

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been very positive because they now understand that they are part of a bigger entity, and this ultimately means that their investments will yield better financial results. With this acquisition, we are now geared for growth and ensuring that our customers get the best from the MMI Holdings Namibia Group. We continue to ensure that we put the client at the centre. We would like to thank our clients who have been loyal to our brands, and want to assure them that we will continue to strive to give them the best in being their preferred financial wellness partner. The best is yet to come, as the entrepreneurial and collaborative culture in our DNA will deliver transformation in the financial services’ sector, and through our client- facing brands will continue to focus on projects which meet the national goals. Welcome Quanta, Welcome Momentum Short-Term Insurance!

FEBRUARY 2018 • Us NAMIBIA


Momentous Momentum

E

very insurer is looking for the ‘next’ big growth opportunity. And in today’s slow-economic growth and low-interest rate environment, it is clear that inorganic growth (via mergers, acquisitions, partnerships and alliance transactions) will continue to be a critical component of any insurer’s long-term growth strategy.

Jason Nandago | MMI Group Chief Executive Officer

transactions lens that focuses on the ‘Nine Levers of Value’ for identifying, evaluating, and integrating potential acquisition targets, and innovative partnerships and alliances, hence the insurance industry could only emerge much stronger as a result.

For MMI Group Chief Executive Officer, Jason Nandago, the insurance sector increasingly plans and executes its deal activity using a strategy-driven

As MMI acquires a 70% stake of Quanta Insurance, to launch Momentum Short-Term Insurance, Nandago says the N$8.5million deal shows the MMI Group is becoming much more strategic about its inorganic investments.

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While the pace of deal making in the insurance sector may have slowed relatively, compared to the prior years, for MMI, the appetite for inorganic growth continues to remain high. Globally insurance executives are becoming much more focused on creating stronger alignment between their mergers and acquisitions activity as well as their business strategy. They are thinking carefully about how their businesses will win in their markets and they are looking for acquisitions


and partnerships that could help them enhance their competitive advantages. Below Nandago discusses how MMI is reshaping its portfolio of businesses and assets, centres of operational excellence and markets to meet future growth opportunities. And he is thinking carefully about what capabilities and skills they will need in order to innovate and win in the future. So, what does the acquisition of Quanta Insurance mean for MMI holdings operations? Jason Nandago: The acquisition of Quanta is an important milestone in the life/annals of the MMI Holdings Namibia. It solidifies our vision and promise to be the preferred financial wellness lifetime provider as we now provide a fully financial service offering, Life assurance, investment, health care administration and now Short-Term Insurance. But how will this acquisition impact the short-term insurance landscape in Namibia? Jason Nandago: Quanta Insurance has already been playing in the Namibian space for the past three years. This acquisition will strengthen the operations of the business in terms of Capital, Products, Technology and Brand. How has the merger of 2010, Swabou, Metropolitan, Momentum and others progressed since and how will Quanta Insurance be prioritized? Jason Nandago: The Merger between Momentum and Metropolitan is fully embedded, and that culminated in the formation/establishment of MMI Holdings Namibia. We are using the Momentum Brand in the middle to upper segment of the market while we keep and market our most established of Metropolitan and Swabou in the middle to lower segment of the market and the products have been tailor-made for all these different market segments.

You pride yourself in being one of the biggest employers in the country with over 1000, how many people will you employ with this new acquisition? Jason Nandago: Yes, we pride ourselves in being one of the biggest employers in Namibia and also a big and compliant contributor to the Fiscus in terms of Taxes. The acquisition will at inception greatly impact the way that we service our clients/customer base, the wider spectrum of solutions on offer, and as we grow and become bigger it will definitely open up doors for employment. In addition, Quanta Insurance to be rebranded Momentum Short Term Insurance will be joining an established MMI family and we have a presence in eighteen (18) towns in Namibia, and as a result bringing the services much closer to our clients, as a one stop solution for all their financial wellness needs. What is your message to clients who were already in business with Quanta Insurance? Jason Nandango: Our message to the clients that are already on our books and the prospective clients, is that Quanta is now part of financially stable, great brand presence, a responsible corporate citizen and clients can sleep in peace/assured that their Legitimate Claims will ALWAYS BE HONOURED/PAID.

many sectors of the economy, including the Financial Services space where we are playing/finding ourselves. Despite all those tough and demanding challenges, MMI Holdings Namibia had a steady growth during 2017. You completed five years as CEO of MMI last year in November. What was your biggest achievement during this period? Jason Nandago: Our biggest achievement during my first five (5) years was to have overseen the integration between Momentum and Metropolitan Namibia, most probably the biggest merger in the Life Assurance space in Namibia. Our embedded value has grown from N$53.10 per share to N$62.70 per share post-merger in addition to having consistently maintained our position in the market. Furthermore, the merger was a great success in that we were able to bring together two big brands and enlarge our footprint across all the market segments, create one unified culture in MMI Holdings Namibia, and integrate our Sales Force and streamline our product suite offering. We now look forward to the rebranding and integration of Quanta and welcome our new employees and clients to the MMI Holdings Namibia Group.

You have previously stated that local regulation practices in the industry need more consultation. How has that progressed over the last two years? Jason Nandago: This is work in progress I should say. The relationship between the Regulators and the Industry has improved slightly but more still needs to be done. Describe 2017 performance for MMI in a nutshell? Jason Nandago: The Namibian economy is going through some challenges and this is being felt in 5

FEBRUARY 2018 • Us NAMIBIA


Johan Barnard Momentum Short Term Insurance Managing Director

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Quantum Leap

across all economic standings in

Mozambique and Botswana

the country, has been synonymous

boards as the regional director for

with trustworthiness and deliverance

SADC and that experience taught

under the leadership of CEO Jason

me that relationships are key. Not

Nandago. With a stronger access

only the relationship between

T

of resources and history, the timing

brands, but between people,” he

he 30 years of being in the

of MMI was a perfect fit into

adds.

insurance industry propelled

Barnard’s vision when the former

Johan Barnard to establish

ventured into short term insurance

One of those elements is the

Namibia’s first general

plans.

relationship with the broker,

partner Justus Hausiku.

Momentum Short-Term Insurance

broker works for you rather than

(MSTI) is already in tremendous

an insurance company and having

And after two years of calculated

shape. For Barnard, this (MSTI)

well trained registered broker, is a

operations, Quanta has sold 70%

was a kid born running. The bias

strong ingredient in the client getting

of its shares to Namibia’s 3RD

towards technology will win the

the best from their insurance, he

biggest financial services company,

marketplace, thanks to its new and

says, adding that while most of

MMI Holdings, a deal that has

unique ways to meet customers’

the packages offered by insurance

transformed that company from

needs and keep our employees

companies are tailored in South

Quanta to Momentum Short-Term

satisfied by challenging them to be

Africa for South African markets,

Insurance in what is arguably

innovative through technology, from

MSTI has been born with solutions

the biggest deal in the insurance

smartphones, to what is yet on the

for Namibia and by Namibians.

industry since Metropolitan merged

market.

Barnard believes. An insurance

insurance company, Quanta with

with Swabou Life. This has been a more exciting move for the brainchild, Barnard who established Quanta in 2015 after leaving Hollard Namibia, a company he founded and led for 12 years. “It is certainly more exciting today than ever because we are able to take our experience and apply our mind for more local solutions with the backing of a bigger balance sheet. Competition is fierce, insurance has never been as cheap as it is, and the economic hit last year was a blow, but it meant being creative in our solutions and I believe MMI are the right group to go on this adventure with,” he tells Us. Indeed, the MMI brand, one of the biggest insurance houses

“I understand the Namibian “If we’re willing to stay nimble and

culture, and our strategy and our

creative with our ideas — find

commitment are to do what we

opportunity where others see

do best and that is by creating

hurdles — we’ll continue to win in

solutions in a unique country. We

the marketplace,” he says.

will look to the future, prepare for what’s ahead and embrace

With a 30% remaining stake in

every opportunity. There is truly an

Momentum Short Term Insurance

excitement and energy about the

Quanta Holdings will be in the

future that has never been stronger.

thick of things, leading the surge

And we are well-positioned to

towards general insurance but

capitalize on the opportunities

well positioned to serve the

before us,” thus Barnard.

corporate and commercial market, state owned enterprises (SOEs),

“When I walk away from this one

municipalities, tourism and farming

day and 10 people tell me ‘Thank

markets.

you, you gave me a change and an environment where I could grow

“We were able to become a brand

as a person and a professional’

to be reckoned with within two

then I will be satisfied. For me it

years. Our trajectory was going up

is about investing in people’s lives

when usually it goes flat before it

and for them to grow into hugely

picks up, so this merger, is nothing

successful leaders in their own

but an exciting challenge. At

right,” Barnard reflects.

Hollard, I served on the Zambian, 7

FEBRUARY 2018 • Us NAMIBIA


Welcoming Messages A welcoming message to Momentum Short Term Insurance from Lesley Rukoro: CEO Momentum Asset Management

T

he acquisition of Quanta into MMI and becoming Momentum Short Term Insurance is value enhancing for the Group operations and allows us to provide a more comprehensive offering to clients. It supports our vision, ambition and growth strategy to become a leading financial wellness partner. It introduces a holistic financial wellness value propositions that will assist clients on their path towards financial wellness, thereby enhancing our customer value proposition.

Lesley Rukoro: CEO of Momentum Asset Management

There is a great opportunity for the Momentum brand to be further

From Etienne Brits: CEO Distribution

products have the opportunity to share

I believe that this transaction will re-

whereby an introduction can be made

establish and expand the already strong

which will afford different units (short-term,

Momentum brand in Namibia. It will

health) an opportunity to market to existing

create new synergies between the different

clients.

business units that will potentially open new avenues for cross-selling into the various Momentum products. Momentum can now offer the complete range of insurance products that include Life, Short-term and retirement solutions.

entrenched, to increase our footprints in sectors that are being opened up by the acquisition and to diversify our revenue streams. I am excited for us to work together in the future and we will take advantage of areas where opportunities present themselves across the various Group businesses to enhance our value proposition to clients. There are synergies and growth for the business that could be derived from this acquisition. The Momentum brand is very well entrenched in various sectors of the market. The acquisition provides an opportunity to further penetrate additional markets. Welcome to the Group! We look forward to being partners and for exciting business opportunities!

data. There will have to be a process

Our sales and marketing teams will working together and we are confident that there will a lot of new business opportunities that will beneficial to all of us. So, welcome to all the new Quanta\ Momentum staff, we are excited and

We should establish a platform where all

looking forward to have you as family in

the different Momentum business units/

our MMI Namibia Group

From Florian Amulungu: CEO Methealth Administrators Namibia This is an excellent acquisition.

operations. Of course, we plan to market as a team and compare notes

a complete financial welfare

on our clientele base within the

solution.

Group because more and more

Namibia, it will not be a

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have positive impact on our

we can now offer our clients

as Methealth Administrators

Us NAMIBIA • FEBRUARY 2018

this new acquisition can only

The scope is now wider and

In terms of our operations

Florian Amulungu | CEO Methealth Administrators Namibia

Etienne Brits | CEO, Distribution MMI Holdings Namibia Group

clients prefer a one stop shop and that is what this acquisition just strengthens.

major impact, apart from

Welcome to the family and

the fact that the synergy of

together we can do better.


Peace of mind

short-term insurance 9

FEBRUARY 2018 • Us NAMIBIA


H EROES

You are in better hands with us short-term insurance Us NAMIBIA • FEBRUARY 2018

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“The insurance industry is on the cusp of a new wave of mergers and acquisitions, driven by strategic objectives, portfolio shaping and a new quest for value.” Gary Reader, Global Head of Insurance KPMG International

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FEBRUARY 2018 • Us NAMIBIA

Us Namibia February 2018 Side B  

Side B of Us Namibia's February 2018 Issue

Us Namibia February 2018 Side B  

Side B of Us Namibia's February 2018 Issue

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