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Tuesday, January 1, 2013
Combining skills

There has been considerable development over the years in the structuring of the Momentum Group. I thought I would try and get some details on the current position (see flow diagram).
Metropolitan Retail. Metropolitan Retail provides savings, income and protection products to clients in the entry level (low to middle income) market. It combines the current capabilities of each group in this market with the distribution channels that currently target this market segment.
Momentum Retail. Momentum Retail operates in the upper income market. It provides wealth creation and preservation, protection, savings and income products to service the needs of this segment. Momentum Short-Term Insurance (MSTI), as well as Momentum Wealth (previously part of Momentum's Investments business), form part of Momentum Retail. Responsibility for distribution and sales for the products of certain other divisions (using financial advice channels) also resides in Momentum Retail.
Momentum Investments. Momentum Investments houses all the investments-related businesses of MMI Holdings formed through the merger of Momentum and Metropolitan. These include asset management, alternative investments, manager of managers, collective investments, property investments and global investments. The division focuses on delivering promised investment performance, administration and investment services.
Momentum Employee Benefits. Momentum Employee Benefits provides group risk, income protection and continuation, asset structuring, liability-driven asset solutions and pension fund administration through a combination of the Metropolitan and Momentum employee benefits businesses.
Metropolitan Health. Metropolitan Health combines managed care solutions, Metropolitan's focused healthcare administration capability for closed schemes, Momentum's closed scheme business and Momentum's product and service focus on open schemes.
Metropolitan International. Metropolitan International pursues growth in markets outside South Africa with an initial focus on the African Continent. With its combined footprint, MMI is represented in 12 territories beyond the borders of South Africa, covering life, group and health solutions.
Balance Sheet Management. Balance Sheet Management (BSM) manages MMI's strategic balance sheet risks, focusing on the financial position of shareholders and including capital, corporate action, strategic funding and liquidity risk, credit risk, asset- liability matching (with a primary focus on guaranteed liabilities), group treasury, performance measurement and market risk.

The Group Finance Director has ultimate responsibility for the overall financial affairs of MMI's business units, including governance, risk management, internal audit, compliance, tax, group finance and reporting, group actuarial and investor relations.
The role of Chief Integration Officer is a full-time exco function that involves coordinating the merger implementation process across business units. Considering the essential role of information technology in the integration process, the chief technology officers report to the chief integration officer, whose responsibilities include general services and infrastructure support.
Strategic Human Resources is responsible for aligning the HR function, employees and processes with MMI's strategic goals in order to improve performance, through the provision of a broad spectrum of people management services, including organisational design, skills development, recruitment, reward systems, leadership development, workforce planning and employee wellness.
Corporate Affairs is responsible for raising the profile of MMI through appropriate internal and external communication. Its initial focus will be to develop an overarching brand strategy for MMI and its key client-facing brands in collaboration with the business units. MMI's transformation strategy, stakeholder management and CSI initiatives will also be managed from this area.

Other information

Momentum Group is wholly owned by FirstRand Ltd, which also owns First National Bank and, of course, First National Insurance Brokers. Included somewhere is also Sovereign Health, and African Life Health, acquired late 2005. It was owned by Africa Life Assurance Co Ltd whose major shareholders are Sanlam (20.5%) and Momentum (33.4%). FirstRand holds 57.09% of Discovery Holdings the business which in turn owns Discovery Health, Discovery Insurance and Discovery Life. Note that RMB Holdings owns 25.01% of Discovery. Within the FNB is a private wealth bank called RMB Private Bank and, incidentally, the specialist motor finance business, Wesbank. First National Bank arrived in 1986 out of the disinvestment at the time of Barclays Bank (UK). Barclays recently renewed its interests in South Africa by buying Absa. The First Rand Group was formed in 1998 by the merger of First National Bank of South Africa, Rand Merchant Bank and Momentum Insurance and Asset Management.

Copyright © Insurance Times and Investments® Vol:26.1 1st January, 2013
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