MMI Holdings Namibia Limited recently acquired 70% of Quanta Insurance, a Namibian owned short-term life insurance company which will officially be renamed and branded as Momentum Short-term Insurance from the 7th February 2017.
MMI group CEO, Jason Nandago informed the media at a briefing session this week that they aspire to be a one-stop insurance shop in Namibia that creates financial wellness for their clients.
The briefing aimed to expound on the mandate of MMI which was birthed in 2013 after a merger between Metropolitan Life Namibia Limited and Momentum Life Assurance Namibia Limited. MMI’s operations in Namibia include Metropolitan/Swabou, Momentum Namibia, Momentum Asset Management, Methealth Namibia Administrators and the newly acquired Momentum Short-term Insurance. MMI’s core business functions include long-term insurance, Asset Management, Savings, Investment, Health Care Administration, employee benefits and the recently added short-term investment through Momentum.
Also speaking at the session was Managing Director of newly acquired Momentum Short-term Insurance, Johan Barnard, who outlined that MMI did not specialise in short-term insurance in Namibia and that this was the competitive advantage that the acquisition presents. Barnard added that due to MMI’s vast networks, Momentum Short-term Insurance will now have access to a significantly stronger balance sheet, access to technology, lesson drawing from international best practices, re-introduce GaurdRisk back into the Namibian market to reach more clients as well as have accessed to reporting and capital support that is much needed especially considering stringent compliance regulations. As such the sale is expected to have positive impacts on the economy by creating employment and investment opportunities.
Nandago in acknowledging that the economy is going through a tough time reminded policy holders that “if you come to us recently unemployed, we do not encourage you to cancel your policy but instead you can stop the payments and resume once you find a job again. Since MMI resolves to be client centred, we do not expect immediate improvement as it does not take less than 2-3 years for an economy to recover. ”
Like MMI, Momentum short-term Insurance will operate on a “broker” model and the motive according to Barnard is because they equally value human relationship. MMI injected a starting capital of at least 8.5 million subject to performance oriented goals and conditions into Momentum operations.
At least 2.7% of MMI shares are owned by at least 30% of their staff through the Metropolitan staff share incentive scheme, whilst 0.7% of the shares are directed towards a community centred initiative called the Pinnacle/Metropolitan Empowerment Trust. Another 9.6% is invested in a Black Economic Empowerment (BEE) company called Grenada Investment (Pty) Ltd. The remaining 87% is owned by South African owned MMI Holdings International (Pty) Ltd. Finance Minister Calle Schlettwein is expected to launch Momentum Short Term Insurance on 7 February.