In this report, we introduce the MMI new operating model that organises business activities around our clients.
Scope and boundary
Our 2014 integrated report covers the activities of the MMI Holdings Ltd group (MMI) and includes an assessment of its financial and non-financial performance for the 12 months from 1 July 2013 to 30 June 2014, based on the operating model during this reporting period.
The divisional reviews should be read in the context of the operating model for the above reporting period.
New operating model
In this report, we introduce the MMI new operating model that organises business activities around our clients. Our new operating model, which is being phased in from 1 July 2014, separates all the group’s activities into four segment businesses and a products and solutions business, supported by group-wide functions.
The financial statements for the financial year ended 30 June 2014 have been prepared in accordance with the provisions of the South African Companies Act, 71 of 2008, the Long-term Insurance Act, 52 of 1998, as amended and the Short-term Insurance Act, 53 of 1998. They are also in compliance with International Financial Reporting Standards (IFRS); the South African Institute of Chartered Accountants (SAICA) Financial Reporting Guides as issued by the Accounting Practices Committee; Financial Pronouncements as issued by the Financial Reporting Standards Council; guidelines issued by the Actuarial Society of South Africa; and the Listings Requirements of the JSE Ltd (JSE). The accounting policies have been applied consistently to all the periods presented (except where annotated otherwise).
Non-financial information has been prepared taking into account the guidelines of the International Integrated Reporting Council (IIRC) and the Global Reporting Initiative (GRI), as well as the recommendations of the King Report on Governance for South Africa 2009 (King III). More information in this regard is available on the MMI website.
The non-financial content of this report was prepared by management and endorsed by the board. External assurance has been limited to our broad-based black economic empowerment scorecard, verified by accredited ratings agency NERA (please see transformation review for more details), and our carbon footprint, verified by Global Carbon Exchange. Both certificates are published on our website.
The board acknowledges its responsibility for ensuring the integrity, objectivity, reliability and transparency of the integrated report. The directors confirm that they have assessed the content and believe it addresses all the material matters and fairly presents the overall performance of the group.
The board declares that the integrated report contains disclosure in line with the recommendations of King III and the IIRC guidelines and has therefore authorised its release.
The Audit Committee of the board has also evaluated the integrated report, prepared from information provided by management. The Audit Committee considers the group annual financial statements compliant, in all material respects, with the required legislation and standards.
group chief executive officer