Old Mutual, the JSE-listed insurer and investment group, reported a 29% increase in adjusted headline earnings to R4.2 billion in the six months to the end of June 2025. This growth was supported by an 88% increase in shareholder investment returns, driven by strong equity market performance in South Africa and Malawi, as well as robust underwriting in Old Mutual Insure.
Adjusted headline earnings is the group’s preferred profit measure that excludes volatile results from Zimbabwean operations.
Results from operations, which reflect profits from core activities such as selling policies, collecting premiums, and paying claims, rose 16% to R4.94bn. This improvement was primarily attributed to exceptional growth in Old Mutual Insure and favourable market conditions, although partially offset by a persistency basis change in the Mass and Foundation Cluster and higher central costs, including a one-off restructuring provision to reduce future expenditure.
By segment, Personal Finance and Wealth Management contributed the most, with a 33% rise to R1.84bn. Old Mutual Insure saw a 71% increase to R1.3bn. The group’s corporate, investment, and regional African businesses also showed improved performance. In contrast, the Mass and Foundation Cluster experienced a 15% decline to R801 million, while the banking division recorded a R579m loss amid ongoing investments in OM Bank.
The net underwriting margin rose by 270 basis points to 7.1%, largely because of the strong performance in Old Mutual Insure.
Sales growth remained muted during the period. Life Annual Premium Equivalent (APE) sales increased by 1% to R6.47bn, with higher retail risk volumes in the Mass and Foundation Cluster and solid contributions from Old Mutual Africa Regions. This was largely offset by lower guaranteed annuity sales in Personal Finance.
Present value of new business premiums fell 7% to R32.95bn. The value of new business decreased 50% to R432m, resulting in a reduction of the group value of new business margin to 1.3%.
Gross flows grew 7%, supported by contributions from Wealth Management and Old Mutual Africa Regions, although partially offset by lower inflows in Personal Finance. Gross written premiums advanced 5% to R14.5bn, driven by growth in Old Mutual Insure.
The board declared an interim dividend of 37 cents per share, representing a 9% increase from the prior half-year. Additionally, the board approved a share buyback programme of up to R3bn, subject to prevailing market conditions.
Old Mutual’s banking division is advancing with the integration of its existing finance and transaction services units. OM Bank, which opened to staff earlier in the year, has accumulated R1.5bn in deposits and R15.5bn in lending operations from the Old Mutual finance business, established nearly two decades ago to offer basic money accounts and personal loans.
The group has allocated R1.6bn for planned investments in OM Bank in 2026. This setup positions the bank to expand relationships with Mass and Foundation customers and attract new ones through its banking proposition.
Jurie Strydom, who assumed the role of chief executive on 1 June, said the group’s performance reflected its diversified portfolio and strong cash generation, despite a challenging sales environment and pressures on new business volumes and margins.
To address the reduced value of new business margin, Old Mutual will drive expense efficiencies through an operating model redesign and a leaner corporate centre. Strategic priorities have been refined to emphasise focused execution, operational efficiencies, and disciplined capital allocation, positioning the group to enhance growth and market share amid competitive pressures.
