Old Mutual reported a strong start to 2026, with new life insurance sales jumping 28% in the first quarter, improved business margins, and stronger investment flows.
The financial services group also pointed to improving capital strength, robust underwriting performance in its short-term insurance business, and continued momentum in OM Bank, even as pressure on household finances and volatile markets weighed on parts of the business.
New life insurance sales, measured by annual premium equivalent (APE), rose to R3.732 billion in the quarter to the end of March 2026, from R2.919bn a year earlier.
The increase was primarily driven by a large risk deal secured in Old Mutual Corporate, the group said in its voluntary operating update released on 4 June 2026.
Excluding that transaction, life APE sales would have increased by 15%, “reflecting strong sales growth compared to the prior period, notwithstanding lower guaranteed annuity sales in Personal Finance”, Old Mutual said.
Old Mutual Africa Regions also contributed to growth, generating higher retail and corporate new business.
Gross written premiums increased 1% to R7.503bn.
The value of new business margin, while still below the group’s medium-term target range, improved to 1.6% from 1.2% at the end of December 2025.
The improvement was supported by margin gains in Wealth Management, partly offset by continued pressure on annuity volumes in Personal Finance.
Gross flows rose 14% to R60.008bn, driven mainly by strong inflows into liability-driven investments, indexation funds, and equity and multi-asset capabilities in Old Mutual Investments.
Old Mutual Africa Regions recorded strong money market inflows in Malawi and higher unit trust flows in Uganda. This was partly offset by slightly lower inflows in the Old Mutual Life and Savings cluster, particularly in Wealth Management, where low-margin Cash and Liquidity Solutions inflows were below the prior-period level.
In Old Mutual Insure, gross written premiums increased 4% from the prior period, driven by good performances from Credit Guarantee Insurance Corporation, Genric Insurance Company, and ONE Financial Services Holdings.
Old Mutual Insure also delivered a net underwriting margin above its target range of 5% to 8%. “This performance was supported by disciplined underwriting, targeted claims-cost initiatives and continued improvement in portfolio quality,” the group said.
Severe flooding in parts of Limpopo and Mpumalanga during the first quarter did not result in material net losses for the insurer.
OM Bank continued to gather momentum, with customer numbers rising from 284 000 at the end of December 2025 to 473 000 in the first quarter.
Cumulative retail deposits increased to R541 million from R272m, helped by growth in savings deposits and the migration of money accounts.
The integration of Old Mutual Finance into OM Bank remains on track for completion by year-end, subject to the necessary governance and regulatory processes.
A key feature of the update was stronger capital cover. The regulatory solvency ratio for Old Mutual Life Assurance Company (South Africa) increased to 186% from 167% at the end of December 2025, remaining within its target range of 165% to 200%, while group solvency also improved and stayed within target.
Old Mutual said the improvement was largely driven by market movements in March, which reduced the solvency capital requirement and increased own funds as liabilities declined.
Results from operations of R2.5bn were broadly in line with the prior period, despite ongoing pressure on customers and additional investment in OM Bank.
Shareholder investment returns were significantly lower in the first quarter because of market volatility linked to the geopolitical environment.
Old Mutual also completed its R3bn share repurchase programme on 15 May 2026. By then, it had repurchased and cancelled 214 860 122 ordinary shares on the JSE at an average price of 1 396 cents a share.
