Old Mutual has grown full-year adjusted earnings, reflecting its focus on profitable organic growth in the core, disciplined capital allocation in new growth engines and investments in operational efficiencies.
The group, which is valued at R54.7bn on the JSE, reported a 14% rise in adjusted headline earnings to R6.685bn for the year to end-December, while adjusted headline earnings per share (HEPS) increased by 17% to 150.6c.
A final dividend of 52c per share was declared, for a total dividend of 86, up 6% compared with the year before.
The group delivered growth of 4% in results from operations to R8.7bn, with 7% growth in results from operations per share. Excluding investments in new growth initiatives, results from operations were up by 10%, driven by exceptional underwriting results in Old Mutual Insure and strong contributions from Wealth Management and Old Mutual Invest, partially offset by lower profits in Personal Finance.
Old Mutual Africa Regions continued to contribute positively to earnings, with all segments delivering more than R1bn to results from operations.
Value of new business of R1.8bn was 8% lower off a high base in 2023. Its value of new business margin of 2.5% improved by 20 basis points and remains within the group’s medium-term target range of 2%-3%. This was supported by a strong margin in Mass and Foundation Cluster and Old Mutual Corporate, partially offset by a lower margin in Old Mutual Africa Regions, it said.
Gross flows increased by 9% to R216.2bn, with strong inflows in Wealth Management, Old Mutual Invest and Old Mutual Africa Regions, which were partially offset by a decline in Old Mutual Corporate.
Old Mutual Africa Regions reported higher international fund inflows in Namibia and strong unit trust inflows in Uganda.
Despite good growth in gross flows, net client cash outflow of R21.5bn was adversely affected by significant outflows in Old Mutual Africa Regions and Old Mutual Corporate. Old Mutual Africa Regions experienced higher outflows due to a loss of a single mandate.
Across the group, two-pot withdrawals amounted to R3.4bn.
Funds under management grew by 10% to R1.5-trillion, reflecting strong performance in equities and money market assets, predominantly in SA, Malawi and Kenya.
Gross written premiums increased by 7% to R27.3bn, primarily due to new customer acquisitions and robust performance in our alternative risk transfer and specialist business portfolios in Old Mutual Insure.
The group said it had made progress on launching OM Bank, having met the remaining section 17 conditions and received regulatory approval for the appointment of Clarence Nethengwe as the bank’s CEO.
The board of directors of the bank has been constituted, with Nomkhita Nqweni as the inaugural chair.
“These appointments will oversee the execution of our gradual and risk-based customer acquisition strategy that will culminate in a full national roll out by the fourth quarter of 2025,” it said.
For 2025, Old Mutual will focus on launching OM Bank to the public, delivering quality, margin-accretive sales growth, improving collections and driving management actions to address persistency.
It would also maintain focus on the optimisation of costs and stringent expense management, and driving capital efficiencies to improve shareholder returns, it said.
As previously reported, Old Mutual CEO Iain Williamson has opted to take early retirement and will vacate the role he has held since 2020 at the end of August — ending a 32-year association with the group.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.