The launch of Old Mutual Bank remains on track, the financial services group says.
Releasing an operational update late on Thursday, the group said internal customers were actively refining processes and enhancing the service experience ahead of the public rollout later this year.
The group said the global economy was experiencing significant uncertainty, with the risk of rising trade barriers reducing demand and triggering new inflationary pressures, while in SA investor sentiment was dampened by uncertainty over the stability of the government of national unity (GNU) and the impact of US tariffs on exports.
Old Mutual’s African markets experienced mixed macro performance in the first quarter of 2025, driven by tariffs, the withdrawal of donor funding, inflationary pressures and currency volatility.
The group said for the quarter to end-March life annual premium equivalent sales (APE) were down 2% to R3.095bn, primarily due to a decrease in guaranteed annuities sales in Personal Finance, in line with the overall market decline resulting from a drop in yields.
The non-repeat of significant savings sales secured in the previous period in Old Mutual Corporate further contributed to reduced sales.
“Large corporate sales are lumpy by nature, with long and sometimes unpredictable lead times. This was partially offset by good risk sales across all distribution channels in Mass and Foundation Cluster as well as strong corporate sales in Old Mutual Africa Regions, particularly in Namibia and Malawi,” the group said.
Gross flows were 6% higher at R53.2bn, mainly driven by strong inflows in Wealth Management across the local and offshore platforms, Private Clients and Cash and Liquidity Solutions.
Despite good growth in gross flows, outflows in Old Mutual Investments and Old Mutual Corporate had a negative effect on net client cash outflow of R4.8bn. Old Mutual Investments reported low-margin indexation outflows of R6.4bn from a large offshore investor that continues to restructure their existing investment mandate. Higher outflows in Old Mutual Corporate were attributable to terminations of R3.6bn in respect of the exit of unprofitable business on an investment platform.
Gross written premiums grew by 7% to R7.49bn, mainly due to fee increases in Old Mutual Insure, particularly in the Specialty business.
Old Mutual Insure delivered growth of 12% in gross written premiums, with an underwriting margin well above the upper end of the group’s 4%-6% target range, coupled with strong investment performance.
“The growing diversity of insurance revenue makes Old Mutual Insure increasingly resilient with respect to claims correlated to climate change,” the group said.
In Old Mutual Africa regions, gross written premiums were lower than the previous period due to lower renewals and the impact of discontinued operations from the Nigeria business, which was disposed of in June.
Writing in Business Day recently, outgoing Old Mutual CEO Iain Williamson said the launch of OM Bank to the public would be followed up by a campaign to convert the maximum possible number of its profitable Money Account transactional business’ 1-million customers, of which 400,000 are active customers, into bank customers.
Jurie Strydom takes over as CEO from June 1.
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