Old Mutual Limited today reported its annual results for the year ended 31 December 2025, reflecting its steady operating performance, providing an update on its strategy, including progress on OM Bank.
Establishing strategic clarity
During 2025, Old Mutual sharpened its corporate strategy around a clear value creation framework, spanning two phases: unlocking value and generating growth. This framework is anchored in four strategic priorities: driving competitiveness in South Africa; deepening market leadership in Southern Africa; establishing the right to win for OM Bank; and evaluating and selectively pivoting in growth markets and initiatives.
Capital allocation is closely aligned to this framework and guided by clearly defined capital horizons linked to return on net asset value delivery. The Group also implemented a more devolved operating model, with greater end-to-end accountability for delivery residing within business clusters, supported by a leaner corporate centre. The strategic reset phase is complete, and the focus has shifted decisively to execution.
Progress on execution
On cost efficiency, the Group’s R2.5 billion cost savings commitment, targeted for end of financial year 2027, has been cascaded into cluster scorecards and incentives, with R450 million of savings delivered during 2025.
In Old Mutual Life and Savings, the revised operating model has established clearer accountability for product profitability, and operational improvements focused on recovering market share to generate growth. Management actions to improve new business quality are continuing.
Customer and retail deposit trends in OM Bank continued to track well, ahead of broader planned marketing campaigns, supported by strong activations, with 46% of customers originating through the Old Mutal branch network.
On capital allocation, the Group announced a R3 billion share buyback in September 2025, of which R682 million had been completed by December 2025. The buyback will continue while it remains value accretive to shareholders.
Performance overview
Sales and margins
In the Life business, annual premium equivalent (APE) sales increased by 3%, supported by improving sales in South Africa and strong performance from Old Mutual Africa Regions. The value of new business margin declined due to persistency, and lower annuity sales in South Africa.
When looking at the general insurance business, gross written premiums increased by 5% driven by a 7% year-on-year improvement in Old Mutual Insure which sustained organic growth complemented by successful acquisitions, most notably ONE Financial Services, with net underwriting margin increasing to 6.8%. A once-off exceptional provision related to a third-party cell impacted second-half performance; excluding this, the underwriting margin would have been 8.3%.
Gross flows increased by 7%, supported by stronger inflows in Old Mutual Life and Savings, including improved flows into local and offshore platforms, Private Clients and Symmetry solutions in Wealth Management, as well as recurring premium growth in pre-retirement savings products in Old Mutual Corporate.
Gross loans and advances decreased by 4%, driven mainly by a 3% decrease in the Old Mutual Finance loan book. This reflected deliberate management actions to enhance credit quality, including the sale of non-performing loan books contributing to an improvement in the net lending margin to 12.1%. Loan sales increased by 22% to R9.4 billion.
Earnings
Results from operations increased by 13% to R9.8 billion, supported by improved operating performance in Old Mutual Life and Savings and Old Mutual Insure, including improved profitability in Old Mutual Finance.
Earnings were also significantly impacted by elevated market performance and returns in Malawi, which continues to experience high inflation and foreign currency shortages. Assuming a devaluation of the Malawian kwacha of between 50% and 30%, growth in results from operations would have been between 7% and 9%.
Adjusted headline earnings increased by 24% to R8.3 billion, supported by elevated shareholder investment returns in South Africa and Malawi. Assuming a devaluation of the Malawian kwacha of between 50% and 30%, the increase in adjusted headline earnings would have been between 11% and 16%.
Shareholder operational costs increased by 11% to R1 889 million due to restructuring costs of R440 million which were incurred to reduce future expenditure. Excluding the impact of restructuring costs, shareholder operational costs reduced by R246 million from the prior year, a reduction of 15%.
IFRS profit increased by 10% to R8.4 billion due to the improved operating performance, the prior year impairment of our China business and the loss on sale of our Nigeria business in 2024. This was partially offset by reduced profits from our Zimbabwean business after the transition of the functional currency from Zimbabwe Gold to the United States dollar in 2024. Headline earnings declined by 2% to R8.6 billion mainly due to the impact of Zimbabwe.
Value and capital
The Group reported a return on net asset value of 15.2%, within its target range. However, assuming a devaluation of the Malawian kwacha of between 50% and 30%, return on net asset value would have been between 14% and 14.5%. Group equity value per share increased by 2% to R19.80, supported by improved performance in Old Mutual Insure and Old Mutual Wealth.
The Group shareholder solvency ratio of 162% remained well within the target range of 155% to 185%. Strong cash generation supported the increase in dividends and resulted in the Group’s discretionary capital balance almost doubling to R6.1 billion, including capital committed to complete the approved share buyback.
Outlook for 2026
The global environment is likely to remain uncertain, characterised by uneven growth and heightened geopolitical risk. Against this backdrop, the South African outlook has become more constructive, supported by the 2026 National Budget and a reaffirmed commitment to fiscal discipline. Against a backdrop of improving fiscal discipline, including a stabilising public debt outlook and targeted household support, conditions are expected to become more supportive of confidence and investment.
From 2026, Old Mutual will track and report delivery of its medium‑term value creation targets, with a focus on restoring the value of new business margin through an improved business mix. Key performance indicators will include delivery of cost‑saving targets, customer retention and collections, new business volumes, growth in OM Bank customers and ongoing cost discipline. The group remains focused on disciplined execution of its reset strategic priorities, supporting customers’ financial resilience with renewed energy and excellence.