Old Mutual, the JSE-listed insurer, has announced a remarkable 29% increase in adjusted headline earnings, reaching R4.2 billion for the six months ending 30 June 2025. This performance is complemented by a rise in return on net asset value to 15.5%, within the company’s target range, and a 16% increase in results from operations. In a notable move, the board has declared an interim dividend of 37 cents per share, reflecting a 9% rise from the previous period, alongside a share buyback programme of up to R3 billion.
Financial Highlights
The group reported substantial shareholder investment returns, which surged by 88%. However, the group equity value saw a decline to R18.40 per share due to methodological changes and various business impacts, while the value of new business margin fell to 1.3%.
New CEO Jurie Strydom, who took office on 1 June, emphasised the importance of executing sharpened strategic priorities. He noted that a smooth transition in leadership has facilitated rapid adjustments with clarity and alignment. The company’s focus is now on group equity value and cash generation as key metrics for value creation.
Strategic Focus
Strydom highlighted that Old Mutual’s performance showcases the strength of its diversified portfolio and strong cash generation, even amid challenging sales conditions and pressures on new business volumes and margins. The company is actively working to improve cost efficiencies and increase market share to enhance returns.
The group has outlined four strategic priorities: enhancing competitiveness in South Africa, strengthening market leadership in Southern Africa, establishing a competitive advantage for OM Bank, and exploring growth markets. Life APE sales saw a modest increase of 1%, bolstered by contributions from Old Mutual Africa Regions and retail risk volumes in the Mass and Foundation Cluster, although this was partly offset by reduced guaranteed annuity sales in Personal Finance.
Old Mutual Insure reported a 5% growth in gross written premiums, reflecting strong performance in that area. OM Bank, which opened to staff earlier this year, is set to leverage R1.5 billion in deposits, R15.5 billion in lending operations, and a distribution network of 346 branches. This development aims to strengthen relationships with Mass and Foundation customers while attracting new clientele through an appealing banking proposition.
Commitment to Value
In conclusion, Strydom reaffirmed Old Mutual’s commitment to delivering sustainable value to customers, intermediaries, shareholders, and employees. He stressed that as an iconic 180-year-old business, the focus is on building on established foundations through strategic clarity, accountability, and effective execution.