Staff Writer
Old Mutual Limited has reported strong new business growth and resilient underlying operating earnings for the six months ended 30 June 2026, although adjusted headline earnings were affected by weaker shareholder investment returns amid volatile financial markets.
The financial services group said on Monday that Life APE (Annualised Premium Equivalent)) sales increased 21% to N$7.86 billion, compared with N$6.47 billion in the corresponding period in 2025.
Gross flows also rose 21% to N$128.91 billion, from N$106.76 billion a year earlier, while net client cash flow improved to an outflow of N$3.13 billion from an outflow of N$10.13 billion in the prior period.
Old Mutual attributed the growth in Life APE sales mainly to strong group risk and annuity sales in Old Mutual Corporate, as well as higher living annuity and endowment sales in Wealth Management.
Old Mutual Africa Regions also recorded growth across its retail and corporate businesses.
The group said that excluding Old Mutual Corporate risk sales secured during the period, which are not expected to recur at the same level during the second half of the year, Life APE sales would have increased by 12%.
Gross written premiums increased 3% to N$14.93 billion, supported by growth in Old Mutual Insure. This was partly offset by currency movements and lower renewals in Old Mutual Africa regions following underwriting management actions.
The value of new business increased 32% to N$569 million, from N$432 million, while the value of new business margin improved to 1.4% from 1.3%.
Old Mutual said the improvement reflected higher sales volumes and a more profitable mix of new business in Wealth Management, Old Mutual Corporate and Old Mutual Africa regions, although guaranteed annuity volumes in Personal Finance were lower.
Old Mutual expects results from operations to increase between 2% and 12%, to between N$5.04 billion and N$5.53 billion, compared with N$4.94 billion in the prior period.
Results from operations per share are expected to rise between 6% and 16%, to between 120.3 cents and 131.7 cents, from 113.5 cents.
However, adjusted headline earnings are expected to decline between 25% and 35%, to between N$2.73 billion and N$3.15 billion, from N$4.20 billion.
Adjusted headline earnings per share are expected to fall between 22% and 32%, to between 65.7 cents and 75.3 cents, compared with 96.6 cents previously.
Headline earnings are expected to decline between 1% and 11%, while headline earnings per share are forecast to range between a 4% decline and 6% growth.
Profit after tax attributable to shareholders is expected to be between N$3.69 billion and N$4.10 billion, representing a decline of between 0% and 10%.
Basic earnings per share are expected to range between a 5% decline and 5% growth.
