Staff Writer
Old Mutual has highlighted continued progress in the integration of Old Mutual Finance into OM Bank, which remains on schedule for completion by year-end, subject to regulatory approvals.
Customer uptake at OM Bank increased sharply, rising from 284,000 at the end of December 2025 to 473,000 in the first quarter of 2026.
Retail deposits also nearly doubled, reaching R541 million from R272 million, driven by higher savings activity and the migration of money accounts.
The group said it will continue rolling out OM Bank’s value proposition and focus on increasing transactional activity.
Old Mutual said its performance in the first quarter of 2026 remained broadly stable, despite a more challenging global operating environment marked by rising inflation risks, geopolitical tensions and continued pressure on consumer spending.
In its voluntary operating update, the group noted that South Africa’s economic outlook remains positive, supported by gradual fiscal improvement and ongoing reforms.
However, inflation is expected to rise in the near term due to higher fuel and food prices, increasing the likelihood of interest rate hikes.
Across Old Mutual’s Africa regions, growth prospects remain intact, although rising costs linked to the US-Israel-Iran conflict are expected to lift consumer inflation and weigh on earnings growth and insurance margins.
The group said it is continuing to implement its four strategic priorities aimed at unlocking short- and medium-term value while positioning the business for long-term growth.
These include improving the competitiveness of its South African operations, strengthening its leadership in Southern Africa, building out OM Bank, and reassessing growth opportunities in selected markets.
A shift from guaranteed to market-linked annuities is also placing pressure on new business margins. Life APE (annual premium equivalent) sales rose 28%, driven mainly by a large corporate risk deal.
Excluding this once-off transaction, sales still increased by 15%, supported by stronger underlying performance across business units and higher activity in Old Mutual’s Africa regions.
Gross written premiums were slightly higher year-on-year. Old Mutual Insure recorded a 4% increase, supported by growth in credit guarantee and other insurance segments, while Africa regions saw mixed results due to currency effects and variations in new business volumes.
The value of new business margin improved to 1.6% from 1.2% at the end of 2025, although it remains below the group’s medium-term target range.
The improvement was mainly driven by the large corporate risk deal and stronger performance in wealth management, partially offset by weaker annuity sales in personal finance.
Old Mutual Insure delivered a strong underwriting margin above its 5%–8% target range, supported by disciplined underwriting, claims management and portfolio quality improvements.
Despite severe flooding in parts of Limpopo and Mpumalanga, the group reported no material net losses.
Africa regions also reported improved underwriting margins, driven by better claims experience and cost efficiencies.
Old Mutual confirmed the completion of its R3 billion share repurchase programme, under which 214.9 million shares were bought back and cancelled at an average price of 1,396 cents per share.
