Old
Mutual
had
a
mixed
performance
in
the
first
six
months
of
2025,
as
higher-than-expected
market
returns
boosted
its
results
while
a
hit
in
Zimbabwe
weighed
on
profit
and
earnings.
Old
Mutual
was
established
in
Cape
Town
in
1845
as
South
Africa’s
first
mutual
life
insurance
company.
Today,
it
is
a
financial
services
group
that
operates
in
12
countries,
offering
insurance,
asset
management
and,
more
recently,
banking.
It
is
listed
on
the
JSE
and
has
a
market
cap
of
around
R64
billion.
On
Wednesday,
10
September,
Old
Mutual
released
its
results
for
the
six
months
ended
30
June
2025,
the
first
half
of
its
2025
financial
year.
These
results
showed
a
mixed
performance.
The
insurer’s
results
from
operations
increased
by
16%
to
R4.94
billion,
while
profit
and
headline
earnings
declined.
The
increase
in
results
from
operations
was
primarily
driven
by
exceptional
growth
in
Old
Mutual
Insure
and
favourable
market
conditions.
However,
the
company
noted
that
this
growth
was
partially
offset
by
the
negative
impact
of
a
persistency
basis
change
in
its
Mass
and
Foundation
Cluster
and
higher
central
costs.
These
costs
include
a
once-off
restructuring
provision
incurred
to
reduce
future
expenditure.
The
company’s
adjusted
headline
earnings
grew
by
29%
to
R4.20
billion,
supported
by
an
88%
increase
in
shareholder
investment
returns.
This
comes
as
the
JSE
All-Share
Index
returned
16.7%
in
the
first
half
of
2025.
However,
Old
Mutual’s
headline
earnings,
not
adjusted,
declined
by
29%
to
R4.16
billion,
mainly
due
to
reduced
profits
from
its
Zimbabwean
business.
This
business
unit
experienced
a
R2.2
billion
decrease
in
profits
as
Old
Mutual
implemented
a
change
in
functional
currency
from
Zimbabwe
Gold
to
the
United
States
dollar
from
1
July
2024.
This
is
the
same
reason
Old
Mutual’s
basic
earnings
per
share
dropped
by
20%
to
96.1
cents,
and
its
IFRS
profit
after
tax
declined
by
22%
to
R4.10
billion.
The
company
further
noted
that
it
saw
muted
sales
growth
with
the
present
value
of
new
business
premiums
decreasing
by
7%.
Old
Mutual’s
Life
APE
sales
increased
by
1%,
but
higher
retail
risk
volumes
in
its
Mass
and
Foundation
Cluster
and
good
sales
in
Old
Mutual
Africa
Regions
were
largely
offset
by
lower
guaranteed
annuity
sales
in
Personal
Finance.
Overall,
gross
written
premiums
increased
by
5%,
driven
by
good
growth
in
Old
Mutual
Insure.
Old
Mutual’s
return
on
net
asset
value
grew
by
290
basis
points
to
15.5%.
When
excluding
the
company’s
newly
launched
bank,
these
figures
go
up
to
390
basis
points
and
18.7%,
respectively.
On
the
back
of
these
results,
Old
Mutual
declared
an
interim
dividend
of
37
cents
per
share,
up
from
34
cents
in
the
first
half
of
2024.
Source:
Major
South
African
insurer
takes
R2
billion
hit
from
Zimbabwe
–
Daily
Investor