By Terri-Ann Brouwers.
JSE-listed insurer Old Mutual has reported a 29% increase in adjusted headline earnings to R4.2 billion for the six months ended 30 June 2025.
Return on net asset value rose to 15.5% within the group’s target range, while results from operations increased 16%. Shareholder investment returns were up 88%. Group equity value decreased to R18.40 per share, reflecting methodology changes and business impacts, and the value of new business margin fell to 1.3%.
The board declared an interim dividend of 37 cents per share, up 9% from the prior period, and approved a share buyback of up to R3 billion.
New CEO Jurie Strydom, who took over on 1 June, said a key focus was driving execution of sharpened strategic priorities. “Our ability to achieve a smooth CEO transition has enabled us to make rapid shifts with clarity and alignment. We are pivoting to return on group equity value and cash generation as value creation metrics. This shift establishes a demonstrable link between strategic intent, execution and value creation,” he said.
He added: “Our performance reflects the strength of our diversified portfolio and strong cash generation amid a challenging sales environment and pressure on new business volumes and margin. We are taking decisive action to improve cost efficiencies and lift our market share to enhance returns and margins.”
Old Mutual has set out 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 pivoting on growth markets.
The group reported Life APE sales up 1%, with good contributions from Old Mutual Africa Regions and retail risk volumes in the Mass and Foundation Cluster, offset by lower guaranteed annuity sales in Personal Finance. Gross written premiums grew 5% on the back of strong growth in Old Mutual Insure.
OM Bank, which opened to staff earlier this year, will leverage R1.5 billion in deposits, R15.5 billion in lending operations and a 346-branch distribution network. ‘This allows us to expand current relationships with our Mass and Foundation customers, while attracting new customers through a compelling banking proposition, “said Strydom.
Strydom concluded: “We are committed to delivering sustainable value to our customers, our intermediaries, our shareholders and our employees. Old Mutual is an iconic 180-year-old business and this moment is about building on these foundations with strategic clarity, clear accountability and focused execution and delivery.”