Old Mutual expects results from operations to increase by between 2% and 12% to between R5.04 billion and R5.53bn for the six months to June 30, 2026.
Results from operations per share are expected to rise by between 6% and 16% to between 120.3 cents and 131.7 cents, the financial services group said in a voluntary update on Monday.
Adjusted headline earnings per share, however, are expected to decline by between 22% and 31% to between 65.7 cents and 75.3 cents.
The decrease was mainly due to lower shareholder investment returns, amid "risk-off" conditions in global markets. The company said geopolitical conflicts in the Middle East negatively affected equity and bond-market performance.
Old Mutual’s value of new business increased by 31% to R569 million. Life annual premium equivalent (APE) sales rose by 21% to R7.86bn.
The group’s interim results are expected to be released on September 8.
Gross written premiums increased by 3% to R14.51bn, while the net underwriting margin improved by 210 basis points to 9.7%, from 7.6%.
The company said the increase in Life APE sales was mainly driven by 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 strong growth in retail and corporate sales. Excluding Old Mutual Corporate risk sales secured during the period, which are not expected to recur at the same level in the second half, Life APE sales increased by 12%.
The increase in gross flows was primarily driven by strong inflows in Wealth Management, particularly in the local platform business, as well as the inclusion of 10X Investments.
Old Mutual Investments also recorded higher inflows, reflecting improved third-party client activity across key investment capabilities. In Old Mutual Africa Regions, strong money-market inflows were reported in Malawi, alongside improved unit-trust flows in East Africa.
The improvement in client cash flows was attributed to stronger gross flows and the non-recurrence of a low-margin indexation outflow recorded by Old Mutual Investments in the prior period.
Gross written premiums were supported by growth in Old Mutual Insure, partly offset by currency movements and lower renewals following underwriting-management actions in Old Mutual Africa Regions.
The value of new business and the value-of-new-business margin improved because of higher sales volumes and a more profitable business mix in Wealth Management, Old Mutual Corporate and Old Mutual Africa Regions. This was partly offset by lower guaranteed-annuity volumes in Personal Finance.
The net underwriting margin at Old Mutual Insure remained at the upper end of the company’s medium-risk target range of 5% to 8%. Old Mutual attributed the performance to disciplined underwriting, effective claims management and a diversified portfolio.
Headline earnings and IFRS profits benefited from a strong performance in Zimbabwe, which is excluded from adjusted headline earnings.
edward.west@nationalmg.co.za
THE NATIONAL