South African insurer Old Mutual recorded a 30% decline in adjusted first-half earnings, as market volatility driven by Middle East conflicts weighed on investment returns.
Old Mutual, South Africa's largest life insurer, reported adjusted earnings of R2.95 billion (US$184 million) for the six months ended 30 June, down from R4.2 billion (US$262.2 million) in the same period a year earlier, according to Reuters.
Annual premium equivalent sales in the life insurance segment rose 21% to R7.85 billion (US$490.1 million). The growth was driven primarily by increased risk insurance and annuity sales at Old Mutual Corporate, living annuity and savings product sales within Wealth Management, and higher volumes across retail and corporate segments in Old Mutual's African operations.
The value of new business rose 32% to R569 million (US$35.5 million), while the new business margin improved by ten basis points, supported by higher sales volumes and a more profitable business mix.
Operating earnings per share increased 11% to 126.3 rand cents (US$0.08), underpinned by growth in Old Mutual Life and Savings results, strong contributions from Old Mutual Investments and the group's African operations, as well as a reduction in central costs.
The insurer declared an interim dividend of 40 rand cents (US$2.5 cents) per share, an increase of 8%, and announced a share buyback programme valued at R1 billion (US$62.4 million).
Customer acquisition and deposit growth at the newly launched OM Bank continued to trend positively during the period. The customer base grew to 742,000, while retail deposits reached R1.4 billion (US$87.4 million), the company said.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/09/09/mundo/africa/africa-do-sul-lucros-da-old-mutual-cairam-30-no-primeiro-semestre/
