Old Mutual reports strong profit growth, raises dividend

Old Mutual Limited reported adjusted headline earnings of R4.2 bn for the six months ended 30 June 2025, marking a 29% increase. This growth uplifted the return on net asset value to 15.5%. The company's strong performance was primarily attributed to exceptional underwriting results in Old Mutual Insure and robust equity market performance in South Africa and Malawi.

The board declared an interim dividend of 37 cents per share, representing a 9% increase, supported by strong cash generation that also enabled a R3 bn share buyback program. Despite positive earnings, the group equity value decreased to R18.40 per share, and the value of new business margin reduced to 1.3%, impacted by business and methodology changes.

Gross written premiums increased by 5%, mainly from Old Mutual Insure. However, sales growth was muted, with the present value of new business premiums decreasing by 7%. Gross flows increased by 7%, driven by Wealth Management and Old Mutual Africa Regions, partially offset by lower inflows in Personal Finance.