REG - Old Mutual Ltd - Unaudited interim results and dividend declaration

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RNS Number : 7555Y  Old Mutual Limited  10 September 2025

Old Mutual Limited

Incorporated in the Republic of South Africa

Registration number: 2017/235138/06

ISIN: ZAE000255360

LEI: 213800MON84ZWWPQCN47

JSE Share Code: OMU

JSE Alpha Code: OMLI

LSE Share Code: OMU

NSX Share Code: OMM

MSE Share Code: OMU

ZSE Share Code: OMU

("Old Mutual" or "Company" or "Group")

 

Ref: 27/25

 

10 September 2025

 

Unaudited interim results and interim dividend declaration for the six months
ended 30 June 2025

 

Overview of results

The Group delivered adjusted headline earnings of R4.2 billion, uplifting
return on net asset value to 15.5% amid sales and persistency pressures.

Our adjusted headline earnings growth of 29% was driven by strong
underwriting performance in Old Mutual Insure and strong equity market
performance, particularly in South Africa and Malawi.

The Board declared an interim dividend of 37 cents per share, reflecting an
increase of 9%. Strong cash generation enabling a R3 billion share buyback
reinforces our commitment to unlocking shareholder value.

Our Group equity value decreased to R18.40 per share due to a combination of
business impacts and methodology changes. The Group's value of new business
margin reduced to 1.3%, largely due to these changes.

Establishing strategic clarity

Strategic priorities have been sharpened with an emphasis on focused
execution, optimising operational efficiencies and disciplined capital
allocation to drive the achievement of a value accretive return on group
equity value in the medium term. As part of our focus on shareholder value
creation, we are pivoting to return on group equity value and cash generation
as our value creation metrics. This shift enhances clarity and establishes a
demonstrable link between strategic intent, execution and value creation.

We have set the following four Group strategic priorities, structured to
unlock value in the short to medium term, while positioning the Group to
generate growth over the medium to long term:

» Drive the competitiveness of the South African business

» Deepen market leadership in Southern Africa

» Establish the right to win for OM Bank

» Evaluate and pivot on growth markets

 

Performance overview

Results from operations increased by 16% primarily driven by exceptional
growth in Old Mutual Insure and favourable market conditions. This growth was
partially offset by the negative impact of a persistency basis change in Mass
and Foundation Cluster and higher central costs, which includes a once-off
restructuring provision incurred to reduce future expenditure.

Adjusted headline earnings grew by 29%, supported by an 88% increase in
shareholder investment returns. The JSE All-Share Index returned 16.7% in the
first half of 2025. Malawi faced elevated equity markets and heightened
currency risk as a result of sustained inflationary pressures.

Return on net asset value was 15.5%, within the target range, supported by
earnings and ongoing balance sheet optimisation. However, excluding higher
than expected market returns, return on net asset value would have been below
the target range.

IFRS profit and headline earnings declined, mainly reflecting reduced profits
from the Zimbabwean business after the transition of its functional currency
from Zimbabwe Gold to the United States dollar. The impact on net asset value
was limited owing to lower currency translation losses reported in equity.

We saw muted sales growth with present value of new business premiums
decreasing by 7%. Life APE sales increased by 1%, with higher retail risk
volumes in Mass and Foundation Cluster and good sales in Old Mutual Africa
Regions largely offset by lower guaranteed annuity sales in Personal Finance.

Gross flows grew by 7%, driven by good contributions from Wealth Management
and Old Mutual Africa Regions, partially offset by lower inflows in Personal
Finance.

Gross written premiums increased by 5% driven by good growth in Old Mutual
Insure.

Our discretionary capital balance was R5.9 billion, supported by continued
strong cash generation in our South African Life and Savings businesses and a
solid contribution from Old Mutual Insure.

The Board has approved a share buyback of up to R3 billion subject to
prevailing market conditions. The buyback will proceed while the share price
reflects a level that is considered accretive to shareholder value.

Our balance sheet remained strong with a Group shareholder solvency ratio of
172%, within our target range of 155% to 185%. Old Mutual Life Assurance
Company (South Africa) Limited's (OMLACSA) regulatory solvency ratio was
robust at 187%, well within our target range of 165% to 200%.

The reduction in group equity value to R18.40 per share was driven by business
impacts and methodology changes. Business impacts included an increase in
Property and Casualty valuations following continued strong performance in Old
Mutual Insure and a decrease in embedded value.

Total embedded value declined following high capital and dividend outflows of
R7.7 billion and model and assumption changes of R3.7 billion. Assumption and
model changes include adjustments for the non-hedgeable risk capital charge
from 2% to 3.5% and the strengthening of persistency assumptions in Mass and
Foundation Cluster. This was partially offset by positive economic variances
due to good market returns, profitable new business written, repricing some of
the investment business in Old Mutual Africa Regions as well as positive risk
experience variances.

The Group's value of new business reduced by 50%, largely due to the
assumption and model changes referenced above. This led to a reduction in the
Group value of new business margin to 1.3%.

Group net underwriting margin increased by 270 bps to 7.1% primarily driven by
the exceptional performance in  Old Mutual Insure.

Group strategic priorities:

Unlocking value

Drive the competitiveness of the South African business

Our South African operations are integral to the Group, with strong market
positions, extensive distribution reach and robust cash generation. To unlock
further value, we are driving customer retention and growth in Retail Mass as
well as market share and margin recovery in Personal Finance.

Recent operating model changes have simplified the organisation and created
greater clarity and accountability through the value chain, with streamlined
Group functions now supporting targeted and agile execution. This operating
approach enables us to achieve cost leadership, optimise operational
efficiencies and strengthen our position within a mature and highly
competitive market.

Deepen market leadership in Southern Africa

We have long-standing presence in markets bordering South Africa, with strong
brand equity and deep local insights. To deepen our market leadership in the
region, we are focusing on scaling select markets, expanding our product
offerings and capturing cross-border synergies. This approach builds on
Southern Africa's significant contribution to the results from operations and
the return on net asset value generated by Old Mutual Africa Regions.

Generating growth

Establish the right to win for OM Bank

OM Bank is leveraging our existing banking capabilities, which includes R1.5
billion in deposits and R15.5 billion in lending operations as well as our 346
branch network and FAIS-accredited in-branch advisor force. This allows us to
expand current relationships with our mass-market customers while attracting
new customers through a compelling banking proposition.

Evaluate and pivot on growth markets

As previously communicated, we have completed our exit from life and general
insurance operations in Nigeria and Tanzania and have transitioned South Sudan
into run-off. These actions underscore our commitment to concentrating
resources on markets with the greatest potential for sustained long-term value
creation. Future capital allocations will be targeted toward opportunities
that align with our strategic priorities, taking cognisance of our goal of
enhancing return on group equity value and return on net asset value to
competitive levels in the medium term.

Outlook

Looking ahead, the combination of geopolitical headwinds and resilient market
sentiment underpins a cautious but constructive outlook for the remainder of
2025.

Strategic priorities have been sharpened with an emphasis on focused
execution, optimising operational efficiencies and disciplined capital
allocation. Through improved competitive positioning, the Group will be well
positioned to lift growth and market share going forward.

In order to restore our value of new business margin to an acceptable level,
we have a strong resolve to drive expense efficiencies, supported by the
operating model redesign and leaner corporate centre.

With strengthened strategic clarity, disciplined execution and a strong
balance sheet, we are well positioned to create long-term value for
shareholders.

Group highlights

Group key performance indicators

 Rm (unless otherwise stated)                                            H1 2025  H1 2024  FY 2024  Change
 Group equity value (1)                                                  86 723   89 761   92 460   (6%)
 Cash remitted from subsidiaries                                         4 821    4 025    10 538   20%
 Dividend cover (times)                                                  2.4      2.0      1.6      20%
 Discretionary capital (Rbn) (1)                                         5.9      1.4      3.1      90%
 Return on net asset value (%)                                           15.5%    12.6%    12.7%    290 bps
 Return on net asset value excluding OM Bank (%)                         18.7%    14.8%    15.2%    390 bps
 Shareholder solvency ratio (%) (1,2)                                    172%     188%     182%     (1 000 bps)
 Regulatory solvency ratio (%) (1,2)                                     169%     175%     178%     (900 bps)
 Results from operations                                                 4 940    4 243    8 709    16%
 Adjusted headline earnings                                              4 204    3 267    6 685    29%
 Headline earnings (2)                                                   4 162    5 825    8 826    (29%)
 IFRS profit after tax attributable to equity holders of the parent (2)  4 102    5 241    7 669    (22%)

Per share measures

 Cents                                     H1 2025   H1 2024   FY 2024   Change
 Results from operations per share (3)     113.5     95.5      196.2     19%
 Adjusted headline earnings per share (3)  96.6      73.5      150.6     31%
 Headline earnings per share (2)           97.5      133.6     202.7     (27%)
 Basic earnings per share (2)              96.1      120.2     176.2     (20%)
 Total dividend per share                  37        34        86        9%
 Interim                                   37        34        34        9%
 Final                                     -         -         52        -
 Group equity value per share (1,4)        1 840.1   1 873.5   1 950.6   (6%)

Line of business key performance indicators

 Rm (unless otherwise stated)            H1 2025    H1 2024   FY 2024    Change
 Life and Savings
 Embedded value (1)                      59 164     68 047    66 873     (12%)
 Contractual service margin (1)          62 270     62 939    61 561     1%
 Life APE sales (5)                      6 470      6 376     13 443     1%
 Present value of new business premiums  32 952     35 477    70 349     (7%)
 Value of new business                   432        858       1 758      (50%)
 Value of new business margin (%)        1.3%       2.4%      2.5%       (110 bps)
 Life and Savings and Asset Management
 Gross flows (5)                         106 759    99 940    213 620    7%
 Net client cash flow (5)                (10 125)   (4 285)   (23 227)   (>100%)
 Funds under management (Rbn) (1,5)      1 504.0    1 381.7   1 446.9    4%
 Banking and Lending
 Loans and advances (1)                  18 460     19 919    18 761     (2%)
 Net lending margin (%)                  12.1%      8.3%      9.6%       380 bps
 Property and Casualty
 Gross written premiums                  14 511     13 764    27 336     5%
 Insurance revenue                       14 235     13 336    27 311     7%
 Net underwriting margin (%)             7.1%       4.4%      4.8%       270 bps

(1) The % change was calculated with reference to FY 2024

(2) These metrics include the results of Zimbabwe. All other key performance
indicators exclude Zimbabwe

(3) Results from operations per share and adjusted headline earnings per share
are calculated with reference to adjusted weighted average number of shares.
Adjusted weighted average number of shares used was 4 352 million at 30 June
2025 (H1 2024: 4 443 million)

(4) Group equity value per share is calculated with reference to closing
number of ordinary shares. Closing number of shares used in the calculation of
the group equity value per share was 4 713 million at 30 June 2025 (FY
2024: 4 740 million)

(5) The comparatives have been re-presented to exclude China

 

Interim results announcement

This results announcement is the responsibility of the Old Mutual Board. It is
only a summary of the information contained in the Group Interim Results for
the six months ended 30 June 2025 (Interim Results).

The Interim Results can be found on our website at

https://www.oldmutual.com/om-docs/blt752ab31d03a5d8f5/2025_Interim_Results_Booklet.pdf
(https://www.oldmutual.com/om-docs/blt752ab31d03a5d8f5/2025_Interim_Results_Booklet.pdf)
and the dividend declaration can be found on our website at
https://www.oldmutual.com/investor-relations/dividend-information/. Neither
this results announcement nor the Interim Results have been reviewed or
reported on by Old Mutual's independent joint auditors. Any investment
decisions by investors and/or shareholders should be based on consideration of
the Interim Results accessible via the JSE cloudlink
https://senspdf.jse.co.za/documents/2025/jse/isse/OMUE/HY25Result.pdf
(https://senspdf.jse.co.za/documents/2025/jse/isse/OMUE/HY25Result.pdf) and on
our website above as the information in this announcement does not provide all
the details.

Interim dividend declaration

The Old Mutual Board declared an interim dividend of 37 cents per share. The
growth in the interim dividend from the prior period was due to our resilient
operational performance and strong capital and liquidity position. The interim
dividend will be paid out of distributable income reserves to all ordinary
shareholders recorded on the record date.

Old Mutual's income tax number is 9267358233. The number of ordinary shares in
issue in the Company's share register at the date of declaration is 4 712 897
403.

 

                                                                                JSE, MSE, NSX                                ZSE                                          LSE
 Declaration date                                                               Wednesday,                                   Wednesday,                                   Wednesday,

                                                                                10 September 2025                            10 September 2025                            10 September 2025

 Transfers suspended between registers                                          Tuesday,                                     Tuesday,                                     Tuesday,

                                                                                16 September 2025                            16 September 2025                            16 September 2025

 Finalisation announcement and exchange rates announced                         Wednesday,                                   Wednesday,                                   Wednesday,

                                                                                17 September 2025                            17 September 2025                            17 September 2025

 Last day to trade cum dividend for shareholders on the South African register  Tuesday,                                     Wednesday,                                   N/A
 and Malawi, Namibia and Zimbabwe branch registers

                                                                                30 September 2025                            1 October 2025

 Ex-dividend date for shareholders on the South African register and Malawi,    Wednesday,                                   Thursday,                                    N/A
 Namibia and Zimbabwe branch registers

                                                                                1 October 2025                               2 October 2025

 Last day to trade cum dividend for shareholders on the UK register             N/A                                          N/A                                          Wednesday,

                                                                                                                                                                          1 October 2025

 Ex-dividend date for shareholders on the UK register                           N/A                                          N/A                                          Thursday,

                                                                                                                                                                          2 October 2025

 Record date (South African register and Malawi, Namibia and Zimbabwe branch    Close of business on Friday, 3 October 2025  Close of business on Friday, 3 October 2025  N/A
 registers)
 Record date (UK register)                                                      N/A                                          N/A                                          Friday,

                                                                                                                                                                          3 October 2025

 Transfers between registers restart                                            Opening of business on Monday,               Opening of business on Monday,               Opening of business on Monday,

                                                                                6 October 2025                               6 October 2025                               6 October 2025

 Interim dividend payment date                                                  Monday,                                      Monday,                                      Monday,

                                                                                6 October 2025                               6 October 2025                               3 November 2025

 

Share certificates for shareholders on the South African register may not be
dematerialised or rematerialised between Wednesday, 1 October and Friday, 3
October 2025, both dates inclusive. Transfers between the registers may not
take place between Tuesday, 16 September and Friday, 3 October 2025. Trading
in shares held on the Namibian branch register through Old Mutual (Namibia)
Nominees Proprietary Limited will not be permitted between Tuesday, 16
September and Friday, 3 October 2025, both days inclusive.

The dividend for South African shareholders will be subject to dividend
withholding tax of 20% for all shareholders who are not exempt from or do not
qualify for a reduced rate of withholding tax. International shareholders who
are not exempt or are not subject to a reduced rate in terms of a double
taxation agreement will be subject to dividend withholding tax of 20%. The net
dividend payable to shareholders subject to withholding tax of 20% amounts to
29.60000 cents per ordinary share. Distributions made through the dividend
access trust or similar arrangements established in a country will not be
subject to South African withholding tax, but may be subject to withholding
tax in the relevant country. We recommend that shareholders consult with their
tax adviser regarding the in-country withholding tax consequences.

Shareholders that are tax residents in jurisdictions other than South Africa
may qualify for a reduced rate under a double taxation agreement with South
Africa. To apply for this reduced rate, non-South African taxpayers should
complete and submit a declaration form to the respective registrars. The
declaration form can be found at:

https://www.oldmutual.com/investor-relations/dividend-information/
(https://www.oldmutual.com/investor-relations/dividend-information/)

 

Notes to editors

A webcast of the presentation for the 2025 Interim results and Q&A will
be on Wednesday, 10 September 2025 at 11:00 South African time. Register on
the Investor Relations website: https://www.oldmutual.com/investor-relations/
(https://www.oldmutual.com/investor-relations/) . Alternatively, pre-register
to participate in the call on the following link. Analysts and investors who
wish to participate in the call may do so using the same link or telephone
numbers below:

https://services.choruscall.eu/DiamondPassRegistration/register?confirmationNumber=6587579&linkSecurityString=fc27b5d91
(https://services.choruscall.eu/DiamondPassRegistration/register?confirmationNumber=6587579&linkSecurityString=fc27b5d91)

South Africa +27 10 500 4108

UK +44 203 608 8021

Australia +61 73 911 1378

USA +1 412 317 0088

International +27 10 500 4108

Replay access code 47891

 

To access the replay using an international dial-in number, please select the
link below:

https://services.choruscall.com/ccforms/replay.html
(https://services.choruscall.com/ccforms/replay.html)

The replay will be available until 15 September 2025.

Sponsors

JSE equity sponsor: Tamela Holdings (Proprietary) Limited

JSE debt sponsor: Nedbank Corporate and Investment Banking, a division of
Nedbank Limited

NSX: PSG Wealth Management (Namibia) (Proprietary) Limited

ZSE: Imara Capital Zimbabwe plc

MSE: Stockbrokers Malawi Limited

 

Enquiries

Investor Relations

Langa Manqele

M: +27 (0)82 295 9840

E: investorrelations@oldmutual.com (mailto:investorrelations@oldmutual.com)

 

Communications

Wendy Tlou

M:  +27 (0)82 906 5008

E: oldmutualnews@oldmutual.com (mailto:oldmutualnews@oldmutual.com)

 

About Old Mutual

Old Mutual is a premium African financial services group that offers a broad
spectrum of financial solutions to retail and corporate customers across key
market segments in 12 countries. Old Mutual's primary operations are in
Africa and it has a niche business in China. With over 180 years of heritage
across sub-Saharan Africa, Old Mutual is a crucial part of the communities it
serves as well as broader society on the continent. For further information on
Old Mutual and its underlying businesses, please visit the corporate website
at www.oldmutual.com

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