REG - Old Mutual Ltd - Old Mutual_FY 2025_SENS

Old MutualAnnouncement

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RNS Number : 9371W  Old Mutual Limited  17 March 2026

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: 01/26

 

17 March 2026

 

Group annual results and final dividend declaration for the year ended 31
December 2025

Overview of results

We have reset our strategic priorities to unlock shareholder value and
generate growth. Our focus for value creation is on group equity value and
cash generation. Group equity value per share increased by 2% to R19.80,
positively impacted by business performance in Old Mutual Insure and Wealth
Management. This was partially offset by strengthened persistency assumptions
in Old Mutual Life and Savings, which also reduced the value of new business
margin to 1.2%. On cash generation, the Old Mutual Board declared a final
dividend of 56 cents per share, bringing the total dividend to 93 cents per
share, an increase of 8% year-on-year.

Establishing strategic clarity

During 2025, we sharpened our corporate strategy around a clear value creation
framework, spanning two phases: Unlocking Value and Generating Growth. This is
anchored in four strategic priorities: driving competitiveness in our South
African businesses, deepening market leadership in Southern Africa,
establishing the right to win for OM Bank and evaluating and selectively
pivoting in growth markets and initiatives. Our capital allocation approach is
closely aligned to this framework and is guided by three capital horizons
linked to return on net asset value delivery. We have also implemented a more
devolved, empowering operating model, with greater end-to-end accountability
for business delivery held within cluster profit-centres, supported by a
leaner corporate centre. As such, the focus has now firmly shifted to
execution.

Progress on execution

In the Old Mutual Life and Savings cluster, the revised operating model has
established clear accountability for product profitability, including
restoring value of new business margins. Management actions are on track
relating to new business quality, collections and system implementations.

Customer and deposit trends in OM Bank are tracking well, ahead of public
marketing campaigns in Q2, with strong activation from the Old Mutual branch
network.

On cost savings, the R2.5 billion commitment has been cascaded to cluster
scorecards and incentives for 2026. R450 million in savings have already been
delivered in 2025.

The Group announced a R3 billion share buyback in September 2025. R0.7 billion
has been completed to December 2025 and the programme is continuing while it
remains value accretive to shareholders.

Performance overview

Sales and margins

Life APE sales increased by 3%, supported by an 8% increase in Old Mutual
Africa Regions and higher risk sales in Mass and Foundation and Personal
Finance. This was mostly offset by lower guaranteed annuity sales in Personal
Finance, driven by lower market yields.

Group gross written premiums increased by 5% driven by Old Mutual Insure's
contribution which improved by 7% year-on-year. Old Mutual Insure saw strong
growth in ONE Financial Services Holdings, partially offset by more muted
retail growth following deliberate remediation actions to improve the quality
of the book.

Gross flows increased by 7% supported by stronger flows in Old Mutual Life and
Savings. Higher inflows were driven by improved flows into local and offshore
platforms, Private Clients and Symmetry solutions in Wealth Management as well
as recurring premium growth in pre-retirement savings products in Old Mutual
Corporate.

Gross loans and advances decreased by 4%, driven primarily by a 3% decrease in
the Old Mutual Finance loan book. This reflects deliberate management actions
undertaken to enhance the quality of the book, which included book sales of
non-performing loans, lifting the net lending margin by 250 basis points to
12.1% for 2025.

Value of new business declined by 52% largely due to strengthened persistency
assumptions, as well as lower annuity and retirement fund umbrella sales. This
led to a reduction in the value of new business margin to 1.2%, below our
target range.

Net underwriting margin of Old Mutual Insure increased by 60 basis points to
6.8% supported by the continued operational turnaround and disciplined
underwriting. In the second half, underwriting margin was impacted by a
once-off exceptional provision related to a third-party cell in Old Mutual
Alternative Risk Transfer Insure. Adjusting for this, net underwriting margin
would have been 8.3%.

Earnings

Results from operations increased by 13% to R9.8 billion supported by improved
operating performance in Old Mutual Life and Savings and Old Mutual Insure.
Old Mutual Life and Savings benefited from positive experience and economic
variances as well as improved Old Mutual Finance profitability, partially
offset by persistency basis changes.

Our 2025 earnings are also significantly impacted by elevated returns and
performance in Malawi, which continues to experience elevated levels of
inflation and shortages of foreign currency.  Assuming a devaluation of the
Malawian kwacha of between 50% and 30%, the increase in results from
operations would have been between 7% and 9%.

Adjusted headline earnings increased by 24% to R8.3 billion, further
benefitting from elevated shareholder investment returns in South Africa and
Malawi. Assuming a devaluation of the Malawian kwacha of between 50% and 30%,
the increase in adjusted headline earnings would have been between 11% and
16%.

Shareholder operational costs increased by 11% to R1 889 million due to
restructuring costs of R440 million which were incurred to reduce future
expenditure. Excluding the impact of restructuring costs, shareholder
operational costs reduced by R246 million from the prior year, a reduction of
15%.

IFRS profit increased by 10% to R8.4 billion due to the improved operating
performance, the prior year impairment of our China business and the loss on
sale of our Nigeria business in 2024. This was partially offset by reduced
profits from our Zimbabwean business after the transition of the functional
currency from Zimbabwe Gold to the United States dollar in 2024. Headline
earnings declined by 2% to R8.6 billion mainly due to the impact of Zimbabwe.

Value and capital

The Group reported a return on net asset value of 15.2%, which is within our
target range. However, assuming a devaluation of the Malawian kwacha of
between 50% and 30%, return on net asset value would have been between 14.0%
and 14.5%.

Return on embedded value (covered business) was 7.8%. This was impacted by the
strengthening of persistency assumptions in Mass and Foundation and Personal
Finance and increasing the cost of non-hedgeable risk capital charge from 2%
to 3.5% during the year. These one off impacts were partially offset by
positive experience variances driven by mortality experience in Personal
Finance, Old Mutual Corporate and Mass and Foundation.

Group equity value per share increased marginally by 2% to R19.80. This was
impacted by the embedded value movements outlined above as well as increases
in Old Mutual Insure and Wealth Management following continued improved
performance. Return on group equity value was 4.1%.

The Group's shareholder solvency ratio of 162% remained well within the target
range of 155% to 185%. This was impacted by significant market movements,
particularly lower yields and higher prescribed equity shocks due to stronger
equity markets. The Group's robust capital position is supported by a gearing
profile at the lower end of the range, as well as ongoing capital management
optimisations.

Together with strong cash generation, this supported year-on-year dividend
growth of 8% which is within the medium-term target range announced in October
2025. The Group's discretionary capital balance almost doubled to R6.1
billion, which includes R2.3 billion committed to complete the approved share
buyback.

Outlook for 2026

The global environment is likely to remain uncertain, shaped by uneven growth
and ongoing heightened geopolitical risks. Against this backdrop, the South
African outlook has become more constructive, supported by the 2026 National
Budget, which reaffirmed a commitment to fiscal discipline. With public debt
projected to stabilise and decline over the medium term, alongside a sustained
primary surplus and targeted relief for households, these conditions will
provide a more supportive foundation for confidence and investment.

Looking forward, from 2026 we will measure and report delivery of our value
creation metrics against our medium-term targets. These targets have been
cascaded through the new cluster structures and incentives, with the
implementation of our revised operating model ensuring tight alignment and
accountability. We remain committed to restoring our value of new business
margin by focusing on enhancing business mix, retention and collections,
supported by cost savings. We will focus on disciplined execution of our reset
strategic priorities, supporting our customers' financial resilience with
renewed energy and excellence.

 

 

Group highlights

Group key performance indicators

 

 Rm (unless otherwise stated)                                            FY 2025  FY 2024  Change
 Group equity value                                                      92 477   92 460   0%
 Cash remitted from subsidiaries                                         10 169   10 538   (4%)
 Dividend growth (%) (1)                                                 8%       6%
 Discretionary capital (Rbn)                                             6.1      3.1      97%
 Return on net asset value (%)                                           15.2%    12.7%    250 bps
 Return on net asset value excluding OM Bank (%)                         18.8%    15.2%    360 bps
 Shareholder solvency ratio (%) (2)                                      162%     182%     (2 000 bps)
 Regulatory solvency ratio (%) (2)                                       153%     178%     (2 500 bps)
 Results from operations                                                 9 821    8 709    13%
 Adjusted headline earnings                                              8 263    6 685    24%
 Headline earnings (2)                                                   8 606    8 826    (2%)
 IFRS profit after tax attributable to equity holders of the parent (2)  8 408    7 669    10%

 Per share measures

 Cents                                     FY 2025   FY 2024   Change
 Results from operations per share (3)     225.6     196.2     15%
 Adjusted headline earnings per share (3)  189.8     150.6     26%
 Headline earnings per share (2)           201.6     202.7     (1%)
 Basic earnings per share (2)              197.0     176.2     12%
 Total dividend per share                  93        86        8%
 Interim                                   37        34        9%
 Final                                     56        52        8%
 Group equity value per share (4)          1 980.2   1 950.6   2%

Line of business key performance indicators

 

 Rm (unless otherwise stated)                     FY 2025    FY 2024    Change
 Life and Savings
 Embedded value                                   57 311     66 873     (14%)
 Contractual service margin                       65 013     61 561     6%
 Life APE sales (5)                               13 910     13 443     3%
 Present value of new business premiums           70 321     70 349     0%
 Value of new business                            850        1 758      (52%)
 Value of new business margin (%)                 1.2%       2.5%       (130 bps)
 Banking and Lending (6)
 Loans and advances                               17 990     18 761     (4%)
 Net lending margin (%)                           12.1%      9.6%       250 bps
 Life and Savings and Asset Management
 Gross flows (5)                                  228 788    213 620    7%
 Net client cash flow (5)                         (10 398)   (23 227)   55%
 Funds under management (Rbn) (5)                 1 639.0    1 446.9    13%
 Property and Casualty
 Gross written premiums                           28 609     27 336     5%
 Insurance revenue                                28 545     27 311     5%
 Net underwriting margin (%)                      5.1%       4.8%       30 bps
 Net underwriting margin - Old Mutual Insure (%)  6.8%       6.2%       60 bps

(1) Dividend cover has been replaced with dividend growth to reflect the
updated dividend policy, which targets a progressive dividend that is guided
by underlying cash generation with the aim of delivering sustainable dividend
growth over time. This metric shows the year-on-year dividend growth

(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 4 353 million at 31
December 2025 (FY 2024: 4 439 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 4 670 million at 31 December 2025 (FY
2024: 4 740 million)

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

(6) Old Mutual Banking will disclose key banking performance indicators from
2026

 

 

Annual results announcement

This results announcement is the responsibility of the Old Mutual Board and
has been prepared in compliance with the JSE Listings Requirements. It is only
a summary of the information contained in the Group Annual Results for the
year ended 31 December 2025 (Annual Results). The Annual Results can be found
on our website at

https://www.oldmutual.com/om-docs/blt78d3fbb18a103606/2025_Annual_Results_booklet.pdf
(https://www.oldmutual.com/om-docs/blt78d3fbb18a103606/2025_Annual_Results_booklet.pdf)
and the annual reporting suite can be found on our website at

https://www.oldmutual.com/investor-relations/reporting-centre/reports
(https://www.oldmutual.com/investor-relations/reporting-centre/reports) .

The annual reporting suite includes the consolidated annual financial
statements which is also available on the JSE cloudlink and has been audited
by Old Mutual's independent joint auditors, Deloitte & Touche and Ernst
& Young Inc, who expressed an unmodified opinion thereon. Any reference to
future financial performance is the responsibility of the Old Mutual Board and
has not been reviewed or reported on by Old Mutual's independent joint
auditors.

This results announcement and the Annual Results include non-IFRS financial
measures which are the responsibility of the Old Mutual Board. The non-IFRS
measures are provided for illustrative purposes only and provide information
that is useful to investors and are appropriate to assess the Group's
operational results and financial performance. Because of their nature, they
may not fairly present Old Mutual's financial position, changes in equity,
results of operations and cash flows. The non-IFRS financial measures have not
been reviewed or reported on by Old Mutual's independent joint auditors. The
consolidated annual financial statements and the independent joint auditors
audit opinion is available on our website at

https://www.oldmutual.com/investor-relations/reporting-centre/reports
(https://www.oldmutual.com/investor-relations/reporting-centre/reports) .

Any investment decisions should be based on consideration of the information
in the consolidated annual financial statements and the Annual Results. The
consolidated annual financial statements are accessible via the JSE
cloudlink                           h
(https://senspdf.jse.co.za/documents/2026/jse/isse/OMUE/FY25Result.pdf)
ttps://senspdf.jse.co.za/documents/2026/jse/isse/OMUE/FY25Result.pdf
(https://senspdf.jse.co.za/documents/2026/jse/isse/OMUE/FY25Result.pdf) and on
our website above as the information in this announcement does not provide all
of the details. While the consolidated annual financial statements are
available on the JSE cloudlink, the rest of the annual reporting suite and
Annual Results are only available on our website.

 

 

 

Final dividend declaration

In line with the Group's dividend policy, the Directors target a progressive
dividend guided by underlying cash generation, while considering the Group's
liquidity and solvency position, available cash balances, strategic capital
requirements, and prevailing market and regulatory conditions. The Old Mutual
Board declared a final dividend of 56 cents per share resulting in a 2025 full
year dividend of 93 cents per share. This reflects 8% growth relative to the
2024 full year dividend of 86 cents per share and is consistent with a
three‑year rolling growth rate of 7%. The increase in the final dividend
relative to the prior period was supported by resilient operational
performance and a sound capital and liquidity position. The final 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 4 646 293
017.

 

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

                                                                                17 March 2026                  17 March 2026                  17 March 2026

 Transfers suspended between registers                                          Close of business on Tuesday,  Close of business on Tuesday,  Close of business on Tuesday,

                                                                                24 March 2026                  24 March 2026                  24 March 2026

 Finalisation announcement and exchange rates announced                         Close of business on           Close of business on Tuesday,  Close of business on Tuesday,

                                                                                Tuesday, 24 March 2026         24 March 2026                  24 March 2026

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

                                                                                7 April 2026                   8 April 2026

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

                                                                                8 April 2026                   9 April 2026

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

                                                                                                                                              8 April 2026

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

                                                                                                                                              9 April 2026

 Record date (South African register and Malawi, Namibia and Zimbabwe branch    Close of business              Close of business              N/A
 registers)

                                                                                on Friday, 10 April 2026       on Friday, 10 April 2026

 Record date (UK register)                                                      N/A                            N/A                            Friday,

                                                                                                                                              10 April 2026

 Transfers between registers restart                                            Opening of business            Opening of business            Opening of business

                                                                                on Monday, 13 April 2026       on Monday, 13 April 2026       on Monday, 13 April 2026

 Final dividend payment date                                                    Monday, 13 April 2026          Monday, 13 April 2026          Thursday,

                                                                                                                                              7 May 2026

 

Share certificates for shareholders on the South African register may not be
dematerialised or rematerialised between Wednesday, 8 April and Friday, 10
April 2026, both dates inclusive. Transfers between the registers may not take
place between Tuesday, 24 March 2026 at close of business and Friday, 10 April
2026. Trading in shares held on the Namibian branch register through Old
Mutual (Namibia) Nominees Proprietary Limited will not be permitted between
Tuesday, 24 March at close of business and Friday, 10 April 2026, 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
44.800000 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 Annual results and Q&A will be
on Tuesday, 17 March 2026 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.it/DiamondPassRegistration/register?confirmationNumber=4320147&linkSecurityString=c81c3e9d6
(https://services.choruscall.it/DiamondPassRegistration/register?confirmationNumber=4320147&linkSecurityString=c81c3e9d6)

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 48348

 

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 23 March 2026.

 

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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