Old Mutual_FY 2025_SENS
17/03/2026 07:05
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% |
| 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% |
| 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 |
| JSE, MSE, NSX | ZSE | LSE | |
| Declaration date | Tuesday, 17 March 2026 | Tuesday, 17 March 2026 | Tuesday, 17 March 2026 |
| Transfers suspended between registers | Close of business on Tuesday, 24 March 2026 | Close of business on Tuesday, 24 March 2026 | Close of business on Tuesday, 24 March 2026 |
| Finalisation announcement and exchange rates announced | Close of business on Tuesday, 24 March 2026 | Close of business on Tuesday, 24 March 2026 | Close of business on Tuesday, 24 March 2026 |
| Last day to trade cum dividend for shareholders on the South African register and Malawi, Namibia and Zimbabwe branch registers | Tuesday, 7 April 2026 | Wednesday, 8 April 2026 | N/A |
| Ex-dividend date for shareholders on the South African register and Malawi, Namibia and Zimbabwe branch registers | Wednesday, 8 April 2026 | Thursday, 9 April 2026 | N/A |
| 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 registers) | Close of business on Friday, 10 April 2026 | Close of business on Friday, 10 April 2026 | N/A |
| Record date (UK register) | N/A | N/A | Friday, 10 April 2026 |
| Transfers between registers restart | Opening of business on Monday, 13 April 2026 | Opening of business on Monday, 13 April 2026 | Opening of business on Monday, 13 April 2026 |
| Final dividend payment date | Monday, 13 April 2026 | Monday, 13 April 2026 | Thursday, 7 May 2026 |