Old Mutual Limited delivered robust new business growth and improved capital strength in the first quarter ended 31 March 2026, while completing its R3 billion share repurchase programme and advancing the integration of OM Bank.
Life APE sales rose 28% year-on-year to R3.73 billion. Excluding a large risk deal secured by Old Mutual Corporate, underlying Life APE sales grew 15%, reflecting stronger sales momentum across most clusters despite lower guaranteed annuity volumes in Personal Finance. Old Mutual Africa Regions contributed higher retail and corporate new business.
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Book NowGross written premiums edged up 1% to R7.50 billion. Old Mutual Insure posted 4% growth, driven by solid performance from Credit Guarantee Insurance Corporation, Genric Insurance Company, and ONE Financial Services Holdings. In Africa Regions, marginally higher general insurance and medical new business volumes in East Africa were offset by rand appreciation against the Kenyan shilling.
Gross flows climbed 14% to R60.01 billion, underpinned by exceptional inflows into Liability Driven Investments, Indexation funds, and Equity and Multi-Asset capabilities at Old Mutual Investments. Malawi recorded strong money market inflows and Uganda saw higher unit trust flows. This was partially offset by lower inflows in Wealth Management, particularly in low-margin Cash and Liquidity Solutions. Net client cash flow improved to a R5.40 billion outflow, narrowing from R3.18 billion in the prior period, supported by the absence of large indexation outflows seen in 2025.
Gross loans and advances increased 1% to R19.49 billion. Old Mutual Finance maintained a broadly stable lending book, reflecting cautious origination and active management of asset quality ahead of anticipated macroeconomic pressures. OM Bank is set to launch lending in the second half of 2026. In Africa Regions, the loan book shifted from retail toward secured small and medium-sized enterprise lending with larger loan sizes.
The value of new business margin recovered to 1.6% from 1.2% at 31 December 2025, though still below the medium-term target range. The improvement was driven by the large risk deal in Old Mutual Corporate, which is expected to normalise over the year, and by better margins in Wealth Management. Pressure continued in Personal Finance due to the rotation from guaranteed to market-linked annuities.
Old Mutual Insure delivered a strong start to 2026, with a net underwriting margin above the 5%–8% target range. Performance was supported by disciplined underwriting, claims-cost initiatives, and improved portfolio quality. Severe flooding in parts of Limpopo and Mpumalanga during the quarter did not result in material net losses. Management noted early signs of rate softening and reiterated a focus on sustainable underwriting profitability over volume growth.
Old Mutual Africa Regions also reported improved net underwriting margins, aided by better claims experience from disciplined underwriting, repricing to enhance portfolio quality, and cost-saving initiatives.
Results from operations were R2.5 billion, broadly in line with the prior period, despite customer pressure and continued investment in OM Bank. Earnings were not materially impacted by Malawi’s performance. Shareholder investment returns were significantly lower due to market volatility linked to geopolitical tensions.
OMLACSA’s regulatory solvency ratio increased to 186% from 167% at 31 December 2025, within the 165%–200% target range. The uplift was driven by March market movements amid the US/Israel and Iran conflict. A higher yield curve reduced the solvency capital requirement and increased own funds as liabilities fell. Equity market weakness also lowered the prescribed equity shock, further reducing the capital requirement. The Group solvency ratio remained well within the 155%–185% target range.
Discretionary capital fell to R4.2 billion at 31 March 2026 from R6.1 billion at year-end, after R1.5 billion was allocated to the share buyback in Q1. A further R0.9 billion was deployed in Q2. Old Mutual confirmed completion of the R3 billion Share Repurchase Programme on 15 May 2026. A total of 214,860,122 ordinary shares were repurchased on the JSE at an average price of 1,396 cents per share and cancelled. The programme was value accretive, with the average repurchase price below the group equity value per share reported at 31 December 2025. Issued share capital reduced to 4,498,037,281 shares.Progress on integrating Old Mutual Finance into OM Bank remains on track for completion by year-end, subject to governance and regulatory processes. OM Bank’s cumulative customer base grew to 473,000 in Q1 from 284,000 at 31 December 2025. Retail deposits doubled to R541 million from R272 million, driven by savings deposits and migration of money accounts. Management is focused on boosting transactional activity as the bank rolls out its value proposition.
While South Africa’s outlook is gradually improving with fiscal reforms, near-term inflation may rise due to higher fuel and food prices, raising the risk of interest rate hikes. Growth prospects across Old Mutual Africa Regions remain positive, though rising costs tied to the US/Israel and Iran conflict could lift consumer inflation and pressure topline and insurance margins.
The Group continues to execute on four priorities: drive competitiveness of the South African business, deepen market leadership in Southern Africa, establish the right to win for OM Bank, and evaluate and pivot on growth markets.
Cost-saving commitments remain on track. Actions to improve persistency and new business quality in Mass and Foundation are progressing, though pressure on disposable income persists. In Africa Regions, the focus is on underwriting margin improvements through disciplined pricing, claims and cost management, alongside value of new business margin growth via volume and mix.
