Old Mutual Limited delivered a solid set of unaudited interim results for the six months ended 30 June 2026, supported by stronger sales, improved margins, disciplined cost management and good progress on its strategic reset.
The Group reported 21% growth in both Life Annualised Premium Equivalent sales and gross flows, reflecting improved competitiveness across South Africa and regional markets. The value of new business rose 32% and the new business margin improved by 10 basis points, underpinned by a more profitable mix in Wealth Management, Old Mutual Corporate and Old Mutual Africa Regions. Results from operations per share increased 11%, while return on group equity value strengthened significantly to 12.7%. Group equity value per share grew 4% to R20.66.
Building on this performance, the Board declared an interim dividend of 40 cents per share, up 8% year-on-year. In addition, a new R1 billion share buyback was approved, adding to the R3 billion programme completed in the period. The Group said the actions reflect confidence in capital strength and a commitment to enhancing shareholder returns while remaining within target range.
2025 saw Old Mutual reset around a two-phase value creation framework: Unlocking Value and Generating Growth. The plan is anchored in four priorities: strengthening competitiveness in South Africa, deepening leadership across Southern Africa, building OM Bank to scale, and selectively pivoting in growth markets and initiatives.
In the first half of 2026 the Group translated those priorities into delivery. Cumulative cost savings reached R936 million against the 2024 expense base, keeping Old Mutual on track for its R2.5 billion target by end-2027. Persistency experience in Mass and Foundation segments improved in line with expectations after decisive action on distribution incentives and unprofitable business.
OM Bank continued to scale. Customer numbers increased to 742,000 and retail deposits grew to R1.4 billion. The bank is leveraging the Group’s distribution network and integration opportunities, with a pathway to profitability targeted for FY2028.
Life APE sales were lifted by strong group risk and annuity sales in Old Mutual Corporate, higher living annuity and endowment sales in Wealth Management, and good retail and corporate growth in Old Mutual Africa Regions. Excluding a few large non-recurring corporate risk deals, underlying Life APE sales growth was 12%.
Gross flows rose 21%, driven by strong inflows into Wealth Management’s local platform and the inclusion of 10X Investments. Old Mutual Investments also saw higher third-party activity. In Africa Regions, money market inflows in Malawi and improved unit trust flows in East Africa supported growth.
In Property and Casualty, gross written premiums rose 3%, helped by Old Mutual Insure. Despite elevated catastrophe losses, Old Mutual Insure maintained a net underwriting margin of 7.6%, at the upper end of its 5% to 8% medium-term range, supported by disciplined underwriting and effective claims management.
Lending remained stable. Gross loans and advances were flat year-on-year. Growth in Africa Regions from larger, higher-quality loans offset a cautious lending stance at OM Bank. The credit loss ratio rose to 6.6% as the bank continued to build its book prudently.
Results from operations benefited from growth in Life and Savings, strong contributions from Investments and Africa Regions, and lower central costs. This offset lower underwriting earnings at Old Mutual Insure compared to a strong prior period and ongoing investment in OM Bank. Economic variances were negative in the period versus positive in H1 2025. On an underlying basis, excluding these market movements, operating growth was robust.
Adjusted headline earnings declined, mainly due to weaker shareholder investment returns in line with equity and bond market performance amid global risk-off sentiment. Headline earnings and IFRS profit were supported by a strong performance in Zimbabwe, which is excluded from adjusted headline earnings. Normalised return on net asset value improved to 12.6% from 11.9%. Malawi continued to be designated a hyperinflationary economy, characterised by high inflation and constrained foreign currency availability. Notwithstanding these conditions, it delivered a notable contribution to Old Mutual Africa Regions’ earnings.
The balance sheet remains sound. The shareholder solvency ratio was 172% and the regulatory solvency ratio for OMLACSA was 175%. An allowance was made for a foreseeable R4 billion dividend from OMLACSA. Discretionary capital stood at R3.1 billion after the completion of the prior buyback, and is expected to be boosted by at least R2 billion from the OMLACSA dividend in the second half.
Old Mutual noted a gradually improving fiscal position and sovereign credit trajectory in South Africa as a supportive backdrop. Across Africa Regions, growth prospects are broadly constructive and inflation is moderating in most markets, although Malawi continues to face inflation and currency pressures.
The Group cautioned that first-half sales included some large non-recurring deals, so growth may moderate in the second half. The focus remains on competitiveness, underlying momentum, and delivering on cost, capital and customer targets.
