Old Mutual (OMU) H1 2024 earnings summary

Executive summary

• Sustained top-line revenue growth, resilient profits, and robust cash generation characterized H1 2024, with enhanced shareholder value and strong segment performance.

• Strategic progress included digital modernization, portfolio optimization, OM Bank build, and exits from Nigeria and Tanzania.

• Life APE sales rose 6% to ZAR 6.6bn, gross written premiums increased 9% to ZAR 13.8bn, and funds under management grew 5% to ZAR 1.4tn.

• Sustainability leadership recognized with top ESG ratings and industry awards.

• Shareholder value enhanced by share buybacks and increased dividends.

Financial highlights

• Adjusted headline earnings per share up 7% to ZAR 0.735; interim dividend per share up 6% to ZAR 0.34; adjusted headline earnings up 3% to ZAR 3.3bn.

• Return on net asset value increased by 70bps to 12.6%; excluding new growth initiatives, up 2.1% to 15.5%.

• IFRS earnings up 20% to ZAR 5.2bn; headline earnings up 34% to ZAR 5.8bn, mainly from Zimbabwe operations.

• Shareholder solvency ratio at 188%, within target range; regulatory solvency ratio at 175%-201%.

• Gross free surplus of ZAR 4bn generated, exceeding 100% of adjusted headline earnings.

Outlook and guidance

• Board approved a further ZAR 1bn share buyback in 2024, subject to regulatory approval.

• OM Bank public launch planned for Q1 2025, with phased rollout and minimal impact from delayed launch.

• Moderating inflation and monetary easing in South Africa expected to improve customer disposable income and support consumer sentiment.

• Medium-term targets reaffirmed: growth of nominal GDP +1%, RONAV at cost of equity +2–4%, solvency ratio 170–200%.

• Focus remains on disciplined execution, capital allocation, and leveraging integrated financial services strategy.