Old Mutual (OMU) H1 2024 earnings summary

Executive summary

• Sustained top-line growth and strong cash generation in H1 2024, with resilient profits, robust margins, and enhanced shareholder returns.

• Life APE sales up 6% to ZAR 6.6bn; gross written premiums up 9% to ZAR 13.8bn; funds under management up 5% to ZAR 1.4tn.

• Strategic progress included digital modernization, portfolio optimization, OM Bank build (public launch Q1 2025), and exits from Nigeria and Tanzania.

• Recognized for sustainability leadership with high ESG ratings and industry awards.

Financial highlights

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

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

• Results from operations at ZAR 4.2bn; headline earnings up 34% to ZAR 5.8bn, mainly from Zimbabwe operations.

• IFRS profit after tax up 20% to ZAR 5.2bn; group equity value per share at ZAR 18.70.

• Free surplus generation exceeded 100% of AHE, supporting dividends and discretionary capital.

Outlook and guidance

• Cautiously optimistic outlook with moderating inflation and monetary easing in South Africa; GDP growth forecasted at 1–1.4%.

• Sub-Saharan Africa growth expected at 3.5–3.7%, East Africa at 5.1% for 2024.

• Interest rates expected to trend down, supporting improved disposable income and growth momentum.

• OM Bank launch expected Q1 2025 with minimal impact on business case; continued investment in digital and climate risk resilience.

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