Old Mutual (OMU) H1 2025 earnings summary

Executive summary

• Smooth CEO transition and new leadership, with a repurposed operating model focusing on value creation, strategic priorities, and disciplined execution.

• Implementation of a leaner corporate center, empowered business clusters, and new segment structure: Life & Savings and Banking.

• Strategic pivot to group equity value, return on group equity value (ROGEV/RONAV), and cash generation as key metrics.

• Four focus areas: competitiveness in South Africa, value unlock in Southern Africa, growth in banking, and turnaround in growth markets.

• Leadership and segment restructuring effective August 2025, with new CEOs for key segments and a focus on customer-facing operations.

Financial highlights

• Adjusted headline earnings per share up 31% to 96.6 cents; adjusted headline earnings up 29% to R4.2bn.

• R3 billion share buyback approved and executed, supported by strong cash generation.

• Dividend per share up 9% to 37 cents; group equity value per share at R18.40.

• Gross written premiums increased 5% to R14.5bn; gross flows up 7% to R106.8bn.

• Shareholder solvency ratio at 172%; OMLACSA regulatory solvency at 187%.

Outlook and guidance

• Capital Markets Day in Q4 will provide more detail on financial targets and metrics.

• Medium-term targets: RONAV at 15.2%–17.2% (excluding OM Bank), group solvency ratio of 155%–185%, and value of new business margin 2–3%.

• OM Bank expected to reach break-even by 2027, with annual run-rate loss guidance of R1.1bn–R1.3bn and R1.6bn capital set aside.

• Focus on improving value of new business margin from 1.3% back to 2–3% range and continued emphasis on cost efficiency and disciplined capital deployment.

• Cautious but constructive outlook for H2 2025 amid geopolitical headwinds and resilient market sentiment.