Old Mutual (OMU) H2 2024 earnings summary

Executive summary

• Achieved strong double-digit earnings growth, with Adjusted Headline Earnings per share up 17% to ZAR 1.506 and Return on Net Asset Value (RONAV) up 160 bps to 12.7%.

• Total dividend for the year increased 6% to ZAR 0.86 per share, with a final dividend of ZAR 0.52 per share.

• Funds under management grew 10% to ZAR 1.5 trillion, supported by improved equity market performance.

• Cumulative ZAR 89 billion returned to shareholders since 2018 through special and ordinary dividends.

• Launched OM Bank, a digital-first bank, as a key growth catalyst, with public rollout planned for Q4 2025.

Financial highlights

• Adjusted Headline Earnings reached ZAR 6.69 billion, up 14% year-over-year; AHE per share at 150.6c, up 17%.

• Group Equity Value (GEV) increased to ZAR 97.5 billion; Return on GEV rose to 7.5%.

• IFRS earnings increased 9% to ZAR 7.7 billion.

• VNB margin improved by 20 bps to 2.5%, within the target range.

• Cash remittances from subsidiaries totaled ZAR 10.5 billion, including ZAR 1 billion from Africa Regions.

Outlook and guidance

• Six focus areas for 2025: OM Bank public launch, margin-accretive sales growth, capital efficiency, new savings/income proposition, cost optimization, and improved collections/persistency.

• Bank expected to break even at 2-2.5 million customers by 2028.

• Continued commitment to capital efficiency and shareholder returns.

• Medium-term targets reaffirmed: value of new business margin 2–3% (achieved 2.5%), net underwriting margin 4–6% (achieved 6.2%).

• Strategic delivery on core business and acceleration of new growth initiatives.