Old Mutual (OMU) H2 2025 earnings summary

Executive summary

• Group equity value per share increased to ZAR 19.80, up 2% year-over-year, with total dividend per share up 8% to 93 cents, driven by improved performance and capital management actions.

• A ZAR 3 billion share buyback was initiated, with ZAR 1.3 billion executed by year-end, supporting shareholder returns and capital allocation.

• Cost savings of ZAR 450 million achieved in 2025, progressing toward a ZAR 2.5 billion multi-year target by 2026.

• Strategic focus remains on unlocking value, driving competitiveness in South Africa, building profitable scale in Southern Africa, and expanding banking and investments.

Financial highlights

• RoGEV for 2025 was 4.1% (10.1% normalized); RoNAV increased to 15.2%, within the 15–17% target range.

• Covered business embedded value declined 14% to ZAR 57.3 billion due to capital outflows and negative model changes.

• Adjusted Headline Earnings per share rose 26%, mainly from strong investment returns, especially in Malawi.

• Results from operations per share up 15%, supported by diversified business growth.

• Dividend per share growth and capital remittances were strong, with discretionary capital nearly doubling year-over-year.

Outlook and guidance

• Medium-term targets reaffirmed: RoGEV 14–16%, dividend per share growth 6–9% (3-year rolling), RoNAV 15–17%, VNB margin 2–3%, and net underwriting margin 5–8%.

• Focus on regaining market share, improving persistency, driving new business volumes, and cost discipline.

• Banking cluster targeting profitability by FY 2028, with OM Bank integration and customer growth progressing.