Old Mutual (OMU) H2 2025 earnings summary

Executive summary

• Group equity value per share rose 2% to ZAR 19.80, supported by non-covered business performance, capital management actions, and an 8% increase in total dividend per share to 93 cents.

• Initiated a ZAR 3 billion share buyback, with ZAR 1.3 billion executed by year-end, and delivered ZAR 450 million in cost savings in 2025 as part of a ZAR 2.5 billion multi-year target.

• Strategic focus on cost savings, operational efficiency, unlocking value in core South African businesses, and building scale in banking and investments.

• Leadership transition announced: Trevor Manuel retiring as chairman, Roger Jardine named chairman designate.

Financial highlights

• RoGEV for 2025 was 4.1%; normalized for methodology changes, it would have been 10.1%.

• Covered business embedded value fell 14% to ZAR 57.3 billion due to capital outflows and assumption changes.

• Adjusted Headline Earnings per share up 26%, mainly from strong investment returns, especially in Malawi; IFRS earnings per share increased 12%.

• RFO per share increased 15%, with strong contributions from Life and Savings and Insure clusters.

• Group solvency ratio at 162%, within the 155%-185% target range.

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%.

• Cost savings of ZAR 2.5 billion targeted by 2026, with ZAR 450 million achieved in 2025.

• OM Bank integration and customer growth are strategic priorities, with banking cluster targeting profitability by FY 2028.