Old Mutual (OMU) Status Update summary

Sales and Operational Performance

• Gross flows grew 19% to ZAR 170 billion, driven by Wealth Management, alternatives, and robust unit trust sales in Africa Regions.

• Life APE sales increased by 6% to ZAR 10.4 billion, with notable growth in risk sales, annuities, savings, and funeral products.

• Wealth sales rose 13%, supported by tax-free savings, investment fund flows, and significant inflows into new cash and liquidity products.

• Net client cash flow improved but remains marginally negative, with strong inflows and reduced outflows in Wealth Management, partially offset by higher outflows in Investments, Corporate, and Africa Regions.

• Property and casualty gross written premiums increased 7%, led by new business and rate increases in specialty lines.

Market Environment and Strategic Context

• Positive investor sentiment from the formation of a Government of National Unity and an interest rate cut, though consumer disposable income and capital investment remain constrained.

• Africa regions continue to face elevated inflation and currency depreciation, impacting results.

• Operating performance achieved despite geopolitical risks, Middle East tensions, and uncertainty around China's growth and emerging market currencies.

Capital, Dividends, and Shareholder Actions

• Regulatory solvency ratio in OMLACSA at 198%, within the 175%-210% target range.

• Discretionary capital increased to ZAR 1.6 billion, aided by dividends from Africa regions and offset by bank build allocation.

• Approval received for a ZAR 2 billion special dividend and a ZAR 1 billion share buyback, impacting discretionary capital in Q4 2024 and Q1 2025.

• Ongoing focus on unlocking further capital from the group balance sheet, with additional releases expected in 2024 and 2025.

• Remaining discretionary capital is available for growth investments or further returns to shareholders.