Old Mutual (OMU) Status Update summary

Strategic and Operational Focus

• Transitioning from strategy to execution, integrating medium-term targets into business planning and scorecarding processes as the year ends.

• Refined strategic priorities emphasize disciplined execution, operational efficiency, and capital allocation to enhance competitive positioning and growth.

• Strong commitment to cost efficiencies and long-term value creation for shareholders.

• No major changes in trends since the half-year; life FES sales up 1%, gross flow flat.

• Progress on revised value creation metrics will be reported from 2026.

Financial Performance and Flows

• Net plan cash flow declined due to low-margin outflows and a significant single investment outflow.

• Gross premiums in P&C up 5%; loans and bonds up 1%, impacted by the sale of an underperforming loan book.

• Life insurance savings gross flows down 1%; Old Mutual Investments gross flows down 18% year-on-year.

• Gross written premiums rose 5%, driven by growth in Insure and Retail, despite lower renewals and discontinued operations in Africa Regions.

• Loans and advances declined 1%, reflecting stricter credit criteria and the sale of underperforming loans.

Sales and Product Trends

• Guaranteed annuity sales in personal finance down 40%, driving a 9% overall reduction in sales.

• Life APE sales were marginally higher, supported by strong risk sales in Mass and Foundation, but offset by lower guaranteed annuity sales.

• Recurring premium sales saw a slight uptick.

• Retail gross written premium growth in insurance segment consistent at 5%.

• Gross flows remained stable, with strong inflows in Africa Regions offsetting declines in Investments.