Old Mutual (OMU) Trading update summary

Performance overview

• Life APE sales grew 28%, with underlying growth of 15% excluding a large risk deal, showing momentum across clusters.

• Value of new business margin improved to 1.6%, aided by the risk deal and Wealth Management margin gains.

• Gross flows rose 14%, driven by strong inflows in Investments and Africa Regions.

• Net client cash outflows improved by 41% year-on-year, reflecting better gross flows and fewer outflows.

• Regulatory solvency ratio increased to 186%, well within the target range.

Segment and regional performance

• Old Mutual Insure achieved a net underwriting margin above the 5%-8% target, supported by disciplined underwriting.

• Africa Regions saw improved sales and underwriting margins due to better claims experience and cost savings.

• Gross written premiums in Insure rose 4%, with strong contributions from Credit Guarantee, Genric, and ONE Financial.

• Gross loans and advances were stable, with OM Bank set to launch lending in H2 2026.

Earnings and capital management

• Results from operations were R2.5 billion, stable year-on-year despite market volatility.

• Shareholder investment returns declined due to geopolitical-driven market volatility.

• Discretionary capital fell to R4.2 billion after R1.5 billion allocated to share buyback in Q1 and R0.9 billion in Q2.

• R3 billion share buyback completed, repurchasing 214.9 million shares at an average price below equity value.