Old Mutual Limited Achieves Strong Growth and Share Buyback in H1 2023 – Funds Under Management Increase by 6%

Published On: September 28, 2023Company: Old Mutual Limited (OMU.mw)
What has been a significant achievement for Old Mutual Limited in the first half of 2023?
One significant achievement for Old Mutual Limited in the first half of 2023 has been the successful implementation of the new insurance accounting standard, IFRS 17, which has made their financial results more consistent. Additionally, there was a solid growth in most of their key performance indicators, as well as a substantial buyback of shares.

Summary

  • In the first half of 2023, Old Mutual Limited showed positive growth across several key performance indicators and regained market share in several sectors.
  • The company’s share buyback program was approved and is proceeding as planned, with R1.35 billion out of the allocated R1.5 billion already spent.
  • Old Mutual Limited has adapted to new insurance accounting standards (IFRS 17) and its financial results reflect this change.
  • The global economic situation has been resilient despite significant interest rate increases in the past 18 months. South Africa’s economy also showed signs of recovery in the first half of 2023.
  • Old Mutual Limited witnessed modest life APE sales increase and gross inflow growth, with notable contributions in the Mass and Foundation Cluster across all retail channels.
  • Funds under management grew by 6% to R1.3 trillion while the Group delivered an annualized return on group equity value of 10.5%.
  • Overall, the results from operations increased by 3% from the prior period, primarily due to good operational performance. The Group’s return on net asset value increased by 180 bps from the prior period.
  • The board declared an interim dividend of 32 cents per share and the Group’s solvency ratio remains robust.
  • Expectations for the second half of 2023 point towards weakening global economic growth and continued challenges for the African regions. However, Old Mutual Limited is determined to focus on strategic initiatives and expects robust sales and value of new business

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About Old Mutual Limited (OMU.mw)

Old Mutual Limited Malawi is a premium African financial services group that offers a broad spectrum of financial solutions to retail and corporate customers across key markets segments in 17 countries. Old Mutual’s primary operations are in South Africa and the rest of Africa, and it has niche businesses in Latin America and Asia. With over 170 years of heritage across sub Saharan Africa, we are a crucial part of the communities we serve and broader society on the continent. Old Mutual Limited is listed on the Malawi Stock Exchange

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