Old Mutual Lim. Share News (OMU)

(Alliance News) - Old Mutual Ltd on Thursday dubbed as "solid" its performance for the first half of 2024, underpinned by buoyant local equities and strong gross written premiums.

The Anglo-South African financial services firm said pretax profit rose 11% to ZAR9.22 billion for the six months that ended June 30 from ZAR8.27 billion a year before.

Insurance revenue was up 6.3% to ZAR35.38 billion from ZAR33.27 billion.

Gross written premiums grew 9.3% to ZAR13.76 billion from ZAR12.59 billion, but the value of new business fell 8.4% to ZAR858 million from ZAR937 million.

Gross flows improved to ZAR101.48 billion, up 6.6% from ZAR95.16 billion, driven by higher inflows in local collective investment schemes, Private Clients and the offshore platform in Wealth Management.

Life annual premium equivalent sales were 5.6% higher at ZAR6.60 billion, compared to ZAR6.25 billion, benefiting from strong growth in risk sales across all channels in Mass & Foundation Cluster, and higher guaranteed annuities sales, better recurring premium savings sales in Personal Finance.

Gross written premiums rose 9.3% to ZAR13.76 billion from ZAR12.59 billion, supported by strong new customer acquisitions and intermediary productivity in Old Mutual Insure, particularly in the Specialty business, and better renewals in the general and health insurance businesses in Kenya and Uganda.

As at June 30, finds under management were up 7.2% to ZAR1.394 trillion from ZAR1.300 trillion, largely due to improved equity market performance. Shareholder investment returns increased 14% on the back of improved performance in South African equities.

Old Mutual declared an interim dividend of 34 rand cents, up 6.3% from 32 cents.

Earnings per share climbed 24% to 120.2 cents from 96.7 cents, while headline EPS was 38% higher at 133.6 cents from 96.8 cents.

Going forward, Old Mutual said it is encouraged by the cautiously optimistic outlook in South Africa following the formation of the government of national unity.

It expects fiscal risks in East and West Africa to remain largely contained either through debt restructuring or recourse to debt markets.

Old Mutual shares were up 1.5% to ZAR13.28 in Johannesburg early Thursday. They were up 2.8% to 58.10 pence in London.

By Artwell Dlamini, Alliance News reporter

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