Old Mutual posts "strong" performance in first quarter, but share fall

(Alliance News) - Old Mutual Ltd said on Thursday it had delivered a "strong" operational performance for the first quarter of 2026.

The Anglo-South African financial services firm delivered gross written premiums of ZAR7.50 billion for the first quarter that ended March 31, up 0.7% from ZAR7.45 billion a year earlier.

Gross flows for the first quarter rose 14% to ZAR60.01 billion from ZAR52.47 billion, driven by exceptional inflows in Old Mutual Investments.

Life annual premium equivalent sales climbed 28% to ZAR3.73 billion from ZAR2.92 billion.

Old Mutual said the value of new business margin recovered to 1.6% from 1.2% at December 31, 2025, but noted that the margin was below its medium-term target range.

The company said earnings were not materially hit by Malawi's performance in the first quarter, while shareholder investment returns were significantly lower due to market volatility caused by the geopolitical environment.

It also confirmed that it had concluded its ZAR3 billion share buyback in the middle of last month. It launched the repurchase plan in October 2025.

Looking ahead, Old Mutual said the ongoing pressure on customers' disposable income and elevated cost of living creates headwinds to improvement.

The group said the integration of Old Mutual Finance into OM Bank continues to progress and is on track to conclude by year-end.

Shares in Old Mutual ended down 0.2% to ZAR12.84 on Thursday in Johannesburg, and they fell 3.4% to 56.80 pence in London.

By Artwell Dlamini, Alliance News senior reporter South Africa

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