(Alliance News) - Old Mutual Ltd on Thursday said gross written premiums surged in the first quarter on retention and new business growth.
The Anglo-South African financial services firm reported that gross written premiums for the first quarter of 2023 jumped 19% to ZAR6.51 billion, from ZAR5.47 billion the year prior.
The growth came as a result of better retention and new business growth in its medical and general insurance book in its African regions.
The firm said life annual premium equivalent sales fell 0.7% to ZAR2.87 billion from ZAR2.89 million.
Old Mutual said this decrease driven by lower savings products sales in China as the company stopped selling certain products ahead of regulatory changes. The decline came despite good sales momentum in its retail segments.
The firm said the global economic environment "remains challenging", but that China's easing Covid-19 regulations has boosted activity. Adding to this, Old Mutual said continued loadshedding in South Africa continues to damage its customer confidence.
Old Mutual shares rose 0.1% to ZAR11.21 each in Johannesburg on Thursday afternoon. In London, the stock dropped 1.3% to 46.68 pence.
By Harvey Dorset, Alliance News reporter
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Old Mutual Lim. (OMU)