daniel chigunwe
Pan-African financial services group Old Mutual has said its profits surged as much as 45 percent last year due to “exceptional growth” in new business.
The London-listed group, which is Africa’s largest insurer by assets, said in a trading statement ahead of its full-year results that its profit after tax likely came in at as much as R7,59bn (£318m) in the 12 months to December 31, 2023.
It pinned the “robust” results from operations on “strong operational performance underpinned by exceptional growth in new business and value of new business as we continue to gain market share across our segments”.
Old Mutual added that higher shareholder investment returns were boosted by higher interest rates and a recovery in equity markets.
It expected to report adjusted headline earnings per share between 121,3 South African cents (5p) and 142,6 South African cents (6p), which would be a year-on-year jump of between 14 percent and 34 percent over the year before.
Old Mutual saw a basic EPS of between 146,7 South African cents (6p) and 169,8 South African cents (7p), a 27 percent to 47 percent increase.
The firm did not include profit from its business in Zimbabwe in its estimates, citing the economy’s hyperinflation as a cause of earnings volatility.
Old Mutual will publish its results on March 27. — Cityam.com
Bongani Ndlovu