Chronicle Editor
Sikhulekelani Moyo, Business Reporter
INTEGRATED financial services group, Old Mutual Limited, received 6,8 billion rand in excess death claims during the year 2021 as its clients experienced unprecedented mortality records.
The development was occasioned by the deadly Covid-19 pandemic, which continues to induce a strain on businesses worldwide.
In its reviewed preliminary annual results for the year ending 31 December 2021 Old Mutual, however, said the global economic growth was on rebound when compared to the sharp decline in 2020.
The resurgence is being supported by the roll-out of Covid-19 vaccines and removal of travel restrictions, which has resulted in increased demand and economic activity.
“Our business had worse mortality claims experience than anticipated, with R6,8 billion in excess deaths claims,” said the group.
“We realised R5,3 billion from our pandemic provisions, which partially offset the impact of access deaths on our profit.
“We have R2,9 billion in pandemic provisions remaining to be utilised against future Covid-19 related mortality claims.”
The group has said it will continue to closely monitor the mortality claims experience in case of uncertainty like emergency of new Covid-19 variants.
Meanwhile, since the outbreak of Covid-19 pandemic, Old Mutual said it lost 57 of its staff across the group, which has negatively impacted the group’s operations.
On the outlook, the group said global growth is expected to continue in 2022 although at a lower rate than 2021, reflecting uncertainty around Covid-19 variants.
Despite the uncertainties brought by Covid-19 and other circumstances, Old Mutual group said it remains confident in delivering medium term targets. — @SikhulekelaniM1
Online Reporter