Zim drives Old Mutual Group half-year profits

Business Reporter

Old Mutual Limited says higher shareholder portfolio profits from the group’s Zimbabwean business were the main contributor to the group’s higher level of growth in headline earnings (HE) relative to adjusted headline earnings (AHE) for the interim period to June 30, 2024.

The group’s trading statement for the half-year period said adjusted headline earnings and adjusted headline earnings per share (AHEPS) growth for the period was bolstered by increased shareholder investment returns as a result of improved performance in South African equities.

“The main contributor to the higher level of growth in headline earnings(HE) relative to AHE is higher shareholder portfolio profits in the Zimbabwean business,” the company said.

The group, however, excluded the Zimbabwe profits from AHE, saying the economy is currently hyperinflationary and there are barriers to accessing capital by way of dividends.

Old Mutual is a premium African financial services group that offers a broad spectrum of financial solutions to retail and corporate customers across key market segments in 17 countries. The South African group is the majority shareholder in Old Mutual Zimbabwe Limited, which is listed on the Zimbabwe Stock Exchange (ZSE).

According to the group’s trading statement, strong operational performance in Old Mutual Insure, Old Mutual Corporate and Mass and Foundation Cluster was offset by lower life profits in Personal Finance.

“This was primarily driven by an increased number of large claims and higher central costs compared to the prior period but in line with our expectations as we continue to invest in our future capabilities,” the company said.

Old Mutual’s primary operations are grouped into South Africa and Rest of Africa, and it has niche businesses in Latin America and Asia.

Old Mutual Limited said it was in the process of finalising its interim results for the six months ended June 30, 2024, which will be released via the Stock Exchange News Service of the JSE Limited on Thursday, September 26 2024.

The group said the movement between international financial reporting standards profit after tax attributable to equity holders of the parent (IFRS profit) and HE was primarily driven by the loss recognised on the disposal of our Nigeria business.