Half Year 2025 Old Mutual Ltd Earnings Call Transcript
Key Points
- Old Mutual Ltd (FRA:2KS) reported a strong earnings story with a 19% growth in RFO per share and a 31% increase in adjusted headline earnings per share.
- The company announced a ZAR3 billion capital share buyback, demonstrating confidence in its balance sheet and business.
- Old Mutual Insure showed significant improvement with an underwriting margin increase from 0.9% to 9.7%, highlighting operational improvements.
- The company achieved a 9% growth in its dividend to ZAR0.37 per share, supported by strong equity market performance.
- Old Mutual Ltd (FRA:2KS) received an improved MSCI rating from AA to AAA, recognizing its commitment to sustainability.
- The group's value of new business margin decreased to 1.3%, primarily due to assumption and model changes in the South Africa Life and Savings business.
- Persistency pressure in the Mass and Foundation cluster negatively impacted financial results, leading to a decline in the group's embedded value.
- The regulatory solvency ratio decreased from 180% to 170%, partly due to increased market shocks and dividend accruals.
- Old Mutual Ltd (FRA:2KS) faces challenges in its growth markets, particularly in East Africa, West Africa, and China, requiring a turnaround in margins and returns.
- The company reported a significant restructuring provision of ZAR440 million, indicating ongoing efforts to manage costs and improve efficiency.
Good morning, everyone, and welcome to our half-year results for the period ended June 30, 2025. I am Langa Manqele, the Head of Investor Relations for the Old Mutual Group.
Today, we will be taken through our presentation by our new Group CEO, Jurie Strydom, and he will be joined on stage by our Group CFO, Casper Troskie, to present the results. As a reminder, Jurie served in the OML Board as an independent non-executive director prior to joining the group. We are pleased to have Jurie on board. As you can see on the screen right now, our results can be accessed directly on our website using the QR code that is presented, and we are pleased to also announce that we have added some additional disclosures on segmental CSM and EV.
Turning into the agenda for today, Jurie will kick us off with a CEO update followed by the highlights, which will also include the segmental overviews. Casper will then take over from there to provide a financial review, after which he will hand over to Jurie who will come back on stage to cover the
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