Old Mutual has reported strong underlying sales momentum for the six months ended June 2026, but volatile financial markets have placed significant pressure on the insurer’s investment-linked earnings.
In an operating update and trading statement released on Monday, Old Mutual reported life annual premium equivalent sales of R7.86 billion, up 21% from R6.47 billion in the comparable period.
Gross written premiums increased 3%.
The update presents a contrasting picture: operating businesses are attracting new customers and generating growth, while investment-market volatility is weighing on reported earnings.
New business strengthens
Old Mutual said the value and margin of new business improved, supported by higher sales volumes and a more profitable business mix in Wealth Management, Old Mutual Corporate and Old Mutual Africa Regions.
That was achieved despite lower guaranteed-annuity volumes in Personal Finance.
The insurer also reported that Old Mutual Insure maintained its net underwriting margin at the upper end of its medium-term target range of 5% to 8%, despite elevated catastrophe losses.
Disciplined underwriting, claims management and portfolio diversification supported the result.
Market volatility hits adjusted earnings
The more difficult part of the update concerns investment returns.
Old Mutual expects adjusted headline earnings for the six-month period to decline between 25% and 35%, to between R2.73 billion and R3.15 billion.
Adjusted HEPS is expected to fall between 22% and 32%, to between 65.7 cents and 75.3 cents.
The group attributed the reduction primarily to lower shareholder investment returns.
Financial markets experienced sharp risk-off conditions during the period amid geopolitical conflict in the Middle East, negatively affecting equity and bond performance.