Old Mutual expects up to 45 per cent jump in profit on ‘exceptional growth’ in new business

Pan-African financial services group Old Mutual has said its profits surged as much as 45 per cent 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 7.59bn rand (£318m) in the 12 months to 31 December 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 per cent and 34 per cent 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 per cent to 47 per cent 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 27 March.