Old Mutual profit surges 35 per cent as African insurer grows

Old Mutual is Africa's largest insurer by assets.

Pan-African financial services group Old Mutual have seen profits surge 35 per cent last year due to “exceptional sales growth”.

The London-listed group, which is Africa’s largest insurer by assets, revealed that profits totalled 7.1bn rand (£295m) throughout 2023,

Chief exec Iain Williamson said the group’s success was underpinned by “exceptional sales growth”, with gross written premiums climbing 14 per cent.

The group saw sales growth of 17 per cent across its life segments, with new business growth of 37 per cent, its full-year results revealed.

However, the group had slightly overestimated its profit in a trading statement two weeks ago, when it claimed it could jump much as 45 per cent, or to 7.59bn rand (£317m).

It did accurately predict its adjusted headline earnings per share, which came in at 129 South African cents (5p), as it had estimated it to come in between 121.3 South African cents and 142.6 South African cents.

Old Mutual added that it expected to roll out its new bank within the next 12 months, and has budgeted 1.75bn rand (£73.1m) for the project.

“Our bank build in South Africa represents a critical component of delivering on our integrated financial services business of the future,” Williams said. “We remain on track and within budget.”

The group entered in various strategic partnerships throughout the year, enabling them to grow further.

One, with the Two Mountains Group, immediately increased its distribution footprint across five provinces and enabled it “to vertically integrate the funeral services value chain into our value proposition”, Williamson added.

In January 2024, the group announced the sale of its stake in UAP Insurance Tanzania, its short term insurance arm. Regulatory approval for the deal is still pending.

“Our business remains well positioned for growth and continues to demonstrate its ability to provide customers with high quality solutions that sustain, grow and protect their prosperity,” the CEO concluded.