Old Mutual is rocking

Old Mutual saw a significant increase in profit in its 2023 financial year, driven by massive growth in investment returns.

Old Mutual released its results for the year ended 31 December 2023 today, which revealed a strong performance for the insurance group.

The company’s insurance revenue grew by 7.84% to R68.26 billion, while non-insurance revenue grew by 12.1% to R15.71 billion.

The company’s massive profit growth was largely driven by its impressive investment return, which increased from R20.41 billion to R135.9 billion – a 565.79% increase.

Old Mutual said these returns were largely driven by higher interest rates and resilient equity markets.

This saw profit after tax grow from R5.65 billion to R7.63 billion.

Basic earnings per share grew from 115.5 cents per share to 158.4 cents – a 37% increase. 

Old Mutual said its robust operational and financial performance in 2023 was underpinned by exceptional sales growth and demonstrates its sound strategic choices and resilience in a challenging economic climate. 

The company saw double-digit sales growth of 17% across its life segments, and it grew its market share profitably over the period. 

This allowed Old Mutual to deliver exceptional value of new business growth of 37% and good growth of 14% on gross flows and gross written premiums.

This was largely driven by an increase of 17% in Old Mutual Insure due to strong new business growth, renewals and the acquisition of Genric Insurance Company. 

Excluding Genric Insurance Company, gross written premiums in Old Mutual Insure increased by 13%. 

“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 company said. 

“Our customer-focused approach has enabled us to generate strong new business and continued sales momentum in 2023.”

Old Mutual’s solvency ratio remains solid at 178% for the year, within its target range of 170% to 200%. 

Old Mutual Life Assurance Company South Africa’s solvency ratio also remains strong at 204% but is at the upper end of its target range of 175% to 210%. 

Old Mutual declared a final dividend of 49 cents per share, with total dividends declared in 2023 amounting to 81 cents per share.