Old Mutual expects profit jump on ‘exceptional’ new-business growth

Old Mutual said “exceptional growth” in new business drove profit at Africa’s biggest insurer by assets as much as 45% higher last year. 

Profit after tax likely increased to as much as R7.59 billion in the 12 months ended 31 December from R5.23 billion a year earlier, the company said in a voluntary trading statement Tuesday.

Higher interest rates and a recovery in equity markets buoyed investment returns, it said. 

Old Mutual recorded growth in results from operations “due to 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,” it said. 

The company excludes profit from its business in Zimbabwe because hyperinflation in that country triggers earnings volatility. 

The insurer will publish its results on 27 March.