Old Mutual delivers strong debut results after split
Old Mutual shareholders will receive a total R1.45 interim dividend, consisting of a "first dividend" of 45c plus a R1 special dividend.
The life insurer is pitching itself as a new company following its separation from Quilter and the change of its JSE code to OMU from OML.
Quilter on August 8 declared a 12p interim dividend, which was converted to R2.06 for its JSE investors. So investors who kept both their Old Mutual and Quilter shares received more than five times the 65c interim dividend the combined groups paid in 2017.
"With our debut results as Old Mutual Limited, I am pleased to report that we are on track to deliver on the commitments we have made to investors," CEO Peter Moyo said in the results statement released on Friday morning.
"We delivered solid financial results in a tough environment and have made good progress against most of our eight battlegrounds, driven through deliberate management action."
Old Mutual grew interim revenue from continuing operations by 13% to R39.7bn and net profit by 42% to R14bn, its results released on Friday morning showed.
Old Mutual Insurance was its star performer, growing its headline earnings contribution by 85% to R370m.
Rest of Africa grew its headline earnings contribution 30% to R4.78, and wealth and investments grew its contribution by 23% to R783m.
Its personal finance division, however, suffered a 34% decline to R918m due to a "worse mortality and morbidity experience".
Old Mutual shareholders will receive the Nedbank shares it intends distributing sometime in the fourth quarter of 2018, the results statement said.