Old Mutual mulls changes to personal finance business after profit decline
Group misses operational targets first set of results as a standalone entity following the group’s split into four units in 2018
Old Mutual’s share price fell to its lowest level in six months as the group missed its full-year operational targets in its first set of results as a standalone entity following the group’s split into four units in 2018. Old Mutual’s share price reached a low of R20.59 on Monday after the insurer posted adjusted profits of R11.5bn for the year to end December 2018, 4% lower than in 2017. The personal finance business, which offers insurance and savings products to individuals, was the biggest drag on the group, with operational profits plummeting 36% to R2bn.
After the split, Old Mutual set a number of goals to defend and regain market share in different segments, including the mass market, the corporate business and the personal finance business. But it has proven tough to achieve this in the personal finance business, which is the second-largest contributor to the group’s profits. “There’s still a lot of work to do in the personal finance business. Competition remains int...
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