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Strong annual results affirm Old Mutual’s progress in building the integrated financial services business of the future. Picture: Old Mutual
Strong annual results affirm Old Mutual’s progress in building the integrated financial services business of the future. Picture: Old Mutual

The Old Mutual Group announced its 2023 annual results on Wednesday. The financial services provider's strong performance reveals it's making significant strides in unlocking growth and protecting clients' long-term financial wellness.

The group's customer-focused approach generated strong new business and continued sales momentum in 2023. It delivered double-digit sales growth of 17% across its life segments, growing profitable market share.

The value of new business accelerated by 37%, with both gross flows and gross written premiums increasing by 14%, and adjusted headline earnings per share lifting by an impressive 21% to 129c a share.

Old Mutual's strong cash generation supported a final dividend of 49c per share, taking the full dividend to 81c per share, a 7% increase from the previous year.

WATCH | Highlights from Old Mutual's 2023 annual results.

The robust performance affirms Old Mutual’s progress in building the integrated financial services business of the future, through a strategy built around unmatched distribution and digital engagement capabilities, which drive operational efficiencies and growth. The business is well-positioned for growth and continues to demonstrate an ability to generate new business and gain profitable market share.

Funds under management grew 8% to R1.3-trillion, and results from operations increased by 16% due to strong sales growth and operational performance in Old Mutual Africa Regions, Mass and Foundation Cluster and Old Mutual Corporate.

In the South African entry-level market, underwritten life sales, available through Old Mutual Protect, supported the acceleration of market share gains in Mass and Foundation Cluster, with sales up 14% from the previous year.

Old Mutual is well-positioned for growth and continues to demonstrate an ability to generate new business and gain profitable market share

Old Mutual continues to navigate economic growth constraints in SA and the often-volatile markets in the rest of Africa by optimising the balance between the nature of risks and growth opportunities it pursues.

On the digital and distribution front, it continues to innovate and simplify the group’s digital capabilities. Among others, active digital users across its life and savings businesses reached 1.4-million, up by 17% from 2022.

The group's direct and digital distribution channels, such as Pineapple, position Old Mutual as a key contender in direct digital sales channels.

Old Mutual remains committed to optimising its capital allocation to enhance returns to shareholders, with R60.8bn returned through special distributions since 2018. This includes the share buyback of R1.5bn completed in October 2023.

The group solvency ratio, a measure of balance sheet strength, remains robust at 178% for the year, within the target range of 170% to 200%. Over the period, the group issued R1.5bn debt instrument to optimise its cost of capital.

Old Mutual's bank build in SA represents a critical component of delivering on its integrated financial services business of the future. An enhanced transactional banking capability allows it to partner with customers earlier in their lives, while generating new revenue streams for the group. The bank build remains on track and within budget. The core infrastructure build is materially complete, and Old Mutual is awaiting the approval of its section 17 application by the Prudential Authority.

The group's focus remains on its strategic choice to build an integrated financial services business of the future, anchored in its victory condition of becoming its customers’ first choice and, in doing so, responsibly building the most valuable business in its industry. 

For more information about Old Mutual's 2023 annual results, visit the Old Mutual website.

This article as sponsored by Old Mutual.

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