Old Mutual Limited reported a 27% decline in adjusted headline earnings for the first half of 2026, with return on group equity value (RoGEV) reaching 12.7%, up 860 basis points from 4.1% in FY 2025. The bank's cost of capital was estimated at 12.5%, with a medium-term target range of 14% to 16%. Normalized return on net asset value (RoNAV) achieved 12.6%, up 70 basis points, with a medium-term target of 15% to 17%. Results from operations per share grew 11%, with a sustainable growth target range of 10% to 14%. Shareholder operational costs declined 57% year-over-year.
Old Mutual approved an interim dividend of 40 cents per share, an 8% increase, with a rolling 3-year dividend growth target of 6% to 9%. The company executed R3 billion in share buybacks, including R2.3 billion in H1 2026 and R700 million in Q4 2025, plus an approved additional R1 billion buyback program. An expected R4 billion OMLACSA interim dividend in H2 2026, with at least R2 billion contributing to discretionary capital.
Life APE sales surged 21% to R7.9 billion, with gross flows increasing 21% to R128.9 billion. Funds under management grew 7% to R1.2 trillion. Value of new business (VNB) increased 47% to R449 million, with VNB margin improving 20 basis points to 1.2%. Wealth Management sales grew 21%, with VNB margin expanding 30 basis points to 1.1%. Old Mutual Corporate Life APE surged 92%, with VNB margin improving 50 basis points to 1.8%.
OM Bank recorded a R611 million loss in H1 2026, with credit life sales of R209 million and non-advice funeral APE of R151 million. Old Mutual Insure incurred R376 million in losses from May storms, with a net underwriting margin of 7.6%, targeting 5% to 8%. Old Mutual Investments saw results from operations surge 40%, with gross flows increasing 48% to R17.8 billion. Alternatives capital raised grew 97% to R6.7 billion.
Overall RFO increased 65%, with Southern Africa RFO growing 27%, Malawi surging 49%, and East and West Africa more than doubling. Life APE sales across regions increased 35%, with VNB margin improving 170 basis points to 2.0%. Zimbabwe operations generated 85% of revenue in hard currency, with sustained remittances including USD 5 million in H1 2026. Adjusted headline earnings more than doubled to R897 million, and dividends paid increased 51% to R124 million.
OML shareholder solvency stood at 172% at June 30, up 10 percentage points from December 2025, with a target range of 155% to 185%. Gearing ratio was 16.9%, targeting 15% to 20%. Closing Group Equity Value (GEV) was R92.9 billion, with GEV per share of R20.66.
Group CEO Jurie Strydom highlighted the company's progress toward becoming 'famous for doing what we say we are going to do,' stating that Old Mutual is 'on track' and positioned where management hoped it would be at this stage of the strategy. Group CFO Casper Troskie noted that the company achieved 'robust underlying operating growth in results from operations' despite deliberate investment in OM Bank.
