Old Mutual Group reported improved return-on-capital metrics for the first half of 2026 even as adjusted headline earnings per share dropped 27% year-on-year, weighed down by lower-than-normalized shareholder investment returns and significant catastrophe losses in its insurance segment.
Return on group equity value (ROGEV) rose to 12.7%, above the group’s estimated 12.5% cost of capital, compared with 4.1% in December 2025. Normalized return on net asset value (RONAV) reached 12.6%. Both metrics remain below medium-term targets of 14%–16% and 15%–17% respectively.
Results from operations per share grew 11%, within management’s target range of 10% to 14%. Total embedded-value operating earnings were ZAR 4.8 billion. On a per-share basis, group equity value stood at ZAR 20.66.
Wealth management profits surged 49%, while Old Mutual Investments saw profits rise 40% as gross flows increased 48%. Old Mutual Africa Regions (OMAR) profits grew 65%. In life insurance, APE sales and gross flows each rose 21%, or underlying growth of about 12% when excluding large corporate gains. The value of new business margin improved to up to 2% for the half.
Old Mutual Insure profits fell 25%, hit by ZAR 376 million in catastrophe and storm losses from May, which accounted for roughly 3% of the underwriting margin. Personal Finance RFO declined 11%.
Shareholder operational costs dropped 57% year-on-year, inclusive of a ZAR 414 million restructuring provision. Cost savings totalled ZAR 338 million in H1, bringing cumulative savings to ZAR 936 million, on track toward a ZAR 1 billion target by year-end and ZAR 2.5 billion by end of next year.
The dividend was raised 8.1%, consistent with a target growth range of 6% to 9%. The yield was noted at 6.77%, marking a 17th consecutive year of dividend growth. An additional ZAR 1 billion share buyback was announced.
OML shareholder solvency was 172% at the end of June, up 10 percentage points from December. Old Mutual Life and Assurance Company of South Africa (OMLACSA) is expected to pay a ZAR 4 billion interim dividend in the second half, with at least half anticipated to add to discretionary capital.
OM Bank reached approximately 750,000 customers by end-June and expects to cross 1 million within weeks. The bank aims for 2.5 million to 2.8 million customers and ZAR 8 billion to ZAR 10 billion in retail deposits by 2028, alongside a lending target of ZAR 23 billion to ZAR 26 billion. The cluster is targeting annual RFO of ZAR 0 to ZAR 200 million by 2028, with monthly breakeven also expected by then.
Withdrawals under the two-pot retirement system rose to ZAR 1.7 billion in H1, up from just under ZAR 1 billion a year earlier.
Casper Tromp, group CFO, noted robust underlying operating growth in results from operations even after deliberate investments in OM Bank. He is set to retire in April, with Ranen Thakurdin taking over as CFO on January 1st.
Old Mutual shares rose 0.33% to $60.20, trading near the midpoint of a 52-week range between $55 and $78.60.
Group CEO Jurie Botha said the company is becoming "famous for doing what we say we are going to do," expressing growing confidence that the group is on track with its strategy.
