Old Mutual Limited has released its interim results, highlighting significant strides in its strategic initiatives, particularly with the ongoing development of OM Bank, its South African banking initiative. This venture is a key priority for the company as it seeks to create a fully integrated financial services business. Technical and operational progress is reportedly ahead of schedule, with successful testing and integration into the National Payments System already completed. While the launch awaits the fulfillment of remaining Section 17 regulatory conditions—unrelated to technical readiness—the public debut of OM Bank is anticipated in the first quarter of 2025. In the coming months, Old Mutual remains focused on meeting these regulatory requirements while refining its systems and capabilities to ensure a seamless rollout.
In its operations across various African regions, Old Mutual has executed a thorough perimeter review that has led to disciplined capital allocation and enhanced shareholder value. The company has successfully exited the life and general insurance sectors in Nigeria and Tanzania, marking a strategic shift in its business model. The turnaround in the Property and Casualty lines in Southern and East Africa has been driven by improved claims management and experience-based pricing, resulting in better underwriting margins in these areas. However, this positive trend was somewhat overshadowed by a negative net underwriting margin in West Africa. Excluding Nigeria, there has been a marked improvement in the net underwriting margin. Old Mutual’s ‘pivot to corporate’ strategy continues to bear fruit, with profitability in its Life insurance business seeing a notable increase across both East and West Africa.
