OLD MUTUAL LIMITED - Unaudited interim results and interim dividend declaration for the six months ended 30 June 2026 OMLI
What this filing means
A solid operating half masked by market-driven investment losses. Old Mutual grew results from operations per share 11% and value of new business 32%, and lifted its interim dividend 8% to 40 cents. But adjusted headline earnings fell 30% on negative shareholder investment returns, cash remitted from subsidiaries halved, and the bank's credit loss ratio deteriorated sharply. The share had drifted sideways into the print, so this reads as a mixed, largely expected update rather than a fresh signal.
Old Mutual's core insurance and savings businesses did well — more sales, better new business value, and a higher dividend. But the money it invests on its own account lost value because markets fell, and less cash flowed up from its subsidiaries. So the headline profit number looks weak even though the underlying business is performing. It is a two-speed result: the operating story is fine, the investment and cash story is not.
Bull case
- Value of new business increased 32% with margin improving 10bps to 1.4%
- Life APE sales grew 21% with underlying growth of 12% excluding non-recurring corporate risk deals
- Results from operations per share rose 11% to 126.3 cents, supported by life business earnings
- Return on group equity value improved significantly to 12.7%, up 860bps vs FY2025
- Gross flows increased 21% to R128.9bn, driven by Wealth Management and 10X
Bear case
- Adjusted headline earnings decreased, primarily driven by negative shareholder investment returns compared with the prior period.
- Cash remitted from subsidiaries fell 53% to R2 287m from R4 821m.
- OM Bank's credit loss ratio rose to 6.6% from 4.9%, a 170 bps deterioration.
- Old Mutual Insure's net underwriting margin fell to 7.6% from 9.7%, a 210 bps deterioration.
- The filing does not provide explicit forward HEPS or AHEPS guidance for FY2026.
AI-generated summary by SENS-AI, based on the original JSE SENS filing.
SENS-AI conclusion
A genuinely mixed print. The operating engine is working — sales, new business value, and return on group equity value all improved — but the earnings line the market watches most closely, adjusted headline earnings, fell 30% on investment losses, and cash remittances halved. The share had not pre-positioned either way, so this is confirmation of a known trajectory rather than a fresh catalyst. The dividend increase and buyback the cash-flow deterioration is the number that matters most. So what: the operating story is intact, but the market still needs to see cash remittances recover and the bank's credit losses stabilise before this becomes a conviction signal.
The next update is where the market will test whether cash remittances recover and OM Bank's credit loss ratio stabilises.
Evidence from the filing
Value of new business increased 32% with margin improving 10bps to 1.4%
“Value of new business increased by 32%”
Life APE sales grew 21% with underlying growth of 12% excluding non-recurring corporate risk deals
“Life APE sales increased by 21%, mainly driven by strong group risk and annuity sales in Old Mutual Corporate, higher living annuity and endowment sales in Wealth Management, as well as strong retail and corporate sales growth in Old Mutual Africa Regions. Excluding some large Old Mutual Corporate risk sales secured in the current period, which are not expected to recur at the same level in the second half of the year, Life APE sales increased by 12%.”
Results from operations per share rose 11% to 126.3 cents, supported by life business earnings
“Results from operations per share increased by 11%”
Return on group equity value improved significantly to 12.7%, up 860bps vs FY2025
“Return on group equity value improved significantly to 12.7%, reflecting higher operating earnings”
Gross flows increased 21% to R128.9bn, driven by Wealth Management and 10X
“Gross flows increased by 21%”
Adjusted headline earnings decreased, primarily driven by negative shareholder investment returns compared with the prior period.
“Adjusted headline earnings decreased, primarily driven by negative shareholder investment returns compared to the prior period”
Cash remitted from subsidiaries fell 53% to R2 287m from R4 821m.
“Cash remitted from subsidiaries 2 287 4 821 10 169 (53%)”
OM Bank's credit loss ratio rose to 6.6% from 4.9%, a 170 bps deterioration.
“Credit loss ratio (%) 6.6% 4.9% 5.2% (170 bps)”
Old Mutual Insure's net underwriting margin fell to 7.6% from 9.7%, a 210 bps deterioration.
“Net underwriting margin - Old Mutual Insure (%) 7.6% 9.7% 6.8% (210 bps)”
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