TIDMOMU
RNS Number : 3006U
Old Mutual Limited
22 November 2023
Old Mutual Limited
Incorporated in the Republic of South Africa
Registration number: 2017/235138/06
ISIN: ZAE000255360
LEI: 213800MON84ZWWPQCN47
JSE Share Code: OMU
LSE Share Code: OMU
NSX Share Code: OMM
MSE Share Code: OMU
ZSE Share Code: OMU
("Old Mutual" or "Company" or "Group")
Ref 58/23
22 November 2023
OLD MUTUAL VOLUNTARY OPERATING UPDATE FOR THE PERIOD ENDED 30
SEPTEMBER 2023 - CONTINUED SALES MOMENTUM IN SOUTH AFRICA AND OLD
MUTUAL AFRICA REGIONS
Global growth has proven relatively resilient in 2023, while
China's economy recorded better than expected growth in the third
quarter. In South Africa, loadshedding remains a key area of focus,
however, with government and the private sector collaborating and
the continued focus on the restoration of power stations we have
seen a reduction in loadshedding during the fourth quarter. Several
African markets have experienced severe currency depreciation
against the USD and dollar shortages remain a challenge while high
inflation and elevated interest rates continue to impact our
customers' disposable income in all the markets in which we
operate. Despite these challenges, our business remains well
positioned for growth, as evidenced by the strong sales trajectory
over the past 3 years with Life APE sales excluding China up 13%
relative to 2022 and 23% relative to 2021.
Financial key performance indicators for the period ended 30
September 2023
The table below sets out certain key performance indicators for
the nine months ended 30 September 2023 (the "current period").
Key Performance Indicators 30 September 30 September change
(R millions unless otherwise 2023 2022
stated)
Life APE sales 9 853 9 498 4%
------------- ------------- --------
Gross flows 146 548 136 136 8%
------------- ------------- --------
Net client cash flow (10 832) (1 163) (>100%)
------------- ------------- --------
Loans and advances(1) 19 396 19 009 2%
------------- ------------- --------
Gross written premiums 19 306 16 860 15%
------------- ------------- --------
(1) Comparative amounts represent FY2022 balance sheet
amounts.
Excluding China, Life APE sales recorded strong growth of 13%
from the nine months ended 30 September 2022 (the "prior period").
In Mass and Foundation Cluster, sales benefited from solid risk
sales across all retail channels and higher credit life sales
driven by continued improvements in productivity levels. The
positive sales momentum in Personal Finance contributed to sales
growth, with strong single premium guaranteed annuity sales and
higher recurring premium savings sales. Old Mutual Africa Regions
delivered strong retail and corporate sales mainly due to new
business, renewals, and improved productivity in East Africa.
Including China, the increase was 4% as the p rior period included
certain saving s product s sales in China 's broker channel which w
e stopped selling in anticipation of regulatory changes.
Gross flows grew by 8% from the prior period mainly due to
higher inflows in Old Mutual Africa Regions following a higher
demand for offshore investments in Namibia as well as new mandates
secured and higher unit trust sales in East Africa. The increase in
flows was supported by the impact of annual premium increases in
Mass and Foundation Cluster and higher single premium inflows in
Personal Finance as well as better inflows in Old Mutual Corporate
with a strong secured-to-flow pipeline.
Strong growth in net client cash flow in Mass and Foundation
Cluster, Personal Finance and Old Mutual Africa Regions was offset
by significant outflows in Old Mutual Investments and Wealth
Management, where we continue to see clients requiring liquidity
given the challenging economic conditions. Old Mutual Investments
saw low margin indexation outflows from a large offshore investor
rotating investment exposure and higher contractual Liability
Driven Investments benefit payments. Despite lower net client cash
flow in Old Mutual Investments, we raised a significant amount of
capital totalling R8.4 billion in our higher margin Alternatives
business supporting future revenue generation.
The marginal growth in loans and advances in Mass and Foundation
Cluster was in line with our cautious lending strategy, which was
partially offset by the decline in the loan book in Old Mutual
Africa Regions due to the depreciation of Kenyan shilling against
the rand.
Gross written premiums grew by 15% from the prior period. This
was driven by new business growth, premium increases, and renewals
across all divisions in Old Mutual Insure and the acquisition of
Genric Insurance Company Limited. Excluding Genric Insurance
Company Limited, gross written premiums grew by 11%. In Old Mutual
Africa Regions, new business secured across all regions and
improved renewals in both the medical and general insurance books
in East Africa contributed to the growth in gross written
premiums.
In our Mass and Foundation Cluster, given the slower than
expected economic recovery, we remain focused on the management
interventions to mitigate the persistency pressure which is
starting to yield positive results. We will reassess the need to
strengthen our persistency basis at year-end and any other basis
changes which may be required.
Group Chief Financial Officer
Shareholders are advised that Casper Troskie, Group Chief
Financial Officer of Old Mutual Limited will reach the Company's
normal retirement age in April 2024. The Old Mutual Limited Board
is pleased to announce that it has agreed with Mr Troskie to extend
his employment contract for a period of one year to the end of
April 2025. Mr Troskie's extension allows for at least one
supplementary financial reporting cycle under the new insurance
accounting standard, IFRS 17. The process to appoint a suitable
candidate as a successor to Mr Troskie has commenced.
Investor engagement
Investors are invited to participate in a conference call to
address matters related to this voluntary operating update on 22
November 2023 at 17:30pm, SAST. Investors and media may register on
the following link:
Diamond Pass Registration (choruscall.za.com)
Please note that registered participants will receive their dial
in number upon registration. We advise callers to dial in at least
five minutes before the conference call starts.
A recorded playback will be available for 30 days after the
conference call. The replay can be accessed in the following link:
https://services.choruscall.com/ccforms/replay.html
Access numbers for recorded playback:
Access code for recorded playback: 45568
South Africa 010 500 4108
UK 0 203 608 8021
Australia 073 911 1378
USA 1 412 317 0088
International +27 10 500 4108
The financial information in this voluntary operating update is
the responsibility of the Old Mutual Board of Directors and has not
been reviewed or reported on by the Group's external auditors.
Sandton
Sponsors
JSE Merrill Lynch South Africa (Pty) Limited t/a BofA
Securities
Malawi Stockbrokers Malawi Limited
Namibia PSG Wealth Management (Namibia) Proprietary Limited
Zimbabwe Imara Capital Zimbabwe plc
Enquiries
Investor Relations
Langa Manqele M: +27 82 295 9840
E: investorrelations@oldmutual.com
Communications
Tabby Tsengiwe M: +27 60 547 4947
E: oldmutualnews@oldmutual.com
Notes to Editors
About Old Mutual Limited
Old Mutual is a premium African financial services group that
offers a broad spectrum of financial solutions to retail and
corporate customers across key market segments in 14 countries. Old
Mutual's primary operations are in Africa, and it has a niche
business in China. With over 178 years of heritage across
sub-Saharan Africa, Old Mutual is a crucial part of the communities
it serves as well as broader society on the continent.
For further information on Old Mutual and its underlying
businesses, please visit the corporate website at www.oldmutual.com
.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCEASFAAAADFEA
(END) Dow Jones Newswires
November 22, 2023 03:00 ET (08:00 GMT)
Old Mutual (LSE:OMU)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Old Mutual (LSE:OMU)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024