Old Mutual Limited has reported improved financial performance for the year ended 31 December 2025, alongside a consolidation of its strategic direction under chief executive Jurie Strydom, who assumed the role in 2025. The results indicate a combination of operational resilience and ongoing structural repositioning within one of Africa’s largest financial services groups.
The company stated that it has completed a strategic reset and is now focused on execution through a value creation framework that emphasises both unlocking value and generating growth. This approach is organised around four priorities, namely strengthening competitiveness in South Africa, reinforcing its position across Southern Africa, establishing OM Bank as a viable entrant in the retail banking sector, and reassessing growth initiatives in other markets.
Within this framework, capital allocation has been aligned to return on net asset value targets, while organisational changes have shifted accountability towards business units, supported by a leaner central structure. These adjustments reflect a broader trend among African financial institutions seeking to balance scale with operational agility in diverse and often volatile markets.
Operationally, the group reported early progress in cost management, delivering R450 million in savings during 2025 as part of a R2.5 billion target set for 2027. In its core life and savings business, management has prioritised product profitability and market share recovery, while also addressing the quality of new business written.
The development of OM Bank remains a focal point. Customer acquisition and deposit growth have reportedly exceeded initial expectations, with nearly half of new customers originating through Old Mutual’s existing branch network. This integration of traditional distribution channels with new banking capabilities highlights the group’s attempt to leverage established relationships in expanding financial inclusion.
Performance across business segments was mixed but generally positive. Annual premium equivalent sales in the life division rose by 3 percent, supported by improved activity in South Africa and continued strength in other African regions. However, margins on new business declined, reflecting persistency challenges and reduced annuity sales.
In general insurance, gross written premiums increased by 5 percent, with Old Mutual Insure recording 7 percent growth. The underwriting margin reached 6.8 percent, or 8.3 percent when excluding a once off provision linked to a third party cell arrangement. Wealth and savings inflows also strengthened, with gross flows up 7 percent, driven by a combination of retail, corporate, and private client activity.
The group’s lending operations reflected a more cautious stance. Loans and advances declined by 4 percent, largely due to deliberate measures to improve credit quality, including the disposal of non performing loan books. Despite this contraction, the net lending margin improved to 12.1 percent, while loan sales rose significantly.
At an earnings level, results from operations increased by 13 percent to R9.8 billion, while adjusted headline earnings rose by 24 percent to R8.3 billion. These figures were influenced by strong investment returns, particularly in South Africa and Malawi. The company noted that currency volatility in Malawi had a material impact, and that a significant devaluation of the kwacha would have moderated reported growth.
Headline earnings declined slightly by 2 percent to R8.6 billion, largely due to adverse outcomes in Zimbabwe following currency changes. Meanwhile, IFRS profit increased by 10 percent to R8.4 billion, supported by improved core performance and the absence of prior year impairments linked to operations in China and Nigeria.
The group reported a return on net asset value of 15.2 percent, within its target range, and maintained a solvency ratio of 162 percent. Its discretionary capital position strengthened to R6.1 billion, enabling both a higher dividend and the continuation of a R3 billion share buyback programme announced in 2025.
Looking ahead, Old Mutual pointed to a cautiously improving macroeconomic outlook in South Africa, underpinned by fiscal policy signals in the 2026 national budget. However, it also acknowledged broader global uncertainties and uneven growth across markets in which it operates.
From 2026, the group intends to track progress against medium term targets with a focus on improving new business margins, managing costs, expanding its customer base particularly within OM Bank, and sustaining capital discipline. These priorities reflect not only shareholder expectations but also the evolving role of financial institutions across the continent, where access, resilience, and long term value creation remain closely interconnected.
