South Africa · Delayed Price · Currency is ZAR · Price in ZAc Old Mutual Earnings Call Transcripts
Fiscal Year 2025
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GEV per share rose to ZAR 19.80, with strong capital remittances and a ZAR 3 billion buyback underway. RoGEV and RoNAV remain below target on a normalized basis, while cost savings and operational improvements are progressing. Persistency and annuity sales remain key focus areas.
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Execution of medium-term targets is underway, with stable trends in sales and flows since the half-year. Solvency remains strong despite equity shocks, buybacks progress, and investment performance is robust. OM Bank client growth continues, and management actions on persistency are ongoing.
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Clear two-phase strategy targets value unlock through cost savings, margin recovery, and disciplined capital allocation, followed by growth via digital banking, product innovation, and strategic acquisitions. New operating model devolves accountability, with ambitious financial targets and a focus on execution, digital transformation, and customer integration.
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Strong earnings growth, improved margins, and a strategic pivot to group equity value and cash generation defined the period. Segment performance was mixed, with standout results in insurance and investments, while persistency and margin pressures persisted in life and savings.
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APE sales declined due to lower guaranteed annuities, but wealth management and insurance premiums grew. Persistency remains a challenge, with operational improvements underway. OM Bank's launch is on track, and capital optimization updates are expected at the half-year.
Fiscal Year 2024
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Strong double-digit earnings growth, higher dividends, and robust segmental performance were reported, with OM Bank launched as a new growth engine. Persistency and macroeconomic challenges remain, but capital efficiency and digital transformation are driving improved returns.
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Gross flows grew 19% to ZAR 170 billion, led by Wealth Management and alternatives, while net client cash flow improved but stayed slightly negative. Capital position remains strong, with a special dividend and share buyback approved, and the bank launch is on track for early next year.
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Strong H1 2024 results featured resilient profits, robust cash generation, and continued top-line growth, with key segments showing solid performance despite macroeconomic and currency headwinds. Strategic progress included digital modernization, capital optimization, and advancing OM Bank, with further share buybacks and dividends planned.