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 2% to ZAR 19.80, with strong capital remittances and a ZAR 3 billion buyback underway. RoGEV normalized at 10.1%, while cost savings and operational improvements are set to drive RoNAV toward target. 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. Gross written premium growth in insurance remains solid, while loan book growth is set to improve. Over 10% of the share buyback is complete, and strong investment returns are expected to continue.
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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 expansion and new business. New targets for ROGEV, dividends, and cost efficiency are set, with OM Bank and 10X Investments as key growth levers.
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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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H1 2024 saw robust revenue and profit growth, strong cash generation, and improved shareholder returns, with key segments delivering resilient performance despite macro headwinds. Strategic progress included digital modernization, portfolio optimization, and advancing OM Bank, while capital allocation remained disciplined.