Old Mutual Limited

Management did not report full quarterly financial statements such as revenue or EPS on this call. The update said Life APE sales were down 1%, gross flows were flat, non-covered gross written premiums in P&C were up 5%, and loans and advances were down 1% due in part to the sale of an underperforming loan book. On the earnings outlook, management said underwriting margins at Old Mutual Insure remained positive and should normalize toward the updated range or the top end of that range; they also said the share buyback has been fully allowed for in interim funds and will not affect solvency ratios. For OM Bank, client numbers were around 200,000 and account additions were about 300 a day. Management did not provide formal next-quarter or full-year guidance, but said loan growth should improve, strong investment performance should continue in line with markets, and there would be additional second-half restructuring costs from headcount reduction.

The CEO framed the quarter as a continuation of the trends seen at half year rather than a major inflection. He said the business is moving from strategy into execution after the Capital Markets Day, with internal focus now on operationalizing medium-term targets, planning, and scorecarding. On the operating update, he highlighted that the main changes were the same as earlier in the year: modest Life APE decline, flat gross flows, pressure from low-margin outflows, and weaker loans after the sale of part of the book.

The CFO said he could not provide more detail on CSM since June 2025 and noted that a full reconciliation would come at year-end. He said Old Mutual Insure’s underwriting margin remained positive and should normalize toward the updated range or the top end of it, after a very high first-half result. On capital and solvency, he said most insurers likely saw solvency ratios decline because of the pre-strike equity shock, but the share buyback had already been allowed for as a reduction to funds in interim numbers, so it would not affect solvency ratios. He also said just over 10% of the buyback had been completed a few weeks earlier, with more than ZAR 400 million executed at the time of the call, and that second-half restructuring costs would come through, but he did not expect a large restructuring provision outstanding at 31 December.

Analysts pressed on CSM, underwriting performance, life sales excluding guaranteed annuities, gross written premium growth in Old Mutual Insure, solvency and buybacks, loan growth, OM Bank traction, investment returns, and lapse experience. Management said guaranteed annuities were down close to 40% and were the main driver of the Personal Finance sales decline, while recurring premium sales had ticked up slightly. On flows, they said the weaker gross flow comparison reflected a tougher prior-year base and muted inflows in wealth, while improved net flows were helped by lower outflows versus the first half. On MFC persistency, management said they were progressing with actions but it was too early to call a material improvement yet.