Staff Writer
Old Mutual Limited has said the global environment is likely to remain uncertain, shaped by uneven growth and ongoing heightened geopolitical risks.
Against this backdrop, the South African outlook has become more constructive, supported by the 2026 national budget, which reaffirmed a commitment to fiscal discipline.
With public debt projected to stabilise and decline over the medium term, alongside a sustained primary surplus and targeted relief for households, these conditions will provide a more supportive foundation for confidence and investment.
Looking forward, Old Mutual said from 2026, it will measure and report the delivery of its value creation metrics against our medium-term targets.
The group said in annual results for the year ended 31 December that group equity value per share increased by 2% to R19.80, positively impacted by business performance in Old Mutual Insure and Wealth Management.
This was partially offset by strengthened persistency assumptions in Old Mutual Life and Savings, which also reduced the value of the new business margin to 1.2%. On cash generation, the Old Mutual board declared a final dividend of 56 cents per share, bringing the total dividend to 93 cents per share, an increase of 8% year-on-year.
Customer and deposit trends in OM Bank are tracking well, ahead of public marketing campaigns in the second quarter with strong activation from the Old Mutual branch network.
On cost savings, the R2.5 billion commitment has been cascaded to cluster scorecards and incentives for 2026. R450 million in savings has already been delivered in 2025.
The group announced a R3 billion share buyback in September 2025. R0.7 billion has been completed by December 2025 and the programme is continuing while it remains value accretive to shareholders.
The group’s shareholder solvency ratio of 162% remained well within the target range of 155% to 185%. This was impacted by significant market movements, particularly lower yields and higher prescribed equity shocks due to stronger equity markets. The group’s robust capital position is supported by a gearing profile at the lower end of the range, as well as ongoing capital management optimisations.
Together with strong cash generation, this supported year-on-year dividend growth of 8%, which is within the medium-term target range announced in October 2025. The group’s discretionary capital balance almost doubled to R6.1 billion, which includes R2.3 billion committed to complete the approved share buyback.
