Chamwe Kaira
Old Mutual Limited reported strong growth in its Integrated Report for the year ended 31 December 2024, driven by retail sales in Namibia and corporate sales in Malawi.
Life’s Annual Premium Equivalent sales rose 17% to just over N$1 billion. The company credited the increase to stronger adviser productivity in Namibia and new business in Malawi.
The value of new business and margin fell compared to the prior year after changes were made to better account for expenses.
“These changes were partially offset by a positive product mix in Malawi, weighted towards more profitable product lines and higher volumes sold in Namibia,” the report said.
Gross flows of N$23 billion grew 47% from the previous year. This was supported by a short-term mandate in Malawi and stronger inflows into Namibia’s international funds from improved investment performance. Net client cash flow reached N$4.4 billion, 54% higher than last year, despite outflows from the short-term Malawi mandate.
Management results from operations rose 48% on the back of higher fees for funds under management, good investment returns, higher rental income and fair value gains on Malawian properties.
Life and savings results from operations grew 5% due to higher investment returns, asset-based fees and profits from an associate in Malawi.
“This was partially offset by lower mortality profits in Malawi as well as the increased expenses and updated expense assumptions in Namibia,” the report noted.
Gross flows increased by 9%, supported by Wealth Management, Old Mutual Investments and Old Mutual Africa Regions, although Old Mutual Corporate declined. Wealth Management performed well across all platforms.
Old Mutual Africa Regions recorded higher international fund inflows in Namibia and strong unit trust inflows in Uganda. Old Mutual Investments saw good inflows into equity and multi-asset capabilities.
The company confirmed progress on launching OM Bank, saying it met the remaining section 17 conditions and received regulatory approval for the appointment of Clarence Nethengwe as chief executive officer.
Old Mutual also warned that government investment in infrastructure and social spending remains limited by high inflation, debt, exchange rate volatility and strict monetary policies.
Inflation remains a concern in Ghana at 23% and Malawi at 32%.
“In many instances, this inflation is driven by high food prices and energy costs. In Kenya, the government implemented some initiatives to reduce inflation and stabilise the economy, including a recent decrease in the benchmark lending rate and a partial buyback of Eurobonds to ease liquidity constraints,” the report said.
