Chamwe Kaira
Old Mutual says its Life APE sales were slightly lower in the quarter ending 31 March 2025. The drop was due to weaker guaranteed annuity sales in personal finance, which followed a market-wide decline caused by falling yields.
The company also said it did not repeat the large savings sales it recorded in the same period last year under Old Mutual Corporate. These corporate deals tend to be irregular, with long and unpredictable lead times.
“This was partially offset by good risk sales across all distribution channels in mass and foundation cluster as well as strong corporate sales in Old Mutual Africa Regions, particularly in Namibia and Malawi,” the company said.
Gross flows rose by 6% compared to the same period last year. This growth came from strong inflows in wealth management across local and offshore platforms, as well as from private clients and cash and liquidity solutions.
Old Mutual Africa Regions recorded higher asset management inflows into the international US dollar fund in Namibia. This followed a stronger US dollar.
“These were partially offset by reduced inflows in Old Mutual Investments, particularly in the equity and multi-asset capability, where the prior period included a large client inflow. Old Mutual Corporate experienced lower inflows due to the non-repeat of significant savings flows recorded in the prior period,” the company said.
Old Mutual said the global economy remains uncertain. Rising trade barriers may weaken demand and create new inflation risks. Global GDP growth for 2025 has been slightly revised downward.
In South Africa, investor confidence declined due to uncertainty around the stability of the Government of National Unity and the effect of US tariffs on exports. Inflation slowed to 2.7% year-on-year in March 2025. However, high interest rates continued to affect consumer credit, making it harder for clients to keep up with payments.
The company said its Africa Regions markets had mixed performance in the first quarter. The results were shaped by tariffs, donor funding cuts, inflation, and currency volatility.
Despite higher gross flows, net client cash outflow was hit by large withdrawals in Old Mutual Investments and Old Mutual Corporate. Old Mutual Investments reported low-margin indexation outflows of N$6.4 billion from a large offshore investor restructuring their mandate. Old Mutual Corporate saw N$3.6 billion in outflows due to the exit of unprofitable business on an investment platform.
Old Mutual said the launch of OM Bank is on schedule. Internal clients are now refining systems and improving services ahead of a full public launch later this year.
The regulatory solvency ratio for Old Mutual Life Assurance Company (South Africa) Limited remains strong. The solvency ratio for group shareholders is also well within the target range.
