Old Mutual Profit Soars After Ksh 256M Loss in H1 2025

Old Mutual Holdings Plc recorded a significant recovery in its financial results, posting a profit after tax of Ksh 882m for the six months to June 30, 2026, up from Ksh 5 million for the corresponding period in 2025.

The financial services group said it was due to better performance in the insurance business, continued growth in asset management, cost control and better investment results.

Reading its verdict on the outcome, Old Mutual stated it had produced a “solid improvement in the Group’s financial performance in the half-year”.

The company explained that these results were due to actions undertaken to reinforce profitability across the Group.

The group registered profit attributable to equity holders of the parent of Ksh 458 million, compared with Ksh 256 million for the same period in 1H 2025.

Old Mutual reported that the insurance business recorded a strong turnaround, with an insurance service result of Ksh 287 million compared to a Ksh 303 million loss in the previous year.

Additionally, the group announced an operating profit before financing costs of Ksh 2.26 billion, exceeding the Ksh 960 million profit reported in the previous year.

Old Mutual, commenting on the results, said the group had delivered a “strong improvement in half-year financial performance” and put the improvements down to initiatives that drove insurance profitability, maintained asset-management growth and controlled costs.

Investment returns rose by 16% in spite of what the group described as a difficult macroeconomic environment and declining market yields.

Commissions, fees and other income rose 36% to Ksh1.64 billion, reflecting a 32% rise in funds under management.

The board also reported that its customers grew and the “number of Old Mutual Thrive App users increased to 242 878,” and digital capabilities were being developed alongside strategic partnerships and artificial intelligence to support service delivery.

However, no interim dividend will be paid out to shareholders for the period.

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Dividend Restructuring Path

The board stated that it “does not recommend the payment of an interim dividend” because of its ongoing balance-sheet restructuring programs.

The group added that implementing the restructuring would accelerate the path to resuming dividend payments.

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Old Mutual’s 2026 Plans

Old Mutual indicated that during the second semester of 2026, the plan for this company is claims management, prevention of fraud, digital services, and, with the aid of AI, customer engagement and sustainable growth.

The insurer and financial services group said the turnaround was improved due to insurance profitability, better investment performance, increased asset management activity, and disciplined cost control.

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Old Mutual Group CEO Arthur Oginga. PHOTO/ Courtesy.