Old Mutual Limited today announced its Interim Results for the six months ended 30 June 2019.
The Group’s Adjusted Headline Earnings for the period are up 10% to R5,211 million from R4,750 million in the first half of 2018. This is as a result of higher investment returns in South Africa and good profits contributed by Personal Finance and the Rest of Africa business segments.
Old Mutual Interim CEO Iain Williamson commented that the Group delivered another sound set of results despite challenging market conditions, a testament to the Group’s focus, resilience and diversification of earnings across the continent.
“Our Result from Operations increased by 2% to R4,512 million from R4,426 million in 2018. We delivered a Return on Net Asset Value of 16.4%, marginally down from the prior year. Our Group capital position remains robust with a solvency ratio of 166%, which remains well within our target range. In addition to this, we have made good progress on balance sheet optimisation through debt raising, the completion of a R2.5 billion share buyback programme and further simplification of the Residual plc balance sheet,” said Williamson.
The Group announced that it achieved further recurring savings of R116 million during the first half of 2019. This is in addition to the R750 million achieved during 2018. “Old Mutual is firmly on track to deliver its cost efficiency target of R1 billion in savings by the end of 2019,” added Williamson.
Old Mutual announced an interim dividend of 45 cents per share, the same as last year and in line with its dividend policy. The Group has also announced a share buyback program of R2.4 billion bringing total capital returned in 2019 to R7.1 billion rand.
“As a responsible business, we continue to manage our capital in a way that delivers value for our shareholders, a standard we strive to maintain.”
On the Group’s delivery against its strategy, Williamson explained: “We are making good progress in the achievement of our eight battlegrounds, and in the improvement of operational efficiency and customer experience through the use of technology. Key highlights in this regard include:
- The deployment of 122 Bots to assist with process automation, saving 2.8 million minutes in processing time;
- The continued roll out of digital tools to enhance customer experience; and
- The delivery of the pilot of Old Mutual Protect, the Group’s comprehensive risk solution, followed by a measured and controlled rollout in the second half of 2019.
“We remain confident in the Group’s ability to build on these results, further strengthening our resolve to deliver exceptional value to both shareholders and customers alike.”