Old Mutual reports 10% rise in profit

South Africa’s second-largest insurer, Old Mutual has reported a double-digit growth in profit.

It reported headline earnings up 10% at R7.9 billion, that’s for the twelve months ended December 2022.

The insurer’s balance sheet improved substantially on the back of a decrease in COVID-19 death claims that hit the overall life insurance sector hard in the previous years.

Meanwhile, the financial services company says it’s soon going to apply for a full banking licence, having been given the go ahead by regulators to make the application.

That’s despite a number of banks already operating in the market.

“This is a natural progression in our core strategy of providing a holistic set of integrated financial services to sustain customers’ prosperity. Whilst the SA banking environment is congested, it does not mean in our view that it is fully competitive in the context of a new digital era. There are now opportunities to materially impact cost-to-income ratios, customer perceptions, customer experience and provide more holistic value proposition to our customers,” says Old Mutual CEO Iain Williamson.