Old Mutual Holdings has delivered a resilient performance in the first half of 2025 despite a challenging macroeconomic environment across the East African region. The Group posted a profit before tax of KES 380 million from continuing operations, marked by lower interest rates and higher claims, which weighed on earnings.
The surge in claims during the period spread across both the short-term and long-term insurance businesses, which stood at KES. 452 million compared to the same period in 2024.
The performance was impacted by lower interest income and mark-to-market losses on fixed income securities, which reduced earnings by KES 625 million, alongside higher insurance claims and service expenses, particularly in the medical and life businesses.
Profitability was also weighed down by reduced performance in the asset management and property operations, driven in part by lower occupancy in Uganda and South Sudan properties. Despite these pressures, the Group remained resilient, supported by stronger investment income and disciplined cost management.
Speaking during the 2025 interim results announcement, Old Mutual Holdings Group CEO Arthur Oginga expressed confidence in the outlook, saying that the increase in claims underscores Old Mutual’s commitment to honour its promise to safeguard the well-being and financial security of its clients.
“Although higher claims placed short-term pressure on profitability, it is a demonstration of the strength of our promise to customers and the resilience of our business model. I am encouraged by the growth in investment income, the expansion of our asset management business, and the strengthening of our balance sheet. These fundamentals give us confidence in our ability to deliver long-term value for our shareholders, while continuing to stand firmly with our customers in times of need,” Mr. Oginga said.
The life insurance business recorded a profit after tax increase of KES 580 million, mainly attributable to fair value gains on financial assets following a decline in the yield curve, as well as lower reinsurance costs. The asset management unit maintained earnings at par with prior year levels, demonstrating the resilience of the Group’s diversified portfolio.
Strategic Outlook
“As a company, we are transitioning from being viewed as an insurance provider to becoming a partner in our customers’ overall well-being. Through Thrive app, we bring together physical, mental, and financial wellness in one seamless experience, empowering communities across all our markets to lead healthier lives and achieve greater financial security. Already, more than 18,000 users are benefiting from Thrive, and we will continue to leverage the app to deepen engagement and reimagine how we support our customers’ journey to prosperity,” Mr. Oginga noted.
Financial highlights
- Net investment income strengthened by 13% to KES 4.2 billion from KES 3.7 billion in 2024, supported by the appreciation of the Kenya shilling against the dollar, increase in underlying assets, and fair value gains.
- Fee income increased on the back of rising funds under management, underscoring the Group’s market strength.
- Total assets rose to KES 79.2 billion (up from KES 74.8 billion in December 2024), reinforcing the Group’s capacity to support future growth.
- Property rental income declined as occupancy fell to 72.6% in Uganda (from 92%) and 53.9% in South Sudan (from 63%).
- Group commission fee and operating expenses increased to KES 1.6 billion from KES 0.9 billion in H1 2024. This increase was impacted by one-off costs in the current year and one-off provision reversal in the prior period, coupled with higher.
- Funds under management in Uganda rose to KES 145 billion, driving higher fee and commission income.
- The asset management line of business reported good growth in Unit trust business, reaching AUM of KES 142 billion, a growth of 25%.
- Life profits before tax grew with over 100% to reach KES 419 million from KES 168 million in the prior period.
- Digital sales reached KES 373 million and value from data commercialization delivered savings of KES138 million in line with our business transformation differentiation strategy.
During the period, Old Mutual was named the 4th strongest insurance brand globally and the number one African insurance brand by Brand Finance. This recognition reflects the trust and confidence that customers place in Old Mutual across its 11 markets in Africa.
