Old Mutual Kenya Profit Rises by 85% to Ksh2.59 Billion

Old Mutual Holdings, Kenya recorded an 84.7 per cent increase in its full-year profit before tax for 2024 from Ksh 1.401 billion to Ksh2.587 billion.

This growth was driven by a 41.6% rise in investment income, which reached Ksh7.70 billion, up from Ksh 5.44 billion the previous year.

At the same time, the insurance income rose by Ksh 1,171 million 93.6 percent) from Ksh 32.631 million to Ksh 33. 802 million.

However, the insurance service result declined by 78.1% to Ksh 361 million due to higher net expenses from reinsurance contracts, which rose significantly to Ksh 4.38 billion from Ksh 1.79 billion.

Meanwhile, the insurance service expenses dropped by Ksh 151 million from Ksh 29.216 million to Ksh 29.065 million.

Old Mutual Profit Rises 85 % to Ksh 2.59 B

The net profit from continuing operations surged by 536.3% to Ksh 1.28 billion, a substantial improvement from Ksh 201 million in 2023, while overall net profit stood at Ksh 838 million, a sharp turnaround from the Ksh 114 million loss recorded in 2023.

However, the total assets dropped 7.5% to Ksh 74.8 billion and cash and cash and cash equivalents also fell 5.4% to Ksh 11.34 billion. Meanwhile, earnings per share (EPS) improved to (2.39) from (2.72) in 2023.

Also Read: Old Mutual Appoints a New Executive Director

Discontinued operations resulted in a loss of Ksh 363 million from the disposal of a subsidiary and an additional Ksh 78 million loss after tax from discontinued operations.

The company’s total comprehensive income stood at Ksh 207 million, a sharp decline from Ksh 547 million in 2023, largely due to other comprehensive expenses of Ksh 631 million.

Earnings per share (EPS) improved to Ksh 2.29, compared to a loss per share of Ksh (2.72) in 2023, reflecting the company’s improved profitability despite the challenges in its insurance business.

The operating profit before financing costs increased by Ksh 6 million, from Ksh 3.812 million in 2023 to Ksh 3,818 million in 2024.

Also Read: KCB Posts Ksh 61.8B Profit, Banks with Cheapest Loans & New SACCO Rules

Profit Growth and Decline in Comprehensive Income

In 2024, commission income, fee earned, and other incomes amounted to Ksh 2.042 million while the commission expenses and other operating expenses decreased to Ksh 2.063 million in 2024, compared to Ksh 3.325 million in 2023.

Net credit impairment losses stood at Ksh 88 million, up from Ksh 66 million in 2023.

Finance costs also reduced to Ksh 1.231 million in 2024 from Ksh 2.411 million in 2023. The income tax expense rose slightly to Ksh 1.308 million in 2024, from Ksh 1.2 million in 2023.

Other comprehensive expenses amounted to Ksh 631 million in 2024, contrasting with Ksh 661 million in 2023.

The total comprehensive income for 2024 was Ksh 207 million, a significant decline from Ksh 1.642 million in 2023.

The net profit for the year attributed to the parent company was Ksh 484 million in 2024, reversing the Ksh 576 million loss in 2023, while the net profit attributed to NCI was Ksh 354 million in 2024, compared to Ksh 462 million in 2023.

Follow our WhatsApp Channel and join our WhatsApp Group for real-time news updates.