Old Mutual reported a consolidated profit before tax of Ksh380 million for the period ended June 30, 2025.
In the unaudited results released on Tuesday, August 26, the Company’s board of directors noted that the figure is a decrease from Kshs1.1 billion during the same period in 2024.
Old Mutual said the decline in profitability of 66% was driven by three factors, including lower interest rates in Kenya which negatively impacted profits by Ksh625 million.
This, according to Old Mutual, was due to a combination of reduced interest income, fair value losses on fixed income securities, and increased discounted insurance liabilities.
Old Mutual said the Insurance Service Results from insurance businesses declined by Ksh57 million when compared to the first half of 2024.
This was driven by lower insurance revenues across all countries.
The Company said the Life business in Kenya was also impacted by higher loss ratios than in HY 2024.
“Other items that had a material impact on profitability in the half-year 2025 include lower income from equities and higher finance costs due to refinancing of a loan in Uganda properties.”
Old Mutual’s operating profit before financing costs reduced from Ksh1.6 billion in 2024 to Ksh960 million in June 2025.
The total comprehensive income stood at Ksh99 million, down from Ksh873 million in 2024.
The Company’s total assets increased from Ksh74.8 million to Ksh79.2 million.
Similarly, the liabilities increased to Ksh59.3 million from Ksh55.0 million in 2024.
This leaves the net assets at Ksh19.8 million, up from Ksh19.7 million in 2024.
Also Read: Old Mutual Announces Plans to Transfer Its Life Insurance Business
Old Mutual Comprehensive Income
Additionally, the profit after tax from continuing operations was Ksh5.0 million, a decline of 99% when compared to 2024.
Old Mutual said the decline was mainly driven by an increase in the effective tax rate.
The Company said other comprehensive income of Ksh94 million arises from the impact of translating the financial results of foreign operations into the Group’s Consolidated Financial Statements.
This was after a slight weakening of the Kenya shilling against the Ugandan shilling.
Besides, it was partly offset by the stabilization of the Kenyan shilling against the US dollar.
However, Old Mutual stated that it continues to see a few bright spots despite the challenging environment.
For instance, the total expenses and outgoes remain flat compared to 2024 and are significantly better than planned due to cost containment measures.
“The asset management business continues to grow, registering 31% growth in income from Ksh0.7bn to Ksh1.0bn.”
Also Read: Old Mutual Life Insurance Company: History, Branches, Premiums and Packages Offered
Closure of Business in South Sudan & Dividend
Old Mutual said it resolved to conclude operations in South Sudan following a period of business run-off.
The Company said the decision was influenced by the tough conditions experienced in the market that continue to impact the delivery of the short and medium-term strategy.
Old Mutual will no longer write new business in South Sudan but will remain open to serving existing customers during the run-off period.
The Board of Directors has not recommended payment of a dividend for the year ended 30 June 2025.
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