Finance

Old Mutual Sees Record Profit in 2024, Struggles outside S. Africa

Old Mutual Sees Record Profit in 2024, Struggles outside S. Africa
Tuesday, 18 March 2025 20:48

Last year, Old Mutual achieved its strongest profit since 2019, but continues to struggle outside of South Africa. However, its alternative investment division, which has a strong presence in Côte d'Ivoire, remains resilient and solid.

In 2024, Old Mutual reported its best profit in five years, with an adjusted result of 6.69 billion rands (about $370 million), up 14%. This strong performance exceeded analysts' expectations, driven by growth in short-term insurance and wealth management in South Africa.

The group’s operating profit reached 8.7 billion rands, bolstered by a 37% increase in revenue from Old Mutual Investments and a 245% rise in non-life insurance profits. The launch of OM Bank, a new digital bank expected by the end of 2025, highlights the group’s focus on innovation and expanding its customer base.

However, performance outside South Africa remained more mixed. Old Mutual Africa Regions, covering ten countries outside South Africa, saw an 8% drop in operating profit. Unstable economic conditions, currency volatility, and rising operational costs impacted profitability. The company also faced declining margins in the insurance sector and restructured some operations. Old Mutual sold its subsidiaries in Tanzania and Nigeria, focusing on markets considered more strategic.

While South Africa enjoys a relatively stable economic climate, marked by gradual improvements in the energy crisis and growing consumer confidence, the situation is more mixed across the rest of the continent. Old Mutual is continuing to make strategic investments through its subsidiary OMAI, which oversees 23 active funds and holds stakes in more than 260 companies across Africa. OMAI also has offices in key cities like Abidjan, Johannesburg, Cape Town, Lagos, and Nairobi.

In 2024, OMAI raised 12.3 billion rands, with nearly half of this amount coming from external investors. This reflects strong interest in sectors like private equity and infrastructure. Operational performance is on the rise, with a 43% increase in operating results, driven by higher recurring revenues and continued investment momentum.

However, this growth hasn't fully translated into net profits yet. The company is dealing with significant capital outflows of 7.4 billion rands, which dampens the impact of new investments. Also, revenues tied to fund performance remain vulnerable to market fluctuations, adding volatility to the overall results.

While its competitor Sanlam pushes ahead with expansion across the continent, Old Mutual is taking a more cautious stance. This approach has helped stabilize its finances, but it could limit its long-term growth potential in Africa.

On the same topic
Highlights: • New 1% US tax on outbound remittances to take effect January 1, 2026• Africa received $100 billion in remittances in 2023, outpacing...
23% of adults in Sub-Saharan Africa saved money using mobile accounts in 2024, well above the 9% average in low- and middle-income...
• Zambia launches the Growth Investment Partners Zambia (GIP) initiative to raise over $300 million for SMEs.• The program aims to support 150 SMEs...
• Treasury secures CFA364 billion in oversubscribed bond issuance• S&P cuts Senegal’s rating to B- after discovery of hidden debt• Over CFA1,260 billion...
Most Read
01

• Inflation within the West African Economic and Monetary Union (UEMOA) fell to a two-year low of 0....

UEMOA: Inflation Drops to 0.6% in May, Driven by Lower Food Prices
02

Flutterwave gained a BCEAO license to operate in Senegal, expanding to 35 African countries. ...

Flutterwave Gains Senegal License, Eyes Growth in $1.5T African Payments Market
03

In Africa, the private sector is widely seen as the main engine of industrialization and plays a cen...

West Africa has tools to build strong industry, says IFC’s Olivier Buyoya
04

 President Paul Biya, 92, to seek eighth term in October 2025 election In power since 19...

Cameroon: Paul Biya Officially Enters Presidential Race for Eighth Term
05

• Interbank volumes rose 18.7% in May, while rates declined across the market• The BCEAO cut its mai...

WAEMU Sees Easing Conditions on Regional Interbank Market
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.