27th Mar 2024 06:15
(Alliance News) - Old Mutual Ltd on Wednesday described its financial performance in 2023 as "robust" after achieving "exceptional" growth in the value of new business.
The Anglo-South African financial services firm said its pretax profit more than doubled to ZAR13.97 billion in 2023 from ZAR6.56 billion in 2022.
Insurance revenue was up 7.8% at ZAR68.26 billion from ZAR63.30 billion, while non-insurance revenue rose 12% to ZAR15.71 billion from ZAR14.01 billion.
Value of new business soared 37% to ZAR1.92 billion from ZAR1.40 billion, driven by increased risk sales and effective cost management in the Mass and Foundation Cluster and a higher proportion of profitable corporate sales in East and West Africa.
Gross written premiums grew 14% to ZAR25.51 billion from ZAR22.34 billion, thanks to an increase of 17% in Old Mutual Insure due to strong new business growth, renewals and the acquisition of Genric Insurance Co.
As at December 31, funds under management rose 8% to ZAR1.331 trillion from ZAR1.231 trillion as at December 31, 2022.
Net client cash outflows were ZAR7.51 billion, improved from ZAR12.43 billion. Gross flows climbed 14% to ZAR203.80 billion from ZAR178.03 billion.
Old Mutual declared a final dividend of 49 rand cents, down 4% from 51 cents. But the total payout rose 7% to 81 cents from 76 cents.
Earnings per share surged 37% to 158.4 cents from 115.5 cents, while headline EPS was 28% higher at 165.5 cents from 129.2 cents.
"Our robust operational and financial performance in 2023, underpinned by exceptional sales growth, demonstrates both our sound strategic choices and resilience in a challenging economic climate," Old Mutual said.
"Our customer focused approach has enabled us to generate strong new business and continued sales momentum in 2023. We delivered double digit sales growth of 17% across our life segments as we grow market share profitably within our key markets. Consequently, we delivered exceptional value of new business growth of 37%," the company said.
Old Mutual said it remained committed to delivering profitable top-line growth and new business.
By Artwell Dlamini, Alliance News reporter
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