31st Aug 2021 06:45
(Alliance News) - Old Mutual Ltd on Tuesday reported profit for the first half of 2021 amid almost tripled revenue.
The Cape Town, South Africa-based insurer said it swung to pretax profit of ZAR7.09 billion, about GBP351.8 million, in the six months to the end of June from a loss of ZAR6.58 billion posted a year earlier.
Old Mutual said net earned premiums rose to ZAR35.61 billion from ZAR35.33 billion year-on-year, while investment return surged to ZAR75.78 billion from a loss of ZAR758 million.
As a result, total revenue and other income was ZAR120.17 billion in the first half, nearly triple the ZAR43.11 billion posted a year ago.
Turning to expenses, Old Mutual noted that operating costs grew to ZAR114.22 billion from ZAR41.38 billion year-on-year, driven by net claims of ZAR60.60 billion incurred versus ZAR29.20 billion a year before.
The company declared an interim payout of 25 cents a share, having not paid an interim dividend a year earlier. Old Mutual paid a dividend of 35 cents a share for the whole of 2020.
Going forward, the company said, Old Mutual said it remains committed to support its productivity levels in order to continue the momentum gained in the first half of 2021, coupled with growing its rewards base.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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