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Old Mutual Ltd on Thursday said its Africa Regions markets experienced a ‘mixed macro performance’ in the first quarter of the year, as it noted the impact of tariffs, donor funding, inflationary pressures and currency volatility. The Anglo-South African financial services firm said gross written premiums grew 7.3% in the first quarter of 2025 to R 4.45 billion from R 6.94 billion a year prior. Driving this advance were fee increases in Old Mutual Insure, especially in the Specialty business. This segment reported 12% growth in gross written premiums, said Old Mutual, noting that its underwriting margin was ‘well above’ the upper end of its 4% to 6% target range. Life APE sales edged down 2.4% to R 3.10 billion from R 3.17 billion, owing to a decline in guaranteed annuities sales in Personal Finance. However, Old Mutual said this was in line with the overall market decline following a drop in yields. It added that sales reductions were further hurt by the non-repeat of significant savings sales achieved a year prior. Old Mutual shares closed up 3.4% in Johannesburg at R 11.90, while in London they were down 1.3% at 47.20 pence. Gross flows increased 6.0% to R 53.21 billion from R 50.18 billion, owing to ‘strong’ inflows in Wealth Management across the local and offshore platforms, Private Clients and Cash and Liquidity Solutions. Net client cashflow swung to outflows of R 4.83 billion from inflows of R 166 million, with Old Mutual noting the adverse impact of ‘significant outflows in Old Mutual Investments and Old Mutual Corporate.’ It said that higher outflows in Old Mutual Corporate were owed to ‘terminations of R 3.6 billion in respect of the exit of unprofitable business on an investment platform.’ Loans and advances were consistent on-year at R 18.67 billion, down 0.5% at R 18.76 billion. ‘The global economy continues to experience significant uncertainty with the risk of rising trade barriers reducing demand and triggering new inflationary pressures. Global GDP growth showed signs of moderation, with projections for 2025 revised slightly downward,’ said Old Mutual. ‘In South Africa, investor sentiment was dampened by uncertainty over the stability of the Government of National Unity and the impact of US tariffs on exports. Inflation decelerated to 2.7% year-on-year in March 2025, but higher interest rates continue to strain consumer credit affordability, impacting persistency...Our Old Mutual Africa Regions markets experienced mixed macro performance in the first quarter of 2025, driven by tariffs, the withdrawal of donor funding, inflationary pressures and currency volatility,’ the firm added. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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