Old Mutual Profit Soars from KSh5 Million to KSh882 Million in Stunning Turnaround

Old Mutual Holdings Plc has posted a dramatic recovery in profitability, with net earnings soaring from KSh5 million to KSh882 million in the six months to June 2026, helped by a strong turnaround in its insurance business.

The KSh877 million jump in profit after tax marks a significant improvement for the financial services group at a time when insurers continue to face pressure on underwriting margins and operating costs.

The group’s insurance business returned to profitability during the period, recording an insurance service result of KSh287 million, compared with a KSh303 million loss in the first half of 2025.

Old Mutual attributed the turnaround to tighter claims management, greater underwriting discipline, and stronger control of operating costs.

Insurance Rebounds

The recovery in insurance was complemented by stronger returns from the group’s investment portfolio.

Old Mutual’s net investment result rose 16 per cent to KSh1.9 billion, up from KSh1.7 billion in the corresponding period last year.

The improvement was supported by selective investment in higher-yielding assets, better matching of assets and liabilities, and tighter liquidity management.

Group CEO Arthur Oginga said the results reflected progress in strengthening the performance of the group’s businesses while pursuing a strategy focused on sustainable growth.

“Our performance demonstrates the progress we are making in executing our strategy and delivering on our long-term ambitions,” Oginga said.

He said Old Mutual would continue developing new growth engines while moving towards a business model focused on value rather than simply increasing volumes.

“Our ambition continues to be our customers’ first choice for sustaining, growing, and protecting their prosperity,” he said.

Assets Grow

Old Mutual’s asset management business also emerged as an important contributor to the improved performance.

Assets under management grew 32 per cent, helping push commission income up 34 per cent as the group benefited from growth in managed funds and greater exposure to higher-yielding portfolios.

Commission, fees, and other income increased to KSh1.6 billion, providing another boost to the group’s earnings.

From left, Isaiah Gakonyo, Chief Operating Officer; Dr Habil Olaka (EBS), Chairman and Non-Executive Director; and Arthur Oginga, Group Chief Executive Officer, Old Mutual Holdings PLC, during the announcement of the company’s financial results. Photo/Old Mutual

Chief Financial Officer Isaiah Gakonyo said the first-half performance showed that measures introduced to strengthen the business were beginning to bear fruit.

“These outcomes demonstrate the effectiveness of our strategic interventions in strengthening earnings quality and resilience,” Gakonyo said.

He said the group would continue focusing on cost optimisation, balance sheet restructuring, asset-liability management, and targeted technology investments to strengthen profitability.

Dividend Returns?

The sharp improvement in earnings has also raised the prospect of Old Mutual eventually resuming dividend payments, although management stressed that this will depend on the group’s financial position and regulatory requirements.

Chairman Dr Habil Olaka said the priority was now to ensure that the latest improvement could be sustained over the long term.

“Our priority is to ensure that this improvement translates into sustained profitability over the long term,” Olaka said.

He said the group was strengthening its businesses, balance sheet, and operating model to build greater resilience while creating sustainable value for shareholders.

“As profitability and the Group’s financial position continue to strengthen, our ambition is to create the capacity for sustainable shareholder distributions, including the future resumption of dividend payment,” Olaka said.

The cautious language suggests that shareholders should not expect an immediate return to dividends, but the possibility is now firmly back on the table if the group’s financial position continues to improve.

Second-Half Test

Old Mutual will spend the second half of 2026 seeking to consolidate the insurance turnaround while accelerating growth in investment and asset management.

The latest results offer a marked improvement from the near break-even performance recorded a year earlier, with insurance profitability, investment income, and asset growth combining to produce substantially stronger earnings.

The challenge now will be maintaining that momentum in an economic environment that continues to test insurers and other financial services providers.

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Old Mutual operates across Kenya, Uganda, South Sudan, and Rwanda, offering insurance, investment management, and banking services, including through Faulu Microfinance Bank.

The group also manages a property portfolio worth about KSh20 billion, including Old Mutual Tower in Kenya, Nakawa Business Park in Uganda, and Equatoria Tower in South Sudan.

For shareholders, the first-half numbers provide an encouraging signal: Old Mutual is no longer merely recovering from last year’s weakness.

It is attempting to turn that recovery into a durable return to profitability.

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