Old Mutual (LSE: OMU) shares surged over 5% in early trading on Wednesday after the banking group reported a “robust” financial performance for 2023, driven by “exceptional” growth in the value of new business. The pre-tax profit more than doubled to R13.97 billion from R6.56 billion a year earlier.
The financial services firm saw insurance revenue climb 7.8% to R68.26 billion, while non-insurance revenue rose 12% to R15.71 billion. A key highlight was a 37% jump in the value of new business to R1.92 billion, thanks to increased risk sales, effective cost management, and a higher proportion of profitable corporate sales in Africa.
Gross written premiums grew 14% to R25.51 billion, boosted by a 17% increase at Old Mutual Insure due to strong new business growth, renewals, and the acquisition of Genric Insurance Co. Funds under management rose 8% to R1.331 trillion as of December 31.
While net client cash outflows stood at R7.51 billion, an improvement from R12.43 billion a year ago, gross flows climbed 14% to R203.80 billion. Old Mutual declared a final dividend of 49 rand cents, taking the total payout for the year to 81 cents, up 7%.
Earnings per share surged 37% to 158.4 cents, while headline EPS jumped 28% to 165.5 cents. The company remains committed to delivering profitable top-line growth and new business opportunities.
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