Old Mutual shares jump on good 2023 performance

Exceptional growth in new business value fuels financial success.

Old Mutual shares jump on good 2023 performance
Old Mutual OMU

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.

Subscribe to Investomania for more Old Mutual news and updates.