Old Mutual Holdings PLC has posted a significant turnaround in its financial performance for the first half of 2024, with a profit before tax of KES 1.1 billion. This marks a remarkable 185% increase from the previous year, underscoring the company’s successful transformation journey and resilience in a challenging market environment.
Old Mutual Financial Results highlight the company’s strong commitment to driving growth and delivering value to its customers. Key performance indicators showed positive momentum across the board, with the company’s net assets reaching KES 18 billion despite a 5% decline. Insurance revenue saw a 7% rise to KES 16.8 billion, reflecting the company’s solid foothold in the insurance market.
Arthur Oginga, the Group CEO of Old Mutual Holdings, attributed this performance to the company’s strategic focus on transformation and sustainability. “We’ve made significant strides in our transformation journey, as evident from the growth in our revenues and profits,” Oginga stated. “But our commitment goes beyond numbers. We are investing in financial literacy and pioneering climate risk solutions, reinforcing our role as a responsible leader in the industry.”
The company’s life annual premium equivalent (APE) sales grew by 17% to KES 1.03 billion, while the gross written premium increased by 15% to KES 18.4 billion. These figures indicate a robust demand for Old Mutual’s insurance products, as the company continues to innovate and adapt to the evolving needs of its customers.
Old Mutual Financial Results also reported a 71% surge in e-commerce sales, amounting to KES 251 million, and a 51% increase in funds under management (FUM) to KES 108 billion. The growth in FUM reflects the company’s ability to attract and retain clients by offering a diversified portfolio of investment options.
Customer engagement has been another area of focus for Old Mutual, with the number of customers increasing by 4% to 1.83 million. The company also saw a 10% rise in digital users, bringing the total to 268,000, as more customers embraced digital platforms for their financial needs. This shift towards digitalization aligns with Old Mutual’s broader strategy of enhancing customer experience through technology.
The company’s efforts to improve customer satisfaction have also been fruitful, as evidenced by a 14% improvement in its Net Promoter Score (NPS), which now stands at 42%. The NPS is a key indicator of customer loyalty and satisfaction, and the increase suggests that Old Mutual’s initiatives to enhance customer service and product offerings are resonating well with its clientele.
Old Mutual’s strategic focus extends beyond financial metrics, with a strong emphasis on sustainability and innovation. The company is actively investing in financial literacy programs and pioneering climate risk solutions, reinforcing its role as a responsible industry leader.
Earlier this year, Old Mutual unveiled an online financial literacy training program targeted at junior and senior schoolteachers across Kenya. This initiative, developed in collaboration with the Kenya Institute of Curriculum Development (KICD), aims to integrate financial education into the country’s Competency-Based Curriculum (CBC).
This initiative is part of Old Mutual’s broader community investment strategy focused on financial education, skills development, and literacy programs. By providing teachers with the necessary tools and training, the program aims to create a ripple effect, enabling students across Kenya to gain essential financial management skills from an early age.
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