Old Mutual prepares to unveil its 2023 annual results later this month amid ongoing boycott calls.
Old Mutual 2023 annual results: Here’s what to expect
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As Old Mutual gears up to announce its annual results for 2023, stakeholders are anticipating insights into the company’s financial health and performance.
The preliminary figures suggest a mixed bag of outcomes. A modest increase in Life APE sales to R6.2 billion, representing a 1% growth, hints at slight sales growth in the insurance sector.
More notably, gross written premiums saw a significant jump of 16% to R12.6 billion, indicating an expansion in Old Mutual’s business volume.
The value of new business margin rose by 40 basis points to 2.6%, with the actual value of new business climbing by 32% to R937 million, showcasing not only an improvement in profitability but also a considerable increase in new business generation.
Operational results improved as well, with a 3% rise to R4.4 billion, a nod to enhanced efficiency and profitability in core operations.
Additionally, the group’s return on net asset value increased to 11.9%, with core RONAV experiencing a notable surge by 230 basis points to 13.1%.
A solid group solvency ratio of 186% is a positive signal of Old Mutual’s financial stability and its ability to meet liabilities.
Furthermore, a 28% increase in the interim dividend per share to 32 cents signals a healthier profit distribution to shareholders, affirming the company’s robust performance.
Here’s what prompted the Old Mutual boycott
As the company prepares to release its 2023 annual sales report on 27 March 2024, a dark cloud hangs over its reputation.
The call for a boycott against Old Mutual was fuelled by a controversial incident involving the alleged defiance of a court order.
Sebabatso Molefi’s viral social media post accused the insurer of refusing to release her mother’s pension funds despite a court mandate.
The situation escalated as the post garnered significant attention, with over 1.3 million views and numerous users sharing their grievances regarding denied claims.
Old Mutual’s initial response, promising a review within three business days, was met with criticism from Molefi, who expressed dissatisfaction with the company’s handling of the matter.
Subsequent interactions culminated in Old Mutual’s commitment to resolve the issue, acknowledging the need for a more empathetic approach to customer grievances and the importance of adhering to legal and regulatory obligations.
According to the original complainant, Molefi, her representatives are scheduled to meet with high-level officials at Old Mutual, on Tuesday, 12 March 2024, to bring finality to a situation that has since escalated into a PR nightmare for the insurance company.
Old Mutual JSE stock watch on Monday, 11 March 2024
On Monday, 11 March 2024, Old Mutual Ltd’s stock price showed movements in the trading session.
The company’s shares were traded at 1,196.00, marking a decrease from its 52-week high of 1,344.00, recorded on 15 August 2023.