Old Mutual Holdings Plc has posted a sharp turnaround in its half-year performance, reporting profit after tax of KES 882 million for the six months ended June 30, 2026, up from a mere KES 5 million in the same period last year.
The dramatic improvement comes even as underwriting margins across the wider insurance industry remain under pressure, underscoring the impact of the Group’s internal turnaround efforts.
Insurance Business Swings Back to Profit
The standout figure in the results is the insurance service result, which flipped from a KES 303 million loss in the first half of 2025 to a KES 287 million profit in H1 2026. The Group attributes the swing to tighter claims management, stronger underwriting discipline, and cost control measures implemented across its businesses.
Speaking on the results, Group CEO Arthur Oginga said the numbers reflect real progress in strengthening the underlying performance of Old Mutual’s businesses, noting that the company remains guided by its strategic pillars of lifestyle and wellness, technology and digital transformation, sustainability, strategic partnerships, and customer experience. He added that the Group intends to keep building on this momentum through new growth engines, with a shift toward a value-led rather than volume-led business model.
Investment and Asset Management Also Post Gains
Net investment results rose 16% to KES 1.9 billion, up from KES 1.7 billion a year earlier, supported by a shift toward higher-yielding investments, asset-liability matching strategies, and tighter liquidity management.
The asset management business also had a strong half, with assets under management (AUM) growing 32%, which in turn drove a 34% increase in commission income. Commission, fees, and other income for the Group grew to KES 1.6 billion overall.
Group CFO Isaiah Gakonyo said the results demonstrate disciplined execution across the Group, pointing to gains in insurance profitability, investment performance, and asset management growth as evidence that the company’s strategic interventions are working. He said the focus going forward remains on asset-liability management, cost optimisation, balance sheet restructuring, and targeted technology investment.
Outlook: Eyes on Sustained Recovery and Future Dividends
Looking to the second half of 2026, Old Mutual Holdings says it will focus on sustaining the recovery in underwriting performance while accelerating growth in its investment and asset management businesses.
Group Chairman Dr. Habil Olaka struck a cautiously optimistic tone, saying the Group is focused on sustaining performance while navigating a challenging economic environment. He said Old Mutual is strengthening its businesses, balance sheet, and operating model to build resilience and long-term shareholder value — and that as profitability and financial position continue to improve, the Group is working toward building the capacity for sustainable shareholder distributions, including a potential future resumption of dividend payments, subject to its financial position and regulatory requirements.
About Old Mutual Holdings
Old Mutual East Africa Group offers insurance, investment, banking, and savings solutions across Kenya, Uganda, South Sudan, and Rwanda. It is part of Old Mutual Limited (OML), a pan-African financial services group operating in 12 countries. Its integrated business model includes life and general insurance, investment management, and banking services through Faulu Microfinance Bank, alongside a KES 20 billion property portfolio featuring landmark buildings such as Equatoria Tower (South Sudan), Nakawa Business Park (Uganda), and Old Mutual Tower (Kenya).
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