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Old Mutual Limited
Incorporated in the Republic of South Africa
Registration number: 2017/235138/06
ISIN: ZAE000255360
LEI: 213800MON84ZWWPQCN47
JSE Share Code: OMU
LSE Share Code: OMU
NSX Share Code: OMM
MSE Share Code: OMU
ZSE Share Code: OMU
("Old Mutual" or “Company” or “Group”)
Ref: 26/24
27 March 2024
Group annual results and final dividend declaration for the year ended 31 December 2023
A message from the Chief Executive Officer
Overview
Our robust operational and financial performance in 2023, underpinned by exceptional sales growth,
demonstrates both our sound strategic choices and resilience in a challenging economic climate. Our business
remains well positioned for growth and continues to demonstrate its ability to provide customers with high quality
solutions that sustain, grow and protect their prosperity. Our customer focused approach has enabled us to
generate strong new business and continued sales momentum in 2023. We delivered double digit sales growth of
17% across our life segments as we grow market share profitably within our key markets. Consequently, we
delivered exceptional value of new business growth of 37%. We also delivered good growth of 14% on gross
flows and gross written premiums.
Our strategic choice to build an integrated financial services business of the future is focused on holistic coverage
of our customers’ financial needs. It is built around our unmatched distribution and digital engagement capabilities
that deliver personalised advice and solutions tailored to these needs, while also driving operational efficiencies
and opportunities for strategic growth. During the year, various strategic corporate actions were concluded and
we remain confident that these strategic relationships will deliver enhanced growth and profitability for the Group.
One of the key strategic partnerships, the Two Mountains Group, immediately increases our distribution footprint
across five provinces and enables us to vertically integrate the funeral services value chain into our value
proposition. Our bank build, which is central to our integrated financial services business of the future, remains on
track to be launched within the next 12 months subject to regulatory approvals.
Operating environment
The global economy proved resilient in 2023 despite substantial interest rate hikes over the past 18 months.
China recorded 5.2% economic growth in 2023, slightly above their 5% target. Many central banks have paused
interest rate increases as inflation continued to decline since the second quarter of the year.
The South African economy grew by 0.6% in 2023, lower than the 1.9% recorded in 2022. Despite resilience from
the private sector, mining and agricultural production recorded negative growth rates during 2023. Inflation eased
during 2023 at an average of 6%, slightly lower than the 6.9% recorded in 2022, despite the impact of food and
petrol price increases in August to October 2023. In the second half of 2023, the South African Reserve Bank’s
Monetary Policy committee kept rates unchanged after the cumulative 475 basis points rate increases since
November 2021 given the easing of inflation. Our customers’ disposable income remains under pressure due to
high inflation, elevated interest rates and ongoing confidence crisis. Some of this financial pressure was
alleviated by continued employment recovery with a total of 2.2 million jobs added to the workforce between the
start of 2022 and the third quarter of 2023.
The energy and logistical challenges in our ports and railways, and service delivery challenges remain key
constraints to economic growth. We have a collective responsibility to partner across the private sector, public
sector and civil society to alleviate these challenges. As a responsible business, we are actively engaging in
industry organisations such as Business Leadership South Africa (BLSA). Through Business for South Africa
(B4SA), a structure of BLSA, our membership enabled us to play a part in supporting government to implement
key priority interventions in the areas of energy, transport and logistics, crime and corruption, together with
government counterparts. This included supporting the National Energy Crisis committee (NECOM). The NECOM
Energy Action Plan has shown progress in its first year, addressing objectives such as ending load shedding,
regulatory reforms, approval process streamlining and encouraging private sector investment in energy.
The South African equities market saw muted performance during the year with improvements in December as
anticipated interest rate cuts supported confidence.
In our Africa regions, the operating environment was similarly challenging across all markets. Several African
markets have experienced severe currency depreciation against the US dollar and dollar shortages remain a
challenge. High inflation continues to impact most economies and central banks have maintained interest rates at
elevated levels. Kenya faces substantial maturities of domestic debt and foreign US dollar-denominated debt
within the next year. Malawi’s total public debt increased by 37.6% year-on-year to 75.0% of GDP. These factors
continue to impact our customers’ disposable income.
Malawi’s equity market significantly increased relative to December 2022 due to the rally in the local equity
market. All other selected equity indices in East Africa remain subdued.
Key performance overview
Life APE sales recorded robust growth of 17% from the prior year. This was primarily due to strong savings sales
in Old Mutual Corporate, resilient retail and corporate sales in East Africa as well as higher guaranteed annuities
sales in Personal Finance.
Gross flows increased by 14% from the prior year mainly due to strong single premium inflows in Old Mutual
Corporate, new business secured and higher unit trust sales in East Africa.
Our value of new business increased by 37%, with a corresponding increase of 10 bps in the value of new
business margin. This was driven by increased risk sales and effective cost management in the Mass and
Foundation Cluster and a higher proportion of profitable corporate sales in East and West Africa. The strong
growth in guaranteed annuities sales and a shift in mix towards higher margin funds in Personal Finance
contributed positively to the value of new business and value of new business margin. The value of new business
margin of 2.3% remains within our medium term target range of 2% to 3%.
Gross written premiums were up by 14% from the prior year. This was largely driven by an increase of 17% in
Old Mutual Insure due to strong new business growth, renewals and the acquisition of Genric Insurance
Company. Excluding Genric Insurance Company, gross written premiums in Old Mutual Insure increased by 13%.
Net client cash outflows of R7 510 million improved by 40% from the prior year, primarily driven by good inflows
across our life businesses. In Old Mutual Investments and Wealth Management, client liquidity requirements in
challenging economic conditions resulted in increased outflows. Wealth Management experienced outflows from
a number of large clients across both local and offshore platforms, coupled with lower treasury advisory inflows.
Old Mutual Investments saw low margin indexation outflows from a large offshore investor that is implementing a
change in their investment strategy, low margin money market fund outflows as well as structural pension fund
outflows. Funds under management of R1.3 trillion increased by 8% from the prior year, due to the improvement
in equity markets and valuations on unlisted portfolio assets, partially offset by higher outflows.
The Group delivered return on embedded value of 11.2%. The contribution of profitable new business written,
positive risk variances and risk assumption changes was partially offset by increased once-off expenses, worse
than expected persistency experience and strengthening of our persistency assumptions.
Results from operations increased by 14% from the prior year. This was primarily driven by higher expected
returns on the contractual service margin across our life businesses as well as positive economic variances due
to good market performance. Profits also benefited from positive risk experience in Old Mutual Corporate and
higher risk sales volumes in Mass and Foundation Cluster.
Return on net asset value of 11.1% increased by 170 bps from the prior year. This was largely driven by robust
growth in results from operations and shareholder investment returns as a result of higher interest rates and
resilient equity markets. Return on net asset value excluding new growth initiatives increased by 210 bps from
the prior year to 13.1%. We remain committed to optimising our capital allocation to enhance returns to
shareholders, with R60.8 billion returned through special distributions since 2018. This includes the share
buyback of R1.5 billion completed in October 2023.
The Group solvency ratio remains solid at 178% for the year ended 31 December 2023, within our target range of
170% to 200%. Old Mutual Life Assurance Company (South Africa) Limited (OMLACSA’s) solvency ratio remains
strong at 204%, which was at the upper end of our target range of 175% to 210%. OMLACSA issued R1.5 billion
of floating rate subordinated debt to optimise the Group’s weighted average cost of capital and there were no
redemptions in 2023.
Our dividend policy targets an ordinary dividend cover range of 1.5x to 2.0x adjusted headline earnings. The
Old Mutual Limited Board declared a final dividend of 49 cents per share, with total dividends declared in 2023
amounting to 81 cents per share.
Outlook for 2024
The global economy continues to show more resilience than expected. Inflation has reached its peak and no
further interest rate hikes are expected.
In South Africa, inflation is expected to ease in 2024 which will create an environment more conducive for interest
rate cuts. The South African Reserve Bank’s Monetary Policy Committee left rates unchanged for the fourth
consecutive meeting in late January. The downcycle in interest rates is likely to be far slower than the upcycle.
The combination of lower inflation, lower interest rates and ongoing employment recovery will bring financial relief
to customers and improve confidence levels over time.
In our Africa regions, significant improvement in the overall economic growth is expected, particularly in East
Africa. Inflation is likely to remain high in most markets and monetary policy is expected to remain tight with no
further interest rate hikes expected. Several key elections will take place in Botswana, Namibia, Ghana, Malawi,
Rwanda and South Sudan which will likely extend the period of political uncertainty.
We remain committed to deliver profitable top line growth and new business by delivering an integrated holistic
suite of solutions to our customers that leverages our leading distribution and digital capabilities. We will drive
effective cost management to enable growth and profitability for the Group as we build our integrated financial
services business of the future.
We will continue to deliver on strategic initiatives to achieve our victory condition of becoming our customers’ first
choice to sustain, grow and protect their prosperity. In March, Old Mutual was selected as the winner of the
News24 Long-Term Insurer of the Year award. The award recognises high client satisfaction scores in a News24
survey of more than 4 000 people, along with the assessment of our strategy, societal contribution and
transparency. Our integrated financial services business of the future, which has our customers’ financial
wellness at its core, and the planned launch of our bank are important building blocks to get even closer to our
customers and be part of their everyday lives.
Our section 16 submission for the bank build was completed and submitted early in 2024 and we are now
awaiting approval from the Prudential Authority. As part of the section 16 submission, we were required to have
the banking systems and processes independently verified in a working end to end scenario. This was
successfully demonstrated and signed off prior to the aforementioned section 16 submission. Section 17 allows
us to notify the industry via the Payments Association of South Africa, that we intend testing in the National
Payments system in the latter half of 2024. This is a regulated activity and follows a predetermined process of
testing with partner banks in the industry.
In January 2024, we announced the sale of our full stake in UAP Insurance Tanzania, our short term insurance
business to a group of current minority shareholders, pending regulatory approval. This decision follows a
strategic review that identified challenges in achieving the desired returns on capital for the Tanzanian business.
We remain committed to East Africa and will continue to strengthen our investment in corporate and retail
propositions to position the business as a leading integrated financial service provider. We will expand our
corporate offering, distribution channels, and customer base in East and West Africa.
I want to thank all my colleagues for their passion and commitment in putting our customers front and centre of
everything we do, which has enabled us to deliver robust operational and financial performance in a difficult
operating environment. I thank our customers for trusting us to help them navigate their financial affairs as we
remain that certain friend in uncertain times. To all our stakeholders, we appreciate your continued support and
engagement. Our focus remains on building the integrated financial services business of the future, anchored in
our victory condition of becoming our customers’ first choice and in doing so responsibly building the most
valuable business in our industry.
Iain Williamson
Chief Executive Officer of Old Mutual Limited
Group Highlights
We completed a share buyback of R1.5 billion in 2023.
Key performance indicators
Rm (unless otherwise stated) FY 2023 FY 2022 Change
Results from operations 8 343 7 310 14%
Adjusted headline earnings 5 861 4 850 21%
Headline earnings1 7 380 5 854 26%
IFRS profit after tax attributable to equity holders of the parent1 7 065 5 231 35%
Return on net asset value (%) 11.1% 9.4% 170 bps
Return on net asset value excluding new growth initiatives (%) 2 13.1% 11.0% 210 bps
Group equity value 90 114 89 477 1%
Discretionary capital (Rbn) 1.1 3.5 (69%)
Group solvency ratio (%)1,3 178% 188% (>100 bps)
Dividend cover (times)4 1.5 1.7 (12%)
Per share measures
Cents FY 2023 FY 2022 Change
Adjusted headline earnings per share5 129.0 106.4 21%
Headline earnings per share1 165.5 129.2 28%
Basic earnings per share1 158.4 115.5 37%
Total dividend per share 81 76 7%
Interim dividend 32 25 28%
Final dividend 49 51 (4%)
Group equity value per share6 1 880.9 1 820.9 3%
Supplementary performance indicators
Rm (unless otherwise stated) FY 2023 FY 2022 Change
Life and Savings and Asset Management
Gross flows 203 802 178 027 14%
Net client cash flow (7 510) (12 425) 40%
Funds under management (Rbn) 1 331.0 1 231.1 8%
Life and Savings
Life APE sales 14 604 12 501 17%
Value of new business 1 921 1 400 37%
Value of new business margin (%) 2.3% 2.2% 10 bps
Banking and Lending
Loans and advances 19 391 19 009 2%
Net lending margin (%) 11.3% 13.1% (180 bps)
Property and Casualty
Gross written premiums 25 513 22 344 14%
Insurance revenue 25 204 22 082 14%
Net underwriting margin (%) 0.1% 1.4% (130 bps)
1 These metrics include the results of Zimbabwe. All other key performance indicators exclude Zimbabwe
2 Return on net asset value excluding new growth initiatives was previously reported as core return on net asset value. This key performance
indicator excludes adjusted headline earnings and equity impacts as well as any expected investment over the next 12 months into these
initiatives. The prior year has been re-presented from 10.8% to 11.0%
3 The prior year has been re-presented to align results to the audited Prudential Authority submission
4 The dividend declared of 76 cents per share which amounted to a dividend cover of 1.7 times on an IFRS 4 basis was approved by the Board
in 2022
5 Adjusted headline earnings per share is calculated with reference to adjusted weighted average number of ordinary shares. Weighted average
number of shares used in the calculation of the adjusted headline earnings per share is 4 544 million (FY 2022: 4 557 million)
6 Group equity value per share is calculated with reference to closing number of ordinary shares. Closing number of shares used in the
calculation of the Group equity per share is 4 791 million (FY 2022: 4 914 million)
Short form announcement
This short form announcement is the responsibility of the Board. It is only a summary of the information contained
in the Group annual results and the annual reporting suite which can be found on our website at
https://www.oldmutual.com/investor-relations/reporting-centre/reports and the dividend declaration can be found
on our website at https://www.oldmutual.com/investor-relations/dividend-information/.
This short form SENS has itself not been audited but contains extracts from the consolidated annual financial
statements. The annual reporting suite includes the consolidated annual financial statements which is also
available on the JSE cloudlink and has been audited by the independent joint auditors, Deloitte & Touche and
Ernst & Young Inc, who expressed an unmodified opinion thereon. Any reference to future financial performance
has not been audited by or reported on by the Group’s independent joint auditors. The Group annual results
include non-IFRS financial measures which have not been audited or reported on by the independent joint
auditors. The non-IFRS measures provide information that is useful to investors and are appropriate to assess
the Group’s operational results and financial performance.
The consolidated annual financial statements and the independent joint auditors audit opinion is available on the
Company's website at https://www.oldmutual.com/investor-relations/reporting-centre/reports/. Any investment
decisions by investors and/or shareholders should therefore be based on consideration of the consolidated
annual financial statements accessible via the JSE cloudlink
https://senspdf.jse.co.za/documents/2024/jse/isse/OMUE/FY23Result.pdf and on our website above as the
information in this announcement does not provide all the details. While the consolidated annual financial
statements are available on the JSE cloudlink, the rest of the annual reporting suite and Group annual results are
only available on the Company's website. The consolidated annual financial statements are available for
inspection at the registered office of the Company and the Sponsor, at no charge, during office hours from the
date of this announcement for a period of 30 days.
Final dividend declaration
The Old Mutual Limited Board declared a final dividend of 49 cents per share. This results in a full year dividend
of 81 cents per share and a dividend cover of 1.5 times for the 2023 year, which is in line with Old Mutual
Limited’s dividend cover target range of 1.5x to 2.0x adjusted headline earnings over the financial year. The
growth in the full year dividend from the prior year is as a result of our robust operational performance and strong
capital and liquidity position. The final dividend will be paid out of distributable income reserves to all ordinary
shareholders recorded on the record date.
Shareholders on the London, Zimbabwean, Malawian and Namibian registers will be paid in the local currency
equivalents of the final dividend. Shareholders on the Zimbabwean register will be paid the equivalent of the final
dividend in United States Dollars.
Old Mutual’s income tax number is 9267358233. The number of ordinary shares in issue in the Company’s share
register at the date of declaration is 4 790 906 428.
JSE, MSE, NSX, ZSE LSE
Declaration date Wednesday, Wednesday,
27 March 2024 27 March 2024
Finalisation announcement and exchange rates announced Tuesday, Tuesday,
9 April 2024 by 11.00 9 April 2024 by 11.00
Transfers suspended between registers Close of business on Close of business on
Tuesday, Tuesday,
9 April 2024 9 April 2024
Last day to trade cum dividend for shareholders on the South Tuesday,
African register and Malawi, Namibia and Zimbabwe branch 16 April 2024
registers
Ex-dividend date for shareholders on the South African register Wednesday,
and Malawi, Namibia and Zimbabwe branch registers 17 April 2024
Last day to trade cum dividend for shareholders on the UK register Wednesday,
17 April 2024
Ex-dividend date for shareholders on the UK register Thursday,
18 April 2024
Record date (South African register and Malawi, Namibia and Close of business on
Zimbabwe branch registers) Friday,
19 April 2024
Record date (UK register) Friday,
19 April 2024
Transfers between registers restart Opening of business on Opening of business on
Monday, Monday,
22 April 2024 22 April 2024
Final dividend payment date Monday, Tuesday,
22 April 2024 21 May 2024
Share certificates for shareholders on the South African register may not be dematerialised or rematerialised
between Wednesday, 17 April 2024 and Friday, 19 April 2024, both dates inclusive. Transfers between the
registers may not take place between Tuesday, 9 April 2024 at close of business and Friday, 19 April 2024.
Trading in shares held on the Namibian branch register through Old Mutual (Namibia) Nominees Proprietary
Limited will not be permitted between Tuesday, 9 April 2024 at close of business and Friday, 19 April 2024, both
days inclusive.
The dividend for South African shareholders will be subject to dividend withholding tax of 20% for all shareholders
who are not exempt from or do not qualify for a reduced rate of withholding tax. International shareholders who
are not exempt or are not subject to a reduced rate in terms of a double taxation agreement will be subject to
dividend withholding tax of 20%. The net dividend payable to shareholders subject to withholding tax of 20%
amounts to 39.20000 cents per ordinary share. Distributions made through the dividend access trust or similar
arrangements established in a country will not be subject to South African withholding tax, but may be subject to
withholding tax in the relevant country. We recommend that shareholders consult with their tax adviser regarding
the in-country withholding tax consequences.
Shareholders that are tax residents in jurisdictions other than South Africa may qualify for a reduced rate under a
double taxation agreement with South Africa. To apply for this reduced rate, non-South African taxpayers should
complete and submit a declaration form to the respective registrars. The declaration form can be found
at:https://www.oldmutual.com/investor-relations/dividend-information/.
The Company’s Notice of Annual General Meeting, together with a form of proxy, will be distributed to
shareholders before 30 April 2024.
Notes to editors
A webcast of the presentation for the 2023 Annual results and Q&A will be broadcast live on Wednesday, 27
March 2024 at 12:00 South African time on the Investor Relations website: https://www.oldmutual.com/investor-
relations/. Analysts and investors who wish to participate in the call may do so using the following link or
telephone numbers below:
https://services.choruscall.za.com/DiamondPassRegistration/register?confirmationNumber=9466404&linkSecurit
yString=1db3b86f10
South Africa +27 10 500 4108
UK +44 203 608 8021
Australia +61 73 911 1378
USA +1 412 317 0088
International +27 10 500 4108
Replay access code 45908
To access the replay using an international dial-in number, please select the link below:
https://services.choruscall.com/ccforms/replay.html
The replay will be available until 1 April 2024.
Sponsors
JSE equity sponsor: Tamela Holdings (Proprietary) Limited
JSE debt sponsor: Nedbank Corporate and Investment Banking, a division of Nedbank Limited
NSX: PSG Wealth Management (Namibia) (Proprietary) Limited
ZSE: Imara Capital Zimbabwe plc
MSE: Stockbrokers Malawi Limited
Enquiries
Investor Relations
Langa Manqele
M: +27 (0)82 295 9840
E: investorrelations@oldmutual.com
Communications
Wendy Tlou
M: +27 (0)83 301 9663
E: oldmutualnews@oldmutual.com
About Old Mutual Limited
Old Mutual is a premium African financial services group that offers a broad spectrum of financial solutions to
retail and corporate customers across key market segments in 14 countries. Old Mutual’s primary operations are
in Africa and it has a niche business in China. With over 178 years of heritage across sub-Saharan Africa, Old
Mutual is a crucial part of the communities it serves as well as broader society on the continent. For further
information on Old Mutual Limited and its underlying businesses, please visit the Corporate website at
www.oldmutual.com.
