Old Mutual's group CEO has been in the role for 15 months. This was his second set of interim results, and they mark something the business has been working toward for a while: for the first time, its key return measures came in above its cost of capital. After several years of "we're getting there," the six months to 30 June 2026 show the business actually arriving.

Where the growth is coming from

Life APE sales, the industry measure of new policy premiums, grew 21% to R7.9 billion. Gross flows into the group's investment products grew 21% as well. That growth came from stronger group risk and annuity sales, higher living annuity and endowment sales in Wealth Management, and continued momentum across Old Mutual Africa Regions.

Results from operations, the number that shows how the core insurance and investment business is performing day to day, grew 11% per share, landing inside management's own target range. The board approved an interim dividend of 40 cents per share, up 8%, alongside a R1 billion share buyback, on top of R3 billion already returned to shareholders over the past year.

Understanding the earnings dip

Adjusted headline earnings came in lower, down between 27% and 30% depending on the measure. That's worth explaining rather than glossing over: it comes from shareholder investment returns, which were softer this year in a tougher market, and from Old Mutual Insure absorbing a run of catastrophe losses. The parts of the business that sell products and manage money for customers kept growing. The dip sits in the group's own investment portfolio and a difficult period for the short-term insurer.

OM Bank's early progress

OM Bank now has around 750,000 customers and R1.4 billion in deposits, a big step up from where it started the year. The longer-term goal is 2.8 million customers by 2028, which puts the current numbers in context: this is still early, and the growth so far is a good sign for a business built from scratch two years ago. It's still spending more than it earns for now, which is expected at this stage of building something new.

A turnaround worth mentioning: Zimbabwe

Zimbabwe's adjusted headline earnings more than doubled to R897 million, with dividends paid out growing 51% to R124 million. Improving local conditions and a shift to US dollar operations have helped this part of the business move from a challenge to a genuine bright spot.

Where this leaves things

The core business is growing, its returns now clear the bar management set for itself, and a new market is turning a corner. OM Bank is still in its early build phase, doing what early-stage growth looks like. Taken together, it's a half that shows steady, credible progress, worth watching to see how each of these threads develops from here.

Hear it from Old Mutual's CEO

If you want the fuller picture behind these numbers, Old Mutual Group CEO Jurie Strydom joins us on 10 September to talk through the results and take questions live.

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