Old Mutual, South Africa’s largest insurer by assets, said adjusted headline earnings fell 30% to R2.95 billion ($184 million) for the six months ended June, marking its first profit decline since 2022. The company attributed weaker investment returns in part to risk-off market sentiment following renewed tensions between the United States and Iran, which disrupted seaborne traffic and lifted energy and import costs.
- Old Mutual’s adjusted headline earnings fell 30% to R2.95 billion in H1, its first decline since 2022.
- The company attributed weaker investment returns to risk-off sentiment after US–Iran tensions disrupted seaborne traffic through the Strait of Hormuz.
- New business value rose 32%, but the new business margin at 1.4% remains below target.
- Old Mutual approved a further R1bn buyback and is investing in a new bank expected to break even by 2028.
Key results and corporate moves
The Johannesburg-based group declared an interim dividend of 40 cents per share and reported a 4% increase in group equity value to R20.66 per share. Old Mutual said the value of new business rose 32% in the period and that the new business margin improved by 10 basis points to 1.4%—still short of the company’s stated target range of 2%–3%.
To bolster shareholder returns, the board approved a further R1 billion share buyback. The company has bought back R5.5 billion of stock since 2023.
Company narrative on the US–Iran fallout
Old Mutual linked the weaker investment performance to ‘‘risk-off sentiment from conflicts in the Middle East’’ that affected international trade routes. The firm pointed specifically to disruptions to seaborne traffic through the Strait of Hormuz, which it said raised the costs of energy and fertilisers and pushed up import prices.
According to Old Mutual’s account in reporting on the half year, the higher import costs contributed to faster annual inflation in South Africa in June—peaking at 5%—before easing to 4.3% in July. The company warned that a protracted conflict would make it less likely inflation returns quickly to the South African Reserve Bank’s 3% target.
Operational context and growth initiatives
Chief executive Jurie Strydom, who assumed the role in June, has prioritised improving profitability on new insurance policies. The insurer’s restructuring of its life and savings business in 2025 now includes the Old Mutual SuperFund and a larger wealth-management arm; the company said gross flows grew 21% and assets under management in wealth rose to R640.3 billion by June, a 37% increase year-on-year.
Old Mutual has also invested in a new banking arm: more than R4 billion had been put into the bank by the reporting date, with a further R2 billion earmarked for 2026–27. The lender opened to the public late last year; management expects first-year losses of up to R1.3 billion and forecasts monthly break-even by 2028. Deposits stood at R1.38 billion and the bank had 742,000 customers versus 284,000 a year earlier.
Restructuring and regional footprint
The group has been pruning lower-return operations abroad: it closed life and general insurance activities in Nigeria and Tanzania and plans to exit South Sudan. Old Mutual said it is evaluating operations across China, East Africa and West Africa with an eye to improving returns.
Leadership changes
Old Mutual named Ranen Thakurdin as group chief financial officer-designate, effective January 1; he will succeed Casper Troskie, who is due to retire on April 30, 2027.
Why this matters for the Middle East and the UAE
Old Mutual’s earnings statement ties its weaker investment returns to trade and energy market effects originating in the Middle East—specifically disruptions near the Strait of Hormuz. For United Arab Emirates investors and firms with exposure to African insurers and asset managers, the results underline how geopolitical risk in the Gulf can feed through to financial returns and inflation in regional markets such as South Africa.
Higher seaborne freight and energy costs from Gulf tensions can raise import prices across emerging markets, changing inflation trajectories and influencing central bank policy. Old Mutual’s warning that a prolonged conflict would slow progress toward its central bank’s inflation target illustrates one transmission channel from Gulf security risks to fiscal and monetary outcomes in Africa.
Unresolved questions and caveats
- The company attributed the investment return hit to ‘‘risk-off sentiment from conflicts in the Middle East’’ and disruptions around the Strait of Hormuz; this account is reported as Old Mutual’s explanation and has not been independently verified in the available sources.
- Moneyweb’s reporting page was inaccessible in the evidence packet; details used here come primarily from Old Mutual’s own disclosures as summarised in reporting by Fullview.
Timeline of recent developments (as reported)
- 2025: Old Mutual restructures its life and savings business to include the SuperFund and expanded wealth operations.
- Late 2025: Old Mutual’s new bank opens to the public.
- February 2026 onward: Tensions between the US and Iran escalate, affecting seaborne traffic through the Strait of Hormuz (as described by Old Mutual) and contributing to higher energy and fertiliser costs.
- H1 2026 (six months to June): Adjusted headline earnings fall 30% to R2.95 billion; company announces interim dividend and further R1 billion buyback; Ranen Thakurdin named CFO-designate to take effect Jan 1.
What to watch next
Investors and regional observers should watch Old Mutual’s forthcoming full-year results and any further commentary linking investment returns to geopolitical risks. Monitoring South African inflation data and central bank guidance will show whether cost pressures tied to Gulf tensions persist and how they affect asset returns across the region.
“Adjusted headline earnings fell 30% to R2.95 billion ($184 million) in the six months through June.”