Old Mutual’s first-half earnings rise on emerging-market sales
Old Mutual, Africa’s largest insurer, said profit from continuing operations in the six months ended June rose 14% on emerging markets sales.
Earnings on that basis were 555-million pounds, from 487-million pounds a year earlier, the London-based insurer said in a statement on Tuesday. While the dividend increased 20% to 2.1 pence, adjusted earnings per share rose to 9.1 pence, missing the 9.5 pence median estimate of three analysts surveyed by Bloomberg.
Emerging markets performed well, chief executive Julian Roberts said in the statement. “Our US asset management business had a very strong half, substantially contributing to our positive net client cash flows.”
Old Mutual has operations in Europe, the UK, the US, Latin America, Nigeria and South Africa.
The UK this year banned fund management and life insurance firms from paying commission to financial advisers in return for sales, undermining demand for some products. Old Mutual, which set aside R5-billion for expansion in emerging markets, is focusing on fast-growing countries such as Kenya where it said in July it plans to buy a stake in lender Faulu Kenya DTM.
“We are working with our retail customers in South Africa to help them through a challenging economic environment,” the company said in the statement.
“We are seeing improved conditions in the US and the UK, and sub-Saharan Africa continues to grow strongly.”
Net income fell to 414-million pounds from 930-million pounds a year earlier because of asset sales. – Bloomberg