Old Mutual reports Sh1.3b profit in 2024

Old Mutual Group has announced a Sh1.1 billion increase in its profit after tax for the year 2024.

The group’s profit grew from Sh200 million in 2023 to Sh1.3 billion in 2024, driven by strong business performance across various sectors.

The company attributed this growth to higher returns from asset management, increased underwriting profits from its insurance businesses, and solid investment gains.

A major factor in the improved financial performance was a reduction in finance costs, which dropped from Sh2.4 billion in 2023 to Sh1.2 billion in 2024.

This was achieved by converting shareholder loans into equity, significantly easing the group’s debt burden and creating a more sustainable financial structure.

Despite these financial changes, operating profit before finance costs remained stable at Sh3.8 billion, reflecting the strength of Old Mutual’s diversified business portfolio, which helps balance risks across different sectors.

Old Mutual Group Chief Executive Arthur Oginga reaffirmed the company’s commitment to customer-focused strategies, operational efficiency, and product innovation.

The company is also making significant strides in financial education and inclusion. Through partnerships with Safaricom and the Kenya Institute of Curriculum Development (KICD), Old Mutual has trained over 10,000 students across 13 counties in financial literacy, equipping them with essential money management skills.

The company’s sustainability efforts were further recognised when UAP Old Mutual Insurance Uganda won the prestigious Fire Award for excellence in sustainable reporting, underscoring its commitment to responsible corporate practices.

Despite the strong financial performance, Old Mutual faced some challenges. The group sold its Tanzanian subsidiary, UAP Insurance Tanzania, leading to a Sh363 million loss on disposal.