The Lower Eastern Times Opening The Third Eye
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Old Mutual Group’s profit after tax surged by 550% to Sh1.3 billion last year, driven by robust performance in its asset management division, underwriting gains from the insurance sector, and returns on invested assets.
In 2023, the company reported a net profit of Sh200 million.
“Our ongoing strategy is focused on becoming the preferred choice for our customers by helping them sustain, grow, and protect their wealth,” said Old Mutual Group CEO Arthur Oginga.
“Therefore, we remain dedicated to driving sustainability through operational efficiency, continuous product innovation, and a strong focus on meeting customer needs,” he added.
The insurer’s profit was also bolstered by a decrease in finance costs, which dropped from Sh2.4 billion in 2023 to Sh1.2 billion in 2024.
“This was largely due to the conversion of shareholder loans into equity, which significantly eased the Group’s debt load. As a result, the Group now has a more sustainable capital structure,” the company explained.
However, the Group recorded a disposal loss of Sh363 million from the sale of UAP Insurance Tanzania.
“While the divestment aligns with the Group’s strategic focus on streamlining operations, it led to a temporary financial setback,” the company said.
Additionally, the Group experienced a foreign exchange loss of Sh631 million due to the significant appreciation of the Kenyan shilling in 2024.
“We are committed to improving underwriting performance across our insurance businesses, growing our asset management customer base, and ensuring sustainable growth,” Oginga stated.
“With a clear strategic direction and a strong focus on operational excellence, we are confident that Old Mutual will continue its success trajectory, creating value for both customers and stakeholders.”
