The Lower Eastern Times Opening The Third Eye
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Old Mutual Holdings has announced a steep earnings drop for the half-year ending June 30, 2025, with profit after tax from continuing operations tumbling 99 percent compared to the same period last year.
The group’s consolidated profit before tax stood at Sh380 million, a 66 percent decline from Sh1.1 billion in the first half of 2024.
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The insurer linked the downturn to lower interest rates in Kenya, which slashed interest income, caused fair value losses on fixed-income assets, and increased discounted insurance liabilities—together eroding Sh625 million in profits. Insurance service results also fell by Sh57 million due to weaker revenues across all markets and higher loss ratios in Kenya’s life insurance business.
Other factors weighing on performance included lower equity income, higher finance costs from refinancing Ugandan property loans, and a rise in the effective tax rate.
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Still, Old Mutual recorded Sh94 million in other comprehensive income, buoyed by currency translation gains from the Kenyan shilling’s depreciation against the Ugandan shilling, partly offset by its relative stability against the U.S. dollar.
The company noted that expenses were contained at prior-year levels and pointed to strong results from its asset management unit, where income surged 31 percent to Sh1.0 billion from Sh0.7 billion.
