Old Mutual Life reports slump in profits

The company is primarily concerned with the provision of all classes of life assurance, savings and retirement funding

Financial services firm Old Mutual Life Assurance has reported a decline of 10,23 percent in profits after tax for the year to end December to R7,19 billion, down from the R8,01 billion recorded during the corresponding period in the previous year. Total revenue increased to R121,89 billion, up from R88,21 billion with cash and cash equivalents of R12,38 billion.

 

A subsidiary of Old Mutual Emerging Markets (Omem), which is to be listed as Old Mutual Limited on the JSE after the completion of managed separation by the end of 2018, Old Mutual Life Assurance’s ultimate holding company is Old Mutual plc, incorporated in the UK.

 

The company is primarily concerned with the provision of all classes of life assurance, savings and retirement funding. Despite the drop in profits, it managed to pay dividends on ordinary shares amounting to R5,5 billion and dividends on preference shares amounting to R1,29 billion for the year.

 

Old Mutual Life Assurance said it had managed to ensure that it was properly capitalised and funded at all times, having regard to its regulatory needs, prudent management and the needs of all stakeholders, and put the drop down to exposure to the effects of fluctuations in foreign currency exchange rates on its financial position, performance and cash flows.

 

Omem reported a 46 percent increase in profit after tax of R10,2 billion for the year, driven by higher actual investment returns in South Africa and Zimbabwe.

 

Omem’s financial division is headed by chartered accountant and 2015 CFO Awards nominee Casper Troskie (pictured). Casper joined the group in January after spending 10 years at Liberty Life. He was also previously with Standard Bank.