The Old Mutual Group announced a KES 1.1 billion increase in profit after tax from continuing operations for the year 2024, rising from KES 0.2 billion profit in 2023 to KES 1.3 billion profit in 2024. This growth in profitability is attributed to a combination of strong performances in the asset management business, underwriting profits from insurance businesses and a good return on invested assets.
Notably, there was a substantial reduction in finance costs, which decreased from KES 2.4 billion in 2023 to KES 1.2 billion in 2024. This was a direct result of the conversion of shareholder loans to equity, significantly easing the Group’s debt burden. As a result, the Group now has a more sustainable capital structure.
Despite the changes in financing, the Group’s operating profit before finance costs remained stable at KES 3.8 billion. This stability in underlying operating profits is a reflection of the Group’s portfolio of businesses which ensures that business risks are diversified and minimized when we face challenges in one part of the Group.
“Our ongoing strategy continues to focus on becoming the first choice for our customers in sustaining, growing, and protecting their prosperity. Consequently, we remain committed to driving sustainability through operational efficiency, continuous product innovation, and a strong focus on customer needs,” said Old Mutual’s Group CEO, Arthur Oginga.
Another key area of sustainability within the Group’s strategy is financial inclusion and education. We continue to make good progress in this area through partnerships with institutions like Safaricom and the Kenya Institute of Curriculum Development (KICD) in initiatives that promoted financial education across Kenya. To date, this program has reached over 10,000 students in 13 counties, equipping them with essential financial literacy skills that will benefit them throughout their lives.
The Group’s commitment to responsible corporate practices was further highlighted when UAP Old Mutual Insurance Uganda Limited won the prestigious FIRe Award for its excellence in sustainable reporting. This accolade underscored the company’s ongoing efforts to align its operations with global best practices in environmental, social, and governance (ESG) standards.
Meanwhile, following the sale of UAP Insurance Tanzania, Old Mutual’s subsidiary in Tanzania, the Group recorded a loss on disposal of KES 363 million which is included in our income statement for 2024. While the divestment reflects the Group’s strategic focus in streamlining operations, it also resulted in a temporary financial setback.
Furthermore, the Group reported a foreign exchange loss of KES 631 million, which arose on the translation of foreign operations following the significant strengthening of the Kenyan shilling during 2024.
However, while Old Mutual has made significant strides in enhancing its operational and financial performance, it is not without its challenges. The Group continues to face risks from geopolitical developments and economic uncertainties, which have the potential to affect both its financial and operational stability. The suspension of USAID funding, regional instability in Eastern Congo and Sudan as well as heightened political activity in Kenya and Uganda, has created additional pressures on the economic outlook for 2025.
Despite these challenges, the Group remains confident in its ability to navigate the changing landscape and continue to deliver value to its customers and stakeholders. Its diversified portfolio and solid financial foundation provide resilience, enabling it to adapt to external shocks while maintaining a focus on long-term growth and profitability.
“We remain optimistic about the future, despite the challenges that lie ahead. We are committed to enhancing underwriting performance across our insurance businesses, expanding our customer base in the asset management business, and delivering sustainable growth. With a clear strategic direction and a strong focus on operational excellence, we are confident that Old Mutual will sustain its trajectory of success, creating value for both its customers and stakeholders,” said Oginga.
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