Old Mutual forecasts good 2023 financial performance

Old Mutual generated robust results from operations growth in the year to December 31 due to strong operational performance underpinned by exceptional growth in new business, and value of new business, as it gained market share across its business segments.

The life insurance and financial services group said in a trading statement yesterday that adjusted headline earnings per share (AHEPS) would increase by between 14% to 34% to between 121.3 cents and 142.6c, compared with 106.4c at the same time last year.

Adjusted headline earnings (AHE) growth was also bolstered by increased shareholder investment returns due to higher interest rates and a recovery in equity markets, the group said.

The results are expected to be released on March 27, 2024. AHE is the group’s primary profit metric.

Profits in Zimbabwe were excluded from AHE as the economy is hyperinflationary, resulting in earnings volatility. The main contributor to the higher level of growth in headline earnings relative to AHE was higher shareholder portfolio profits in the Zimbabwean business.

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