Old Mutual Holdings Reports Ksh 380 million in Profit in H12025

Old Mutual Holdings posted a profit before tax of Ksh 380 million from continuing operations, marked by lower interest rates and higher claims, which weighed on earnings.

The surge in claims during the period spread across both the short-term and long-term insurance businesses, which stood at Ksh. 452 million compared to the same period in 2024.

The performance was impacted by lower interest income and mark-to-market losses on fixed income securities, which reduced earnings by Ksh 625 million, alongside higher insurance claims and service expenses, particularly in the medical and life businesses.

Profitability was also weighed down by reduced performance in the asset management and property operations, driven in part by lower occupancy in Uganda and South Sudan properties. Despite these pressures, the Group remained resilient, supported by stronger investment income and disciplined cost management.

Speaking during the 2025 interim results announcement, Old Mutual Holdings Group CEO Arthur Oginga expressed confidence in the outlook, saying that the increase in claims underscores Old Mutual’s commitment to honour its promise to safeguard the well-being and financial security of its clients.

“Although higher claims placed short-term pressure on profitability, it is a demonstration of the strength of our promise to customers and the resilience of our business model. I am encouraged by the growth in investment income, the expansion of our asset management business, and the strengthening of our balance sheet,” Mr. Oginga said.

The life insurance business recorded a profit after tax increase of KES 580 million, mainly attributable to fair value gains on financial assets following a decline in the yield curve, as well as lower reinsurance costs. The asset management unit maintained earnings at par with prior year levels, demonstrating the resilience of the Group’s diversified portfolio.

“As a company, we are transitioning from being viewed as an insurance provider to becoming a partner in our customers’ overall well-being. Through Thrive app, we bring together physical, mental, and financial wellness in one seamless experience, empowering communities across all our markets to lead healthier lives and achieve greater financial security,” Mr. Oginga noted.

Financial highlights

Net investment income strengthened by 13% to Ksh 4.2 billion from Ksh 3.7 billion in 2024, supported by the appreciation of the Kenya shilling against the dollar, an increase in underlying assets, and fair value gains.
Fee income increased on the back of rising funds under management, underscoring the Group’s market strength.
Total assets rose to KES 79.2 billion (up from Ksh 74.8 billion in December 2024), reinforcing the Group’s capacity to support future growth.
Property rental income declined as occupancy fell to 72.6% in Uganda (from 92%) and 53.9% in South Sudan (from 63%).
Group commission fee and operating expenses increased to Ksh 1.6 billion from Ksh 0.9 billion in H1 2024. This increase was impacted by one-off costs in the current year and one-off provision reversal in the prior period, coupled with higher.
Funds under management in Uganda rose to Ksh 145 billion, driving higher fee and commission income.
The asset management line of business reported good growth in Unit trust business, reaching AUM of KES 142 billion, a growth of 25%.
Life profits before tax grew by over 100% to reach Ksh 419 million from Ksh 168 million in the prior period.
Digital sales reached Ksh 373 million, and value from data commercialization delivered savings of Ksh 138 million in line with our business transformation differentiation strategy.