Old Mutual H1 Results Beat Cost of Capital, Announces ZAR 1 Billion Buyback

EarningsCorporate ActionManagement
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Summary · why it matters

Old Mutual reported improved interim operating performance for 2026, with results from operations per share up 11% and return on group equity value rising to 12.7% from 4.1%, while announcing an additional ZAR 1 billion share buyback. The company's ROGEV and normalized return on net asset value of 12.6% both exceeded its estimated cost of capital of about 12.5%, though they remained below medium-term targets of 14% to 16% and 15% to 17%, respectively. Old Mutual increased its dividend by 8% and achieved ZAR 338 million in first-half cost savings, bringing cumulative savings to ZAR 936 million against a ZAR 2.5 billion 2027 target. OM Bank had about 750,000 customers and ZAR 1.4 billion in deposits at June-end, with targets of up to 2.8 million customers by 2028. Strong growth in investments and African operations was partly offset by catastrophe losses that contributed to a 25% decline in Old Mutual Insure's operating result. The company also named Ranen Thakurdin as CFO-designate, effective Jan. 1, succeeding Casper Troskie upon his retirement in April 2027.

Impact on stocks 1

Financials▲ · 1 stocks
Old Mutual Ltd
OMU
▲ PositiveCapitalrelevance

H1 operating results beat cost of capital with 11% EPS growth, ROGEV up to 12.7%, plus a ZAR 1 billion buyback and 8% dividend increase.

Off-coverage companies 2

Old Mutual InsurePrivate▼ Negative
Supplyrelevance

Catastrophe losses drove a 25% decline in Old Mutual Insure's operating result.

OM BankPrivate▲ Positive
Demandrelevance

OM Bank reached about 750,000 customers and ZAR 1.4 billion in deposits, targeting up to 2.8 million customers by 2028.

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