Old Mutual Holdings has posted a sharp turnaround in its financial performance, with profit after tax rising to Sh882 million in the six months ended June 30, 2026, from just Sh5 million recorded during a similar period last year.
The Ksh 877 million increase marks a significant recovery for the financial services group, with the improvement largely driven by a return to profitability in its insurance business, stronger investment income and better cost management.
The group’s insurance service result moved from a Ksh 303 million loss in the first half of 2025 to a Ksh 287 million profit in the latest period. Old Mutual attributed the improvement to tighter claims management, stronger underwriting discipline and efforts to control operating costs.
The recovery is notable because the insurance business had been one of the main areas weighing on the group’s earnings in the previous period. Rather than simply chasing higher business volumes, Old Mutual has been focusing on areas that can deliver better returns and improve the quality of its earnings.
“Our performance demonstrates the progress we are making in executing our strategy and delivering on our long-term ambitions,” Group Chief Executive Officer Arthur Oginga said.
Oginga added that the company would continue concentrating on new sources of growth while pursuing a value-led approach instead of focusing purely on volumes.
Investment income also provided an important boost during the period. Net investment results increased to Sh1.9 billion from Ksh 1.7 billion in the first half of 2025. The improvement was supported by selective investment in higher-yielding assets, better matching of assets and liabilities and tighter liquidity management.
Old Mutual also recorded stronger performance in asset management. Assets under management grew by 32 per cent, helping commission income rise by 34 per cent as the group attracted more funds and increased exposure to higher-yielding portfolios.
The company’s wider financial position also strengthened. Total assets stood at Ksh 83.06 billion by the end of June, up from Ksh 79.4 billion at the end of December 2025, while net assets increased from Ksh 20.43 billion to Ksh 21.25 billion. Cash and cash equivalents also rose from Ksh 4.33 billion to Ksh 5.38 billion.
Technology is increasingly becoming part of the group’s turnaround strategy. Old Mutual said artificial intelligence tools used in areas such as claims assessment, customer service and fraud detection generated Ksh 391 million in value during the period. The group also reported a 69 per cent decline in confirmed fraud losses.
Chief Financial Officer Isaiah Gakonyo said the results showed that measures introduced to strengthen the business were beginning to deliver.
“Our first half performance reflects disciplined execution across the Group, delivering improved insurance profitability, stronger net investment results, and sustained growth in asset management,” Gakonyo said.
He said the group would continue working on cost optimisation, balance sheet restructuring, asset-liability management and targeted investment in technology as it seeks to improve profitability.
Despite the stronger half-year results, Old Mutual will not pay an interim dividend. The group is instead continuing with a plan to reduce its Ksh 4.7 billion share premium account, with the reduction to be applied against accumulated losses.
The latest results give Old Mutual a stronger base as it enters the second half of 2026, with the group expected to maintain its focus on insurance profitability, investment growth, asset management and operational efficiency.
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