Old Mutual’s investment income rose impressively to Ksh 4.2 billion in the first half of 2025, up from Ksh 3.7 billion the year before. This gain was fueled by a strong Kenyan shilling, growing asset holdings, and fair value improvements on its investments.
On the other hand, the firm’s overall bottom line took a serious hit. Net earnings plunged to just Ksh 5 million, down sharply from Ksh 249 million at the same time last year. Gross earnings also fell significantly, sliding from Ksh 1.1 billion in 2024 to Ksh 380 million this year.
Insurance revenue edged down slightly, by 2.4 per cent, reaching Ksh 16.4 billion.
The insurance service result deteriorated, turning into a bigger loss of Ksh 303 million compared to a loss of Ksh 246 million previously. As a result, earnings per share dropped to a loss of Ksh 1.21, compared to earnings of Ksh 1.42 a year earlier. Retained earnings shifted into a Ksh 218 million deficit, reversing last year’s surplus of Ksh 38 million.
But it was not all bleak. Total comprehensive income rebounded, hitting Ksh 99 million compared to a loss of Ksh 873 million a year ago. This indicates stronger gains on the balance sheet, even when the income statement shows weakness.
During the period, claims surged across both short-term and long-term insurance, totalling Ksh 452 million well above the prior year’s levels.
Operationally, the company also faced headwinds. Its asset management and property businesses weakened, partly due to lower occupancy in Uganda and South Sudan offices.
Still, Old Mutual Holdings Group CEO Arthur Oginga sounded upbeat. He said higher claims reflect the company’s steadfast promise to its clients even under pressure. He pointed to resilient investment income, growth in asset management, and a stronger balance sheet as positive signs for long-term value.
The life insurance arm did well, posting higher post-tax profits thanks to fair value gains from lower yields and reduced reinsurance costs. Asset management earnings held steady, signalling that the diversified model is helping buffer weaknesses elsewhere.
“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,’’ Oginga said.
Adding;
“These fundamentals give us confidence in our ability to deliver long-term value for our shareholders, while continuing to stand firmly with our customers in times of need.”
Total assets grew to Ksh 79.2 billion from Ksh 74.8 billion at the end of December 2024, underlining Old Mutual’s growing capacity. However, property rentals took a hit: occupancy dropped to 72.6 per cent in Uganda (from 92 per cent) and to 53.9 per cent in South Sudan (from 63 per cent).
Commission fees and operating expenses rose to Ksh 1.6 billion, up from Ksh 0.9 billion, reflecting one-off costs this year and the reversal of a provision last year. In Uganda, funds under management grew to Ksh 145 billion, boosting fee and commission income. The unit-trust business also flourished, with assets under management in that segment rising 25 per cent to Ksh 142 billion.
Old Mutual Holdings Kenya is part of the wider Old Mutual Group, operating across 12 African countries with a niche presence in China.
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