Old Mutual Holdings Plc has reported a profit after tax of KES 882 million for the six months ended 30 June 2026, a sharp jump from just KES 5 million in the same period last year. The result marks a significant turnaround for the Group at a time when underwriting margins across the insurance industry remain under pressure.
Driving the improvement was the insurance business, which swung from a KES 303 million loss in the first half of 2025 to an insurance service result of KES 287 million this year. The Group attributed the reversal to tighter claims management, greater underwriting discipline, and cost control measures implemented across its businesses.
Group CEO Arthur Oginga said the results reflect the progress made in strengthening the underlying performance of the Group’s businesses.
“Our ambition continues to be our customers’ first choice for sustaining, growing, and protecting their prosperity. This ambition is guided by our strategic pillars of lifestyle and wellness, technology and digital transformation, sustainability, strategic partnerships, and customer experience.”
“Our performance demonstrates the progress we are making in executing our strategy and delivering on our long-term ambitions. We will continue to enhance this performance through new growth engines and a focus on a value led rather than a volume led business,” said Mr Oginga.
Beyond the insurance turnaround, net investment results rose to KES 1.9 billion from KES 1.7 billion a year earlier, a gain the Group credited to selective allocation toward higher-yielding investments, asset-liability matching initiatives, and effective liquidity management.
The asset management side of the business also gathered pace, with assets under management growing 32%. That expansion fed through to a 34% rise in commission income, helped along by growth in managed funds and a deliberate tilt toward higher-yielding portfolios.
Group Chief Financial Officer Isaiah Gakonyo said the Group remains committed to sustaining its improved performance by driving transformation initiatives, strengthening operational efficiency, and enhancing financial effectiveness across the business.
“Our first half performance reflects disciplined execution across the Group, delivering improved insurance profitability, stronger net investment results, and sustained growth in asset management. These outcomes demonstrate the effectiveness of our strategic interventions in strengthening earnings quality and resilience. We remain focused on asset-liability management, cost optimisation, balance sheet restructuring, and targeted technology investments to profitability,” said Mr. Gakonyo.
Outlook
With half the year still to run, Old Mutual Holdings says its focus for the remainder of 2026 will be on sustaining the recovery in underwriting performance while accelerating growth across its investment and asset management businesses.
Group Chairman Dr Habil Olaka said the Group remains focused on sustaining the performance while navigating a challenging economic environment and strengthening its capacity to deliver long-term value to shareholders.
“Our priority is to ensure that this improvement translates into sustained profitability over the long term. We are strengthening the Group’s businesses, balance sheet and operating model to build greater resilience and create sustainable value for shareholders. As profitability and the Group’s financial position continue to strengthen, our ambition is to create the capacity for sustainable shareholder distributions, including the future resumption of dividend payment, subject to the Group’s financial position and applicable regulatory and statutory requirements.”
