Old Mutual Ltd (LSE:OMU) (H1 2026) Earnings Call Highlights: Strong Sales Growth and Buyback ...

Q: Thapelo of Investec asked whether the level of catastrophe losses in short-term insurance could be quantified to better understand underlying performance. A: Soul Abraham, CEO of Old Mutual Insure, reported ZAR 376 million in catastrophe losses from the May storms, translating to about a 3% underwriting margin delta. He noted that excluding this, attritional performance in H1 2026 was actually better than H1 2025, showing materially improved underlying performance.

Q: Baron of JPMorgan asked how investors should think about the durability and sustainability of alternatives and non-annuity revenue in Old Mutual Investments. A: Zulfa Abdurahman, COO of Old Mutual Investments, acknowledged that non-annuity revenue is lumpy and dependent on fund exit timing. She noted some fund exits occurred earlier than anticipated this year and expects some tapering, but the business continues to anticipate a level of non-annuity revenue going forward.

Q: Senamile of Standard Bank asked which specific lines of business in Malawi contributed positively to the RFO increase, and Clement asked whether the modest 3% GWP increase in OMAR signals a view to grow market share. A: Casper Troskie said Malawi saw improved performance across all businesses, particularly life and banking, despite a 12% market decline and currency deterioration. Clement Chinaka, MD of Africa Regions, explained the focus is on improving margins through pricing actions rather than volume growth, noting strong new business flows but some lost accounts due to repricing.

Q: Jarred of All Weather asked for more detail on the duration extension overlay that detracted from SA shareholder returns and whether it is expected to reverse in H2. A: Ranen Thakurdin, Group Chief Risk Officer, explained the bond duration was extended to manage capital interest rate sensitivity on the balance sheet, causing a first-half loss that has since partially reversed.

Q: Matthew asked what proportion of the ZAR 1.4 billion in bank deposits is new to bank versus transferred from the Bidvest Money Account. A: Clement Chinaka said more than 80% came from Bidvest money account customers and about 20% from new customers, with encouraging month-on-month growth in new customer deposits.

Q: Michael Christelis of UBS asked for more detail on mortality and lapse variances by segment, and about when VNB margins for Mass and Foundation and Personal Finance would start rising. A: Ranen Thakurdin reported positive mortality variances across all clusters, with corporate variances reducing but still positive. Negative persistency variances were split across Mass and Foundation (Q1 only, now in line with basis), Personal Finance, and OMAR, related to specific books being actioned. Prabashini Moodley, CEO of Life and Savings, noted the 5% to 7% VNB target for Mass and Foundation remains unchanged, and Personal Finance margins have stayed flat despite a nearly 40% decline in guaranteed annuity volumes.

Q: Warwick of RMB Morgan Stanley asked about the corporate RFO trajectory after an 8% decline, whether variances would moderate further, and for color on ZAR 1.7 billion in two-pot retirement withdrawals. A: Prabashini Moodley explained corporate mortality profits are cyclical and declining from a high base, with lumpy deal mix making it difficult to call the bottom. On two-pot withdrawals, she noted the increase from just under ZAR 1 billion to ZAR 1.7 billion reflects consumer financial pressure, but expects muted withdrawals for the rest of the year as withdrawals typically spike at the start of the new tax year.

Q: Thapelo of Investec and Daniel asked where the ZAR 936 million in cost savings were attained, how much came in the current period, and where the remaining ZAR 1.5 billion will come from. A: Ranen Thakurdin said about 50% of savings came from covered business and 50% from non-covered business, with a similar split expected for the remaining ZAR 1.5 billion. Roughly ZAR 330 million was achieved in H1 2026. He noted a timing delay in savings realization and said margins, particularly in OM Insure, OM Investments, and non-covered OMAR, will benefit as savings drop into profit.

Q: Thapelo and Jarred asked about the year-on-year decline in the OMLACSA dividend paid to the group and why only a ZAR 1 billion buyback was initiated given the H2 OMLACSA dividend and DC buildup. A: Casper Troskie said the ZAR 1 billion and ZAR 4 billion OMLACSA dividends should be viewed together as a strong base. He explained that lower year-end dividends resulted from higher prescribed equity stresses and lower bond yields pressuring solvency, which has since recovered. The Board will deliberate on returns versus growth once capital moves up to OML in H2, following the horizon-based capital allocation framework that prefers shareholder returns when RoNAV is below target and shares trade at a discount to GEV.

Q: Jurie Strydom was asked for a voiceover update on recent Board and senior management appointments. A: CEO Jurie Strydom highlighted the CFO succession with Ranen Thakurdin appointed as CFO designate from 1 January, and noted Roger Jardine took over as Chair upon Trevor Manuel's retirement. He acknowledged a Board succession process continuing over the next couple of years but said it is well in hand.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .