Old Mutual Group Reports KES 1.1 Billion Profit Surge in 2024 Amid Strategic Growth and Cost Efficiency
Old Mutual Group has posted a significant KES 1.1 billion increase in profit after tax from continuing operations for the year 2024, marking a substantial rise from KES 0.2 billion in 2023 to KES 1.3 billion. This impressive growth is attributed to strong performances in asset management, underwriting gains from its insurance businesses, and solid returns on invested assets.
A key highlight of the Group’s financial turnaround was the sharp reduction in finance costs, which dropped by 50% from KES 2.4 billion in 2023 to KES 1.2 billion in 2024. This was driven by the strategic conversion of shareholder loans into equity, significantly alleviating the Group’s debt burden and reinforcing a more sustainable capital structure.
Despite the financing adjustments, Old Mutual maintained a stable operating profit before finance costs at KES 3.8 billion, reflecting the resilience of its diversified business portfolio. “Our ongoing strategy continues to focus on becoming the first choice for our customers in sustaining, growing, and protecting their prosperity,” said Group CEO Arthur Oginga. “We remain committed to operational efficiency, continuous product innovation, and a strong focus on customer needs.”
In addition to its financial performance, Old Mutual has made significant strides in financial inclusion and education. Through partnerships with Safaricom and the Kenya Institute of Curriculum Development (KICD), the Group has promoted financial literacy, reaching over 10,000 students in 13 counties across Kenya.
The company’s commitment to sustainability was further recognized when UAP Old Mutual Insurance Uganda Limited won the prestigious FIRe Award for excellence in sustainable reporting, reinforcing its alignment with global environmental, social, and governance (ESG) standards.
Despite its achievements, the Group faced notable financial headwinds in 2024. The sale of UAP Insurance Tanzania resulted in a one-time loss of KES 363 million, reflecting its strategic decision to streamline operations. Additionally, a foreign exchange loss of KES 631 million was recorded due to the strengthening of the Kenyan shilling.
External economic and geopolitical risks also posed challenges, with factors such as the suspension of USAID funding, regional instability in Eastern Congo and Sudan, and heightened political activity in Kenya and Uganda affecting the economic outlook for 2025.
Despite these uncertainties, Old Mutual remains optimistic about its growth trajectory. “We are committed to enhancing underwriting performance, expanding our customer base in asset management, and driving sustainable growth. With a clear strategic direction and a strong focus on operational excellence, we are confident in sustaining our success and creating value for customers and stakeholders,” Oginga affirmed.
As Old Mutual navigates an evolving financial landscape, its strong capital position and diversified portfolio continue to provide resilience, ensuring long-term profitability and stability in an ever-changing economic environment.
By Sharon Atieno
