Listed financial services group Old Mutual Holdings PLC has posted a sharp earnings decline for the half year ended June 30, 2025, weighed down by weaker profitability despite a turnaround in overall comprehensive income.
- •Profit after Tax (PAT) plunged 98% to KShs 5 million, from KShs 249 million a year earlier, as higher costs and softer insurance performance hit the bottom line.
- •Insurance revenue dipped 2.4% to KShs 16.40 billion, while the insurance service result worsened to a loss of KShs 303 million from KShs 246 million previously.
- •Despite this, investment income rose 12.8% to KShs 4.20 billion, providing some cushioning against weaker operating earnings.
Operating profit before finance costs fell sharply by 41.2% to KShs 960 million, down from KShs 1.63 billion, reflecting margin pressures.
The decline in profits was largely attributable to the combined impact of lower interest rates, which compressed investment yields, and weak insurance results. In particular, the medical business produced thin margins, creating an underweight in general insurance. As a result, the company tapered down its medical portfolio in order to preserve profitability.
The net earnings slump translated into a loss per share of KShs -1.21, compared to earnings per share of KShs 1.42 a year earlier. Retained earnings swung into a deficit of KShs -218 million, reversing the KShs 38 million surplus reported last year.
Despite the profit hit, Old Mutual delivered a turnaround in total comprehensive income, booking KShs 99 million compared to a loss of KShs 873 million a year ago. This improvement suggests stronger balance sheet gains outside the income statement.
On the balance sheet, total assets expanded 5.9% to KShs 79.21 billion, supported by stronger investment holdings. Liabilities, however, rose 7.8% to KShs 59.39 billion, outpacing asset growth and weighing slightly on equity. Even so, shareholders’ equity inched up 0.5% to KShs 19.82 billion, reflecting modest capital stability. Cash and cash equivalents remained flat at KShs 14.35 billion.
Key Highlights- H1 2025 vs H1 2024
| Metric | June 30, 2025 | June 30, 2024 | YoY Change |
| Insurance Revenue | KShs 16.40 Billion | KShs 16.80 Billion | -2.40% |
| Insurance Service Result | KShs -303 Million | KShs -246 Million | Worsened |
| Investment Income | KShs 4.20 Billion | KShs 3.72 Billion | 12.80% |
| Operating Profit Before Finance | KShs 960 Million | KShs 1.63 Billion | -41.20% |
| Profit Before Tax (PBT) | KShs 380 Million | KShs 1.10 Billion | -65.60% |
| Profit After Tax (PAT) | KShs 5 Million | KShs 249 Million | -98.00% |
| Total Comprehensive Income | KShs 99 Million | KShs -873 Million | Turnaround |
| Total Assets | KShs 79.21 Billion | KShs 74.80 Billion | 5.90% |
| Total Liabilities | KShs 59.39 Billion | KShs 55.08 Billion | 7.80% |
| Total Equity | KShs 19.82 Billion | KShs 19.72 Billion | 0.50% |
| Cash and Cash Equivalents | KShs 14.35 Billion | KShs 14.34 Billion | 0.10% |
| Retained Earnings | KShs -218 Million | KShs 38 Million | Worsened |
| Basic EPS | KShs -1.21 | KShs 1.42 | Worsened |
Old Mutual’s H1 2025 results highlight the challenges of navigating a tighter insurance operating environment, with weakening underwriting results, and thin medical margins weighing on profitability.
The uplift in investment income and balance sheet stability provided some resilience, but declining core profits and negative retained earnings point to a difficult earnings trajectory.
