Full Year 2023 Old Mutual Ltd Earnings Call Transcript
Key Points
- Old Mutual Ltd (NAM:OMM) reported its strongest set of results since listing in Johannesburg in 2018, demonstrating significant strategic progress and market share gains.
- Life APE sales grew by 17% to ZAR14.6 billion, with like-for-like sales up 25% excluding China, indicating strong momentum in key segments.
- Gross written premiums increased by 14% to ZAR25.5 billion, driven by new sales and good client retention, showcasing robust top-line growth.
- The Board approved a final dividend of ZAR0.49 per share, bringing the total dividend for 2023 to ZAR0.81, a 7% increase from 2022.
- Old Mutual Ltd (NAM:OMM) successfully concluded a ZAR1.5 billion share buyback during the second half of 2023, reflecting strong capital management and shareholder returns.
- Persistency remains a key concern, with higher borrowing costs and pressure on disposable income leading to a credit loss ratio of 7.2% and a decline in net lending margin by 220 basis points.
- Old Mutual Insure's RFO decreased by 23% to ZAR524 million, mainly due to a significant increase in reinsurance costs and higher weather-related claims.
- The operating environment in South Africa and other African regions remains challenging, with severe growth constraints, heightened market volatility, and tight financing conditions.
- The company experienced significant headwinds in China, including regulatory challenges and market volatility, impacting overall performance in the region.
- Operational efficiencies are still a work in progress, with ongoing efforts to decommission legacy platforms and integrate new systems to unlock further efficiencies.
Good day and welcome to Old Mutual 2003 Annual Results. We are coming to you live from our offices in Johannesburg, South Africa. Before I get carried away, I get ahead of myself, let me introduce myself. My name is Langa Manqele, I am the Head of Investor Relations at Old Mutual.
We have already uploaded our reporting sheets on the website, so for those of you who have not seen it, you may already download it from there. When we get to the Q&A stage, I will give you further instructions on the conference call. The operator will be available to assist you with questions. And for those who are on the webcast, I will be selecting the questions and reading them to you.
Moving on to the agenda for today, we have our standard items, which we are really excited to present to you. First off is our Group CEO, Iain Williamson, who will take the stage and give us a strategic review. He will shortly be followed by Casper Troskie, our Group CFO, who will give you the financial review. After that, Iain, I'll ask Iain to come back to the stage to cover
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