Old Mutual Holdings Half-Year Profit Jumps 17,540%

Old Mutual Holdings has posted its strongest first-half profit on record, with net profit jumping 17,540% to KSh 882Mn in H1 2026 from KSh 5Mn a year earlier, after its insurance business returned to profitability.

• The insurance service result swung to a KSh 287Mn profit from a KSh 303Mn loss as the group cut claims costs by exiting loss-making medical accounts and continued the run-off of its South Sudan business.
• Profit before tax rose more than fourfold to KSh 1.76Bn from KSh 380Mn, while operating profit before financing costs more than doubled to KSh 2.26Bn from KSh 960Mn.
• Old Mutual is separately restructuring its balance sheet to clear accumulated losses and restore its capacity to pay dividends.

The earnings recovery came despite insurance revenue remaining broadly flat at KSh 16.32Bn, compared with KSh 16.40Bn in H1 2025. Insurance service expenses declined to KSh 14.23Bn from KSh 14.72Bn, while net reinsurance expenses fell to KSh 1.80Bn from KSh 1.98Bn.

Old Mutual said the turnaround reflected deliberate measures to improve the quality of its insurance portfolio, including withdrawing from loss-making medical accounts across the region. The group also continued running off its South Sudan operations, which it had stopped writing new business in, reducing claims costs and strengthening insurance profitability.

Asset management provided a second earnings driver. Commission, fees and other income increased 36% to KSh 1.64Bn from KSh 1.20Bn, which management attributed to a 32% increase in funds under management and continued business growth. The group said its asset-management business maintained a market-leading position in Uganda.

Investment income, however, declined to KSh 3.10Bn from KSh 4.20Bn. Management separately said investment returns increased 16%, supported by portfolio diversification, liquidity management and allocation to higher-yielding assets despite lower market yields.

Finance costs declined 13% to KSh 505Mn, extending a sharp reduction from KSh 1.84Bn in H1 2023. Borrowed funds stood at KSh 8.65Bn at June, compared with KSh 15.75Bn three years earlier.

The balance sheet also strengthened, with total assets rising to KSh 83.06Bn from KSh 79.40Bn at December 2025 and total equity reaching KSh 21.25Bn.