Old Mutual sees profit jump on ‘exceptional’ new-business growth

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Profit after tax likely increased to as much as R7.59bn in the 12 months ended December 31.

Old Mutual said “exceptional growth” in new business drove profit at Africa’s biggest insurer by assets as much as 45% higher last year. Profit after tax likely increased to as much as R7.59 billion in the 12 months ended December 31 from R5.23 billion a year earlier, the company said in a voluntary trading statement Tuesday. Higher interest rates and a recovery in equity markets buoyed investment returns, it said.

The company excludes profit from its business in Zimbabwe because hyperinflation in that country triggers earnings volatility. The insurer will publish its results on March 27. Read the Sens here. © 2024 Bloomberg

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