Old Mutual Signals Profit Shift as CFO Gikonyo Projects Stronger Outlook

By Ayub John | Afrimedia News

Nairobi, Kenya — Old Mutual Holdings Plc is charting a new path toward profitability and long-term stability, following a strategic reset that is now beginning to deliver results.

Speaking during a media and investor briefing, Acting Group Chief Financial Officer Isaiah Gikonyo revealed that while the Group faced revenue pressure in 2025, the second half of the year showed clear signs of recovery.

> “The actions we’ve taken are already bearing fruit. The first half was challenging, but the second half reflects real improvement,” he said.



Deliberate Revenue Dip

The Group posted insurance revenue of about KSh 32 billion, a year-on-year decline that management insists was intentional.

The drop follows a bold strategy shift:

Cutting back on low-margin business

Rebalancing the medical and general insurance portfolio

Exiting Tanzania operations

Scaling down South Sudan into run-off


Gikonyo emphasized that the focus is no longer on chasing volume, but on building a profitable and sustainable insurance business.

Cost Discipline Pays Off

Despite inflationary pressure hovering around 10%, Old Mutual managed to tighten its cost base:

Underlying expenses dropped by 3%

Overall expenses declined 2% year-on-year


This signals improved efficiency at a time when many firms are struggling with rising costs.

> “This is a clear demonstration of disciplined execution and operational efficiency,” Gikonyo noted.



Claims Improve, Profitability Strengthens

A major boost came from improved claims experience:

Stable claims in general insurance

Strong improvement in medical insurance

Loss ratio reduced from 82% to about 75–76%


However, the life business recorded higher claims due to increased mortality—an outcome the Group says reflects its commitment to policyholders.

Regional Performance Mixed but Resilient

Across markets, performance painted a mixed picture:

Kenya remained the growth engine

Rwanda posted strong underlying growth, though hit by currency depreciation

Uganda held firm, especially in oil and gas insurance

South Sudan still contributed despite winding down operations


Outlook: Profit Over Volume

Looking ahead, Old Mutual Holdings Plc is doubling down on profitability, efficiency, and disciplined underwriting.

The Group says the tough decisions taken in 2025 are already laying the groundwork for stronger financial performance.

> “We are building a resilient business focused on long-term value—not short-term gains,” Gikonyo said.

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