Old Mutual Holdings Plc has posted a significant improvement in its financial performance, recording a net profit of Ksh.882 million for the six months ended June 30, 2026. The insurer’s earnings rose sharply from Ksh.5 million reported during the same period in 2025, marking a major turnaround despite continued pressure on profitability within the insurance sector.
Improved Claims Management Boosts Performance
Old Mutual attributed the improved results to tighter claims management, disciplined underwriting and enhanced cost controls implemented across the Group. The company recorded a service result of Ksh.287 million during the period, reversing the Ksh.303 million loss posted in the first half of 2025.
Old Mutual Group Chief Executive Officer Arthur Oginga said the latest results demonstrate the progress made in improving the performance of the Group’s underlying businesses. Oginga said the company remains focused on becoming the preferred partner for customers seeking to build, grow and protect their financial prosperity. He noted that the Group’s strategy continues to be driven by key areas including lifestyle and wellness, digital transformation and technology, sustainability, strategic partnerships and customer experience.
According to Oginga, the latest performance reflects progress in implementing the Group’s strategy, with the company now prioritising sustainable and value-driven growth rather than simply pursuing higher business volumes.
Investment Income Continues to Grow
Old Mutual also recorded growth in its investment performance during the six-month period. Net investment results increased to Ksh.1.9 billion from Ksh.1.7 billion recorded in the first half of 2025. The improvement was supported by selective investment in higher-yielding assets, stronger asset-liability matching and effective management of the Group’s liquidity position.
The company also reported a 32 per cent increase in Assets Under Management (AUM), reflecting growth in the funds managed by the Group. The increase in AUM contributed to a 34 per cent rise in commission income, with the company attributing the growth to expansion in managed funds and greater focus on portfolios offering stronger returns.
Old Mutual Focuses on Efficiency and Transformation
Group Chief Financial Officer Isaiah Gakonyo said the company intends to build on the improved results by continuing to implement transformation programmes across the business. Gakonyo said the Group would maintain its focus on improving operational efficiency, strengthening financial performance and ensuring sustainable earnings growth.
He highlighted asset-liability management, cost optimisation, balance sheet restructuring and targeted investment in technology as some of the key areas that will guide the Group’s next phase of growth. According to Gakonyo, the latest results demonstrate that the strategic measures implemented by Old Mutual are improving the quality and resilience of its earnings.
Chairman Eyes Stronger Second Half
Old Mutual Holdings Chairman Dr Habil Olaka said the Group remains focused on maintaining its recovery despite the challenging economic environment. Olaka said the company is working to strengthen its ability to create sustainable long-term value for shareholders while improving the performance of its various businesses.
The Group will now turn its attention to the second half of 2026, with a focus on sustaining the recovery and accelerating growth in its investment and asset management operations. Old Mutual expects continued implementation of its strategic initiatives to support profitability, improve efficiency and strengthen the Group’s overall financial position.
