Old Mutual announces R3bn share buyback and plans for huge investment in OM Bank

The Money Show's Stephen Grootes is joined by Jurie Strydom, new CEO of the Old Mutual group.

Old Mutual has reported strong results for the six months ended 30 June 2025.

The group also announced a R3 billion share buyback, enabled by strong cash generation.

Adjusted headline earnings jumped 29% to R4.2 billion, driven by strong underwriting performance in Old Mutual Insure and strong equity market performance.

This was particularly in Malawi and in South Africa, where Africa's largest insurer by assets counts the majority of its customers at 7.5 million.

Group equity value however decreased to R18.40 per share due to 'a combination of business impacts and methodology changes'.

Old Mutual declared an interim dividend of 37 cents per share, an increase of 9% over the previous period.

New CEO Jurie Strydom said a key focus was driving strategic priorities underpinned by a 'shift to execution, disciplined capital allocation and a focus on
value creation'.

Speaking to Stephen Grootes about the share buyback, he says the group sees distributions to shareholders as something that is compelling.

"It is also, I think, a vote of confidence in our business and our balance sheet."

Jurie Strydom, CEO - Old Mutual

Grootes also asks about Old Mutual's plan to invest over R1.6 billion in its new bank over next financial year.

While Strydom acknowledges that banking is a competitive space in South Africa, he doesn't seem to concerned about other new entrants who've been in the game for longer.

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Old Mutual believe they have a proposition that will have traction, he says.

"Our approach to banking is really building off what we already have in our business. We already have a lending business that operates to 346 branches countrywide... so our approach is really leveraging that and rolling out through our branches to our customers, adding this transactional capability to the range of products that we already have."

Jurie Strydom, CEO - Old Mutual