Old Mutual Holdings has reported profits after tax of KES882 million for the six months ended 30 June 2026, up from KES5 million in the same period last year, marking significant improvement at a time when the underwriting margins across the insurance industry remain under pressure.

The insurance business recorded an insurance service result of KES 287 million, reversing a KES 303 million loss reported in the first half of 2025.

This turnaround followed a focused claims management, underwriting discipline, and cost control, the Group explained in a statement on Friday.

Group CEO Arthur Oginga said the results reflect progress made in strengthening the underlying performance of the Group’s businesses.

“Our ambition continues to be our customers’ first choice for sustaining, growing, and protecting their prosperity. This ambition is guided by our strategic pillars of lifestyle and wellness, technology and digital transformation, sustainability, strategic partnerships, and customer experience."

"Our performance demonstrates the progress we are making in executing our strategy and delivering on our long-term ambitions. We will continue to enhance this performance through new growth engines and a focus on a value led rather than a volume led business,” said Mr Oginga.

Net investment results increased to KES 1.9 billion from KES 1.7 billion in the corresponding period, supported by selective allocation to higher yielding investments, asset-liability matching initiatives, and effective liquidity management.

The firm's Assets Under Management (AUM) increased by 32%, contributing to a 34% rise in commission income, underpinned by growth in managed funds and a deliberate focus on higher yielding portfolios.

Group Chief Financial Officer Isaiah Gakonyo said the Group remains committed to sustaining its improved performance by driving transformation initiatives, strengthening operational efficiency, and enhancing financial effectiveness across the business.

“These outcomes demonstrate the effectiveness of our strategic interventions in strengthening earnings quality and resilience. We remain focused on asset-liability management, cost optimisation, balance sheet restructuring, and targeted technology investments to profitability,” said Mr. Gakonyo

Looking ahead to the second half of 2026, Old Mutual Holdings said it will focus on sustaining the recovery in underwriting performance and accelerating growth across its investment and assets management businesses.

Old Mutual Holdings Plc Chairman Dr Habil Olaka noted that the Group remains focused on sustaining the performance while navigating a challenging economic environment and strengthening its capacity to deliver long-term value to shareholders.

“Our priority is to ensure that this improvement translates into sustained profitability over the long term. We are strengthening the Group’s businesses, balance sheet and operating model to build greater resilience and create sustainable value for shareholders.”

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