Old Mutual half-year profit after tax jumps by Sh877mn

Nairobi, Kenya - Old Mutual's net profit soared by Sh877 million to Sh882 million in the half year ending June 30, 2026, driven by a resurgence in its insurance division. In the same period last year, the company reported a profit after tax of just Sh5 million. The insurance arm generated Sh287 million, marking a turnaround from a Sh303 million loss in the first half of 2025, thanks to better claims management, strict underwriting practices, and cost reduction across the group.

Arthur Oginga, CEO of Old Mutual Group, stated that the company's achievements illustrate their commitment to executing their strategy and realizing their long-term goals. They plan to further boost performance through new growth opportunities and a shift towards a value-based approach rather than a volume-driven one.

The group's investment returns climbed to Sh1.9 billion from Sh1.7 billion during the same period, bolstered by strategic investments in higher-yielding assets, better alignment of assets and liabilities, and effective liquidity management. Assets under management (AUM) expanded by 32 percent, contributing to a 34 percent rise in commission income, fueled by growth in managed funds and higher-yielding portfolios.

Isaiah Gakonyo, Group Chief Financial Officer, emphasized that the company's first half performance showcases disciplined execution, improved insurance profitability, expanded net investment results, and continuous growth in asset management. These accomplishments affirm the group's strategic efforts in enhancing earnings quality and resilience, with a focus on asset-liability management, cost optimization, balance sheet restructuring, and targeted technology investments aimed at boosting profitability.