Old Mutual Limited anticipates a substantial decrease in its primary profit metric, adjusted headline earnings, for the six months ending June 30, 2026. The company expects adjusted headline earnings to fall by 25% to 35%, ranging from $2.73 billion to $3.15 billion, down from $4.20 billion in the comparable period. This decline is largely attributed to lower shareholder investment returns, as its portfolio performance mirrored equity and bond indices negatively affected by "sharp risk-off conditions" stemming from ongoing geopolitical conflicts in the Middle East.
Despite the pressure on adjusted headline earnings, Old Mutual's operational performance showed resilience. Life annual premium equivalent (APE) sales rose by 21% to $7.86 billion, and the value of new business increased by 32% to $569 million. Gross flows also saw a 21% increase, reaching $128.91 billion. Results from operations are projected to grow by 2% to 12%, ranging from $5.04 billion to $5.53 billion, indicating strong underlying operational strength.
Headline earnings, which include the strong performance from Zimbabwe operations not reflected in adjusted headline earnings, are expected to decline by a more modest 1% to 11%, placing them between $3.70 billion and $4.12 billion. Net client cash flow improved significantly, though still negative, at $3.13 billion compared to a negative $10.13 billion in the previous period. The full interim results are scheduled for release on September 8, 2026.
