Old Mutual’s Bold Strategy Rewards Investors and Partners


By Kasuku David | Taifa Leo

The year 2024-2025 has been a transformative year for Old Mutual Holdings Plc, with investors and partners already enjoying the rewards of a strategic shift focused on profitability, operational efficiency, and disciplined growth.

Acting Group Chief Financial Officer Isaiah Gikonyo 

“We made deliberate choices to prioritize profitable segments and optimize our portfolio. These actions are delivering tangible value for our investors and partners. This is sustainable growth in action.”

Revenue and Profit: Strategic Choices Deliver

The Group posted insurance revenue of KSh 32 billion in 2025, alongside a profit before tax of KSh 4.8 billion, reflecting the benefits of deliberate portfolio rebalancing and disciplined underwriting. In recognition of the strong performance, the Board declared a dividend of KSh 1.20 per share.

“Revenue alone is not our measure of success. Profitability, efficiency, and long-term sustainability matter most to our investors and partners,” Gikonyo emphasized.

The dip in revenue compared to 2024 was intentional, reflecting a strategy to prioritize high-margin segments over sheer volume, exit non-core markets such as Tanzania, and transition South Sudan operations into run-off.

Group CEO added:

“Our strategy is delivering predictable returns and building a business that can withstand market shocks. The improvements we see today are proof that our approach works.”

Cost Discipline and Operational Efficiency

Despite inflationary pressures of around 10%, Old Mutual managed to reduce underlying expenses by 3% and overall costs by 2% year-on-year.

“Operational efficiency is not just about cutting costs—it’s about creating more value for our partners and shareholders,” Gikonyo said.

Claims Management Inspires Confidence

Improved claims performance has strengthened stakeholder confidence:

  • Loss ratio improved from 82% to 75–76%
  • Medical insurance claims improved significantly
  • General insurance claims remained stable

“Better risk management ensures that our partners can trust us to deliver when it matters most,” said the Chief Risk Officer.

Regional Footprint Strengthens Returns

The Group’s operations across East Africa continue to support growth and profitability:

  • Kenya: Core growth engine
  • Rwanda: Strong underlying growth despite currency pressures
  • Uganda: Solid performance, especially in oil and gas insurance
  • South Sudan: Contribution maintained despite mid-year run-off

“Our regional strategy is benefiting partners and investors across all our markets,” Gikonyo noted.

Strategic Decisions Paying Off

Despite the decline in top-line revenue, the 2025 results demonstrate the value of strategic discipline:

  • Profit before tax: KSh 4.8 billion
  • Dividend: KSh 1.20 per share
  • Reduced expenses and improved operational efficiency
  • Lower loss ratios and stronger claims performance

“These results prove that prioritizing profitability and sustainability benefits everyone—investors, partners, and clients alike,” Gikonyo said.

Building Sustainable Growth: 2026 and Beyond

Looking ahead, Old Mutual is focused on disciplined growth and long-term value creation. Key priorities for 2026 include:

  • Expanding profitable segments in general, medical, and life insurance
  • Strengthening regional market presence through targeted, high-margin opportunities
  • Continuing cost optimization to boost returns
  • Maintaining robust risk management to safeguard investor confidence

“The foundation we’ve built ensures that investors and partners will continue to enjoy sustainable returns. Our vision is clear: long-term value, resilience, and profitability,” Gikonyo concluded.

Investor Takeaways

  • Profit: KSh 4.8 billion before tax
  • Dividend: KSh 1.20 per share
  • Cost control: Underlying expenses down 3%
  • Loss ratio: Improved to 75–76%
  • Strategic focus: Profitability over volume, disciplined underwriting, regional growth

Old Mutual Holdings Plc demonstrates that strategic discipline translates into tangible returns. With strong profits, dividends, and operational efficiency, the Group is well-positioned for a resilient and profitable 2026, delivering clear value to investors and partners across East Africa

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