Old Mutual grows its Zim funds 50%

FUNDS under management at Old Mutual Zimbabwe have grown by 50 percent to $2.7 billion (R31.6bn), while after-tax profits for the year to the end of December grew 139 percent to $219.3 million. The company said the surge was attributable to increased exposure to Harare-listed entities and other non-banking operations.

The banking operation recorded a net surplus of 7 percent of $42.1m, while gross premiums grew 5 percent, bringing total revenue for the period to $991m.

“Funds under management (Fum) for the asset management business were up 50 percent, from $1.8bn to $2.7bn, largely due to a combination of growth in net client cash flows generated and gains on ZSElisted equity investments,” said board chairperson Johannes Gawaxab.

“As a result of the growth in Fum, fee income and profit before tax for the asset management business increased by 28 percent and 64 percent to $20.6m and $10.7m respectively.”

After-tax profits soared 139 percent to $219.3m.

The company said there was strong operating profit across the business, as well as non-banking investment returns, which grew 448 percent – from $116.9m to $640.9m.

The insurer also recorded higher profits from its life business, as well as increased longterm investment returns on the back of a higher asset base.

Gross premiums underwritten shot up 5 percent at $194.8m for the life and shortterm insurance businesses, because of “a combination of improved client retention and new business” underwritten for the period. However, the short-term insurance business achieved an underwriting margin that dropped from 18 percent to 13 percent.