Rand hits Old Mutual
Old Mutual, the country’s biggest insurer, said its performance in the second half of the year would probably be affected by the rand’s decline.
“The second half in sterling terms will be tough,” said Julian Roberts, CEO of the London-based insurer, on Thursday.
Old Mutual, which moved its headquarters to London in 1999 and also has US operations, still makes the bulk of its earnings in South Africa.
The rand has declined 4.2% against the pound since the end of June and reached a record low of R20 against the UK currency on Wednesday. It closed at R19.66 to the pound on Friday.
Old Mutual’s first-half profit rose 25%, to $655 million (R8.2 billion), the company said this week.
Boosted by growth in its South African operations, including Nedbank Group, and on the rest of the continent, basic earnings per share climbed 20% to 5.4 pence.