Old Mutual (2KS) Q2 2026 Earnings Report
DE:2KS Q2 2026 EPS Results
- Actual EPS
- EUR 0.05
- Consensus EPS
- ―
- Beat/Miss
- ―
- One Year Ago EPS
- EUR 0.04
DE:2KS Q2 2026 Revenue Results
- Actual Revenue
- EUR 4.82B
- Expected Revenue
- ―
- Beat/Miss
- ―
- YoY Revenue Growth
- -21.66%
Earnings Announcement Details
- Quarter
- Q2 2026
- Date
- 09/08/2026
- Time
- Before Open
- Conference Call
- Tuesday, September 8, 2026
Old Mutual's next earnings date is estimated for March 23, 2027, based on past reporting schedules.
Q2 2026 Earnings Call Audio
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
The call was predominantly positive. Management highlighted improved returns, strong sales and investment flows, progress on cost savings, resilient insurance underwriting, expanding OM Bank operations, stronger African results, capital strength, and continued shareholder distributions. The principal challenges were that RONAV and ROGEV remain below target ranges, adjusted headline earnings declined, some business lines experienced RFO declines, VNB margins remain below target, and the group continues to face catastrophe losses, consumer pressure, Malawi macroeconomic constraints, and Zimbabwe capital-access restrictions.
Management guided to sustainable RFO per share growth of 10%-14% off the 2025 base, with 11% in the first half, medium-term ROGEV of 14%-16%, normalized RONAV of 15%-17%, VNB margin of 2%-3%, net underwriting margin of 5%-8%, and dividend growth of 6%-9%; OM Bank is targeting 2.5 million, 2.8 million customers, an activity rate of 35%-38%, retail deposits of ZAR 8 billion-ZAR 10 billion and lending of ZAR 23 billion-ZAR 26 billion by the end of 2028, with OM banking cluster RFO targeting ZAR 0 breakeven to ZAR 200 million annually in 2028; cost savings are expected to reach at least ZAR 1 billion by the end of 2026 and ZAR 2.5 billion by the end of next year, cash remitted is expected to be between 70% and 80% of adjusted headline earnings before optimizations and special dividends, at least 50% of the declared ZAR 4 billion OMLACSA interim dividend is expected to add to discretionary capital in the second half of the year, and the ZAR 1 billion share buyback has been earmarked, while updated solvency ranges are 150%-180% for OML and 150%-180% for OMLACSA.
- Improved Returns and Value CreationROGEV increased to 12.7% from 4.1% in December, while normalized RONAV increased to 12.6%. Both return metrics exceeded the group's stated cost of capital of about 12.5%, although they remain below their medium-term target ranges.
- Dividend Growth and Share BuybackThe dividend increased by 8.1%, within the targeted 6%-9% growth range. The group announced an additional ZAR 1 billion share buyback, supported by Group Equity Value of ZAR 20.66 per share and management's stated confidence in the value of the business.
- Strong Sales and Sustainable RFO GrowthLife APE sales and gross flows both increased by 21%. Management said the growth moderates to about 12% on an underlying basis after allowing for large Corporate transactions. RFO per share increased by 11%, within the targeted sustainable growth range of 10%-14%.
- Cost-Savings Program on TrackThe group achieved ZAR 338 million of savings in the first half, taking cumulative savings to ZAR 936 million and keeping it on track to achieve at least ZAR 1 billion by the end of 2026. The group is targeting ZAR 2.5 billion of savings by the end of next year, with about 50% of savings to date coming from covered business and 50% from non-covered business.
- Persistency and Experience ImprovementsManagement reported decisive actions on new business, collections, distribution incentives, and loss-making areas. After negative persistency variances in the first quarter, results were in line with basis in the second quarter, while overall experience variance remained healthy.
- OM Bank Customer and Deposit ExpansionOM Bank had about 750,000 customers at the end of June and was expected to cross 1 million customers within the next couple of weeks. Deposits increased from ZAR 1.4 billion in June to ZAR 1.6 billion at the end of August. The bank is targeting 2.5 million-2.8 million customers and ZAR 8 billion-ZAR 10 billion in retail deposits by the end of 2028.
- OM Bank Ecosystem and Lending Expansion PlanManagement described an integrated banking ecosystem supported by 7,200 South African retail intermediaries, 357 integrated branches, 40,000 work sites, 3.4 million reward members, and ZAR 140 billion of group Life and Savings inflows and outflows. The lending business is targeted to grow from ZAR 16.4 billion to ZAR 23 billion-ZAR 26 billion, supported by personal loans, secured lending, investment bank loans, home loans, and credit cards.
- Life and Savings PerformanceOld Mutual Life and Savings reported Life APE sales growth of 21% and VNB growth of 47%. Wealth management sales increased by 21%, with VNB margin improving to 1.1%. Mass and Foundation life and funeral sales increased by 9%, while Corporate was described as a standout performer with strong margins and volumes.
- Strong Old Mutual Investments ResultsOld Mutual Investments gross flows increased by 48%, largely within OMIG and Futuregrowth. Alternatives capital raises increased by 97% to ZAR 6.7 billion, and the cluster's RFO increased by 40%, supported largely by higher non-annuity revenue, preferred returns, and fair value gains. Annuity revenue increased by 6% to ZAR 1.5 billion.
- Resilient Old Mutual Insure UnderwritingOld Mutual Insure delivered a 7.6% underwriting margin despite ZAR 376 million of catastrophe losses net of reinsurance from severe flooding. Management said the underlying attritional performance improved materially and that the underwriting margin remained resilient at the upper end of the target range.
- Growth in Africa RegionsOld Mutual Africa Regions sales increased by 35% and RFO increased by 65%, driven mainly by Malawi and East and West Africa. East and West Africa RFO increased from ZAR 10 million to ZAR 125 million, driven by improved performance in all lines of business except banking and lending.
- Lower Shareholder Operational CostsShareholder operational costs decreased by 57% compared with the prior year, which included a ZAR 414 million restructuring provision. Excluding that once-off provision, costs decreased by ZAR 225 million, or 31%, driven by the group's commitment to a lean corporate center.
- Higher Embedded and New Business ValueTotal embedded value operating earnings were ZAR 4.8 billion, producing an annualized return on embedded value of 15.3%. Group value of new business increased by 32% to ZAR 569 million, while VNB margin increased to 1.4%, supported by strong sales volumes and a more profitable new-business mix.
- Capital Strength and Planned DistributionsOML shareholder solvency improved by 10% from December to 172%, within the stated target range, while gearing ended at 16.9% and remained within range. The group expects cash remitted to be between 70% and 80% of adjusted headline earnings before optimizations and special dividends.
- Internal CFO SuccessionRanen Thakurdin was appointed CFO Designate, effective January 1, with Casper Troskie expected to retire in April next year. Management emphasized that the internal succession is intended to maintain continuity in strategy and execution.
DE:2KS Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 23, 2027 | 2026 (Q4) | ―- | 0.05 | ― | ― |
| Sep 08, 2026 | 2026 (Q2) | ―0.05 | 0.04 | 11.54% (+0.01) | |
| Mar 17, 2026 | 2025 (Q4) | ―0.05 | 0.03 | 87.10% (+0.02) | |
| Sep 10, 2025 | 2025 (Q2) | ―0.04 | 0.06 | -18.75% (-0.01) | |
| Mar 18, 2025 | 2024 (Q4) | ―0.03 | 0.03 | -6.06% (-0.00) | |
| Sep 26, 2024 | 2024 (Q2) | ―0.06 | 0.05 | 20.75% (+0.01) | |
| Mar 27, 2024 | 2023 (Q4) | ―0.03 | 0.02 | 32.00% (+0.01) | |
| Sep 27, 2023 | 2023 (Q2) | ―0.05 | 0.07 | -31.17% (-0.02) | |
| Mar 14, 2023 | 2022 (Q4) | ―0.02 | 0.04 | -51.92% (-0.02) | |
| Aug 30, 2022 | 2022 (Q2) | ―0.07 | 0.04 | 63.83% (+0.03) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
