Old Mutual Limited is a premium African financial services group. It has long been a distinguished identity in the South African finance sector, and a favorite among investors, with an average trading volume of 12,000,000.
The insurer reported an impressive ZAR 34.28 million net profit last year and expects further growth in the next three years.
Below, we discuss everything you need to know about the company and Old Mutual shares.
Table of Contents
The Old Mutual Share Price Guide in 2024
| Market capitalization | R 60.940 M |
| Price range | R 12.41 – 12.86 |
| EPS-TTM | 165.41 |
| Dividend yield | 6.37% |
| Authorized shares | 10 billion |
| Issued shares | 4.8 billion |
| Price-to-earnings (P/E) ratio | 7.69 |
Old Mutual Holdings Plc’s primary listing is on the Johannesburg Stock Exchange, JSE:OMU. It also has secondary listings in Namibia, Malawi, Zimbabwe, and London.
The Old Mutual share price range is currently (R 12.41 – 12.86), with a notable dividend yield of 6.37%.
Shareholders received 9% total shareholder return in the previous year – a significant improvement from the loss of 3% over the past five years.
Old Mutuals Earnings Report & Forecast
The Old Mutual Group announced a profit after tax of USD 2.5 M (ZAR 45.4 M) for the first half of 2024. This marks a remarkable turnaround from the USD 1.5 M (ZAR 27 M) loss during the same period last year.
CEO Iain Williamson announced in his 2023 annual report that the company experienced ” profitable top-line growth and strong earnings delivered.”
Last year, Williamson received a massive 46% salary increase and a USD 1.81 million (ZAR 13.2 M) bonus for his performance in the company.
His raise is backed up by solid 37% business growth and 17% sales growth, despite high inflation and muted economic growth in South Africa.
Under Williamson’s leadership, Old Mutual’s analysts expect earnings to increase by 5.2% per year over the next three years. Adjusted headline earnings per share are expected to be between 2% and 12% higher.
The company is optimistic about the second half of the year and is set to focus on product and technological innovation for services.
Old Mutual will announce its interim results on Thursday, September 26, 2024.
About Old Mutual
Old Mutual is the oldest insurance provider in South Africa. It has a century-long history in the country’s financial landscape. It currently operates in South Africa, Latin America, and Asia.
The company remains distinguished in the finance industry, with insurance, investment, savings, and banking services.
Its most prominent service is insurance, and it offers comprehensive plans. The group’s “customer-focused approach” has cemented it as the biggest insurance company in the country.
Company Address
Clients can find their headquarters at Mutualpark, Jan Smuts Dr., Pinelands, Cape Town, South Africa.
Old Mutual Contact number
The Old Mutual contact number is 021 509 9111, which directs you to their Head Office.
Old Mutual Insurance Services
If you are an investor thinking about purchasing shares in Old Mutual, remember you are buying a stake in one of South Africa’s premiere insurance providers. With over a century of history in SA, Old Mutual has developed a reputation of resiliency within the country’s volatile economy.
The company offers a comprehensive array of insurance services. Their car insurance and funeral cover gaining the largest number of clients.
As an investor, it is critical to understand the services your investments provide.
Old Mutual Car Insurance
The company offers one of the cheapest car insurances in South Africa. It has a monthly average of USD 68 (ZAR 1200) with comprehensive coverage.
Earlier this year, the company announced a new monthly payment policy to accommodate a wider range of customers. This was a response to the increased rate of car accidents in South Africa.
Pineapple Insurance, underwritten by Old Mutual, also offers reasonable insurance fees.
Old Mutual Funeral Cover
The Old Mutual funeral cover is also one of the company’s biggest services.
According to the Ombudsman for Long-term Insurance (OLTI) and the Ombudsman for Short-term Insurance (OSTI), the company has the biggest roster of individual and corporate clients.
Old Mutual Bank
Earlier this year, the Prudential Authority (PA) granted Old Mutual initial approval to launch a bank.
Old Mutual has spared no expense for their new service. They spent USD 84.7 million (R1.57 B) to build its core banking system.
The new lender, OM Bank, will launch at the end of the year. It will target South Africa’s retail banking market and directly compete against Capitec.
The OM Bank will align its services to low-income and lower-middle-income individuals who earn R1000 – R30000 per month. These include police officers, teachers, and nurses that CEO Williamson has described as the “center of gravity” in SA economy.
Old Mutual Shares: Should I Invest in 2024?
Investors and analysts alike are debating the current profitability of Old Mutual shares.
However, the positive forecast of 5.2% earnings growth may indicate renewed energy for Old Mutual shareholders and future investors.
The Group expects headline earnings per share to range between ZAR 128.7 cents and 138.4 cents per share – an average 38% increase from 96.8 cents last year.
OMU attributes this positive forecast to the increased shareholder investment and improved performance in South African equities for the first half of 2024.
Conclusion
Old Mutual remains the biggest insurance company in South Africa and beyond. With the OM Bank well on the way, it is safe to say that the company will be here to stay.
Traders United recommends a BUY. Despite the Group’s underperformance last year, Old Mutual is on its way to a fast recovery and is on a positive trend.
Traders and investors are likewise encouraged to conduct their research and analysis of the market. Much like any industry, professional and community advice is beneficial and can help guide you through the process.
