NAIROBI, Kenya- Old Mutual Holdings has reported a fall in its financial performance for the first half of 2025, with profit after tax from continuing operations plunging 99% compared to the same period in 2024.
The decline highlights mounting pressures from lower interest rates, weak insurance revenue, and higher financing costs across the group’s operations.
The company posted a consolidated profit before tax of Sh380 million, down 66% from Sh1.1 billion in HY 2024.
The sharp drop was largely due to lower interest income and valuation effects, with the group taking a Sh625 million hit from reduced rates and higher discounted insurance liabilities.
Additionally, insurance service results from Old Mutual’s operations fell by Sh57 million, driven by weaker insurance revenues across all markets and higher loss ratios in Kenya’s life insurance business.
Other factors weighing on profitability included lower returns from equities and increased finance costs following the refinancing of a property loan in Uganda.
Rising effective tax rates further compounded the decline, pushing profit after tax to a mere Sh5 million for the period.
Despite the challenging environment, the group recorded other comprehensive income of Sh94 million, mainly from the impact of translating financial results from foreign operations into the consolidated statements.
This gain was influenced by the slight weakening of the Kenyan shilling against the Ugandan shilling, partially offset by stabilization against the US dollar.
“Lower interest income & valuation effects, with a Sh625M hit from reduced rates and higher discounted insurance liabilities.”
“Weaker insurance revenues across markets, down KES 57M, alongside higher loss ratios in Kenya.”
Old Mutual highlighted that total expenses and outgoes remained flat compared to HY 2024, reflecting effective cost containment measures.
The asset management segment, in particular, continued to deliver growth, with income rising 31% from Sh0.7 billion to Sh1.0 billion.
