NAIROBI, Kenya, Aug 26 – Old Mutual Holdings has reported a sharp downturn in earnings for the six months ended June 30, 2025, with profit after tax from continuing operations plunging by 99 per cent compared to the same period last year.
The company posted a consolidated profit before tax of Sh380 million, down 66 per cent from Sh1.1 billion in the first half of 2024.
The insurer attributed the decline to multiple factors, including lower interest rates in Kenya, which reduced interest income, triggered fair value losses on fixed-income securities, and raised discounted insurance liabilities—together denting profits by Sh625 million.
Insurance service results also weakened by Sh57 million, driven by lower insurance revenues across all markets and higher loss ratios in Kenya’s life insurance segment.
Other drags on profitability included reduced income from equities, higher finance costs from the refinancing of Ugandan property loans, and a higher effective tax rate.
Despite the slump, Old Mutual reported other comprehensive income of Sh94 million, largely from currency translation gains as the Kenyan shilling weakened slightly against the Ugandan shilling, partly offset by its stabilization against the US dollar.
The company also pointed to effective cost containment, with expenses remaining flat year-on-year, and highlighted strong performance in its asset management unit, where income grew 31 percent from Sh0.7 billion to Sh1.0 billion.
