Old Mutual operational performance hurt by SA economy

Old Mutual, the insurer locked in a prolonged spat with its fired chief executive officer, said earnings from its operations probably fell as much as 5%, weighed down by a stuttering local economy.

South Africa’s economy expanded at the slowest pace in a decade in 2019 as business and consumer confidence plunged amid a shortage of electricity and shrinking disposable incomes. Old Mutual is also having to contend with hyperinflation and the worst economic crisis in Zimbabwe in a decade.

It’s been in and out of court since firing CEO Peter Moyo in June last year.

Adjusted earnings per share before one-time items will probably increase 4%-9% for the 12 months through December, buoyed by higher returns on investments, Old Mutual said in a statement on Thursday. The shares dropped 0.7% by 10:34 a.m., reversing an earlier gain of as much as 2.8%.

Its rival the Liberty Group is focusing on taking market share in order to grow earnings, CEO David Munro said on February 27. Liberty’s adjusted EPS rose 44% after South African equities gained 8.2% in 2019.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
16.36
(-1.09)
ZAR/GBP
21.19
(-0.45)
ZAR/EUR
19.19
(-0.58)
ZAR/AUD
11.57
(-0.34)
ZAR/JPY
0.16
(-1.21)
Gold
1887.17
(-0.92)
Silver
23.86
(-1.83)
Platinum
867.00
(-0.70)
Brent Crude
41.09
(+1.96)
Palladium
2257.00
(-2.21)
All Share
53170.09
(-1.68)
Top 40
48764.75
(-1.61)
Financial 15
10144.27
(-3.42)
Industrial 25
73859.74
(-0.64)
Resource 10
49249.67
(-2.29)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
24% - 106 votes
No, I did not.
51% - 224 votes
My landlord refused
25% - 110 votes
Vote