OLD MUTUAL LIMITED Bulletin:
Old Mutual's Half-Year Results Show Progress On Key Targets
August 31, 2022
LONDON (S&P Global Ratings) Aug. 31, 2022--S&P Global Ratings said today that stronger sales and better investment and mortality trends helped Old Mutual Ltd. (OML) improve its performance in the first half of 2022. The results are in line with our previous expectations that the South Africa-based insurer's revenues would increase as governments eased lockdown restrictions, and that COVID-19 related claims would taper as Omicron proved less severe than previous strains. OML's results also benefited from management's focus on operating efficiencies with value-of-new-business margins of 2.2% and more than South African rand (ZAR) 500 million of cost savings. Sustaining the momentum for expense initiatives and repricing will be key, in our opinion, as macroeconomic pressures--such as unemployment and inflation--may challenge top-line growth and therefore profitability. At half-year 2022, OML's reported adjusted headline earnings, barring Nedbank, were up 19% year-on-year to ZAR2.7 billion.
Capital strength, a credit supportive factor for OML, remained sound with solvency ratios within target ranges, although group equity had fallen slightly to ZAR87.4 billion from ZAR91.9 billion for the full year 2021. Managing the asset risk and volatility from investment markets will be important for maintaining the balance sheet strength, in our view.
This report does not constitute a rating action.
PRIMARY CREDIT ANALYST
Simran K Parmar
London
+ 44 20 7176 3579
SECONDARY CONTACTS
Tatiana Grineva
London
+ 44 20 7176 7061
Trevor Barsdorf
Johannesburg + 27 11 214 4852
www.spglobal.com/ratingsdirect | August 31, 2022 1 |
Bulletin: Old Mutual's Half-Year Results Show Progress On Key Targets
Copyright © 2022 by Standard & Poor's Financial Services LLC. All rights reserved.
No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor's Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an "as is" basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT'S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.
Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P's opinions, analyses and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.
To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw or suspend such acknowledgment at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.
S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.
S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.
STANDARD & POOR'S, S&P and RATINGSDIRECT are registered trademarks of Standard & Poor's Financial Services LLC.
www.spglobal.com/ratingsdirect | August 31, 2022 2 |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Old Mutual Ltd. published this content on 31 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 September 2022 08:40:05 UTC.
