Old Mutual Group’s net profit witnessed a massive jump of Sh1.1 billion to Sh1.3 billion during the 2024 full year, up from Sh200 million it recorded during a similar period in 2023.

The group credited the profit growth to a strong show in its asset management business, underwriting profits from insurance businesses, and a stellar return on invested assets.

The investment, retirement, and insurance firm’s finance costs decreased greatly from Sh2.4 billion in 2023 to Sh1.2 billion in 2024 after shareholder loans were converted to equity.

Owing to the strategic decision by Old Mutual, its debt burden eased significantly leaving the Group with a more sustainable capital structure.

However, the Group’s operating profit before finance costs stabilized at Sh3.8 billion due to its portfolio of businesses that diversify and minimize risks when one part is affected.

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“Our ongoing strategy continues to focus on becoming the first choice for our customers in sustaining, growing, and protecting their prosperity,” said Old Mutual Group CEO Arthur Oginga.

He added: “Consequently, we remain committed to driving sustainability through operational efficiency, continuous product innovation, and a strong focus on customer needs.”

The group says it will continue partnering with Safaricom and Kenya Institute of Curriculum Development (KICD) among other institutions to promote financial education across Kenya.

However, the sale of Old Mutual’s Tanzania subsidiary, UAP Insurance Tanzania, the Group posted a loss on disposal of Sh363 million which is included in its 2024 income statement.

The divestment is part of its strategy to streamline operations, even as it posted a Sh631 million foreign exchange loss due to the major strengthening of the Kenya shilling in 2024.

Even as Old Mutual works to enhance its operational and financial performance, it continues to face risks from geopolitical developments and economic uncertainties.

Suspension of USAID funding, Eastern DRC and Sudan conflicts, and heightened political activity in Kenya and Uganda, have created extra pressures on the 2025 economic outlook.

But the Group exuded confidence it will sustain its growth trajectory to deliver value to its customers and stakeholders despite these varied challenges being witnessed in the region.