Old Mutual Zim reports steady earnings

OLD Mutual Zimbabwe expects the country to continue to experience sub-par economic growth for the foreseeable future, according to CEO Jonas Mushosho.

Speaking at the group’s results presentation on Friday, Mushosho said reforms have now become vital for the country which has experienced 19 consecutive months of negative inflation.

However, he did say that conditions in the country’s economy create opportunities for the steady long-term investor.

“On top of having a diversified earnings exposure, we will continue to focus on cost containment measures to protect margins,” said Mushosho.

For the six months to end-June 2016, Old Mutual Zimbabwe recorded 11% growth in revenue to $139.7m with net earned premiums contributing the bulk, amounting to $91.8m.

The group experienced a 25% drop in life sales to $10.9m on the back of increased retrenchments and company closures.

Funds under management also lost 3% to $1.59b, weighed down by the negative performance of the equity market as well as declining property values.

Adjusted operating profit was however flat at $33.1m, while profit before tax was up 9% to $15.9m.

Meanwhile, Old Mutual Emerging Markets has appointed Mushosho as regional CEO for southern and East Africa.

Mushosho – who will continue to be group CEO of Zimbabwe and remain based in Harare – replaces Tavaziva Madzinga, who will be leaving Old Mutual after 15 years to pursue an international career opportunity with Swiss Re, where he will be the chief executive of the Middle East and Africa business.-Fin24