Old Mutual (OMU) investor relations material

Strategic and operational focus

• Transitioning from strategy to execution, integrating medium-term targets into business planning and scorecarding processes as the year ends.

• Refined strategic priorities emphasize disciplined execution, operational efficiency, and capital allocation to enhance competitive positioning and growth.

• Strong commitment to cost efficiencies and long-term value creation for shareholders.

• Progress on revised value creation metrics will be reported from 2026.

Financial performance and flows

• Life insurance savings gross flows down 1% year-on-year, with Old Mutual Investments down 18% due to a higher base in Q3 2024 and muted inflows in wealth.

• Life APE sales were marginally higher, supported by strong risk sales in Mass and Foundation, but offset by lower guaranteed annuity sales.

• Gross flows remained stable, with strong inflows in Africa Regions offsetting declines in Investments.

• Net client cash flow was negative, impacted by significant outflows in Investments, partially offset by improved inflows in Africa Regions.

• Net flows improved compared to half-year, with outflows reduced; persistency and client retention are being monitored, but no material improvement yet.

Capital, solvency, and buybacks

• Over 10% of the share buyback completed, with more than ZAR 400 million repurchased; buyback progress is regularly disclosed.

• Solvency ratios declined due to increased prescribed equity shock, raising capital requirements; share buyback already factored into interim solvency numbers.

• Additional restructuring costs expected in H2 related to headcount reduction, but no large outstanding provisions anticipated at year-end.