Old Mutual Holdings has grown its profit before tax by 216 per cent to Kes202 million for the period ending December 31, 2022.
This is an improvement from the Kes175 million loss before taxes it suffered in a similar period in 2021.
The insurance company has attributed the improved earnings to both income growth and other investments.
The Group’s CEO Arthur Oginga said the performance during 2022 is a significant recovery from what they recorded in 2021.
“We are confident that our continued efforts to innovate and adapt to the market’s evolving needs will enable us to sustain this positive momentum and drive long-term growth for our Old Mutual.”
Did you read this?
In terms of premiums, it increased by 15 per cent to Kes23 billion, with a net investment income of Kes5.24 billion.
The insurer attributed the growth to higher interest rates and improved investment balances on the back of solid topline growth and disciplined debtor management.
However, the Group foresees a challenging operating environment across East Africa in 2023, with rising inflation and interest rates.
“This will pressure disposable household incomes and thus impact topline growth in some of our business segments. In our core Kenya market, fiscal pressures due to significant debt repayments are expected to lead to an increase in taxation for both businesses and individuals, resulting in reduced spending and thus lower economic growth.”
Further, the insurer said South Sudan’s macroeconomic environment during the review period remained mainly unstable due to the country’s unstable political environment.
However, Old Mutual predicts positive outlooks in markets such as Uganda, Rwanda, and Tanzania on the resumption of economic activities, improved performance in the tourism sector, and a slowdown in inflation.
