• Cash remitted from subsidiaries fell from R4.82 billion to R2.29 billion
• Old Mutual completed a R3 billion share buyback and approved a further R1 billion programme
• The group expects a dividend from its South African life business during the second half of 2026

Harare — Old Mutual Limited has approved a R1 billion share buyback and raised its interim dividend by 8% to 40 cents per share for the six months ended 30 June 2026, while cash remitted from its subsidiaries fell 53% to R2.29 billion.

The South African insurer completed a R3 billion share buyback during the half year. Its discretionary capital, the cash available at holding-company level after regulated businesses meet their capital requirements, stood at R3.1 billion at June, compared with R6.1 billion at December 2025.

The company reported a shareholder solvency ratio of 172%, against its target operating range of 140% to 170%. That ratio measures the capital held by shareholders against the capital required to support the group’s regulated operations.

The results place three separate movements on the same record. Old Mutual has grown operating earnings, reduced its share base through repurchases and received less cash from subsidiaries during the first half of the year.

Results from operations rose 7% to R5.28 billion. Results from operations per share increased 11% to 126.3 cents.

The per-share growth exceeded the increase in total operating results because the adjusted weighted average number of shares fell to 4.18 billion from 4.35 billion. The completed buyback reduced the number of shares used in the per-share calculation.

Each remaining share carries a larger portion of the group’s operating earnings. The repurchase also used capital that had been available at holding-company level.

Old Mutual’s dividend and new buyback authorisation add a further distribution decision to that capital position. At the 4.50 billion shares disclosed at the dividend declaration date, the 40-cent interim dividend amounts to about R1.80 billion.

If the newly authorised buyback is completed in full, the dividend and programme would account for about R2.80 billion. That figure is separate from the R3 billion repurchase already completed in the first half.

Cash remitted from subsidiaries fell to R2.29 billion from R4.82 billion in the comparable period. These remittances move dividends and other available cash from operating businesses to the listed parent company, where they can fund shareholder distributions, debt obligations and group investment.

Old Mutual expects a R4 billion dividend from Old Mutual Life Assurance Company South Africa during the second half of 2026. The company said the payment is expected to add at least R2 billion to discretionary capital after applicable requirements.

The expected payment has not been received in the reported half year. It is therefore an outlook item in the company’s capital plan, while the R2.29 billion subsidiary remittances and R3.1 billion discretionary-capital figure are reported positions at June.

Adjusted headline earnings fell 30% to R2.95 billion. Old Mutual attributed the decline mainly to negative shareholder investment returns during the period.

This created a different outcome from the operating measure. Operating results increased, while investment-market movements reduced adjusted headline earnings. Reported return on net asset value fell to 10.9% from 15.5%, while normalised return on net asset value increased to 12.6% from 11.9%.

The underlying life insurance business also reported stronger sales. Life annual premium equivalent sales rose 21%, while value of new business increased 32%.

Old Mutual said large corporate risk transactions contributed to first-half sales. Excluding those transactions, life annual premium equivalent sales rose 12%. Management said the large transactions would not recur at the same scale during the second half.

This separates the group’s reported sales growth from the recurring sales base entering the remainder of the year. The full-year record will show how much new business is generated without the first-half corporate transactions.

Old Mutual Bank continued to expand during the period, reporting 742,000 customers and R1.4 billion in retail deposits at June. The bank remains in its investment phase, with the group targeting profitability in the 2028 financial year.

The bank’s growth requires capital and operating expenditure before it contributes earnings at the level targeted by management. Its customer and deposit growth form part of the group’s broader plan to build banking income alongside insurance, asset management and lending activities.

For investors on the Victoria Falls Stock Exchange, the interim dividend has a defined timetable. The last day to trade Old Mutual shares with the dividend entitlement is 30 September. The shares trade without the entitlement from 1 October, with payment scheduled for 5 October.

The second half results will add the next evidence, they will record whether the Old Mutual Life Assurance Company South Africa dividend is received, how discretionary capital moves after the interim dividend and any buyback activity, and whether subsidiary remittances recover from the first-half level.

Old Mutual has disclosed the capital available at June, the cash received from subsidiaries and the shareholder distributions approved by its board. The second-half figures will show the cash movements that follow those decisions.

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