Old Mutual Limited (ODMUF) Q4 2024 Earnings Call Transcript

2025-03-18 15:59:44 ET

Old Mutual Limited (ODMUF)

Q4 2024 Earnings Call

March 18, 2025 05:00 ET

Company Participants

Langa Manqele - Head, Investor Relations

Iain Williamson - Chief Executive Officer

Casper Troskie - Chief Financial Officer

Clarence Nethengwe - Chief Executive Officer, OM Bank

Nico van der Colff - Group Actuary

Kerrin Land - Managing Director, Personal Finance and Wealth Management

Charles Nortje - Interim Chief Executive Officer

Conference Call Participants

Warwick Bam - RMB Morgan Stanley

Francois du Toit - Anchor Stockbrokers

Presentation

Langa Manqele

Good day, everyone, and thank you for joining us today. On behalf of our Board and the management team, welcome to the Old Mutual Group Annual Results for the period ended 31st December 2024. I am Langa Manqele, Head of Investor Relations for the Old Mutual Group. On our agenda for today, I will begin with our Group CEO, Iain Williamson, who will kick off with an operational and strategic review. He will shortly be followed by Casper Troskie, our Group CFO, to cover the financial review. Iain will then come back to the stage to give us his concluding message. I will then pick up from there to facilitate the questions and answer session.

And with that, I would like to hand over to you, Iain. Thank you.

Iain Williamson

Thanks, Langa. A warm welcome, everyone, and we really appreciate your attendance today. We’ve delivered strong double-digit earnings growth with our key metric for distributable earnings, adjusted headline earnings per share growing by a strong 17% to ZAR1.506 per share. The return on net asset value continued to trend upwards, growing by 160 basis points to 12.7%. And excluding our investments in new growth initiatives, our ROA improved materially to 15.6%. In line with our dividend policy, the Board has declared a final dividend per share of ZAR0.52, bringing our total dividend for the year to ZAR0.86 a share, an increase of 6% year-on-year. Despite increased competition in our retail mass market and a constrained affluent market as well as lower corporate sales, we continue to expand our VNB margin and the value of new business margin improved by 20 basis points to 2.5%. Funds under management grew by 10% to ZAR1.5 trillion, supported by improved equity market performance in South Africa, particularly over the second half of the year.

To kick off our review of performance, let’s begin by reflecting on the value we’ve created for shareholders. Our diversified business continues to demonstrate resilience and is in a strong market position, delivering strong growth. We continue to demonstrate a positive trajectory in our return profile. Since listing on the JSE in 2018, we’ve returned a staggering ZAR89 billion to our shareholders by a cumulative ZAR61.6 billion in special distributions and a further ZAR27.4 billion in ordinary dividends....

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