Old Mutual says sales continued to recover across its life insurance businesses in the third quarter of this year.
In a voluntary trading update for the nine months to the end of September, it said life sales (measured on an annual premium equivalent basis) were up 17% to R9.4 billion compared to the nine months to 30 September 2021.
Old Mutual experienced improved credit life sales in its Mass and Foundation Cluster and higher group risk and annuity sales in Old Mutual Corporate.
Its Personal Finance and Wealth Management divisions delivered improved savings and funeral sales, as well as higher endowment sales and investment flows into fixed bond products, which were partially offset by lower guaranteed annuity and non-funeral risk sales.
Gross written premiums grew by 12% to R16.8bn, supported by higher renewal rates and new business sales in Old Mutual’s Africa regions, particularly in Kenya’s medical business, coupled with good premium growth in the specialty division of Old Mutual Insure.
Gross flows declined by 7% to R136bn. The prior period included new liability-driven investment mandates and flow into money market and corporate cash products in Old Mutual Investments that did not repeat in the current period.
Despite the decrease in gross flows, net client cash flow was up 56%, to R1.2bn, because of reduced mortality claims across the life businesses and lower client disinvestments and terminations.
Funds under management fell 6%, to R1.192 trillion, due to the weaker performance of local and global equity markets.
