Old Mutual Holdings Plc has swung to a stronger half year performance, reporting profit after tax of KES 882 million for the six months ended 30 June 2026, up sharply from KES 5 million in the same period last year.
The turnaround comes at a time when underwriting margins across Kenya’s insurance industry remain under pressure, making the Group’s recovery stand out against a difficult sector backdrop.
Profit before tax climbed 362.1 percent to KES 1.76 billion, while operating profit before financing costs more than doubled to KES 2.26 billion from KES 960 million. The gains flowed from a reversal in insurance underwriting, stronger investment returns and tighter cost control across the business.
Insurance Business Returns to Profit
The insurance unit posted a service result of KES 287 million, reversing a KES 303 million loss recorded in the first half of 2025. Old Mutual attributed the shift to sharper claims management, stricter underwriting discipline and cost containment across the Group, alongside the planned exit from loss making medical accounts and the ongoing run off of the South Sudan business.
Group CEO Arthur Oginga said the results show progress in strengthening the underlying performance of the Group’s businesses.
“Our ambition continues to be our customers’ first choice for sustaining, growing and protecting their prosperity. This ambition is guided by our strategic pillars of lifestyle and wellness, technology and digital transformation, sustainability, strategic partnerships and customer experience,” Oginga said.
“Our performance demonstrates the progress we are making in executing our strategy and delivering on our long term ambitions. We will continue to enhance this performance through new growth engines and a focus on a value led rather than a volume led business.”
Investment and Asset Management Gains Pick Up the Slack
Net investment results rose to KES 1.9 billion from KES 1.7 billion, supported by selective allocation to higher yielding assets, asset liability matching and disciplined liquidity management. Assets under management grew 32 percent, feeding through to a rise in commission, fees and other income to KES 1.6 billion from KES 1.2 billion, driven by growth in managed funds and a deliberate tilt toward higher yielding portfolios.
Group Chief Financial Officer Isaiah Gakonyo said the Group intends to build on the momentum through continued transformation and tighter financial management.
“Our first half performance reflects disciplined execution across the Group, delivering improved insurance profitability, stronger net investment results and sustained growth in asset management,” Gakonyo said.
“These outcomes demonstrate the effectiveness of our strategic interventions in strengthening earnings quality and resilience. We remain focused on asset liability management, cost optimisation, balance sheet restructuring and targeted technology investments to profitability.”
Key Half Year Numbers
| Metric | H1 2026 | H1 2025 | Change |
|---|---|---|---|
| Profit after tax | KES 882M | KES 5M | Up sharply |
| Profit before tax | KES 1.76B | KES 380M | Up 362.1% |
| Operating profit before financing costs | KES 2.26B | KES 960M | More than doubled |
| Insurance service result | KES 287M profit | KES 303M loss | Turnaround |
| Net investment results | KES 1.9B | KES 1.7B | Up |
| Commission, fees and other income | KES 1.6B | KES 1.2B | Up |
| Total assets | KES 83.06B | KES 79.40B* | Up |
| Total equity | KES 21.25B | KES 20.43B* | Up |
*Figures as at 31 December 2025, the prior reporting date on the balance sheet.
No Interim Dividend as Group Rebuilds Balance Sheet
The board has not recommended an interim dividend for the period, consistent with the prior year. Old Mutual said it has made progress on balance sheet restructuring, including shareholder approval to transfer share premium to retained earnings, a step it expects will shorten the path back to dividend payments.
Chairman Dr Habil Olaka said the Group remains focused on turning the improvement into sustained profitability over the long term.
“Our priority is to ensure that this improvement translates into sustained profitability over the long term,” Olaka said. “We are strengthening the Group’s businesses, balance sheet and operating model to build greater resilience and create sustainable value for shareholders. As profitability and the Group’s financial position continue to strengthen, our ambition is to create the capacity for sustainable shareholder distributions, including the future resumption of dividend payment, subject to the Group’s financial position and applicable regulatory and statutory requirements.”
Outlook for the Rest of 2026
Old Mutual said its second half priorities include sustaining the underwriting recovery and accelerating growth in its investment and asset management businesses. The Group also flagged continued use of artificial intelligence and automation to speed up claims processing and customer service, alongside stronger fraud and abuse controls to protect claims integrity.
The results place Old Mutual among a run of Kenyan insurers and financial firms reporting stronger half year numbers this season, a trend Khusoko has tracked across the sector’s H1 2026 earnings coverage. For a company that opened the year carrying a near breakeven result, the jump to triple digit million profit gives management a clearer runway to argue its underwriting reset is taking hold, though the absence of an interim dividend signals the board still wants more balance sheet room before rewarding shareholders directly.
