Old Mutual Share Price JSE: OMU Aims Breakout With Earnings Growth, Strategic Partnerships, and New CEO Vision
Old Mutual is regaining investor confidence as strong interim earnings, leadership changes, and new strategic partnerships begin reshaping..
Quick overview
- Old Mutual is regaining investor confidence with strong interim earnings and strategic partnerships.
- The company's share price has shown upward momentum, supported by new leadership and a focus on cash generation.
- A recent partnership with AXA Global Healthcare aims to enhance Old Mutual's presence in the African healthcare market.
- Old Mutual's expansion into banking and improved financial performance signal a positive outlook for future growth.
Old Mutual is regaining investor confidence as strong interim earnings, leadership changes, and new strategic partnerships begin reshaping its long-term narrative.
Old Mutual Reclaims Market Attention Amid Leadership Change and Renewed Growth
Old Mutual (JSE: OMU) has started to reassert itself after several stagnant years, delivering a combination of improved earnings, strategic partnerships, and new leadership direction that has put the stock back into focus. Despite running into a stubborn resistance barrier, the broader trend continues to edge higher, reflecting a shift in sentiment among institutional and retail investors.
Market Performance and Technical Outlook
Following years of sluggish movement after the 2020 pandemic-driven crash, Old Mutual’s share price has been quietly rebuilding upward momentum. A series of higher lows since April has signaled that buyers are gradually taking control, although the stock remains capped by heavy resistance around the R14.50 level.
OMUJ Chart Daily – MAs Supporting Buyers
On Tuesday, shares added 1.22%, marking a monthly gain of more than 6%, and closed at R14.07—a level well supported by key moving averages on the daily chart. Price action has also begun forming a tightening triangle pattern, a setup that often precedes a decisive bullish breakout. If this breakout materializes, analysts believe the stock could begin a broader climb toward the 2020 highs above R20.
OMUJ Chart Monthly – The 100 SMA
The longer-term monthly chart provides an additional challenge: the 100-SMA, which has rejected price movements since August. But as positive catalysts accumulate and buyers continue retesting this zone, a breach looks increasingly plausible.
Strategic Healthcare Partnership Strengthens African Footprint
A major recent development is Old Mutual’s new partnership in the international healthcare insurance space. AXA Global Healthcare has joined forces with Old Mutual General Insurance Kenya and Executive Healthcare Solutions (EHS) to expand access to international private medical insurance (IPMI) across Africa.
As of last month, AXA’s Kenyan policies are being underwritten locally by Old Mutual, blending global health coverage standards with the insurer’s regional expertise. The partnership also involves the transfer of EHS’s existing IPMI book and the rollout of the Global Executive Health Plan, aimed at providing comprehensive healthcare cover for individuals and SMEs across major African markets.
AXA’s global distribution head, Andy O’Cain, emphasized the ambition behind the initiative: the collaboration is designed to position AXA as the leading IPMI provider in East Africa, strengthening Old Mutual’s influence in one of the continent’s fastest-growing healthcare segments.
Leadership Transition Signals a Shift Toward Value Creation
Old Mutual’s renewed vigor also stems from a high-profile leadership overhaul. Jurie Strydom officially stepped in as Group CEO on June 1, 2025, marking the beginning of a more strategic and performance-driven era. Strydom has placed strong emphasis on cash generation and return on equity, signaling a tighter link between operational execution and shareholder value.
Supporting this shift is Prabashini Moodley, who assumed the role of CEO of the newly created Life and Savings division. Her remit includes driving modernization and using fintech solutions to improve product accessibility and efficiency.
In addition, Soul Abraham has been named CEO-Designate of Old Mutual Insure, effective January 2026, and will formally assume the role in April, pending regulatory approval. With a background in actuarial science and nearly a decade in Old Mutual’s senior leadership, Abraham is expected to reinforce the group’s insurance strategy during a period of market expansion.
Technical and Historical Movement Reinforce a Positive Outlook
Old Mutual began turning higher earlier in 2025 when the stock rebounded from an April low near R9.30—a move that triggered a more than 30% rise to R12.50 by mid-June. Though long-term moving averages temporarily halted the ascent, renewed buying in August pushed the price closer to the R15 region. A sustained break above that area remains the key to confirming a long-term bullish cycle.
Strong Interim Results Support the Investment Case
Financial Performance
Old Mutual’s half-year results further strengthened the bullish narrative:
- Adjusted headline earnings jumped 29% to R4.2 billion.
- Return on net asset value reached 15.5%, meeting internal targets.
- Results from operations grew 16%, while shareholder investment returns surged 88%.
- Group equity value slipped to R18.40 per share, largely due to valuation methodology changes.
- Value of new business margin eased to 1.3%.
Capital Allocation
- Interim dividend: 37 cents, up 9% YoY.
- R3 billion share buyback authorization approved—signaling management’s confidence in future cash flows.
Business Segments
- Life APE sales grew 1%, supported by strong Africa Regions performance and retail risk sales.
- Lower guaranteed annuity demand weighed on Personal Finance.
- Gross written premiums rose 5%, driven primarily by Old Mutual Insure.
Banking Ambitions Gain Traction
Old Mutual’s entrance into banking—through OM Bank, launched earlier this year for staff—marks a significant strategic shift. The bank plans to:
- Leverage R1.5 billion in deposits,
- Scale R15.5 billion in lending,
- Capitalize on Old Mutual’s 346-branch distribution network to accelerate rollout.
This banking expansion aligns directly with Strydom’s fintech-forward approach, setting the stage for deeper involvement in digital financial services.
Conclusion: Momentum Builds, but the Breakout Test Still Awaits
Old Mutual has delivered a compelling combination of stronger earnings, strategic partnerships, leadership renewal, and expansion into banking. With quarterly results improving, dividends rising, and buyers repeatedly testing long-standing resistance, the stock is displaying one of its strongest setups in years.
The final hurdle remains a decisive break above R14.50–R15.00. If achieved, it could unlock a move toward R20+, restoring Old Mutual to valuation levels last seen before the 2020 crash.
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