Old Mutual Share Price Fails to Resume Uptrend Despite Dividend Increase, CEO Departure
Shares of Old Mutual have lost momentum after a strong year-long rally, with recent results highlighting both operational progress and...
Quick overview
- Old Mutual's share price has experienced a sharp pullback after a year-long rally, despite improved operational performance in key segments.
- The company announced an 8% increase in its annual dividend and is executing a ZAR 3 billion share buyback program.
- Recent earnings results indicate mixed performance, with challenges in the South African Life and Savings segment and a decline in the value of new business.
- Leadership transition is underway as chairman Trevor Manuel prepares to retire, with Roger Jardine set to take over.
Shares of Old Mutual have lost momentum after a strong year-long rally, with recent results highlighting both operational progress and areas of concern.
Uptrend Interrupted After Strong Run
After trending higher for much of the past year, Old Mutual’s share price pulled back sharply in February, and the latest earnings report has not been enough to restart the upward move.
While the company delivered improved operational performance in key segments such as Life and Savings and Insure, the overall market reaction remained muted, reflecting mixed underlying results.
Dividend Growth and Capital Returns
Old Mutual announced an 8% increase in its annual dividend, supported by stronger operating performance.
Management also continues to execute a ZAR 3 billion share buyback programme, with ZAR 1.3 billion completed so far. The pace of repurchases is tied to how the share price trades relative to group equity value (GEV), with the programme expected to run through the year.
Market Performance Signals a Shift in Sentiment
After several years of subdued performance following the 2020 pandemic-driven selloff, Old Mutual (JSE: OMU) has begun to reassert itself in the market. The share price formed a series of higher lows since April 2025, suggesting buyers regained control. This improving structure reflects a broader shift in sentiment among both institutional and retail investors.
OMUJ Chart Daily – Will the Uptrend Resume?
The stock pushed through a long-standing resistance zone near R15 in January, topping out at R17 in late February and then we saw a steep pullback in the last few weeks. The positive earnings report didn’t help much but the support at R14 held where the 200 daily SMA (purple) stands on the daily chart. This leaves the uptrend still on, unless the 200 daily SMA gets broken.
CEO Replacement
Trevor Manuel, the chairman of Old Mutual, has announced his resignation after reaching the board’s retirement age of 70. Since taking over as chairman of Old Mutual in 2018, Manuel has led the company through a period of transformation. In his first year in the position, the company listed on the JSE.
Additionally, the business has progressively expanded its capabilities as a provider of integrated financial services, with its new OM Bank expected to be the last component. But the insurer’s protracted legal dispute with former CEO Peter Moyo—which reached the Constitutional Court—was the biggest test of Manuel’s board stewardship.
Operational Progress and Challenges
The company reported group equity value (GEV) per share of ZAR 19.80, marking a 7% increase from interim levels. However, several factors weighed on performance, including currency movements, non-hedgeable risks, and changes in key assumptions.
A notable area of weakness was the value of new business (VNB) in the South African Life and Savings segment, which fell short of internal targets.
Additionally, a ZAR 2.8 billion internal reallocation within Old Mutual Africa Regions was implemented. While this adjustment did not affect total GEV, it reflects ongoing refinements in how the company reports and manages its business segments.
Leadership Transition Underway
CEO Jurie Strydom confirmed that chairman Trevor Manuel will retire at the upcoming AGM in June after turning 70.
Roger Jardine has been named chairman designate and has already begun engaging with management ahead of the transition, signaling continuity in leadership.
Financial Highlights
- Group Equity Value (GEV) per share: ZAR 19.80 (+2% YoY)
- Dividend per share: ZAR 19.80 (+2% YoY)
- Return on Group Equity Value (RoGEV): 4.1% (normalized:10.1%)
- Value of New Business (VNB) margin: 1.2% (target:2%-3%)
- Covered business embedded value: ZAR 57.3 billion (-14% YoY)
- Adjusted Headline Earnings (AHE) per share: +26% YoY
Outlook: Old Mutual’s results show steady operational improvement and continued shareholder returns, but also highlight areas where performance has lagged expectations.
With the share price under pressure after its recent pullback, investors will likely look for clearer evidence of sustained growth—particularly in core segments—before confidence in the uptrend can fully return.
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