Old Mutual Holdings Plc has announced a dramatic financial turnaround, reporting a profit after tax of Ksh. 882 million for the six months ended June 30, 2026. This marks a sharp rise from the Ksh. 5 million recorded during the same period in 2025, signaling a robust recovery despite ongoing pressure on underwriting margins across the regional insurance sector.

A central driver of this growth was the underwriting division, which achieved an insurance service result of Ksh. 287 million, successfully reversing a Ksh. 303 million loss incurred in the first half of 2025. Management attributed this rebound to enhanced claims management, strict underwriting discipline, and group-wide cost control measures.

Group Chief Executive Officer Arthur Oginga noted that the performance highlights significant headway in reinforcing the firm’s core operational strength. “Our ambition continues to be our customers’ first choice for sustaining, growing, and protecting their prosperity,” said Mr. Oginga. “We will continue to enhance this performance through new growth engines and a focus on a value-led rather than a volume-led business.”

The Group’s balance sheet received a further boost from its investment arm. Net investment results climbed to Ksh. 1.9 billion, up from Ksh. 1.7 billion in H1 2025. This uptick was powered by strategic allocations to higher-yielding assets, effective liquidity management, and refined asset-liability matching.

Simultaneously, Assets Under Management (AUM) expanded by 32%, driving a 34% increase in commission income due to strong growth in managed funds.

Group Chief Financial Officer Isaiah Gakonyo emphasized that the strategy going forward centers on resilience and efficiency. “Our first half performance reflects disciplined execution across the Group,” Mr. Gakonyo stated. “We remain focused on asset-liability management, cost optimisation, balance sheet restructuring, and targeted technology investments.”

Looking ahead to the remainder of 2026, Old Mutual Holdings plans to accelerate growth across its investment and asset management portfolios while maintaining its underwriting discipline.

The recovery has also reopened conversations around value creation for investors. Board Chairman Dr. Habil Olaka highlighted that building long-term financial stability remains the top priority, paving the path for potential investor returns.

“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 payments,” Dr. Olaka noted.