NAIROBI, Kenya, Mar 31 – Insurance company Old Mutual Holdings has grown its profit before tax by 216 percent to Sh202 million for the period ending December 31, 2022.
The insurer attributes improved earnings to both income growth and other investments.
This is an improvement from the Sh175 million loss before taxes it suffered in a similar period in 2021.
“The performance during 2022 is a significant recovery from what we recorded in 2021,” the Group’s CEO Arthur Oginga said.
“We are confident that our continued efforts to innovate and adapt to the market’s evolving needs will enable us to sustain this positive momentum and drive long-term growth for our Old Mutual.”
In terms of premiums, it increased by 15 percent to Sh23 billion, with a net investment income of Sh5.24 billion.
“This was driven by higher interest rates and improved investment balances on the back of solid topline growth and disciplined debtor management,” it added.
It foresees a challenging operating environment across East Africa in 2023, with rising inflation and interest rates.
“This will pressure disposable household incomes and thus impact topline growth in some of our business segments,” Oginga said.
“In our core Kenya market, fiscal pressures due to significant debt repayments are expected to lead to an increase in taxation for both businesses and individuals, resulting in reduced spending and thus lower economic growth.”
It says South Sudan’s macroeconomic environment during the review period remained mainly unstable due to the country’s unstable political environment.
However, Old Mutual predicts positive outlooks in markets such as Uganda, Rwanda, and Tanzania on the resumption of economic activities, improved performance in the tourism sector, and a slowdown in inflation.
