(Alliance News) - Old Mutual Ltd on Thursday delivered double-digit growth in sales across its business for the first quarter of its financial year.

The Anglo-South African financial services firm said life annual premium equivalent sales grew 10% to ZAR3.17 billion for the first three months that ended March 31, from ZAR2.87 billion a year before.

Sales benefitted from strong risk sales across all channels in Mass and Foundation Cluster, the company said. Personal Finance recorded higher guaranteed annuity sales, strong recurring premium savings and funeral sales.

Gross written premiums were up 6.6% to ZAR6.94 billion from ZAR6.51 billion, driven by strong new business growth in Retail and Specialty businesses in Old Mutual Insure.

Gross flows were at ZAR51.13 billion, up 4.2% from ZAR49.05 billion, thanks to higher inflows in the offshore business in Wealth Management and strong inflows in Old Mutual Africa Regions following the acquisition of a large new mandate in Malawi as well as higher unit trust sales in East Africa.

But net client cash flow plunged 82% to ZAR166 million from ZAR899 million.

For the first three months, loans and advances were 3.6% higher at ZAR20.10 billion, compared to ZAR19.40 billion, following the increase in the loan book in Old Mutual Africa Regions, supported by the depreciation of the rand against the Kenyan shilling.

Old Mutuals said its "perimeter review" is on track to reveal the exit of its general insurance business in Tanzania, which follows a similar move at its general and life insurance businesses in Nigeria.

The company also said it has started testing with partner banks in the industry. The Prudential Authority in South Africa last month gave the group the licence to establish a bank.

Shares in Old Mutual were down 3.5% to ZAR10.91 on Thursday afternoon in Johannesburg. They lost 4.1% to 46.00 pence in London.

By Artwell Dlamini, Alliance News reporter

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