Old Mutual Q1 2026 Update: Life APE Sales up 28%

In Short

• Old Mutual reported higher insurance sales and investment inflows for the quarter ended 31 March 2026.
• Life APE sales rose 28% to R3,732 million, and gross flows rose 14% to R60,008 million.
• The OMLACSA regulatory solvency ratio increased to 186%, within its target range.
• The group completed a R3 billion share buyback, repurchasing 214,860,122 shares.

What Happened

Old Mutual published a voluntary operating update for Q1 2026 and held an update call on June 8, 2026. The insurer and financial services group said Life APE sales, a common life insurance sales measure (annual premium equivalent, a way to compare new policy sales), increased 28% year on year to R3,732 million.

Old Mutual said a large risk deal in its Corporate business was a key driver. Excluding that deal, Life APE sales still rose 15%, which the company framed as broad-based sales momentum. It also reported a recovery in the value of new business margin to 1.6%. That margin is the expected profit on new policies, expressed as a percentage of the value of new business written.

On the asset management and investment side, gross flows increased 14% to R60,008 million. Gross flows are total money coming into investment products before withdrawals, and they can be a signal of distribution strength and client demand.

In its short-term insurance unit, Old Mutual Insure reported a net underwriting margin above its medium-term target range. Underwriting margin is the profit from insurance operations after claims and expenses, and it excludes investment gains.

The group also pointed to a stronger capital position. OMLACSA, its main South African life insurance entity, recorded a regulatory solvency ratio of 186%, within the target range of 165% to 200%.

Separately, Old Mutual said it completed a R3 billion share buyback programme. The company repurchased 214,860,122 shares.

Why It Matters

For investors, higher Life APE sales and an improving new business margin suggest better unit economics in the life business, not only higher volumes. For customers and regulators, the 186% solvency ratio signals a stronger buffer to meet future policyholder claims.

The buyback also matters because it shows Old Mutual is returning excess capital, rather than holding it on the balance sheet. And progress on integrating Old Mutual Finance and OM Bank points to a continued push into banking-style products, where customer acquisition and deposits are key growth indicators.