Old Mutual: South African savings firm reports subdued growth after pandemic woes
South African-based investment group Old Mutual experienced subdued growth in 2021 as the country’s economy bounced back from the pandemic.
The company’s CEO announced its gross flow increased four per cent to R194.8bn (£9.8m) following a spike in sales over the course of last year.
The pandemic however led to it paying out hundreds of millions of pounds in mortality payments, and prospects for growth this year were dampened by new variant fears.
Its net client cash flow dropped to R0.1bn (£500,000) from R9.6bn (£487m) due to mortality claims, and in South Africa alone, it paid out around R13bn (£660m) last year, due to the virus.
Chief Executive of Old Mutual Limited, Iain Williamson, thanked “employees for the courage, resilience and inspiring commitment they have shown over the past year” as well as “all our customers, intermediaries, investors and communities for their continued support and loyalty throughout 2021.”
With the pandemic subsiding, growth is expected to continue, but at a lower rate than 2021, with the sub-Saharan African economy set to grow by 3.8 per cent, less than the IMF’s predicted global rate of 4.4 per cent.
It also revised South Africa’s growth prospects to 1.9 per cent, in part due to uncertainty around new variants.