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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Insurance

Old Mutual jumps thanks to 'exceptional' insurance performance, favourable financial markets

Old Mutual Limited (LSE:OMU) shares jumped 9% after the company said it expects growth from its operating businesses in the first half of the year, although headline earnings and basic earnings per share are set to fall.

Results from the pan-African financial services group's operations are forecast to rise anywhere between 6% and 26% to between 4.5 billion rand and 5.35 billion rand (£0.2bn-£0.23bn), while adjusted headline earnings are expected to increase 19-39% to 3.9-4.5 billion rand.

The group said growth was driven by exceptional results from Old Mutual Insure, favourable financial markets and higher shareholder investment returns.

However, headline earnings are expected to decline 19-39% to 3.55-4.7 billion, following a 2.2 billion rand reduction in Zimbabwe profits after the functional currency was changed to US dollars.

Basic EPS is expected to fall 10-30% to between 84.1 cents and 108.2 cents.

The shares rose 9.4% to 61p in London and 6.6% to 1,452 cents in Johannesburg.

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