(Ecofin Agency) - Last year, Old Mutual achieved its strongest profit since 2019, but continues to struggle outside of South Africa. However, its alternative investment division, which has a strong presence in Côte d'Ivoire, remains resilient and solid.

In 2024, Old Mutual reported its best profit in five years, with an adjusted result of 6.69 billion rands (about $370 million), up 14%. This strong performance exceeded analysts' expectations, driven by growth in short-term insurance and wealth management in South Africa.

The group’s operating profit reached 8.7 billion rands, bolstered by a 37% increase in revenue from Old Mutual Investments and a 245% rise in non-life insurance profits. The launch of OM Bank, a new digital bank expected by the end of 2025, highlights the group’s focus on innovation and expanding its customer base.

However, performance outside South Africa remained more mixed. Old Mutual Africa Regions, covering ten countries outside South Africa, saw an 8% drop in operating profit. Unstable economic conditions, currency volatility, and rising operational costs impacted profitability. The company also faced declining margins in the insurance sector and restructured some operations. Old Mutual sold its subsidiaries in Tanzania and Nigeria, focusing on markets considered more strategic.

While South Africa enjoys a relatively stable economic climate, marked by gradual improvements in the energy crisis and growing consumer confidence, the situation is more mixed across the rest of the continent. Old Mutual is continuing to make strategic investments through its subsidiary OMAI, which oversees 23 active funds and holds stakes in more than 260 companies across Africa. OMAI also has offices in key cities like Abidjan, Johannesburg, Cape Town, Lagos, and Nairobi.

In 2024, OMAI raised 12.3 billion rands, with nearly half of this amount coming from external investors. This reflects strong interest in sectors like private equity and infrastructure. Operational performance is on the rise, with a 43% increase in operating results, driven by higher recurring revenues and continued investment momentum.

However, this growth hasn't fully translated into net profits yet. The company is dealing with significant capital outflows of 7.4 billion rands, which dampens the impact of new investments. Also, revenues tied to fund performance remain vulnerable to market fluctuations, adding volatility to the overall results.

While its competitor Sanlam pushes ahead with expansion across the continent, Old Mutual is taking a more cautious stance. This approach has helped stabilize its finances, but it could limit its long-term growth potential in Africa.