.OldMutualSA reported a 41% rise in annual profit on Tuesday, but shares in the insurer fell by more than 2% as it raised provisions to cover higher-than-expected claims linked to Covid19 deaths. Moneyweb BusinessNews
South Africa-based Old Mutual reported a 41% rise in annual profit on Tuesday, but shares in the insurer fell by more than 2% as it raised provisions to cover higher-than-expected claims linked to Covid-19 deaths. Headline earnings per share, the main profit measure in South Africa, rose to 163.8 cents last year from 116.1 cents a year earlier. Its basic earnings per share stood at 151.
87 at 12:06. Old Mutual vs JSE All Share Williamson told Reuters that the excess deaths related to Covid-19 were likely to continue for the next few years, but the level of these should decline over time unless a more severe variant achieves dominance again. The insurer had to increase provisions by R2.2 billion in the second half of the year as these claims once again surpassed its expectations.