Q2 2026 Old Mutual Ltd Earnings Call

September 8, 2026

Langa Manqele: Good morning, everyone, and thank you for joining us today. My name is Langa Manqele, and I am the Head of Investor Relations for Old Mutual Group. I would like to welcome you all on behalf of our board and the management team. I must add that today is a particularly exciting day for us, which I will not steal the thunder from Jurie, as you have seen on our SENS announcement this morning. On the agenda for the day, as per usual, Jurie will kick us off with a strategic update together with an operational review. Shortly after that, Jurie will hand over to Caspar. Caspar is our Group CFO, who will then provide the financial review. Shortly after Caspar, Jurie will come back on the stage to provide us with his outlook and the concluding message for the presentation.

Speaker #1: Good morning, everyone, and thank you for joining us today. My name is Langa Manqele, and I'm the Head of Investor Relations for Old Mutual Group.

Speaker #1: I would like to welcome you all on behalf of our Board and the management team, and I must add that today is a particularly exciting day for us—which I will not steal the thunder from, as you have seen on our sales announcement this morning.

Speaker #1: On the agenda for the day, as usual, Jurie will kick us off with a strategic update, together with an operational review. Shortly after that, Jurie will hand over to Caspar. Caspar is our Group CFO, who will then provide the financial review.

Langa Manqele: On the agenda for the day, as per usual, Jurie will kick us off with a strategic update together with an operational review. Shortly after that, Jurie will hand over to Caspar. Caspar is our Group CFO, who will then provide the financial review. Shortly after Caspar, Jurie will come back on the stage to provide us with his outlook and the concluding message for the presentation. At that stage, I will then call back Caspar, who will be joined on stage by Ranen to help answer the Q&A. With that, may I hand over to Jurie. Thank you.

Speaker #1: Shortly after Caspar, Yuri will come back on stage to provide us with his outlook and the concluding message for the presentation. At that stage, I will then call back Caspar, who will be joined on stage by Ranen to help answer the Q&A.

Langa Manqele: At that stage, I will then call back Caspar, who will be joined on stage by Ranen to help answer the Q&A. With that, may I hand over to Jurie. Thank you.

Speaker #1: And with that, may I hand over to you, Jurie. Thank you.

Speaker #2: Morning, everybody. Great to be with you. Thank you to all investors who are joining us online. It's great to be with you for the interim results, Old Mutual, for 2026.

Jurie Strydom: Morning, everybody. Great to be with you. Thank you for everybody, that is all our investors that are joining us online. It is great to be with you for the interim results for Old Mutual for 2026. I have been in the job of Group CEO now for 15 months. This is actually my second set of interims. I really can confirm to you a growing confidence in the group that we are on track. We are where I had hoped, and as a team, we had hoped to be at this point in our strategy. You will recall that we set out our strategy last year at the Capital Markets Day. We have been tracking execution proof points along the way.

Speaker #2: I have been in the job of Group CEO now for 15 months, and so this is actually my second set of interims. I can really confirm to you a growing confidence in the group that we are on track, we are where I had hoped—and as a team, we’d hoped—to be at this point in our strategy.

Speaker #2: You'll recall that we set out our strategy last year at the Capital Markets Day, and so we've been tracking execution proof points along the way.

Speaker #2: And so, what I'll be doing this morning is taking you through our highlights piece, and then going back to strategy, just taking you through how we are executing against that strategy.

Jurie Strydom: What I will be doing this morning is taking you through a highlights piece and then going back to strategy and just taking you through how we are executing against that strategy. Before I do that, just a call-out on, Langa alluded to it, an exciting announcement for us this morning, and that is the announcement of Ranen Thakurdin as the next CFO of Old Mutual. Caspar, of course, well known to you, is retiring in April next year. Caspar, a lot of work between now and April next year, but I am sure you are also delighted to have Ranen appointed as CFO designate. Ranen will take over CFO designate from 1 January, and then walk alongside Caspar really for the year-end and then take over from Caspar in April next year, officially as CFO when Caspar retires.

Speaker #2: But before I do that, just to call out on Langa alluded to it, an exciting announcement for us this morning, and that is the announcement of Ron and Takudin as the CFO, as the next CFO of Old Mutual.

Speaker #2: Caspar, of course well known to you, is retiring in April next year. Cas, a lot of work between now and April next year, but I'm sure you're also delighted to have Ronan appointed as CFO designate.

Jurie Strydom: Caspar, a lot of work between now and April next year, but I am sure you are also delighted to have Ranen appointed as CFO designate. Ranen will take over CFO designate from 1 January, and then walk alongside Caspar really for the year-end and then take over from Caspar in April next year, officially as CFO when Caspar retires. Let me just say that, as Group CEO, I am delighted to have someone of Ranan's experience and expertise within the group to be able to do this internal succession.

Speaker #2: Ronan will take over as CFO designate from 1 January, and then walk alongside Caspar really for the end of the sort of year-end, and then take over from Caspar in April next year, officially as CFO when Caspar retires.

Speaker #2: Let me just say that, as Group CEO, I am delighted to have someone of Ronan's experience and expertise within the group to be able to do this internal succession.

Jurie Strydom: Let me just say that, as Group CEO, I am delighted to have someone of Ranan's experience and expertise within the group to be able to do this internal succession. I have worked closely with Ranan, both in his finance roles but also as Chief Risk Officer more recently. I really can assure investors that in terms of strategy and execution is concerned, Old Mutual is not going to miss a beat. I am absolutely delighted with this consideration. Congratulations, Ranan. So turning back to the highlights. I said I am going to give you a sense of sort of highlights of the half and then track it back to what we said we were going to do. I always say internally, we are going to become a company that is famous for doing what we say we are going to do.

Speaker #2: I've worked closely with Ronan, both in his finance roles but also, more recently, as Chief Risk Officer. And I really can assure investors that, as far as strategy and execution are concerned, Old Mutual is not going to miss a beat.

Jurie Strydom: I have worked closely with Ranan, both in his finance roles but also as Chief Risk Officer more recently. I really can assure investors that in terms of strategy and execution is concerned, Old Mutual is not going to miss a beat. I am absolutely delighted with this consideration. Congratulations, Ranan. So turning back to the highlights. I said I am going to give you a sense of sort of highlights of the half and then track it back to what we said we were going to do. I always say internally, we are going to become a company that is famous for doing what we say we are going to do.

Speaker #2: And so I'm absolutely delighted with this consideration. Congratulations, Ronan. So, turning back to the highlights, that's it. I'm going to give you a sense of the highlights of the half and then track it back to what we said we were going to do. I always say internally, we're going to become a company that is famous for doing what we say we're going to do, and I think we've got growing confidence that these results actually showcase that.

Jurie Strydom: I think we have got growing confidence that these results actually showcase that. So from a highlights perspective, the two return metrics, 12.7% RoGEV. You will know that we brought RoGEV in as a sort of key metric, key value metric last year. That is significantly up on last year. Last year, of course, we had the adjustments to the MFC persistency basis, and so a significant uptick. On RoNAV also, normalized RoNAV also up to 12.6%. Now, both of those return metrics, I would reflect to you, they are not yet in the range of respectively 14% to 16% and 15% to 17%. But it is the first time when those two return metrics have actually exceeded what we would consider to be our cost of capital, which is about 12.5%. So we really do believe that we are on track to getting into that medium-term range.

Speaker #2: So, from a highlights perspective, the two return metrics—12.7% RoGEV—you'll know that we brought RoGEV in as a sort of key metric, key value metric, last year.

Speaker #2: That is significantly up on last year. Last year, of course, we had the adjustments to the MFC persistency basis, and so a significant uptick. On RONA, I've also normalized RONA—also up to 12.6%.

Speaker #2: Now, both of those return metrics, I would reflect to you, are not yet in the range of, respectively, 14% to 16% and 15% to 17%. But this is the first time that those two return metrics have actually exceeded what we would consider to be our cost of capital, which is about 12.5%.

Jurie Strydom: Now, both of those return metrics, I would reflect to you, they are not yet in the range of respectively 14% to 16% and 15% to 17%. But it is the first time when those two return metrics have actually exceeded what we would consider to be our cost of capital, which is about 12.5%. So we really do believe that we are on track to getting into that medium-term range.

Speaker #2: And so we really do believe that we are on track to getting into that medium-term range. The dividend, again—the range is 6% to 9% growth, and an 8% increase in the dividend—and our confidence in the value of our business as reflected in the group equity value of 20.66 for the half is reflected in that additional R1 billion share buyback that we're announcing this morning.

Jurie Strydom: The dividend, again, the range of 6% to 9% growth and an 8% increase in the dividend. Our confidence in the value of our business, as reflected in the Group Equity Value of ZAR 20.66 for the half, is reflected in that additional ZAR 1 billion share buyback that we are announcing this morning. From a sort of sales and margins perspective, a very good performance. Life APE sales up 21%, gross flows up 21%. So that has been a strong performance. We have called out that there are some large gains, particularly the Corporate business in there. So that will moderate, but even if you allow for that, it moderates to a sort of underlying growth of about 12% for the half. So, that was one of our key proof points, and I am pleased that we are hitting it.

Speaker #2: From a sort of sales and margins perspective, a very good performance. Life APE sales up 21%, gross flows up 21%, so that's been a strong performance.

Speaker #2: We have called out that there are some large gains, particularly in the corporate business in there, so that will moderate. But even if you allow for that, it moderates to a sort of underlying growth of about 12% for the half.

Jurie Strydom: We have called out that there are some large gains, particularly the Corporate business in there. So that will moderate, but even if you allow for that, it moderates to a sort of underlying growth of about 12% for the half. So, that was one of our key proof points, and I am pleased that we are hitting it. From an RFO perspective, RFO per share up 11%, and that is despite quite a noisy environment from an economic variance perspective. So, there also, we are tracking well.

Speaker #2: And so that was one of our key proof points, and I'm pleased that we're hitting it. From an RFO perspective, RFO per share is up 11%, and that's despite quite a noisy environment from an economic variance perspective.

Jurie Strydom: From an RFO perspective, RFO per share up 11%, and that is despite quite a noisy environment from an economic variance perspective. So, there also, we are tracking well. We are signaling today, which Caspar will do, that RFO per share growth of about 10% to 14%, that is the RFO growth that we believe puts us in the range on our other medium-term targets. So we are, at this point, comfortably also within that range. So to go back, I just want to draw you back a little bit to the strategy as we announced at the Capital Markets Day last year. You will recall, we talked about unlocking value and generating growth as the sort of two phases of strategy for Old Mutual, driving competitiveness in the South African businesses through Old Mutual Life and Savings, Old Mutual Insure and Old Mutual Investments.

Speaker #2: And so there also, we are tracking well. We are signaling today—which Caspar will do—that RFO per share growth of about 10% to 14% is the RFO growth that we believe puts us in the range on our other medium-term targets.

Jurie Strydom: We are signaling today, which Caspar will do, that RFO per share growth of about 10% to 14%, that is the RFO growth that we believe puts us in the range on our other medium-term targets. So we are, at this point, comfortably also within that range. So to go back, I just want to draw you back a little bit to the strategy as we announced at the Capital Markets Day last year. You will recall, we talked about unlocking value and generating growth as the sort of two phases of strategy for Old Mutual, driving competitiveness in the South African businesses through Old Mutual Life and Savings, Old Mutual Insure and Old Mutual Investments.

Speaker #2: And so we are, at this point, comfortably also within that range. So, to go back, I just want to draw you back a little bit to the strategy as we announced it at Capital Markets Day last year. You'll recall we talked about unlocking value and generating growth as the two phases of strategy for Old Mutual—driving competitiveness in the South African businesses through Old Mutual Life and Savings, Old Mutual Insure, and Old Mutual Investments.

Speaker #2: Deepening market leadership in Southern Africa—so, recognizing across the African continent, we have, in Southern Africa, leadership positions. We've been in those markets a very long time and we are number one in a number of those. But what we want to do is convert that scale into better margins and returns.

Jurie Strydom: Deepening market leadership in Southern Africa, so recognizing across the African continent. We have, in Southern Africa, leadership positions. We have been in those markets a very long time, and we are number one in a number of those. We want to convert that scale into better margins and returns so that we can really put a value on those businesses and that value becomes more visible to investors. We want to establish the right to win for OM Bank. As I will talk to you later, we are in fact shifting our thinking already from establishing the right to win to actually really contesting the banking profit pool. Then finally, evaluating and pivoting on growth markets.

Speaker #2: So that we can really put a value on those businesses, and that value becomes more visible to investors. We want to establish the right to win for OM Bank, and as I'll talk to you later, we are in fact shifting our thinking already from establishing the right to win to actually really contesting the banking profit pool.

Jurie Strydom: As I will talk to you later, we are in fact shifting our thinking already from establishing the right to win to actually really contesting the banking profit pool. Then finally, evaluating and pivoting on growth markets. That is just a recognition that in our African portfolio in East and West Africa, in contrast to some of the other, in Southern Africa, where we are already market leaders, in East and West Africa, we really are wanting to build market leadership, but we first have to demonstrate through returns and margins that we can earn the right to deploy capital there.

Speaker #2: And then, finally, evaluating and pivoting on growth markets—and that's just a recognition that, in our African portfolio, in East and West Africa, in contrast to some of the others in Southern Africa where we are already market leaders, in East and West Africa we really are wanting to build market leadership. But we first have to demonstrate, through returns and margins, that we can earn the right to deploy capital there.

Jurie Strydom: That is just a recognition that in our African portfolio in East and West Africa, in contrast to some of the other, in Southern Africa, where we are already market leaders, in East and West Africa, we really are wanting to build market leadership, but we first have to demonstrate through returns and margins that we can earn the right to deploy capital there. What we did with these strategic focus areas, and we did this actually in March when we presented to you. We translated that into the medium-term targets and how they relate to what we call an execution proof points. Those proof points were the delivery of cost savings, our persistency variances, our new business volumes, getting traction in OM Bank and OM margins and returns.

Speaker #2: So, what we did with these strategic focus areas—and we did this actually in March when we presented to you—we translated that into the medium-term targets and how they relate to what we call execution proof points.

Jurie Strydom: What we did with these strategic focus areas, and we did this actually in March when we presented to you. We translated that into the medium-term targets and how they relate to what we call an execution proof points. Those proof points were the delivery of cost savings, our persistency variances, our new business volumes, getting traction in OM Bank and OM margins and returns.

Speaker #2: And those proof points were the delivery of cost savings, our persistency variances, our new business volumes, getting traction in OM Bank, and OM margins and returns.

Speaker #2: And so, those are the lead indicators that will ultimately get us to the lag indicators of our medium-term targets. I want to spend a moment just talking about each of those, and where we are in terms of executing against those targets.

Jurie Strydom: Those are the lead indicators that will ultimately get us to the lag indicators of our medium-term targets. I want to spend a moment just talking to each of those and where we are in terms of executing against those targets. Let me first say that I am very pleased with. I think 12 months a long time, but when I was talking to you 12 months ago, I was talking about how we were restructuring the group. We were creating our clusters. We were creating end-to-end accountability, giving people line-of-sight targets, and really creating a management machine that would be driving towards execution. We have a growing confidence and, in fact, a high conviction that we are already seeing that machinery at work. I see it in our quarterly cycles, see it through our incentives.

Speaker #2: Let me first say that I am very pleased. I think 12 months is a long time, but when I was talking to you 12 months ago, I was talking about how we were restructuring the group. We were creating our clusters, we were creating end-to-end accountability, giving people line-of-sight targets, and really creating a management machine that would be driving towards execution.

Jurie Strydom: We were creating our clusters. We were creating end-to-end accountability, giving people line-of-sight targets, and really creating a management machine that would be driving towards execution. We have a growing confidence and, in fact, a high conviction that we are already seeing that machinery at work. I see it in our quarterly cycles, see it through our incentives.

Speaker #2: And we have a growing confidence, and in fact, a high conviction that we're already seeing that machinery at work. I see it in our quarterly cycles, see it through our incentives, we see it through the execution that's coming through in the businesses.

Jurie Strydom: We see it through the execution that is coming through in the businesses. I think a very high degree of alignment around these priorities, and you can see it in the results we are producing. On cost savings, we talked about ZAR 1 billion by the end of this year and ZAR 2.5 billion by the end of next year. We are at ZAR 1 billion already virtually completed by mid this year, so on track for those cost savings. On persistency, very significant decisive actions that have been taken actually particularly on new business, but also on collections, in MFC, on distribution incentives, areas of loss-making business. We have conviction that we are starting to see those come through. Q1 was still there was some, we signaled to you in the operating update, still some negative persistency variances, but it really came through in line with basis in Q2.

Speaker #2: So I think there's a very high degree of alignment around these priorities, and you can see it in the results we're producing. On cost savings, we talked about $1 billion by the end of this year, and $2.5 billion by the end of next year.

Speaker #2: We are at $1 billion already, virtually completed by mid this year, so on track for those cost savings. On persistency, very significant and decisive actions have been taken, particularly on new business, but also on collections in MFC, on distribution incentives, and areas of loss-making business.

Jurie Strydom: On persistency, very significant decisive actions that have been taken actually particularly on new business, but also on collections, in MFC, on distribution incentives, areas of loss-making business. We have conviction that we are starting to see those come through. Q1 was still there was some, we signaled to you in the operating update, still some negative persistency variances, but it really came through in line with basis in Q2.

Speaker #2: So, we have conviction that we're starting to see those come through. Q1 was still—there was some, as we signaled to you in the operating update—still some negative persistency variances, but it really came through in line with basis in Q2.

Speaker #2: And overall, the experience is very healthy. So, we are confident that the basis changes we made are going to be appropriate, and that the management actions we've got in place are starting to work and are getting us to where we need to be.

Jurie Strydom: Overall experience variance is healthy. We are confident that the basis changes we made are going to be appropriate, and that actually the management actions we have in place are starting to work and are getting us to where we need to be. From a new business perspective, we talked about it. I talked about Life APE sales and gross flows, but I will also call out Old Mutual Investments, where gross flows are up 48% and largely within OMIG and Futuregrowth. In OM Bank, we are up to, at the end of June, it was about 750,000 customers. We will cross the 1 million customer threshold in the next couple of weeks. We had deposit growth to ZAR 1.4 billion. In June, we are at the end of August at ZAR 1.6 billion.

Speaker #2: From a new business perspective, we talked about it. I talked about Life APE sales and gross flows, but I'll also call out Old Mutual Investments.

Speaker #2: Our gross flows are 48%, and largely within OMEG and future growth. In OM Bank, we are up to, at the end of June, about 750,000 customers.

Jurie Strydom: In OM Bank, we are up to, at the end of June, it was about 750,000 customers. We will cross the 1 million customer threshold in the next couple of weeks. We had deposit growth to ZAR 1.4 billion. In June, we are at the end of August at ZAR 1.6 billion. The progress in kind of integrating Old Mutual Finance and OM Bank, which I will get to in a second, that has progressed well. We really have created an organization that is a much more fully fledged, all-rounded banking proposition than what it was a year ago.

Speaker #2: We will cross the one million customer threshold in the next couple of weeks. We had deposit growth to $1.4 billion in June, and we are at the end of August at $1.6 billion.

Speaker #2: And the progress in kind of integrating Old Mutual Finance and OM Bank—which I'll get to in a second—that has progressed well. We really have created an organization that is a much more fully fledged, all-rounded banking proposition than what it was a year ago.

Jurie Strydom: The progress in kind of integrating Old Mutual Finance and OM Bank, which I will get to in a second, that has progressed well. We really have created an organization that is a much more fully fledged, all-rounded banking proposition than what it was a year ago. Finally, in Old Mutual Africa Regions, there have been actions on pricing, on managing the portfolio, on driving sales. We are also seeing margins expand there, from the underwriting margin, significant improvement. VNB margin, we know with that VNB number, it is a volatile, it has been volatile historically. Certainly the management actions are there, and we have seen an improvement in the margin up to 2% for the half.

Speaker #2: Finally, in Omar, there have been actions on pricing, on managing the portfolio, and on driving sales, so we are also seeing margins expand there.

Jurie Strydom: Finally, in Old Mutual Africa Regions, there have been actions on pricing, on managing the portfolio, on driving sales. We are also seeing margins expand there, from the underwriting margin, significant improvement. VNB margin, we know with that VNB number, it is a volatile, it has been volatile historically. Certainly the management actions are there, and we have seen an improvement in the margin up to 2% for the half.

Speaker #2: From the underwriting margin, there has been significant improvement. BNB margin—we know with that BNB number, it is volatile; it has been volatile historically. But certainly the management actions are there, and we've seen an improvement in the margin, up to 2% for the half.

Speaker #2: So, I want to spend a moment on OM Bank because I think, clearly, in all of the execution pieces, OM Bank is a major growth initiative for us, and it is a key differentiator for us as we move into that generating growth phase of our business.

Jurie Strydom: I want to spend a moment on OM Bank because I think clearly in all of the execution pieces, OM Bank is a major growth initiative for us, and it is a key differentiator for us as we move into that generating growth phase of our business. This is just an illustration of the OM Bank ecosystem and how we are positioning OM Bank, the Old Mutual ecosystem, how we are positioning Old Mutual Bank as a kind of anchor in that ecosystem. It is not just a digital standalone banking proposition, but it actually works through the whole system of points of presence where we have 7,200 retail intermediaries in South Africa, 357 branches that are now integrated, fully integrated into the bank. We have 40,000 work sites.

Speaker #2: And so this is just an illustration of the OM Bank ecosystem and how we're positioning OM Bank, the Old Mutual ecosystem, and how we're positioning Old Mutual Bank as a kind of anchor in that ecosystem.

Speaker #2: And so it's not just a digital, standalone banking proposition, but it actually works through the whole system of points of presence, where we've got 7,200 retail intermediaries in South Africa and 357 branches that are now fully integrated into the bank.

Jurie Strydom: It is not just a digital standalone banking proposition, but it actually works through the whole system of points of presence where we have 7,200 retail intermediaries in South Africa, 357 branches that are now integrated, fully integrated into the bank. We have 40,000 work sites. We have opportunities to create integrated propositions across the stack, across Life and Savings and Old Mutual Insure into OM Bank. Just an illustration there of the opportunity set we have of ZAR 140 billion of inflows and outflows that go through our group, through Life and Savings.

Speaker #2: We've got 40,000 work sites. We've got opportunities to create integrated propositions across the stack—across Life and Savings, and OM Insure into OM Bank. That's just an illustration there of the opportunity set we have, of R140 billion of inflows and outflows that go through our group through Life and Savings.

Jurie Strydom: We have opportunities to create integrated propositions across the stack, across Life and Savings and Old Mutual Insure into OM Bank. Just an illustration there of the opportunity set we have of ZAR 140 billion of inflows and outflows that go through our group, through Life and Savings. Then our 3.4 million reward members, and increasingly those redemptions happening through OM Bank. The clarity that I want to bring this morning is on the, we have spoken previously about breakeven in 2028 for the bank on a monthly basis. We are now looking at this as a cluster, and we are looking at OM banking cluster RFO targeting ZAR 0 to ZAR 200 million annually in 2028. Giving you a breakdown of what are the key targets that we need to hit to achieve those numbers. Talked about customers.

Speaker #2: And then our 3.4 million rewards members, and increasingly those redemptions happening through OM Bank. So the clarity that I want to bring this morning is on the—we've spoken previously about break-even in 2028 for the bank on a monthly basis.

Jurie Strydom: Then our 3.4 million reward members, and increasingly those redemptions happening through OM Bank. The clarity that I want to bring this morning is on the, we have spoken previously about breakeven in 2028 for the bank on a monthly basis. We are now looking at this as a cluster, and we are looking at OM banking cluster RFO targeting ZAR 0 to ZAR 200 million annually in 2028. Giving you a breakdown of what are the key targets that we need to hit to achieve those numbers. Talked about customers.

Speaker #2: We are now looking at this as a cluster, and so we're looking at the OM Banking cluster RFO, targeting north of $200 million annually in 2028.

Speaker #2: And giving you a breakdown of what are the key targets that we need to hit to achieve those numbers. And so, talked about customers, we haven't changed the target for customers of 2.5 million, 2.8 million.

Jurie Strydom: We haven't changed the target for customers of 2.5 million, 2.8 million. The levers there are, we've got. It's ultimately about NIR there, and we've got bundled rewards and bundled products that we can drive, extended value-added services, our non-advice funeral proposition that we can scale. So that's the opportunity set there. In terms of growing retail deposits, we are well on track and pleased with our progress in retail deposits, but we're targeting ZAR 8 billion to ZAR 10 billion by the end of 2028. There, it really is around leveraging our mutual distribution, in particular, repositioning our Mass and Foundation Cluster savings proposition, launching fixed deposit products, and the like. From a lending point of view, we have a lending business, of course, in Old Mutual Finance that is largely our lending business, a personal loans business.

Speaker #2: The leave is there, or we've got—it's ultimately about NIR there. And we've got bundled rewards and bundled products that we can drive, extended value-added services, our non-advice funeral proposition that we can scale, and so that's the opportunity set there.

Speaker #2: In terms of growing retail deposits, we are well on track and pleased with our progress in retail deposits, but we're targeting $8 to $10 billion by the end of 2028.

Speaker #2: There it really is around leveraging Old Mutual distribution in particular, repositioning our MFC savings proposition, launching fixed deposit products, and the like. From a lending point of view, we have a lending business, of course, in Old Mutual Finance. That is largely our lending business—a personal loans business.

Jurie Strydom: There, it really is around leveraging our mutual distribution, in particular, repositioning our Mass and Foundation Cluster savings proposition, launching fixed deposit products, and the like. From a lending point of view, we have a lending business, of course, in Old Mutual Finance that is largely our lending business, a personal loans business. We want to scale that from the ZAR 16.4 billion currently up to that sort of ZAR 23 billion to ZAR 26 billion range.

Speaker #2: We want to scale that from the $16.4 billion currently, up to that sort of $23 to $26 billion range. And importantly, we're going to be supplementing our strong personal loans business of about $15 billion, scaling it also in other areas such as secured lending, investment bank loans, home loans, and credit cards.

Jurie Strydom: We want to scale that from the ZAR 16.4 billion currently up to that sort of ZAR 23 billion to ZAR 26 billion range. And importantly, we're going to be supplementing that strong personal loans business of about ZAR 15 billion, scaling it also in other areas, so secured lending, investment bank loans, home loans, and credit cards. And we want to grow that portion of the lending business. Again, part of the scheme of building out OM Bank as a much more fully fledged, all-rounded banking proposition. I want to now turn to the operational review and just spend a moment on each of the clusters and some of the business units before I hand over to Casper for a more detailed financial review. Old Mutual Life and Savings, it's a significant part of our group, so pleased there with Life APE sales up 21% and VNB up 47%.

Jurie Strydom: And importantly, we're going to be supplementing that strong personal loans business of about ZAR 15 billion, scaling it also in other areas, so secured lending, investment bank loans, home loans, and credit cards. And we want to grow that portion of the lending business. Again, part of the scheme of building out OM Bank as a much more fully fledged, all-rounded banking proposition. I want to now turn to the operational review and just spend a moment on each of the clusters and some of the business units before I hand over to Casper for a more detailed financial review.

Speaker #2: And we want to grow that portion of the lending business—again, part of this theme of building out OM Banking as a much more fully-fledged, all-rounded banking proposition.

Speaker #2: I want to now turn to the operational review, and just spend a moment on each of the clusters and some of the business units.

Speaker #2: Before I hand over to Caspar for a more detailed financial review, Old Mutual Life and Savings is a significant part of our group. Please note that Life APE sales are up 21%, and VNB is up 47%.

Jurie Strydom: Old Mutual Life and Savings, it's a significant part of our group, so pleased there with Life APE sales up 21% and VNB up 47%. We've spoken about VNB margin, and VNB margin obviously being under some pressure across the market with reduced guaranteed annuity sales. But importantly, if you look at this VNB actually as a percentage of opening GEV and a percentage of RoGEV actually significantly advancing.

Speaker #2: We've spoken about V and B margin, and V and B margin obviously being under some pressure across the market with reduced guaranteed annuity sales, but importantly, if you look at this V and B actually as a percentage of opening GEV and a percentage of row give, actually significantly advancing.

Jurie Strydom: We've spoken about VNB margin, and VNB margin obviously being under some pressure across the market with reduced guaranteed annuity sales. But importantly, if you look at this VNB actually as a percentage of opening GEV and a percentage of RoGEV actually significantly advancing. If we go into each of the underlying business units, Wealth Management and Corporate standout performers in this half within Life and Savings. Wealth Management, of course, now having 10X Investments included in that business. We are delighted with that business, and it really is going to become an important part of our proposition going forward. But sales there growing 21%, VNB margin also ticking up to 1.1%. On the Personal Finance side, and I want to iterate here, Personal Finance sales more muted.

Speaker #2: If we go into each of the underlying business units—wealth management and corporate stand out as performers in this half within Life and Savings. Wealth management, of course, now having 10X Investments included in that business—we are delighted with that business, and it really is going to become an important part of our proposition going forward.

Jurie Strydom: If we go into each of the underlying business units, Wealth Management and Corporate standout performers in this half within Life and Savings. Wealth Management, of course, now having 10X Investments included in that business. We are delighted with that business, and it really is going to become an important part of our proposition going forward. But sales there growing 21%, VNB margin also ticking up to 1.1%. On the Personal Finance side, and I want to iterate here, Personal Finance sales more muted.

Speaker #2: But sales there are growing 21%, VNB margin also ticking up to 1.1%. On the personal finance side—and I want to reiterate here—personal finance sales are more muted. You’ve got to remember that both personal finance and wealth management are actually listed in line with peers, and are part of a unified distribution engine.

Jurie Strydom: Got to remember that both Personal Finance and Wealth Management are actually, and this is in line with peers, are part of a unified distribution engine. So we are overall in the Personal Finance and Wealth segment, we are pleased with sales in general. There has been a tilt in mix more towards Wealth Management products, and particularly from guaranteed annuities into linked annuities. But comfortable with the progress there. If I then look at the other two business units within Life and Savings, Mass and Foundation, life and funeral sales up 9%, which is good. We are certainly calling out that the management actions that we're taking, and it's particularly primarily on new business, is we are targeting loss-making areas of new business that we do believe will moderate sales somewhat in the second half. But that is in the pursuit of value-accretive activity and value-accretive new business.

Speaker #2: So, overall, in the personal finance and wealth segment, we are pleased with sales in general. There has been a tilt in mix more towards wealth management products, and particularly from guaranteed annuities to interlinked annuities, but we are comfortable with the progress there.

Speaker #2: If I then look at the other two business units within Life and Savings—Mass and Foundation—Life and Funeral sales are up 9%, which is good.

Jurie Strydom: If I then look at the other two business units within Life and Savings, Mass and Foundation, life and funeral sales up 9%, which is good. We are certainly calling out that the management actions that we're taking, and it's particularly primarily on new business, is we are targeting loss-making areas of new business that we do believe will moderate sales somewhat in the H2. But that is in the pursuit of value-accretive activity and value-accretive new business.

Speaker #2: We are certainly calling out that the management actions that we're taking—and it's particularly, primarily on new business—are targeting loss-making areas of new business that we do believe will moderate sales somewhat in the second half.

Speaker #2: But that's all in the that is in the pursuit of value creative activity and value creative new business. That margin, that's the primary actions to drive the expansion of that margin again.

Jurie Strydom: That margin, that is the primary actions to drive the expansion of that margin again. You can see we reported the VNB of 4.5% for Mass & Foundation last year. Actually what we have done now is we have moved Credit Life into the bank because Credit Life, along with lending, is a key profit driver within the bank. Looking at MFC on its own, that 2.5% for the half, and that is the piece where really we are looking at both persistency and management actions there, but also ultimately expenses to make sure that we have a healthy margin there. Corporate standout performer for the half. This really is the leading operator in its segment, and very pleased both with margins and with volumes in this business. We have called out with these large schemes, there is a non-recurring nature to some of that.

Speaker #2: You can see we reported the V and B of 4.5% for mass and foundation last year, that has actually what we've done now is we've moved credit life into the bank, because credit life along with lending is a sort of key profit driver within the bank, and so looking at MFC on its own, that 2.5% for the half, and that's the piece where really we're looking at both persistency and management actions there, but also ultimately expenses to make sure that we have a healthy margin there.

Speaker #2: A corporate standout performer for the half, this really is the leading market and the leading operator in its segment. We are very pleased both with margins and with volumes in this business.

Jurie Strydom: This really is the leading operator in its segment, and very pleased both with margins and with volumes in this business. We have called out with these large schemes, there is a non-recurring nature to some of that. The business is lumpy, but very pleased with progress. Old Mutual Banking, this is now the cluster together. You can see that I have talked about the clients and the deposits. Our loans and advances are flat for the half. You will see there was some additional credit provisioning within Old Mutual Finance.

Speaker #2: We have called out, with these large schemes, there is a kind of non-recurring nature to some of that, but the business is lumpy. But we are very pleased with the progress.

Jurie Strydom: The business is lumpy, but very pleased with progress. Old Mutual Banking, this is now the cluster together. You can see that I have talked about the clients and the deposits. Our loans and advances are flat for the half. You will see there was some additional credit provisioning within Old Mutual Finance. We are looking to grow this business from here and to increasingly drive lending through the bank and start launching lending through the bank in the H2 of this year. Just pointing you again to that combined RFO picture, where we are moving towards targeting that nought from breakeven to ZAR 200 million RFO in 2028. Again, just pointing you to those levers that I showed you earlier. Those are the real markers to see that we are tracking from a revenue and a cost perspective to be able to hit that breakeven.

Speaker #2: Old Mutual Banking—this is now the cluster together. You can see that I've talked about the clients and the deposits. Our loans and advances are flat for the half. You will see there was some additional credit provisioning within Old Mutual Finance.

Speaker #2: We are looking to grow this business from here, and to increasingly drive lending through the bank and start launching lending through the bank in the second half of this year.

Jurie Strydom: We are looking to grow this business from here and to increasingly drive lending through the bank and start launching lending through the bank in the H2 of this year. Just pointing you again to that combined RFO picture, where we are moving towards targeting that nought from breakeven to ZAR 200 million RFO in 2028. Again, just pointing you to those levers that I showed you earlier. Those are the real markers to see that we are tracking from a revenue and a cost perspective to be able to hit that breakeven.

Speaker #2: And then just pointing you again to that combined RFO picture, where we are moving towards targeting that north from breakeven to 200 million RFO in 2028.

Speaker #2: And again, just pointing you to those levers that I showed you earlier. Those are the real markers to see that we are tracking, from a revenue and a cost perspective, to be able to hit that break-even.

Jurie Strydom: Old Mutual Investments, a strong half. Gross flows up 48%. That actually excludes alternatives because alternatives capital raises are not in gross flows. Alternatives also having an excellent capital raise year, 97% up to ZAR 6.7 billion. That is a fantastic business. Also then looking at those gross flows in asset management in OMIG and in Futuregrowth. Very, very strong. Assets under management are flat over the period in line with markets, but RFO up 40% and partly as a result of this growth in non-annuity revenue. Very pleased with the performance of the investments cluster. Old Mutual Insure, it was a tougher period this half than it was in the prior period from a large claim perspective. There were floods, flood claim, catastrophe claims that came through. I really believe that the 7.6% underwriting margin is a very resilient performance in this half.

Speaker #2: Old Mutual Investments had a strong half, with gross flows up 48%. That actually excludes alternatives, because alternatives' capital raises are not included in gross flows. Alternatives also had an excellent capital raise this year, up 97% to R6.7 billion. That is a fantastic business. Also, looking at those gross flows in asset management in OMEG and in Futuregrowth.

Speaker #2: Very, very strong assets under management, flat over the period in line with markets, but RFO up 40%, and partly as a result of this growth in non-annuity revenue.

Jurie Strydom: Assets under management are flat over the period in line with markets, but RFO up 40% and partly as a result of this growth in non-annuity revenue. Very pleased with the performance of the investments cluster. Old Mutual Insure, it was a tougher period this half than it was in the prior period from a large claim perspective. There were floods, flood claim, catastrophe claims that came through. I really believe that the 7.6% underwriting margin is a very resilient performance in this half.

Speaker #2: I'm very pleased with the performance of the Investments cluster. Old Mutual Insure had a tougher period in this half than it did in the prior period, mainly from a large claims perspective.

Speaker #2: They were flood catastrophe claims that came through. I really believe that the 7.6% underwriting margin is a very resilient performance, actually, in this half.

Speaker #2: I have been quite bold, I know, in my investor meetings, telling you that I believe—and I, back in a previous life, had once run a motor insurance business.

Jurie Strydom: I have been quite bold, I know, in my investor meetings telling you that I believe, and back in a previous life, I had once run a motor insurance business. I do know what the levers are of success in a business like this and the foundations that have been put in place through data and through operations, both all the way through from pricing. This business now set us up to be more competitive going forward to be able to grow our business. While sales were muted at 5% for the half, we are already starting to see underlying growth come through that I believe will have a better outcome and stronger growth in the full year. As it was for this half, we had strong growth coming in through from Gen Re and from ONE Financial Services, which supported the number.

Speaker #2: I do know what the levers are of success in a business like this, and the foundations that have been put in place through data, and through operations, both all the way through from pricing. This business now sets us up to be more competitive going forward and to be able to grow our business.

Jurie Strydom: This business now set us up to be more competitive going forward to be able to grow our business. While sales were muted at 5% for the half, we are already starting to see underlying growth come through that I believe will have a better outcome and stronger growth in the full year. As it was for this half, we had strong growth coming in through from Gen Re and from ONE Financial Services, which supported the number.

Speaker #2: So while sales were muted at 5% for the half, we are already starting to see underlying growth come through that I believe will have a better outcome and stronger growth in the full year.

Speaker #2: As it was for this half, we had strong growth coming in from January and from one financial services, which is the support of the number.

Speaker #2: But overall, and this is also the business which has led our group on the implementation of AI, where its AI program is actually well into three or four years, and its data program three or four years into implementation.

Jurie Strydom: But overall, this is also the business which has led our group on the implementation of AI, which AI program is actually well three or four years, and its data program three or four years into implementation. I think that's part of the results that we're seeing, which notwithstanding a claims ratio going from 47% to 50%, I think a number of years ago, that would have been a very difficult thing to manage through for this business. But we're seeing it come through with resilience. Then finally, Old Mutual Africa Regions, sales up by 35% and this call-out on margins being a big focus. So whilst that margin is volatile in life, we're pleased with the performance there to getting us to 2%.

Speaker #2: And I think that's part of the results that we're seeing, which, notwithstanding a claims ratio going from 47% to 50%, I think a number of years ago that would have been a very difficult thing to manage through for this business.

Speaker #2: But we're seeing it come through with resilience. And then finally, Old Mutual Africa Regions, where sales are up by 35%, and this callout on margins being a big focus.

Speaker #2: So, whilst that margin is volatile in life, we're pleased with the performance there in getting us to 2%. And on the short-term side, again, the implementation of focus on margins, pricing actions, looking at renewals, looking at how you manage your portfolio, did result in some pressure on top line, but we believe it's well worth it when you look at the impact that will come through in margins.

Jurie Strydom: So whilst that margin is volatile in life, we're pleased with the performance there to getting us to 2%. And on the short-term side, that again, the implementation, the focus on margins, pricing actions, looking at renewals, looking at how you manage your portfolio, it did result in some pressure on top line, but we believe well worth it when you look at the impact that will come through in margins.

Jurie Strydom: And on the short-term side, that again, the implementation, the focus on margins, pricing actions, looking at renewals, looking at how you manage your portfolio, it did result in some pressure on top line, but we believe well worth it when you look at the impact that will come through in margins. So overall, before I hand over to Casper, I think I'm pleased we are where I'd hoped we would be at this H1. I'm very confident that as a team, we are focused as a business, and there's a growing confidence internally that the machinery, the green machinery in Old Mutual, is focused on the delivery of the key proof points in our business. I think that you'll see more of that now from Casper's presentation. Over to you, Casper.

Speaker #2: So overall, before I hand over to Caspar, I think, pleased, we are where I had hoped we would be at this half. I'm very confident that as a team, we are focused, and as a business, there's a growing confidence internally that the machinery—the green machinery—in Old Mutual is focused on the delivery of the key proof points.

Jurie Strydom: So overall, before I hand over to Casper, I think I'm pleased we are where I'd hoped we would be at this H1. I'm very confident that as a team, we are focused as a business, and there's a growing confidence internally that the machinery, the green machinery in Old Mutual, is focused on the delivery of the key proof points in our business. I think that you'll see more of that now from Casper's presentation. Over to you, Casper.

Speaker #2: In our business. And I think that you'll see more of that now from Caspar's presentation. Over to you, Caspar.

Speaker #1: Thank you, Jurie. I will now take us through the financial review, focusing on earnings, value, and capital. Starting with earnings, we have seen robust underlying operating growth in Results from Operations, or RFO, even after our deliberate increased investments in OM Bank.

Casper Troskie: Thank you, Jurie. I will now take us through the financial review, focusing on earnings, value, and capital. Starting with earnings, we have seen robust underlying operating growth in results from operations or RFO, even after our deliberate increased investment in OM Bank. We have assessed our forward-looking medium-term earnings profile, and the 11% increase in RFO per share is within our target range of 10% to 14% sustainable growth per share based on our 2025 base. The 11% growth was supported by improved operating performance in Old Mutual Investments and our Old Mutual Africa Regions and reduced shareholder costs in other group activities.

Speaker #1: We have assessed our forward-looking medium-term earnings profile, and the 11% increase in RFO per share is within our target range of 10% to 14% sustainable growth per share, based on our 2025 base.

Speaker #1: The 11% growth was supported by improved operating performance in our mutual investments and Old Mutual Africa regions, as well as reduced shareholder costs in other group activities.

Casper Troskie: The 11% growth was supported by improved operating performance in Old Mutual Investments and our Old Mutual Africa Regions and reduced shareholder costs in other group activities. Turning to the cluster-specific RFO performance and starting with Old Mutual Life and Savings, which was up 4%, Mass & Foundation increased by 19%, which was largely due to the strengthening of the long-term persistency basis on our funeral book in the prior year, and was further supported by improved mortality and persistency outcomes, partially offset by negative IFRS economic variances during the H1.

Speaker #1: Turning to the cluster-specific RFO performance, and starting with Old Mutual Life and Savings, which was 4%. Mass and Foundation increased by 19%, which was largely due to the strengthening of the long-term persistency basis on our funeral book in the prior year.

Casper Troskie: Turning to the cluster-specific RFO performance and starting with Old Mutual Life and Savings, which was up 4%, Mass & Foundation increased by 19%, which was largely due to the strengthening of the long-term persistency basis on our funeral book in the prior year, and was further supported by improved mortality and persistency outcomes, partially offset by negative IFRS economic variances during the H1. Personal Finance RFO decreased by 11%, mainly due to negative IFRS economic variances, partially offset by positive mortality and persistency experience. Wealth Management profits increased by 49% due to stronger revenue from higher average assets under management. A change to the retail margin agreement, with Wealth retaining 7% of the retail margin previously reported by Old Mutual Investments. This represents the margin on assets managed on behalf of Wealth's clients, better aligning revenue with the management of those assets.

Speaker #1: And was further supported by improved mortality and persistency outcomes, partially offset by negative IFRS economic variances during the first half. Personal Finance RFO decreased by 11%, mainly due to negative IFRS economic variances, partially offset by positive mortality and persistency experience.

Casper Troskie: Personal Finance RFO decreased by 11%, mainly due to negative IFRS economic variances, partially offset by positive mortality and persistency experience. Wealth Management profits increased by 49% due to stronger revenue from higher average assets under management. A change to the retail margin agreement, with Wealth retaining 7% of the retail margin previously reported by Old Mutual Investments. This represents the margin on assets managed on behalf of Wealth's clients, better aligning revenue with the management of those assets.

Speaker #1: Wealth management profits increased by 49%, due to stronger revenue from higher average assets under management and a change to the retail margin agreement, with Wealth retaining 7% of the retail margin previously reported by Old Mutual Investments.

Speaker #1: This represents the margin on assets managed on behalf of Wealth's clients, better aligning revenue with the management of those assets. And Old Mutual Corporate's RFO decreased by 8%.

Casper Troskie: Old Mutual Corporate RFO decreased by 8%, largely due to flat IFRS economic variances in the current period compared to the strong positive contributions from markets in the prior period, and was partially offset by positive mortality and morbidity variances. We continue to see the benefits of our diversified Old Mutual Investments business with our diversified revenue streams driving strong operating growth. Results from operations increased by 40%, largely due to a significant increase in non-annuity revenue, supported by higher preferred returns and fair value gains. Annuity revenue grew by 6% to ZAR 1.5 billion due to increased fund commitments and portfolio growth. This is a particularly good result in light of the change to our retail margin agreement I mentioned earlier, which impacted annuity revenue.

Speaker #1: This was largely due to flat IFRS economic variances in the current period, compared to the strong positive contributions from markets in the prior period, and was partially offset by positive mortality and morbidity variances.

Speaker #1: We continued to see the benefits of our diversified Old Mutual Investments business, with our diversified revenue streams driving strong operating growth. Results from operations increased by 40%, largely due to a significant increase in non-annuity revenue, supported by higher preferred returns and fair value gains.

Speaker #1: Annuity revenue grew by 6% to R1.5 billion, due to increased fund commitments and portfolio growth. This is a particularly good result in light of the change to our retail margin agreement I mentioned earlier, which impacted annuity revenue.

Casper Troskie: Annuity revenue grew by 6% to ZAR 1.5 billion due to increased fund commitments and portfolio growth. This is a particularly good result in light of the change to our retail margin agreement I mentioned earlier, which impacted annuity revenue. Results from operations in Old Mutual Insure decreased by 25%, reflecting lower underwriting earnings relative to the strong prior period outcome and a reduction in investment returns on insurance funds.

Speaker #1: Results from operations in Old Mutual Insure decreased by 25%, reflecting lower underwriting earnings relative to the strong prior period outcome and a reduction in investment returns on insurance funds.

Casper Troskie: Results from operations in Old Mutual Insure decreased by 25%, reflecting lower underwriting earnings relative to the strong prior period outcome and a reduction in investment returns on insurance funds. The insurance service results decreased by 21%, driven mainly by elevated catastrophe losses of ZAR 376 million net of reinsurance due to the severe flooding events in the Eastern and Western Cape in Q2. Our net underwriting margin remained resilient at the upper end of our target range. Old Mutual Africa Regions RFO increased by 65%, driven mainly by growth in Malawi and East and West Africa. Our Malawi operations continue to face challenges brought on by high levels of inflation and foreign currency shortages. While exchange rates did influence Malawi's results, the underlying performance in Malawi remains strong across all lines of business, reflective of management's response to the economic environment.

Speaker #1: The insurance service results decreased by 21%, driven mainly by elevated catastrophe losses of R376 million, net of reinsurance, due to the severe flooding events in the Eastern and Western Cape in Q2.

Casper Troskie: The insurance service results decreased by 21%, driven mainly by elevated catastrophe losses of ZAR 376 million net of reinsurance due to the severe flooding events in the Eastern and Western Cape in Q2. Our net underwriting margin remained resilient at the upper end of our target range. Old Mutual Africa Regions RFO increased by 65%, driven mainly by growth in Malawi and East and West Africa. Our Malawi operations continue to face challenges brought on by high levels of inflation and foreign currency shortages.

Speaker #1: Our net underwriting margin remained resilient, at the upper end of our target range. Old Mutual Africa Regions' RFO increased by 65%, driven mainly by growth in Malawi, and East and West Africa.

Speaker #1: Our Malawi operations continue to face challenges brought on by high levels of inflation and foreign currency shortages. While exchange rates did influence Malawi's results, the underlying performance in Malawi remains strong across all lines of business, reflective of management's response to the economic environment.

Casper Troskie: While exchange rates did influence Malawi's results, the underlying performance in Malawi remains strong across all lines of business, reflective of management's response to the economic environment. Results from operations in East and West region increased from ZAR 10 million to ZAR 125 million, driven by improved performance in all lines of business except banking and lending. Zimbabwe remains an important business of substantial scale.

Speaker #1: Results from operations in the East and West regions increased from $10 million to $125 million, driven by improved performance in all lines of business except banking and lending.

Casper Troskie: Results from operations in East and West region increased from ZAR 10 million to ZAR 125 million, driven by improved performance in all lines of business except banking and lending. Zimbabwe remains an important business of substantial scale. But due to the inability to access capital, we have ring-fenced their results since 2019. We have excluded their results from adjusted headline earnings, RoNAV, and other group KPIs. We have made material progress in addressing these constraints, with improving conditions supporting potential inclusion in our group results, subject to achieving the required capital repatriation milestones. Zimbabwe saw strong equity market performance in the H1 2026, with higher investment returns being the main contributor to the growth in adjusted headline earnings. We will continue to assess cash generation, fundability, and the macro environment, and will provide an update at our 2026 annual results.

Speaker #1: Zimbabwe remains an important business of substantial scale. However, due to the inability to access capital, we have ring-fenced the results since 2019, and we have excluded the results from adjusted headline earnings, RONAV, and other group KPIs.

Casper Troskie: But due to the inability to access capital, we have ring-fenced their results since 2019. We have excluded their results from adjusted headline earnings, RoNAV, and other group KPIs. We have made material progress in addressing these constraints, with improving conditions supporting potential inclusion in our group results, subject to achieving the required capital repatriation milestones. Zimbabwe saw strong equity market performance in the H1 2026, with higher investment returns being the main contributor to the growth in adjusted headline earnings.

Speaker #1: We have made material progress in addressing these constraints, with improving conditions supporting potential inclusion in our group results, subject to achieving the required capital repatriation milestones.

Speaker #1: Zimbabwe saw strong equity market performance in the first half of 2026, with higher investment returns being the main contributor to the growth in adjusted headline earnings.

Speaker #1: We will continue to assess cash generation, fungibility, and the macro environment, and will provide an update at our 2026 annual results. Shareholder operational costs decreased by 57%, with the prior year including a R414 million restructuring provision.

Casper Troskie: We will continue to assess cash generation, fundability, and the macro environment, and will provide an update at our 2026 annual results. Shareholder operational costs decreased by 57% the prior year, including a ZAR 440 million restructuring provision. Excluding the once-off restructuring provision, shareholder operational costs reduced by ZAR 225 million or 31%, driven by our commitment to a lean corporate center. The reduction of Treasury contribution relates to lower interest and cash balances and a once-off impact related to a tax provision unwind in the prior year.

Casper Troskie: Shareholder operational costs decreased by 57% the prior year, including a ZAR 440 million restructuring provision. Excluding the once-off restructuring provision, shareholder operational costs reduced by ZAR 225 million or 31%, driven by our commitment to a lean corporate center. The reduction of Treasury contribution relates to lower interest and cash balances and a once-off impact related to a tax provision unwind in the prior year. In addition, our asset liability program outcomes, although in line with targets, were lower than the prior period. As I outlined in our 2025 annual results, cost savings are being tracked through a two-pronged approach. Firstly, savings will be evidenced through improvements in our key efficiency metrics over time. Secondly, we are tracking total savings by reconciling our IFRS expense base in the financial statements to our controllable expense base, with detailed reconciliations provided from 2024 through to June 2026.

Speaker #1: Excluding the once-off restructuring provision, shareholder operational costs reduced by R225 million, or 31%, driven by our commitment to a lean corporate centre. The reduction of treasury contribution relates to lower interest and cash balances, and a once-off impact related to a tax provision unwind in the prior year.

Speaker #1: In addition, our asset liability program outcomes, although in line with targets, were lower than the prior period. As I outlined in our 2025 annual results, cost savings are being tracked through a two-pronged approach.

Casper Troskie: In addition, our asset liability program outcomes, although in line with targets, were lower than the prior period. As I outlined in our 2025 annual results, cost savings are being tracked through a two-pronged approach. Firstly, savings will be evidenced through improvements in our key efficiency metrics over time. Secondly, we are tracking total savings by reconciling our IFRS expense base in the financial statements to our controllable expense base, with detailed reconciliations provided from 2024 through to June 2026.

Speaker #1: Firstly, savings will be evidenced through improvements in our key efficiency metrics over time. Secondly, we are tracking total savings by reconciling our IFRS expense base in the financial statements to our controllable expense base.

Speaker #1: With detailed reconciliations provided from 2024 through to June 2026. As outlined in this waterfall, controllable expenses are then reconciled to our achieved net savings after allowing for inflation, foreign currency movements, and once-off costs to save future costs, which are removed in the subsequent year.

Casper Troskie: As outlined in this waterfall, controllable expenses are then reconciled to our achieved net savings after allowing for inflation, foreign currency movements, and once-off costs to save future costs, which are removed in the subsequent year. This waterfall also adjusts for business boundary changes to controllable expenses, with the only adjustment being the impact of 10X. For the H1 2026, we achieved savings of ZAR 338 million. This takes our cumulative savings to ZAR 936 million, while on track to achieve savings by the end of 2026 of at least ZAR 1 billion. We highlighted 2025 savings of ZAR 450 million at our 2025 annual results. This was an initial view with actual 2025 savings at ZAR 598 million post-completion of our IFRS expense reconciliations. Adjusted headline earnings or AHE per share was down 27%, driven mainly by shareholder investment returns being below what we would expect on a normalized basis.

Speaker #1: This waterfall also adjusts for business boundary changes to controllable expenses, with the only adjustment being the impact of 10X. For the first half of 2026, we achieved savings of $338 million.

Speaker #1: This takes our cumulative savings to R936 million, while we remain on track to achieve savings of at least R1 billion by the end of 2026.

Casper Troskie: This takes our cumulative savings to ZAR 936 million, while on track to achieve savings by the end of 2026 of at least ZAR 1 billion. We highlighted 2025 savings of ZAR 450 million at our 2025 annual results. This was an initial view with actual 2025 savings at ZAR 598 million post-completion of our IFRS expense reconciliations. Adjusted headline earnings or AHE per share was down 27%, driven mainly by shareholder investment returns being below what we would expect on a normalized basis.

Speaker #1: We highlighted 2025 savings of $450 million at our 2025 annual results. This was an initial view, with actual 2025 savings at $598 million post-completion of our IFRS expense reconciliations.

Speaker #1: Adjusted headline earnings, or AHE per share, was down 27%, driven mainly by shareholder investment returns being below what we would expect on a normalised basis.

Speaker #1: Overall, South Africa's shareholder investment returns were in line with strategic asset allocation return benchmarks, with the additional reduction below the benchmark return being driven by active bond positions taken to increase bond duration and reduce solvency volatility.

Casper Troskie: Overall, South Africa shareholder investment returns were in line with strategic asset allocation return benchmarks, with the additional reduction below the benchmark return being driven by active bond positions taken to increase bond duration and reduce solvency volatility. Year-on-year, IFRS profits reduced, impacted by the reduction in adjusted headline earnings, which was partially offset by a substantial increase in Zimbabwe's IFRS profits due to higher investment returns. Now moving to value. Group equity value or GEV per share increased to ZAR 20.66, with gross value exceeding distributions, and the per-share GEV is supported by the completion of our share buyback. We saw solid growth in our covered business and in our property and casualty business, reflecting the resilient underlying underwriting performance in Old Mutual Insure.

Speaker #1: Year on year, IFRS profits reduced, impacted by the reduction in adjusted headline earnings, which was partially offset by a substantial increase in Zimbabwe's IFRS profits due to higher investment returns.

Speaker #1: Now moving to value: group equity value, or GEV, per share increased to R20.66, with grossing value exceeding distributions, and the per share GEV supported by the completion of our share buyback.

Casper Troskie: Now moving to value. Group equity value or GEV per share increased to ZAR 20.66, with gross value exceeding distributions, and the per-share GEV is supported by the completion of our share buyback. We saw solid growth in our covered business and in our property and casualty business, reflecting the resilient underlying underwriting performance in Old Mutual Insure.

Speaker #1: We saw solid growth in our covered business and in our property and casualty business, reflecting the resilient underlying underwriting performance in Old Mutual Insure.

Speaker #1: Banking and lending was flat, reflecting continued pressure on consumers and the deliberate focus on sustainable, risk-adjusted growth in Old Mutual Finance, as well as the reallocation of Old Mutual's specialised finance to the other lines of business.

Casper Troskie: Banking and lending was flat, reflecting continued pressure on consumers and the deliberate focus on sustainable risk-adjusted growth in Old Mutual Finance, as well as the reallocation of Old Mutual Specialised Finance to the other lines of business. The reduction in other is mainly due to the completion of the remaining ZAR 2.3 billion of the share buyback. Our RoGEV for the H1 was 12.7%, improving from 4.1% in December. This was driven by strong growth in covered EV being offset by lower growth in non-covered banking earnings. Total embedded value operating earnings was ZAR 4.8 billion, resulting in a strong analyzed return on embedded value of 15.3%. This was driven by higher expected existing business contributions and higher new business contributions, positive risk experience across the business, and the once-off impact of matched labs reinsurance in Old Mutual Corporate at the end of 2025.

Speaker #1: The reduction in 'Other' is mainly due to the completion of the remaining R2.3 billion of the share buyback. I'll now add that the return for the first half was 12.7%, improving from 4.1% in December.

Speaker #1: This was driven by strong growth in covered EV, being offset by lower growth in non-covered banking earnings. Total embedded value operating earnings was $4.8 billion, resulting in a strong annualised return on embedded value of 15.3%.

Casper Troskie: This was driven by strong growth in covered EV being offset by lower growth in non-covered banking earnings. Total embedded value operating earnings was ZAR 4.8 billion, resulting in a strong analyzed return on embedded value of 15.3%. This was driven by higher expected existing business contributions and higher new business contributions, positive risk experience across the business, and the once-off impact of matched labs reinsurance in Old Mutual Corporate at the end of 2025.

Speaker #1: This was driven by higher expected existing business contributions and higher new business contributions, positive risk experience across the business, and the once-off impact of matched labs reinsurance in Old Mutual Corporate at the end of 2025.

Speaker #1: Our group value of new business increased by 32% to R569 million, while our value of new business margin increased to 1.4%. As you will see in the graph on the left, our margin improvement was driven by strong sales volumes, particularly in Old Mutual Corporate, Wealth Management, and Old Mutual Africa regions.

Casper Troskie: Our group value of new business increased by 32% to ZAR 569 million, whilst our value of new business margin increased to 1.4%. As you will see in the graph on the left, our margin improvement was driven by strong sales volumes, particularly in Old Mutual Corporate, Wealth Management, and Old Mutual Africa Regions, and was further supported by more profitable new business mix. These positive impacts were partially offset by the negative impact of lower opening yield curves during the period. Moving to the contractual service margin or CSM. This represents the store of future life profits for the bulk of our life business. New business written in the first 6 months of 2026 increased the contractual service margin by ZAR 1.7 billion and was further supported by interest on the CSM and positive experience variances.

Speaker #1: And was further supported by a more profitable new business mix. These positive impacts were partially offset by the negative impact of lower opening yield curves during the period.

Casper Troskie: These positive impacts were partially offset by the negative impact of lower opening yield curves during the period. Moving to the contractual service margin or CSM. This represents the store of future life profits for the bulk of our life business. New business written in the first 6 months of 2026 increased the contractual service margin by ZAR 1.7 billion and was further supported by interest on the CSM and positive experience variances.

Speaker #1: Moving to the Contractual Service Margin, or CSM, this represents the store of future life profits for the bulk of our life business. New business written in the first six months of 2026 increased the Contractual Service Margin by $1.7 billion, and was further supported by interest on the CSM and positive experience variances.

Speaker #1: The allocation rate to profit was 5.9% for the first half, at the upper end of our expected range of 8% to 12% annually. Now, turning to capital—our horizon-based approach guides decision-making as we seek to optimise RoNAV in the shorter term and generate growth and value in the longer term.

Casper Troskie: The allocation rate to profits was 5.9% for the H1, at the upper end of our expected range of 8% to 12% annually. Turning to capital, our horizon-based approach guides decision-making as we seek to optimize RoNAV in the shorter term and generate growth and value in the longer term. Capital allocation decisions are based on our RoNAV delivery aligned to the two value creation phases. On a normalized basis, we remain in horizon one, below the 15% to 17% target range, and we will continue to prioritize shareholder distributions and only consider deployments of capital that are tightly coupled to strategy and are time sensitive. As RoNAV improves into horizon two and three, our focus will shift towards generating growth, where other opportunities to deploy capital will be considered.

Speaker #1: Capital allocation decisions are based on our RoNAV delivery, aligned to the two value creation phases. On a normalised basis, we remain in horizon one, below the 15% to 17% target range, and we will continue to prioritise shareholder distributions and only consider deployments of capital that are tightly coupled to strategy and are time-sensitive.

Casper Troskie: On a normalized basis, we remain in horizon one, below the 15% to 17% target range, and we will continue to prioritize shareholder distributions and only consider deployments of capital that are tightly coupled to strategy and are time sensitive. As RoNAV improves into horizon two and three, our focus will shift towards generating growth, where other opportunities to deploy capital will be considered.

Speaker #1: As RoNav improves into horizon two and three, our focus will shift towards generating growth, where other opportunities to deploy capital will be considered. We expect cash remittance to be between 70% and 80% of adjusted headline earnings, before optimisations and special dividends.

Casper Troskie: We expect cash remitted to be between 70% and 80% of adjusted deadline earnings before optimizations and special dividends. We have seen sustained cash generation in line with our target ratio during the period, with the prior year benefiting from significant optimizations. The comparative reduction in OMLCSA was due to a lower capital ratio reported at December 2025, resulting in lower dividends. This brings us to our discretionary capital balance, which reduced to ZAR 3.1 billion, driven mainly by the completion of the ZAR 3 billion share buyback, with the balance of ZAR 2.3 billion being settled during the period. Our discretionary capital balance of ZAR 3.1 billion includes an expected capitalization of OM Bank in 2026 and 2027 of ZAR 2 billion in line with plan, and ZAR 1 billion has been earmarked for the board-approved share buyback.

Speaker #1: We have seen sustained cash generation in line with our target ratio during the period, with the prior year benefiting from significant optimisations. The comparative reduction in Omlaxa was due to a lower capital ratio reported at December 2025, resulting in lower dividends.

Speaker #1: This then brings us to our discretionary capital balance, which reduced to $3.1 billion, driven mainly by the completion of the $3 billion share buyback, with the balance of $2.3 billion being settled during the period.

Casper Troskie: This brings us to our discretionary capital balance, which reduced to ZAR 3.1 billion, driven mainly by the completion of the ZAR 3 billion share buyback, with the balance of ZAR 2.3 billion being settled during the period. Our discretionary capital balance of ZAR 3.1 billion includes an expected capitalization of OM Bank in 2026 and 2027 of ZAR 2 billion in line with plan, and ZAR 1 billion has been earmarked for the board-approved share buyback.

Speaker #1: Our discretionary capital balance of $3.1 billion includes an expected capitalisation of OM Bank in 2026 and 2027 of $2 billion, in line with plan, and $1 billion has been earmarked for the board-approved share buyback.

Speaker #1: Looking forward to the end of the year, discretionary capital is expected to remain robust, driven by cash remittances from subsidiaries, and we expect at least 50% of the declared R4 billion Omlaxa interim dividend to add to discretionary capital in the second half of the year.

Casper Troskie: Looking forward to the end of the year, the discretionary capital is expected to remain robust, driven by cash remittances from subsidiaries, and we expect at least 50% of the declared ZAR 4 billion OMLCSA interim dividend to add to discretionary capital in the H2 of the year. This discretionary capital balance will be available to return to shareholders or fund growth opportunities in line with our horizon-based capital application framework, and we will provide an update on this at our 2026 annual results. Return on net asset value was supported by robust underlying growth in results from operations and the completed share buyback. As we signaled at our 2025 annual results, we will now target normalized RoNAV, which adjusts for the difference between actual and expected returns. OML shareholder solvency remains within our target, improving by 10% from December to 172% at the end of June.

Speaker #1: This discretionary capital balance will be available to return to shareholders or fund growth opportunities in line with our horizon-based capital allocation framework, and we will provide an update on this at our 2026 annual results.

Speaker #1: Return on net assets. Value was supported by robust underlying growth in results from operations, and the completed share buyback. As we signalled at our 2025 annual results, we will now target normalised RoNav, which adjusts for the difference between actual and expected returns.

Casper Troskie: Return on net asset value was supported by robust underlying growth in results from operations and the completed share buyback. As we signaled at our 2025 annual results, we will now target normalized RoNAV, which adjusts for the difference between actual and expected returns. OML shareholder solvency remains within our target, improving by 10% from December to 172% at the end of June.

Speaker #1: OML shareholder solvency remains within our target, improving by 10% from December to 172% at the end of June. At the end of June. The improvement was driven mainly by the issuance of subordinated debt and further yield curve movements.

Casper Troskie: The improvement was driven mainly by the issuance of subordinated debt and further yield curve movements. The ratio also benefited from weaker equity market performance, which resulted in a reduction in the prescribed equity stress. These positive impacts were partially offset by the allowance for foreseeable dividends, which include the OML interim dividend and the announced ZAR 1 billion share buyback. Following the issuance of ZAR 1.8 billion of debt in H1 2026, the OML gearing ratio ended at 16.9% and within range. We will continue to optimize our capital profile and gearing ratio to ensure the efficiency of our balance sheets. Whilst we have updated our solvency ranges, the interim dividends for OML and OMLCSA were based on the old solvency ranges. For OML, the lower bound of the range decreases from 155% to 150% and the upper bound from 185% to 180%.

Speaker #1: The ratio also benefited from weaker equity market performance, which resulted in a reduction in the prescribed equity stress. These positive impacts were partially offset by the allowance for foreseeable dividends, which include the OML interim dividend and the announced 1 billion share buyback.

Speaker #1: Following the issuance of $1.8 billion of debt in H1 2026, the OML gearing ratio ended at 16.9% and remained within range. We will continue to optimise our capital profile and gearing ratio to ensure the efficiency of our balance sheets.

Casper Troskie: Following the issuance of ZAR 1.8 billion of debt in H1 2026, the OML gearing ratio ended at 16.9% and within range. We will continue to optimize our capital profile and gearing ratio to ensure the efficiency of our balance sheets. Whilst we have updated our solvency ranges, the interim dividends for OML and OMLCSA were based on the old solvency ranges.

Speaker #1: While we have updated our solvency ranges, the interim dividends for OML and OMLAXA were based on the old solvency ranges. For OML, the lower bound of the range decreased from 155% to 150%, and the upper bound from 185% to 180%.

Casper Troskie: For OML, the lower bound of the range decreases from 155% to 150% and the upper bound from 185% to 180%. For OMLACSA, the range changes from 165% to 200%, to 150% to 180%. The width of the range caters for interest rate volatility, as we saw during the course of the last nine months. We will report again against these new ranges for our 2026 annual results. With that, over to you, Jurie.

Speaker #1: And for Omlaxa, the range changes from 165% to 200% to 150% to 180%. The width of the range caters for interest rate volatility, as we saw during the course of the last nine months.

Casper Troskie: For OMLACSA, the range changes from 165% to 200%, to 150% to 180%. The width of the range caters for interest rate volatility, as we saw during the course of the last nine months. We will report again against these new ranges for our 2026 annual results. With that, over to you, Jurie.

Speaker #1: We will report again against these new ranges for our 2026 annual results. And with that, over to you, Jurie.

Speaker #2: Thanks, Cass. I think just moving on to some of the outlook and some reflections. I want to emphasize to you that we have a growing confidence internally.

Jurie Strydom: Thanks, Cas. I think just moving on to the outlook and some reflections. I think to emphasize to you, I think we have a growing confidence internally. I have a growing confidence around the traction we have towards implementing our strategy, and our execution proof points. What we have here in this final slide is just a summary of where we were on those key targets for financial year 2025, for the full year versus the H1 in 2026. You can see there a traction and progress on those key metrics. Our RoGEV going from 4.1% last year to 12.7%. The dividend continuing a healthy growth rate, 8.1% growth. Normalized RoNAV going up to 12.6%.

Speaker #2: I have a growing confidence around the traction we have towards implementing our strategy, and our execution proof points. What we've got here in this final slide is just a summary of where we were on those key targets.

Speaker #2: For financial year 2025, for the full year versus the half year in 2026, you can see there is traction and progress on those key metrics: RoGV going from 4.1% last year to 12.7%; the dividend continuing a healthy growth rate, 8.1% growth; and normalised RoNAV going up to 12.6%. Both RoGV and normalised RoNAV are not yet in the ranges that we've set for them, but we do believe that we are tracking along in the way we had hoped to be at this point.

Jurie Strydom: You can see there a traction and progress on those key metrics. Our RoGEV going from 4.1% last year to 12.7%. The dividend continuing a healthy growth rate, 8.1% growth. Normalized RoNAV going up to 12.6%. Both RoGEV and normalized RoNAV not yet in the ranges that we have set for them, but we do believe that we are tracking along and are where we would hoped to be at this point. VNB margin was going from 1.2% to 1.4%.

Jurie Strydom: Both RoGEV and normalized RoNAV not yet in the ranges that we have set for them, but we do believe that we are tracking along and are where we would hoped to be at this point. VNB margin was going from 1.2% to 1.4%. Clearly, there are headwinds in lifting VNB margin. Guaranteed annuity sales, which is an industry-wide phenomenon, is part of that. So there is lots of more work to be done to lift VNB margin up to that 2% to 3% range. Then finally, net underwriting margin of 5% to 8%, and despite what was a tougher half, actually coming in at 7.6%. Our execution proof points, we will be coming back to those half after half until we have fully achieved what we set out to do.

Speaker #2: VNB margin was going from 1.2% to 1.4%. Clearly, there are headwinds in lifting VNB margin, and guaranteed annuity sales—which is an industry-wide phenomenon—are part of that.

Jurie Strydom: Clearly, there are headwinds in lifting VNB margin. Guaranteed annuity sales, which is an industry-wide phenomenon, is part of that. So there is lots of more work to be done to lift VNB margin up to that 2% to 3% range. Then finally, net underwriting margin of 5% to 8%, and despite what was a tougher half, actually coming in at 7.6%. Our execution proof points, we will be coming back to those half after half until we have fully achieved what we set out to do.

Speaker #2: So there's a lot more work to be done to lift VNB up to that VNB margin, up to that 2% to 3% range. And then, finally, net underwriting margin of 5% to 8%, and despite what was a tougher half, actually coming in at 7.6%.

Speaker #2: Our execution proof points—we will be coming back to those half after half, until we have, for the full year, achieved what we set out to do. The message for this morning is that we are on track with each of those, as we set out in the slides earlier.

Jurie Strydom: The message for this morning is that we are on track with each of those, as we set out in the slides earlier. I do want to just emphasize a couple of things that were part of Casper's presentation. The sustainable RFO per share growth of 10% to 14% that we are targeting off the 2025 base, and that we are in range at 11% for this half. The ZAR 1 billion share buyback that we have announced this morning, which reiterates our confidence in the value of where our share is currently trading relative to GEV. Then looking forward, the ZAR 4 billion OMLACSA dividends in the H2 of which ZAR 2 billion at least will contribute to discretionary capital. Then finally, also forward-looking, the reduction in solvency ranges in OMLACSA and in OML, which will further support our efforts around capital efficiency.

Speaker #2: I do want to just emphasise a couple of things that were part of Casparus's presentation. The sustainable RFO per share growth of 10% to 14% that we're targeting off the 2025 base, and that we are in range at 11% for this half.

Speaker #2: The R1 billion share buyback that we've announced this morning reiterates our confidence in the value of where our share is currently trading relative to GEV.

Jurie Strydom: The ZAR 1 billion share buyback that we have announced this morning, which reiterates our confidence in the value of where our share is currently trading relative to GEV. Then looking forward, the ZAR 4 billion OMLACSA dividends in the H2 of which ZAR 2 billion at least will contribute to discretionary capital. Then finally, also forward-looking, the reduction in solvency ranges in OMLACSA and in OML, which will further support our efforts around capital efficiency.

Speaker #2: Then looking forward, the R4 billion Omlaxa dividend in the second half, of which at least R2 billion will contribute to discretionary capital. And then finally, also forward-looking, the reduction in solvency ranges in Omlaxa and in OML, which will further support our efforts around capital efficiency.

Speaker #2: So, I think to summarise, we are progressing, we have a growing confidence, and we are where we'd hope to be. But, of course, the work continues. I am confident that the Old Mutual execution machinery that we've put in place is starting to progress, and that we're seeing traction.

Jurie Strydom: I think to summarize, we are progressing, we have a growing confidence, and we are where we hoped to be. But of course, the work continues. I am confident that the Old Mutual execution machinery that we have put in place is starting to progress, and that we are seeing traction. With that, I am going to hand back to Langa. I think Langa for Q&A.

Speaker #2: So with that, I'm going to hand back to Langa—I think Langa—for Q&A.

Speaker #1: Thank you very much, Jurie, for moving us through the presentation so efficiently, together with Caspar. Caspar and Langa, if I may kindly ask you to please join Jurie on stage.

Langa Manqele: Thank you very much, Jurie, for moving us through the presentation so efficiently together with Casper. Casper and Ranan, if I may kindly ask you to please join Jurie on stage for the Q&A. As per usual, we will start by taking the questions on the quarter's call. We will permit just 2 questions per person. If I may ask those who are online who have queued up to take the calls to please introduce themselves, mention the name of their firm, and if you may kindly just direct the question to either Jurie, Casper, or Ranan here on stage. If the question is not so clear, I will handle it. I will take 2 rounds of these questions, and if we still do have time, we may have a bonus 1 question per person. We will see where we land with the questions.

Speaker #1: It's time for the Q&A. As usual, we will start by taking questions from the callers on the line. We will permit just two questions per person.

Speaker #1: If I may ask those who are online, who have queued up to take the calls, to please introduce themselves. Mention the name of the firm, and if you may, kindly just direct the question to either Jurie, Casper, or Rangan here on stage.

Langa Manqele: If I may ask those who are online who have queued up to take the calls to please introduce themselves, mention the name of their firm, and if you may kindly just direct the question to either Jurie, Casper, or Ranan here on stage. If the question is not so clear, I will handle it. I will take 2 rounds of these questions, and if we still do have time, we may have a bonus 1 question per person. We will see where we land with the questions. At this stage, if I may ask the operator to just please remind us on the procedure to take the questions.

Speaker #1: If the question is not so clear, I will handle it. I will take two rounds of these questions, and if we still have time, we may have a bonus question—one per person.

Speaker #1: We will see where we land with the questions. At this stage, if I may ask the operator to just please remind us of the procedure to take questions.

Langa Manqele: At this stage, if I may ask the operator to just please remind us on the procedure to take the questions.

Speaker #3: Thank you. For those on the conference call, if you wish to ask a question, you may press star, then one, to join the question queue.

Operator: Thank you. For those on the conference call, if you wish to ask a question, you may press star and then 1 to join the questioning queue. If you do however wish to withdraw your question, you may press star and then 2 to remove yourself from the question queue. Once again, if you wish to ask a question, you may press star and then 1. We have a question from Harry Burt of BofA Securities. Please go ahead.

Speaker #3: If you do, however, wish to withdraw your question, you may press star and then two to remove yourself from the question queue. Once again, if you wish to ask a question, you may press star and then one.

Speaker #3: We have a question from Harry Botha of Bank of America Securities. Please go ahead.

Speaker #1: Go ahead.

Harry Burt: Hi, good morning. Thanks very much. Well done on the banks. Thanks so much. Well done on the bank's customer growth. I think in the 2025 results, you gave active customer numbers or percentage. I think it was 62%. Are you able to share what percentage of the 784,000 are active? Just to confirm, have all the 500,000 existing customers transferred over? Could you also possibly share any details of the new customers that you are adding within that customer base? Second question is just on the 10X impact in Q2. Please, if you could possibly share the impact on our RFIFTs.

Harry Botha: Hi, good morning. Thanks very much. Well done on the banks. Thanks so much. Well done on the bank's customer growth. I think in the 2025 results, you gave active customer numbers or percentage. I think it was 62%. Are you able to share what percentage of the 784,000 are active? Just to confirm, have all the 500,000 existing customers transferred over? Could you also possibly share any details of the new customers that you are adding within that customer base? Second question is just on the 10X impact in Q2. Please, if you could possibly share the impact on our RFIFTs.

Speaker #4: Hi, good morning. Thanks very much. Well done on the banks; thanks so much. Well done on the banks' customer growth. I think in the '25 results you gave active customer numbers, or percentage—I think it was 62%.

Speaker #4: Are you able to share what percentage of the 784,000 are active? And just to confirm, have all the 500,000 existing customers transferred over? Could you also possibly share any details of the new customers that you're adding within that customer base?

Speaker #4: And then, second question is just on the 10X impact in the second quarter, please. If you could possibly share the impact on our RFO, please.

Speaker #1: Thank you. I will ask Jurie to please start, then Clarence, if you may jump in.

Langa Manqele: Thank you. I will ask Jurie to please start, then Clarence, if you may jump in.

Speaker #2: Yeah, sure. I mean, as Harry, there are a couple of questions around customers in there. We are acquiring about half—our customer acquisition is about half new to Old Mutual, and about half is existing.

Jurie Strydom: Yeah, so I mean, there is a couple of questions around customers in there. We are acquiring about half our customer acquisition is new to Old Mutual, about half is existing. I think that activity rates, Clarence, that is in our 2028 numbers is at a 35% to 38% activity rate. I think we are tracking with a rapid customer acquisition. I think we are tracking just below that, but I think we are on track. I think on 10X, maybe I will ask Casper to comment.

Speaker #2: And I think that activity rate Clarence, that's in our 2028 numbers, is a 35% 35 to 38% activity rate. And I think we're sort of tracking we're tracking with a rapid customer acquisition.

Speaker #2: I think we're tracking just below that, but I think we're on track. I think on 10X, maybe I'll ask Casper to comment.

Speaker #1: Jurie, we haven’t disclosed the 10X. We will look at whether we disclose that on a forward-looking basis.

Casper Troskie: Jurie, we have not disclosed the 10X. We will look at whether we disclose that on a forward-looking basis.

Jurie Strydom: Yeah.

Speaker #4: Thanks. Next question, please.

Langa Manqele: Thanks. Next question, please.

Speaker #3: At this time, we don't have any other questions in the queue.

Operator: At this time, we don't have any other questions in the queue.

Speaker #1: Okay, I will take some questions that have come through online in the meantime. We have a question from Tapelo at Investec. Tapelo would like to know: Are you able to quantify the level of CAT losses in the short-term insurance?

Langa Manqele: Well, I will take some questions that have come through online in the meantime. We have a question from Thapelo Investec. Thapelo would like to know, are you able to quantify the level of CAT losses in the short-term insurance so we can get a better understanding of your attritional performance? We do have, I think, Soul on the line. Soul, if you are able to come through, would you please just give a comment on that question.

Speaker #1: So we can get a better understanding of your additional performance. We do have, I think, Sold on the line. Sold, if you are able to come through, please just give a comment on that question.

Speaker #4: Yeah. Good morning, Langa. Sure. We've had R376 million in catastrophe losses from the storms in May, and yeah, that effectively translates to our traditional performance being better in H1 2026 than in H1 2025.

Soul Abraham: Yeah. Morning, Langa. Sure. We've had ZAR 376 million in catastrophe losses, from the storms in May, and yeah, that effectively translates to our attritional performance being better, in H1 2026 than in H1 2025. So, actually, the business's underlying performance has improved materially. That ZAR 376 million translates to about a 3% underwriting margin delta if the storm didn't occur. Thanks, Langa.

Speaker #4: So actually, the business's underlying performance has improved materially. That R376 million translates to about a 3% underwriting margin delta, if the storm didn't occur.

Speaker #4: Thanks, Langa.

Speaker #1: Thank you very much. So I will also just continue with the questions. There's the next question is from Baron. Baron is from JP Morgan.

Langa Manqele: Thank you very much, Soul. I will also just continue with the questions. The next question is from Bryon. Bryon is from JP Morgan. Says, in Old Mutual Investments, how should we think about the durability or sustainability of the alternatives, non-annuity revenue? Zulfa, if you may, please. Here is the mic.

Speaker #1: He says, in Old Mutual Investments, how should we think about the durability or sustainability of the alternative non-annuity revenue? Zulfa, if you may, please.

Speaker #2: Yes, the mic.

Speaker #5: Thanks, Baron. I was meant to stand on that side, but I have you to stand on this side. We do have the benefit of the odds business delivering non-annuity revenue and a level of non-annuity revenue.

Zulfa Abdurahman: Thanks, Bryon. I was meant to stand on that side, but I had to stand on this side. We do have the benefit of the alts business delivering a non-annuity revenue and a level of non-annuity revenue. It is, of course, lumpy. The way we plan for that is that effectively we look at the potential fund life cycle that we have in our existence when they effectively are paying out and what the performance is. We do anticipate a level of some non-annuity revenue. The timing of that, of course, is dependent on when those funds exit. This year, we did have some exits earlier than we anticipated. So I am expecting some of that to taper off just where we are in some of our funds at the moment. But we do continue to see a level and expect a level of non-annuity revenue.

Speaker #5: It is, of course, lumpy. The way we planned for that is that, effectively, we look at the potential fund lifecycle that we have in our existence—when they, effectively, are paying out and what the performance is.

Speaker #5: So we do anticipate a level of some non-annuity revenue. The timing of that, of course, is dependent on when those funds exit, and this year, we did have some exits earlier than we anticipated.

Zulfa Abdurahman: We do anticipate a level of some non-annuity revenue. The timing of that, of course, is dependent on when those funds exit. This year, we did have some exits earlier than we anticipated. So I am expecting some of that to taper off just where we are in some of our funds at the moment. But we do continue to see a level and expect a level of non-annuity revenue.

Speaker #5: So, I'm expecting some of that to taper off, just given where we are in some of our funds at the moment. But we do continue to see a level, and expect a level, of non-annuity revenue.

Speaker #1: Thank you very much, Zulfa. I will continue with the questions coming in. We've got a question from Sanami, that's from Standard Bank. Firstly, it says, congratulations, Rangan.

Langa Manqele: Thank you very much, Zulfa. I will continue with the questions coming in. We have got a question from Sename that is from Standard Bank. Firstly, it says conversations rand and conversations for the operational performance on the business. The questions are, may you please give us more insight on which specific line of business in Malawi contributed positively to RFO increase? That is the first question. I will throw that to you, Caspar. Second question is still on Old Mutual Africa Regions. Clement says, GWP increase of 3% is relatively modest. Is there a view to grow the market share? Three, may you please give us insight on what makes up the central cost and how we should think about this going forward? So the two questions are for you, Caspar, and one for Clement.

Speaker #1: And congratulations on the operational performance of the business. My questions are: Could you please give us more insight into which specific line of business in Malawi contributed positively to the RFO increase?

Speaker #1: That's the first question. I'll throw that to you, Caspar. Second question is still on Omar. Clement says, GWP increase of 3% is relatively modest.

Langa Manqele: That is the first question. I will throw that to you, Caspar. Second question is still on Old Mutual Africa Regions. Clement says, GWP increase of 3% is relatively modest. Is there a view to grow the market share? Three, may you please give us insight on what makes up the central cost and how we should think about this going forward? So the two questions are for you, Caspar, and one for Clement.

Speaker #1: Is there a view to grow the market share? Thirdly, may you please give us insight on what makes up the central cost and how we should think about this going forward?

Speaker #1: So, two questions for you, Caspar, and one for Clement.

Speaker #4: Yeah. So, Langa, there's some color on Malawi. We did see markets, so we saw a slight deterioration in what we see as our management view of the exchange rates.

Casper Troskie: Langa, just some color on Malawi. We did see markets. We saw a slight deterioration in what we see as our management view of the exchange rates, and that is the rate we can express cash from Malawi. We saw markets down actually about 12% in the H1. But as I said, we saw improved performances from all our businesses. So the life business, in particular and the banking business performed very well.

Speaker #4: And that's the rate we can express cash from Malawi. We saw markets down, actually, about 12% in the first half. But as I said, we saw improved performances from all our businesses.

Speaker #4: So, the last business in particular, and the banking business, performed very well.

Speaker #1: Thank you very much. Okay. On the question about the property and casualty gross written premiums, we are working to improve the margins across that portfolio.

Langa Manqele: Thank you very much.

Clement Chinaka: Okay, on the question about the property and casualty gross written premiums. We are working to improve the margins across that portfolio. You saw we were very negative last year. We have improved that somewhat. The effort is mainly on pricing. We have had strong new business flows, but at the same time, because of our pricing actions, we also lost some accounts that we had. So our renewal was hit. But I think going forward, we continue with our pricing actions and improving margins, but we are still quite competitive. Yeah.

Speaker #1: You saw we were very negative last year. We have improved that somewhat. So the effort is mainly on pricing. We have had strong new business flows, but at the same time, because of our pricing actions, we also lost some accounts.

Speaker #1: That we had. So our renewal was hit, but I think going forward, we continue with our pricing actions and improving margins, but we are still quite competitive.

Speaker #2: Yeah.

Speaker #1: Thank you very much, Clement, for that. There are more questions coming through. Operator, may I please check if we have any questions online on the cross-call?

Langa Manqele: Yeah. Thank you very much, Clement, for that. There are more questions that are coming through. Operator, may I please check if we have any questions online, on the cross-call? Otherwise, I will continue taking the questions that have come through via the webcast.

Speaker #1: That was all. We'll continue by taking the questions that have come through via the webcast.

Speaker #3: We don't have any questions on the telephone lines.

Operator: We do not have any questions on the telephone lines.

Speaker #1: Okay, we will continue. There is a question from Jared. Jared is from All Weather. He would like to know: please explain in more detail the duration extension overlay, which detracted from SA shareholder returns, and whether this is expected to retrace in the second half of the year.

Langa Manqele: Okay. We will continue. There is a question from Jared. Jared is from All Weather Capital. He would like to know, please explain in more detail the duration extension overlay which deducted from SA shareholder returns and whether this is expected to retrace in the H2 of the year. That is the first question I will take. Let me look at some other. The other one, I will hand over that one to Ranen. Matthew would like to know, of the ZAR 1.4 billion in bank deposits, can you indicate the proportion of this that is the new to bank versus what has come from the Bidvest money account? Ranen, if you may kindly please assist with that one. We still have got more to go.

Speaker #1: That's the first question I will take. Let me look at some others. The other one, I'll hand over to Rangan. Matthew would like to know, of the R1.4 billion in bank deposits, can you indicate the proportion of this that is new to bank versus what has come from the Bidvest Money account?

Langa Manqele: Let me look at some other. The other one, I will hand over that one to Ranen. Matthew would like to know, of the ZAR 1.4 billion in bank deposits, can you indicate the proportion of this that is the new to bank versus what has come from the Bidvest money account? Ranen, if you may kindly please assist with that one. We still have got more to go.

Speaker #1: Clarence, if you may, come to assist with that one. We still have more to go. Okay.

Ranen Thakurdin: Okay. Thanks, Gerald. On the shareholder investment portfolio, we have an allocation that goes into bonds. What we have done is we have extended the duration on those bonds, largely to manage the capital interest rate sensitivity on our balance sheet. That caused a bit of a loss in the H1. To your question, it has actually come back a little bit since then. So that loss is partially reversed.

Speaker #2: Okay, thanks. Thanks, Jared. On the shareholder investment portfolio, we have an allocation that goes into bonds. What we've done is we've extended the duration on those bonds largely to manage the capital interest rate sensitivity in our balance sheet.

Speaker #2: And that caused a bit of a loss in the first half. To your question, it’s actually come back a little bit since then, and so that loss is partially reversed.

Speaker #2: Thanks.

Langa Manqele: Thanks. Thank you, Ranen. Over to you, Clarence.

Speaker #1: Thank you, Rangan. Over to you, Sandami.

Clarence Nethengwe: Yeah. So of the ZAR 1.4 billion, more than 80% of it is from the money account customers that were on Bidvest, and about 20% it is from new customers. What is also encouraging is to see the growth almost on a month-to-month basis of the new customers in terms of their deposits. So we are very hopeful that going forward, we will see a growth in terms of that.

Speaker #4: Yeah, so the $1.4 billion, more than 80% of it is from the money account customers that were on bid rest, and about 20% is from new customers.

Speaker #4: But what is also encouraging is to see the growth, almost on a month-to-month basis, of the new customers in terms of their deposits. So we're very hopeful that, going forward, we'll see growth in terms of that.

Speaker #1: Yeah, thank you very much. Staying with the operational review section, I will take two questions: one from Michael— that's UBS— as well as from WABIC.

Langa Manqele: Yeah. Thank you very much. Staying with the operational review section, I will take two questions from Michael Casparus at UBS, as well as from Warwick, that is RMB Morgan Stanley. Michael is asking, may you please provide more detail on mortality and lapse variances by segment? I will ask Ranan to give that a stab. The second one is, removing Credit Life sales revealed a low 2.5 VNB margin for Mass & Foundation. You would like to know, the VNB margin for Personal Finance is still negative. When should we expect VNB margin to start rising? Remind us what VNB target you are looking to achieve for Mass & Foundation as well as Personal Finance. That one I will hand over to Prabashini to handle. Ranan, if you may just provide comment on mortality lapses and variances by segment.

Speaker #1: That's RMB, Morgan Stanley. Michael is asking, may you please provide more detail on mortality and lapse variances by segment? I will ask Rangan to give that a step.

Speaker #1: Then the second one is, removing credit life sales revealed a low 2.5 BNB margin for Master and Foundation. And he would like to know if the BNB margin for Personal Finance is still negative.

Langa Manqele: The second one is, removing Credit Life sales revealed a low 2.5 VNB margin for Mass & Foundation. You would like to know, the VNB margin for Personal Finance is still negative. When should we expect VNB margin to start rising? Remind us what VNB target you are looking to achieve for Mass & Foundation as well as Personal Finance. That one I will hand over to Prabashini to handle. Ranan, if you may just provide comment on mortality lapses and variances by segment.

Speaker #1: When should we expect the BNB margin to start rising? And can you remind us what BNB target we are looking to achieve for Master and Foundation, as well as for Personal Finance?

Speaker #1: I will hand that one over to Prabhashni to handle. Rangan, if you could just comment on mortality, lapses, and variances by segment.

Speaker #2: Okay, thanks. So, Michael, we've had good mortality experience across pretty much all our clusters. In Personal Finance, Mass and Foundation, Corporate, and in OMAR, there have been positive mortality variances.

Ranen Thakurdin: Okay. Thanks. Michael, we have had good mortality experience across pretty much all our clusters. In Personal Finance, Mass & Foundation, Corporate, and in OMA, there have been positive mortality variances. As we have been communicating, the corporate variance has started to reduce slightly but still remains positive. On lapsed variances, you will see that we have the negative persistency variance on the embedded value. It actually splits across three segments. In Mass & Foundation, there was a negative for the Q1, but as Jurie has mentioned, we are now in line with basis in the Q2, but that small portion came through from the Q1. We then also had a small persistency negative variance in Personal Finance and OMA. We have dug into that, and it is related to very specific books of business that Prabashini and Clement are actioning.

Speaker #2: As we've been communicating, the corporate variances started to reduce slightly, but still remain positive. Then, on lapsed variances, you will see that we have the negative persistency variance on the embedded value.

Speaker #2: It's actually split across three segments. So in Master and Foundation, there was a negative for the first quarter, but as Jurie’s mentioned, we're now in line with basis in the second quarter.

Ranen Thakurdin: It actually splits across three segments. In Mass & Foundation, there was a negative for the Q1, but as Jurie has mentioned, we are now in line with basis in the Q2, but that small portion came through from the Q1. We then also had a small persistency negative variance in Personal Finance and OMA. We have dug into that, and it is related to very specific books of business that Prabashini and Clement are actioning. We are expecting the persistency variance to normalize in the future. Thanks.

Speaker #2: But that small portion came through from the first quarter. We then also had a small persistency negative variance in Personal Finance and OMAR. We've dug into that, and it's related to very specific books of business that Prabhashni and Clement are actioning.

Speaker #2: So, we are expecting the persistency variance to normalize in the future. Thanks.

Ranen Thakurdin: We are expecting the persistency variance to normalize in the future. Thanks.

Speaker #1: Thank you very much. Over to you, Prabhashni.

Langa Manqele: Thank you very much. Over to you, Prabashini.

Speaker #3: Thanks for the question, Michael. So on the MFC sales side in particular, we made our material persistency basis change at the half-year last year, which had an impact on the VNB margins.

Prabashini Moodley: Thanks. Thanks for the question, Michael. On the MFC sales side in particular, we made our material persistency basis change at the H1 last year, which had an impact on the VNB margins. That was recognizing a few things, including the competitiveness in the market and a systemic shift in market dynamics. When we remove Credit Life for the H1, you have seen 2.5% VNB. We continue to focus, as Jurie mentioned, on being more targeted on our sales by different channel to remove and eliminate those loss-making pockets of business. Cost takeout remains a significant focus area of ours, and then growing sales from a quality sales perspective. We have previously indicated a 5% to 7% VNB range for Mass and Foundation Cluster, including Credit Life. We are not revising that.

Speaker #3: So that was recognizing a few things, including the competitiveness in the market and a systemic shift in market dynamics. And then, when we remove credit life for the first half, you've seen a 2.5% VNB.

Prabashini Moodley: We continue to focus, as Jurie mentioned, on being more targeted on our sales by different channel to remove and eliminate those loss-making pockets of business. Cost takeout remains a significant focus area of ours, and then growing sales from a quality sales perspective. We have previously indicated a 5% to 7% VNB range for Mass and Foundation Cluster, including Credit Life. We are not revising that.

Speaker #3: We continue to focus, as Jurie mentioned, on being more targeted in our sales by different channels, to remove and eliminate those loss-making pockets of business.

Speaker #3: Cost takeout remains a significant focus area of ours, and then growing sales from a quality sales perspective. We've previously indicated a 5% to 7% VNB range for Mass Foundation, including Credit Life.

Speaker #3: We're not revising that. On personal finance, what's very important to remember is we've had an additional shift away from guaranteed annuities. Guaranteed annuities are quite margin-rich.

Prabashini Moodley: On Personal Finance, what is very important to remember is we have had an additional shift away from guaranteed annuities. Guaranteed annuity is quite margin-rich. It is down almost 40% in terms of volumes versus prior year. Despite that, our PF margin has remained flat. We continue to focus on expenses and quality sales volumes.

Speaker #3: It's down almost 40% in terms of volumes versus the prior year, and despite that, our PF margin has remained flat. So, we continue to focus on expenses and quality sales volumes.

Speaker #1: Thank you very much. Please hold on to the mic; there are more questions for you coming through from WABIC. WABIC would like to know two things, Prabhashni.

Langa Manqele: Thank you very much. Please hold on to the mic. There are more questions for you coming through from Warwick. Warwick would like to know two things, Prabashini. Firstly, how should we think about the trajectory in the Corporate RFO? That is the question. Which fell by 8% due to moderation in risk variances. Should we expect variances to moderate further? Does the mix and volume of new business support profit growth from here? That is the first portion of the question. The second one, could you provide some color on the two-pot retirement withdrawals of ZAR 1.7 billion in the current period? Do you think members have exhausted their ability to withdraw the legacy savings part now, or will there be more withdrawals in FY27? Thank you.

Speaker #1: Firstly, how should we think about the tragedy of the trajectory in the corporate RFO? That's the question. We, chair, fell by 8% due to moderation in risk variances.

Speaker #1: Should we expect variances to moderate further? Does the mix and volume of new business support growth from here? That's the first portion of the question.

Langa Manqele: Does the mix and volume of new business support profit growth from here? That is the first portion of the question. The second one, could you provide some color on the two-pot retirement withdrawals of ZAR 1.7 billion in the current period? Do you think members have exhausted their ability to withdraw the legacy savings part now, or will there be more withdrawals in FY27? Thank you.

Speaker #1: The second one, could you provide some color on the 2.0 retirement withdrawals of $1.7 billion in the current period? Do you think members have exhausted their ability to withdraw the legacy savings pot now, or will there be more withdrawals in FY27?

Speaker #1: Thank you.

Speaker #3: So, thanks for those questions. Firstly, on the corporate profit trajectory, we did indicate from our mortality experience perspective that it is cyclical. And we're coming off a particularly high cycle in terms of pricing, and as pricing starts to harden—if I'm using that correctly—the hardening is happening.

Prabashini Moodley: Thanks for those questions. Firstly, on corporate profit trajectory, we did indicate from our mortality experience perspective, it is cyclical, and we are coming off a particularly high cycle in terms of pricing. As pricing starts to harden, if I am using that correctly, the hardening something. Anyway, the margins start reducing, it gets more competitive. As we have seen, the mortality profits have consistently been reducing year on year. It is difficult to call the bottom. It is a cyclical thing. We respond to competitive pressures, and we price competitively. The profits have actually been very strong in terms of their fundamentals. On the product mix in Corporate, we have had quite a bit of group insurance or risk sales this H1. The deals are lumpy.

Speaker #3: Anyway, the margins start reducing. It gets more competitive. And as we've seen, the mortality profits have consistently been reducing year on year. It's difficult to call the bottom.

Prabashini Moodley: It is difficult to call the bottom. It is a cyclical thing. We respond to competitive pressures, and we price competitively. The profits have actually been very strong in terms of their fundamentals. On the product mix in Corporate, we have had quite a bit of group insurance or risk sales this H1. The deals are lumpy. It's not improbable that we have another H2 where the majority of the deals, the sales that flow might be on the savings side, which come with different margins.

Speaker #3: So, it's a cyclical thing. We respond to competitive pressures, and we price competitively. So, the profits have actually been very strong in terms of their fundamentals.

Speaker #3: On the product mix in corporate, we've had quite a bit of group assurance or risk sales this half. The deals are lumpy. It's not improbable that we have another half where the majority of the deals, the sales that flow, might be on the savings side, which come with different margins.

Prabashini Moodley: It's not improbable that we have another H2 where the majority of the deals, the sales that flow might be on the savings side, which come with different margins. It's difficult to call. I think the business is in a good position for a sustainable normalized sales growth. Then the mix, it's lumpy. That's the best I can do, Warwick. On the two-pot system, it is interesting. Last year, H1, we had just under ZAR 1 billion of two-pot withdrawals, and this year, H1, it's ZAR 1.7 billion. I think it's indicative of the financial pressure that people are under. We did a lot of education, a lot of member engagement, encouraging people only to withdraw if they absolutely need it. I think that had a positive impact last year. I think consumers are simply under pressure.

Speaker #3: So it's difficult to call. I think the business is in a good position for sustainable, normalized sales growth. And then the mix—it's lumpy.

Prabashini Moodley: It's difficult to call. I think the business is in a good position for a sustainable normalized sales growth. Then the mix, it's lumpy. That's the best I can do, Warwick. On the two-pot system, it is interesting. Last year, H1, we had just under ZAR 1 billion of two-pot withdrawals, and this year, H1, it's ZAR 1.7 billion. I think it's indicative of the financial pressure that people are under.

Speaker #3: That's the best I can do, WABIC. On the two-pot, it is interesting. Last year, in the first half, we had just under R1 billion of two-pot withdrawals.

Speaker #3: And this year, half-year, it's 1.7. I think it's indicative of the financial pressure that people are under. We did a lot of education, a lot of member engagement, encouraging people only to withdraw if they absolutely need it.

Prabashini Moodley: We did a lot of education, a lot of member engagement, encouraging people only to withdraw if they absolutely need it. I think that had a positive impact last year. I think consumers are simply under pressure. I don't expect huge outflows flowing for the rest of the year. It's typically as the new tax year starts that people have the opportunity to withdraw. We see much muted withdrawals through the rest of the year.

Speaker #3: And I think that had a positive impact last year. I think consumers are simply under pressure. I don't expect huge outflows for the rest of the year.

Prabashini Moodley: I don't expect huge outflows flowing for the rest of the year. It's typically as the new tax year starts that people have the opportunity to withdraw. We see much muted withdrawals through the rest of the year.

Speaker #3: It's typically as the new tax year starts that people have the opportunity to withdraw. We see much more muted withdrawals through the rest of the year.

Speaker #1: Okay. Thank you very much, Prabhashni, for managing those questions. We've got a couple of questions; I will try and stack these ones together. They are largely on central costs and the capital stack.

Langa Manqele: Okay. Thank you very much, Prabashini, for managing those questions. We've got a couple of questions. I will try and stack these ones together. They are largely on central costs and the capital stack. Thapelo from Investec would like to know, I'll read the question as is. Where did you attain the ZAR 936 million cost savings? How much of this was in the current six-month period, and how should we think about timing on a forward-looking basis, and where the source of the remaining 1.5 balance is likely to come from? That's one question. The second question is from Daniel. Daniel would like to know, first is well done on the delivery on the cost savings thus far. Could you give us some color on where the balance of the targeted ZAR 2.5 billion savings will come from?

Speaker #1: On Tapelo from Investec, we'd like to know—where did you, I'll read the question as is: Where did you attain the 936 million cost savings?

Speaker #1: How much of this was in the current six-month period? And how should we think about timing on a forward-looking basis? And where is the source of the remaining $1.5 billion balance likely to come from?

Langa Manqele: How much of this was in the current six-month period, and how should we think about timing on a forward-looking basis, and where the source of the remaining 1.5 balance is likely to come from? That's one question. The second question is from Daniel. Daniel would like to know, first is well done on the delivery on the cost savings thus far. Could you give us some color on where the balance of the targeted ZAR 2.5 billion savings will come from?

Speaker #1: That's one question. The second question is from Daniel. So, Daniel, we'd like to know—first, well done on the delivery on the cost savings thus far.

Speaker #1: Could you give us some color on where the balance of the targeted $2.5 billion savings will come from? How much will be reinvested, and how much will come through the margins?

Langa Manqele: How much will be reinvested, and how much will come through the margins? Those are the questions. Let me just quickly scroll and see if there's any other on costs that I may have missed. Matthew, okay, this is a different question. It's about ZIM. I will take this next. If you could please just comment on those two.

Speaker #1: So those are the questions. Let me just quickly scroll and see if there's any other on-call that I may have missed. Matthew—okay, that's a different question.

Speaker #1: It's about Zim. I will take this next. If you could please just comment on those two.

Speaker #2: Okay, there’s a bit of detail in there. So, I mean, to keep it a bit simple: about 50% of the savings to date have come from our covered business, and 50% from our non-covered business.

Ranen Thakurdin: Okay. There's a bit of detail there, so I'm going to keep it a bit simple. About 50% of the savings to date have come from our covered business and 50% from our non-covered business. We're expecting on a forward-looking view, a very similar outlook for the remaining ZAR 1.5 billion that we still need to deliver. There was a question about how much of that came in the H1. We had just below 600 last year and just north of 300, actually it's 330 odd in the H1 this year. There's a question about trajectory. I think an important thing to understand is that when we do take our costs, there's a bit of a delay in terms of how it arises in the savings.

Speaker #2: So, and we're expecting, on a forward-looking view, a very similar outlook for the remaining $1.5 billion that we still need to deliver.

Speaker #2: There was a question about how much of that came in the first half. So, we had just below 600 last year and just north of 300—330-odd—in the first half this year.

Ranen Thakurdin: There's a question about trajectory. I think an important thing to understand is that when we do take our costs, there's a bit of a delay in terms of how it arises in the savings. Because for the period that we incur the cost, for example, if we close a vacancy, you only start seeing the savings in the subsequent months. I wouldn't regard the historic trajectory as a view that we need a fundamental acceleration of pace.

Speaker #2: There's a question about trajectory. I think an important thing to understand is that when we do take our costs, there's a bit of a delay in terms of how it arises in the savings, because for the period that we incur the cost—for example, if we close a vacancy—you only start seeing the savings in the subsequent months.

Ranen Thakurdin: Because for the period that we incur the cost, for example, if we close a vacancy, you only start seeing the savings in the subsequent months. I wouldn't regard the historic trajectory as a view that we need a fundamental acceleration of pace. There's just something to understand in the way that the numbers come through, that the annualized savings are being generated, then you should see the uptick going forward. In terms of margins, so within the covered business, and within VNB, we should see a benefit of the cost savings coming through in VNB over time. Less so on the embedded value that's already captured in the embedded value, and we've largely taken it into account. Then on RoNAV, in terms of margins, I think that that is going to benefit.

Speaker #2: So I wouldn't regard the historic trajectory as a view that we need a fundamental acceleration of pace. There's just something to understand in the way that the numbers come through, that the annualized savings are being generated, and you should see the uptick going forward.

Ranen Thakurdin: There's just something to understand in the way that the numbers come through, that the annualized savings are being generated, then you should see the uptick going forward. In terms of margins, so within the covered business, and within VNB, we should see a benefit of the cost savings coming through in VNB over time. Less so on the embedded value that's already captured in the embedded value, and we've largely taken it into account. Then on RoNAV, in terms of margins, I think that that is going to benefit.

Speaker #2: In terms of margins, within the covered business and within VNB, we should see a benefit from the cost savings coming through in VNB over time.

Speaker #2: Less on the embedded value that's already captured in the embedded value, and we've largely taken it into account. And then on RoNAV, in terms of margins, I think that is going to benefit.

Speaker #2: So what we already saw in the first half, benefiting. Their profits actually reflect their savings. It dropped through in profitability. So Insure and Investments and our non-covered business, and Omar, for that remaining savings of the one and a half billion, that will continue to drop into the profit number during the course of next year, and that should then uplift the RoNAV.

Ranen Thakurdin: What we already saw in the H1 is Old Mutual Insure and Old Mutual Investments benefiting. Their profits actually reflect their savings. It drops through in profitability. So Old Mutual Insure and Old Mutual Investments and our non-covered business in Old Mutual Africa Regions for that remaining savings of the ZAR 1.5 billion. That will continue to drop into the profit number during the course of next year, and that should then uplift the RoNAVs. On underwriting margin, that is the other place that will directly flow into the underwriting margin and enhance the robustness of our underwriting margin. So largely margins will still benefit from the remaining ZAR 1.5 billion cost savings.

Ranen Thakurdin: That will continue to drop into the profit number during the course of next year, and that should then uplift the RoNAVs. On underwriting margin, that is the other place that will directly flow into the underwriting margin and enhance the robustness of our underwriting margin. So largely margins will still benefit from the remaining ZAR 1.5 billion cost savings.

Speaker #2: On underwriting margin, that's the other place that will directly flow into the underwriting margin and enhance the robustness of our underwriting margin. So, largely, margins will still benefit from the remaining $1.5 billion cost savings.

Langa Manqele: Thank you, Ranen. I'm going to switch over on capital. Questions came from Jared as well as Thapelo. Thapelo would like to know the OMLACSA dividend paid to group declined year-on-year, as we've seen in the presentation. Just please give us a bit of color around that. What would you say is a normal run rate? That's the first part on the question, is the OMLACSA dividend. Jared says, given the OMLACSA dividend to come through in H2, and do you see build up in the updated ranges on solvency, why was only just ZAR 1 billion buyback initiated? After you're ready to please take that and, okay, Casper, over to you.

Speaker #1: Thank you, Ronan. I'm going to switch over to On Capital. Questions came from Jared as well as Tapelo. Tapelo would like to know—the Omlexa dividend paid to Group declined year on year, as we've seen in the presentation.

Speaker #1: So, please give us a bit of color around that. And what would you say is a normal run rate? That's the first part of the question on the Omlexa dividend.

Speaker #1: Jared says, given the Omlexa dividend that came through, to come through in H2, do you see build-up in the updated ranges on solvency?

Speaker #1: Why was only just one billion buyback initiated? I'll ask Jurie to please take that, and okay, Caspar, over to you.

Speaker #4: No, so I think—I don't think you should look at the one billion in dividends in isolation. We did see solvency ranges reduce for the reasons we mentioned at the year-end.

Casper Troskie: I do not think you should look at the ZAR 1 billion dividends in isolation. We did see solvency ranges reduce for the reasons we mentioned at the year-end. Higher prescribed equity stresses, and we saw lowering bond yields put pressure on solvency ratios. We had a lower-- There are lower dividends at the year-end. That recovers in the H1, and you will see. I would look at the two dividends together, the ZAR 1 billion plus the ZAR 4 billion from OMLACSA. That is a strong base of dividends.

Speaker #4: And so higher prescribed equity stresses, and we saw lowering bond yields put pressure on the solvency ratio, so we had a lower dividend at the year-end.

Casper Troskie: There are lower dividends at the year-end. That recovers in the H1, and you will see. I would look at the two dividends together, the ZAR 1 billion plus the ZAR 4 billion from OMLACSA. That is a strong base of dividends. We should look at the underlying earnings for Life and Savings, which is a proxy for OMLACSA, as the level of earnings that would support a dividend in the OMLACSA business. We obviously do not separately disclose OMLACSA. We only declare dividends out of capital that sits at the group. Until we receive dividends from subsidiaries, including OMLACSA, those are not available as discretionary capital. That is how we work. The OML board of directors needs to have the capital to declare the dividends.

Speaker #4: That's recovered in the half year, and you'll see—so I would look at the two dividends together: the $1 billion plus the $4 billion from Omlexa. That's a strong base of dividends.

Speaker #4: And you should—we should look at the underlying earnings for sort of license savings, which is a proxy for Omlexa, as the level of earnings that would support a dividend in the Omlexa business.

Casper Troskie: We should look at the underlying earnings for Life and Savings, which is a proxy for OMLACSA, as the level of earnings that would support a dividend in the OMLACSA business. We obviously do not separately disclose OMLACSA. We only declare dividends out of capital that sits at the group. Until we receive dividends from subsidiaries, including OMLACSA, those are not available as discretionary capital. That is how we work. The OML board of directors needs to have the capital to declare the dividends.

Speaker #4: We obviously don't separately disclose Omlexa. So, we only declare dividends out of capital that sits at the Group. Until we receive the dividends from subsidiaries, including Omlexa, those are not available as discretionary capital.

Speaker #4: That's how we work. So the OML board of directors need to have the capital to declare the dividends. So we'll see those, and as we said, we'll see quite a lot of capital moving up to OML in the second half.

Casper Troskie: We will see those, and as we said, we will see quite a lot of capital moving up to OML in the H2, and the board can then deliberate on whether that is a return to shareholders or to funding growth. We have told you very clearly that we will follow the horizon-based capital allocation framework. We will prefer returns to shareholders, in situations where ROC is below target range and we are trading at a discount to our group equity value.

Speaker #4: And the Board can then deliberate on whether that's a return to shareholders or to funding growth. We have told you very clearly that we will follow the horizon-based capital allocation framework.

Speaker #4: So, we will prefer returns to shareholders in situations where RoNAV is below the target range, and we're trading at a discount to our group equity value.

Speaker #1: Yeah, thank you very much, Caspar. I think that concludes the Q&A. There is one—I think, Yuri, this one is not really a question.

Langa Manqele: Thank you very much, Casper. I think that concludes the Q&A. There is one, I think, Jurie, this one is not really a question, it is a request for an update. Just a voiceover from you on the recent changes that have happened, at the board, in terms of appointments. A voiceover for participants as well as any senior management teams.

Speaker #1: It's a request for an update—just a voiceover from you on the recent changes that have happened at the Board, in terms of appointments, the voiceover for participants, as well as in any senior management teams.

Speaker #2: Yeah, so, well, I mean, I think just highlighting, of course, that at the executive level, the CFO succession—which, of course, is something that we've been working towards.

Jurie Strydom: Well, I think just highlighting, of course, at the executive level, the CFO succession, which of course is something that we have been working towards and so delighted to appoint Ranen into that position as CFO designate from 1 January. At the board, of course, we have had a commitment. We have our Chair, Roger Jardine, who took over upon Trevor Manuel's retirement, in the middle of the year. As part of that, there is the so-called succession cliff at the board is such that we have had a number of directors who then have stepped off in succession, and there is that process that continues now, over the next couple of years. But, I think as you have seen from the most recent appointments, I think we have got the board succession process well in hand.

Speaker #2: And so, delighted to appoint Ronan to that position as CFO designate from 1 January. At the board, of course, we've had a commitment. We have our chair, Raj Jardine, who took over from Trevor Manuel's retirement in the middle of the year.

Jurie Strydom: As part of that, there is the so-called succession cliff at the board is such that we have had a number of directors who then have stepped off in succession, and there is that process that continues now, over the next couple of years. But, I think as you have seen from the most recent appointments, I think we have got the board succession process well in hand.

Speaker #2: As part of that, there is the so-called succession cliff at the board, such that we've had a number of directors who have stepped off in succession.

Speaker #2: And that will—there is that process that continues now over the next couple of years. But I think, as you've seen from the most recent appointments, we've got the board succession process well in hand.

Speaker #1: Yeah. Thank you very much. Thanks, Yuri. Thanks, Caspar, and thanks, Ronan. That basically concludes the Q&A session for us. Just as a reminder, our presentation and the results booklet are available on our website.

Langa Manqele: Thank you very much. Thanks, Jurie. Thanks, Casper. And thanks, Ranen. That basically concludes the Q&A session, for us. Just as a reminder, our presentation, the result booklet is available on our website together with all materials that are accompanying it, and we are looking forward to be engaging with you on our road shows, as you can see there on the screen. So once more, on behalf of the board and the management team, we thank you very much for joining us this morning. Thank you and bye.

Speaker #1: Together with all the materials that are accompanying it. And we are looking forward to engaging with you at our roadshows, as you can see there on the screen.

Speaker #1: So once more, on behalf of the board and the management team, we thank you very much for joining us this morning. Thank you and bye.

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Q2 2026 Old Mutual Ltd Earnings Call

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