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OLD MUTUAL LIMITED REVIEW 2022

OLD MUTUAL LIMITED
Type Public
Traded As OMU
Founded 1845
Sector Financials
Industry Specialty Finance
Address 107 Rivonia Road
Sandown
2031
Johannesburg
South Africa
Products Short-term insurance, life insurance, retirement planning, wealth management, consultancy services, banking and loans
Revenue R172,9 Billion
Net Income R9,3 Billion
Total Assets R911 Billion
Website www.oldmutual.com

Old Mutual Limited is a Pan-African financial services business formed in 1845 by John Fairbairn. The company began as a mutual insurance company but eventually expanded its portfolio to include more services and products. Old Mutual presently provides short-term insurance, life insurance, retirement planning, banking services, and a variety of other services.

With approximately R900 billion in managed assets, the group is one of Africa’s largest financial services providers. However, the company’s overall assets decreased by R96 billion between 2018 and 2019. Total revenue increased sharply during the time, rising from R107 billion to R172 billion. On the Johannesburg Stock Exchange, the Zimbabwe Stock Exchange, and the London Stock Exchange, Old Mutual is denoted as OMU.

The corporation has R4.7 billion in issued shares and R10 billion in authorized shares. Old Mutual has relocated to a new headquarters in Sandton, South Africa. South Africa, Kenya, Namibia, Lesotho, Zimbabwe, and Botswana are among the countries where the corporation has a presence. Trevor Manuel, a former South African finance minister, serves as the company’s chairman, and Ian Williamson serves as the group CEO.

Products and services offered by Old Mutual Group

Banking and borrowing

Bank account: Old Mutual provides a banking account that can be used for everyday spending and saving thus making the account a 2 in 1 account.

The account known as the Old Mutual Money Account comes with a low monthly service fee of R4.95.

With a low monthly fee, your account comes with free swipes, access to savings at any time, secure card purchases and a function to turn off your card should you lose it.

Mobile App: There is also a mobile app that can be downloaded on Google play store or App store so that you can transact online.

You can buy data, airtime and prepaid electricity using the app. Among other things, you get access to services from Old Mutual such as life cover, illness cover etc.

Personal loans: Old Mutual provides personal loans that can be applied for online, over the phone or at a branch.

The highest amount that can be borrowed is R200,000.00. Funds can be accessed immediately after approval. The loan can be repaid over a period of 84 months.

Credit life insurance: Credit life insurance is an insurance policy that can be taken to provide security should you be unable to repay your debt due to retrenchment, death or disability.

The insurance can be taken on a personal loan, revolving loan, credit card or student loan.

Old Mutual Savings and Investments

Investment plans: Old mutual encourages individuals to save 5%-10% of their income to secure a better future.

Investment plans from Old Mutual include unit trusts, tax-free savings, flexible plan, goal investment and investment club.

The minimum investment is R500, R250, R500, R265 and R500 for unit trusts, tax-free savings, flexible plan, goal investment and investing club respectively.

Retirement planning: Saving for retirement will depend on how frequent you want to receive income after retirement.

You can opt for a guaranteed annuity which will pay regular income for as long as you live or living annuity which will pay yearly with remaining living annuities paid to your beneficiaries when you die.

Other retirement plans include linked retirement annuity which is a unit trust-based annuity.

It provides market-linked retirement income and a compose annuity which pays a guaranteed income and allows for reinvestment of your retirement income.

Education plan: Old Mutual provides an investment platform where individuals can invest in their education or that of their loved ones.

There are three plans to chose from that offer competitive interest rates. Money can be accessed anytime when needed.

Insurance

Life and disability: With life and disability cover you or your family get financial protection should you become disable or die.

Old Mutual has life insurance and salary protection to choose from that payout should you get disabled or die.

Life and disability plan to choose from include Old Mutual Life Insurance, Life Plan Range, GREENLIGHT Life Cover and GREENLIGHT Disability Cover.

Funeral cover: Old Mutual offers funeral cover to assist your family financially and otherwise when you die.

Maximum age that can be covered by Old Mutual funeral cover is 84 years, which is one of the maximum ages in South Africa.

Unlike any other funeral cover, your family can use payout cash to purchase goods online.

The minimum premium for a funeral cover is R22 per month. Also available is an option for burial societies aiming at attracting collectives such as the NGOs, Churches, Stokvels and Clubs.

Short-term insurance: Old Mutual offers short-term insurance needs for businesses and individuals. Short-term insurance covers include car, home, business travel and elite wealth assets insurance.

Health insurance: Old Mutual doesn’t shy away to compete with the best medical insurance companies like Discovery, thus it has its own health cover plans.

You can get severe illness cover that pays out should you or your child get diagnosed with a special illness or a gap cover to cover costs that your medical aid doesn’t cover.

Old Mutual Financial Advice

Estate planning: Estate planning can seem to be a daunting task especially if you don’t know where to start.

To think of it, it’s highly likely that you will need a lawyer to complete this task and lawyers don’t come cheap.

Old Mutual has a team of financial advisors to get this done for you and the way you want it done.

They will help with the writing of your Will, plan your Estate and set up a Trust. An executor will be nominated, who will make sure that your will is successfully carried out.

Financial Planning: Old Mutual offers financial planning services with the help of the company’s financial advisors.

They help with getting loans, improving your credit rating and offer other financial advisory services that will help you with your finances in the long run.

Old Mutual Group Limited Executives

Name Position
Trevor Manuel Chairman
Ian Williamson Chief Executive Officer
Casper Troskie Chief Financial Officer
Vuyo Lee Chief Marketing Officer
Richard Treagus Chief Risk Officer
Heloise Van Der Mescht Chief Operating Officer
Khaya Gobodo Managing Director: Wealth and investments
Clement Chinaka Managing Director: Rest of Africa
Garth Napier Managing Director: Insure
Prabashini Moodley Managing Director: Old Mutual Corporate
Clarence Nethengwe Managing Director: Mass and Foundation Cluster
Celiwe Ross Director : Human Capital
Sizwe Ndlovu Head : Investor Relations
Raymond Berelowitz Director: Customer Solutions

Conclusion

Old Mutual Group Limited has reached new heights in terms of service supply and expansion since its inception in 1845. The insurance company is soaring high in the financial services industry, competing with organizations like Sanlam, 1 Life Insurance, and Outsurance. The Old Mutual Limited has made profitable investments by buying and selling certain of its investments at a profit.

In Southern Africa, the group has grown into a powerhouse, providing services to millions of people. Old Mutual contributes to community development through investing in education through bursaries and event sponsorship in Namibia and South Africa.

OLD MUTUAL LIMITED REVIEW 2022

Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted at [email protected]

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