OLD MUTUAL LIMITED REVIEW 2020

OLD MUTUAL LIMITED
TypePublic
Traded AsOMU
Founded1845
SectorFinancials
IndustrySpecialty Finance
Address107 Rivonia Road
Sandown
2031
Johannesburg
South Africa
ProductsShort-term insurance, life insurance, retirement planning, wealth management, consultancy services, banking and loans
RevenueR172,9 Billion
Net IncomeR9,3 Billion
Total AssetsR911 Billion
Websitewww.oldmutual.com

Old Mutual Limited is a Pan-African financial services provider that was founded by John Fairbairn in 1845. The company was founded as a mutual insurance company but later added more services and products to its portfolio.

Old Mutual now offers short-term insurance, life insurance, retirement planning, banking services and much more.

The group is one of the biggest financial services provider in Africa with over R900 billion managed assets.

However, the company saw a decline in total assets between 2018 and 2019 with total assets decreasing by R96 Billion.

During the period there was a sharp increase in total revenue increasing from R107 billion to R172 Billion.

Old Mutual is traded as OMU in the Johannesburg Stock Exchange, Zimbabwe Stock Exchange and London Stock Exchange.

The company has a total of R4,7 billion issued shares with a total of R10 billion authorized shares.

Old Mutual now occupies a newly built headquarters in Sandton, South Africa.

The company has a presence in South Africa, Kenya, Namibia, Lesotho, Zimbabwe and Botswana.

The company is chaired by the former South African minister of finance Trevor Manuel with Ian Williamson acting 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

NamePosition
Trevor ManuelChairman
Ian WilliamsonChief Executive Officer
Casper TroskieChief Financial Officer
Vuyo LeeChief Marketing Officer
Richard TreagusChief Risk Officer
Heloise Van Der MeschtChief Operating Officer
Khaya GobodoManaging Director: Wealth and investments
Clement ChinakaManaging Director: Rest of Africa
Garth NapierManaging Director: Insure
Prabashini MoodleyManaging Director: Old Mutual Corporate
Clarence NethengweManaging Director: Mass and Foundation Cluster
Celiwe RossDirector : Human Capital
Sizwe NdlovuHead : Investor Relations
Raymond BerelowitzDirector: Customer Solutions

Conclusion

Since its establishment back in 1845, Old Mutual Group Limited has managed to reach new frontiers in terms of service provision and expansion.

The insurance company is soaring high in the financial services industry competing with the other financial services companies such as Sanlam, 1 Life Insurance and Outsurance.

The Old Mutual Limited has managed to make lucrative investments by buying and selling at a profit some of its investments.

In Southern Africa, the group has become a powerhouse offering services that are known to millions. Old Mutual helps with uplifting communities by investing in education with the provision of bursaries and sponsorship of events in Namibia and South Africa.

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