Old Mutual Insure (OMI) reported a resilient set of first-half results for the period ended June 2026, delivering a net underwriting margin of 7.6% despite a marked increase in catastrophe and large-loss claims activity.
Premium growth held back by affordability, helped by acquisitions
Gross written premium (GWP) rose by more than 5% year-on-year to R12.1 billion, driven in part by portfolio diversification and recent strategic acquisitions. GWP from the acquired businesses — ONE Financial Services and GENRIC — increased by 18%, while OMART Insure, the group’s cell captive and partnership arm, also delivered an improved contribution.
OMI said growth under its core insurance licence remained subdued amid business and household affordability pressures, and the business prioritised disciplined risk selection, pricing and underwriting quality over chasing volume. The insurer pointed to encouraging signs from initiatives focused on retention, new business and policy growth that it expects will translate into stronger premium momentum in the second half.
Catastrophe losses and claims mix
The underwriting performance came despite the business incurring R376 million in net catastrophe losses, largely related to severe storms and flooding in the Eastern and Western Cape in May 2026. As at 24 June 2026, non-motor claims accounted for about 92% of projected gross catastrophe losses, with the agriculture sector the most affected and representing the period’s largest single claim. Motor claims formed a relatively small portion of the total catastrophe exposure.
“The H1 result demonstrates the resilience of the Old Mutual Insure business. We maintained strong underwriting profitability in a tougher claims environment,”
said Lerato Bacela, OMI Financial Director, adding that the insurer was pleased with its operational response to the catastrophe events, including the speed of claims mobilisation, customer support and claims settlement processes.
Profit drivers and implications
OMI reported that its insurance service result — a measure of profitability from underlying insurance activities — rose by 71%, reflecting improved underwriting discipline and the benefits of acquired portfolios. The business emphasised that portfolio diversification helped offset the weak growth in core lines, where affordability remains a constraint on household and business demand.
For South African households, the results point to two linked pressures. First, severe weather events are increasing the claims load on insurers, particularly for non-motor lines such as property and agriculture. Second, affordability constraints mean insurers are likely to keep a tighter rein on new business written through disciplined pricing and selection — measures that can keep premiums higher for riskier segments but protect solvency and margins overall.
- Net underwriting margin: 7.6% (H1 2026)
- Gross written premium: R12.1 billion (up >5% year-on-year)
- Net catastrophe losses: R376 million (storms in Eastern and Western Cape)
- Share of catastrophe losses in non-motor: ~92%
- Insurance service result growth: 71%
| Metric | H1 2026 |
|---|---|
| Net underwriting margin | 7.6% |
| Gross written premium | R12.1 billion |
| Net catastrophe losses | R376 million |
| Insurance service result growth | 71% |
Outlook and sector context
OMI’s emphasis on retention and underwriting quality reflects wider market dynamics in South Africa where insurers face both increasing weather-related claims volatility and pressure on household budgets. The insurer said it expects the benefits of its retention and new-business initiatives to become more evident in the second half of the year.
For consumers, the twin realities of elevated catastrophic losses and affordability pressures mean insurers will likely continue to balance the protection of solvency and profitability with competitive pricing and claims service. Policymakers and risk managers in agriculture and property sectors will be watching closely how insurers recalibrate coverage terms, excesses and pricing in response to shifting loss patterns.
Old Mutual Insure’s results underline that, even as climate-linked events increase claims, disciplined underwriting and strategic acquisitions can sustain margins — a balance that will shape premium trends and claims outcomes for households and businesses through the rest of 2026.
WE NEWS does not provide financial advice. The figures above are taken from Old Mutual Insure’s half-year reporting for the period ended June 2026.
