Old Mutual Insure (OMI) has reported robust financial results for the half-year ended June 2026, achieving a net underwriting margin of 7.6% despite significant catastrophe losses driven by severe storms and flooding in the Eastern and Western Cape. The insurer’s performance underscores its resilience and disciplined risk management in the face of challenging environmental conditions.
Gross written premium rose 5% to R12.1 billion, supported by strategic acquisitions and continued diversification across its portfolio. The growth reflects OMI’s ability to expand its market presence while maintaining underwriting discipline. However, catastrophe losses reached R376 million during the period, with the agricultural sector hardest hit by the extreme weather events that devastated parts of the country.
Despite these challenges, OMI’s improved retention rates, new business activity, and disciplined risk management have positioned it well for the second half of the year. The insurer expects to sustain its growth trajectory, supported by a strong pipeline of opportunities and ongoing investment in technology and customer experience.
“The results demonstrate the strength of our diversified business model and our ability to navigate a difficult operating environment,” said OMI CEO Themba Mtsali. “While the flood claims were significant, our disciplined approach to underwriting and risk selection has allowed us to absorb these losses and continue delivering value to our stakeholders.”
The insurance industry has faced mounting pressure from climate-related risks in recent years, with South Africa experiencing increasingly frequent and severe weather events. OMI’s ability to maintain a healthy underwriting margin despite these headwinds is a testament to its robust risk management framework and prudent capital allocation.
As the second half of 2026 unfolds, OMI remains focused on sustaining its momentum through organic growth, strategic acquisitions, and continued investment in digital capabilities. For the insurer, the message is clear: even in the face of nature’s fury, disciplined execution and diversification remain the cornerstones of long-term success.
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