Old Mutual Holdings PLC has bounced back to profitability recording a net profit of Ksh 327 million during the first six months of this year, up from a loss of Ksh 195 million registered during a similar period last year.
Old Mutual Holdings Chief Executive Officer Arthur Oginga attributes the profit a significant reduction in finance costs, which fell from Ksh 1.8 billion to Ksh 529 million.
This reduction followed the conversion of shareholder borrowing to equity in 2023 which is awaiting all the necessary regulatory approvals.
Additionally, the company benefited from a substantial improvement in its effective tax rate, which decreased by over half of its previous value, from 150pc to 70pc.
The company reported an increase in medical and flooding claims in Kenya and higher reinsurance expenses in Uganda which saw its operating profit before financing costs reducing 27pc to Ksh 1.6 billion.
