Old Mutual, Africa’s biggest insurer, said gross sales rose 31% in the third quarter as sales increased on the continent and at its wealth unit. The stock advanced to a record in Johannesburg trading.
Sales climbed to 8.1 billion pounds ($12.5 billion) from 6.2 billion pounds a year earlier, London-based Old Mutual said in a statement on Wednesday. Funds under management were flat at 319.4 billion pounds.
Old Mutual makes the bulk of its earnings in South Africa where the rand has declined against the pound and the dollar this year. Old Mutual is focused on expanding sales of life insurance in faster-growing African markets and long-term savings products in the UK, while developing its asset-management operations in the UK, the US and South Africa.
“We expect exchange rate movements to temper sterling reported growth and conditions for emerging markets to remain challenging,” finance director Ingrid Johnson said in the statement. The company is “confident” of continuing to deliver sustainable growth, she said.
Old Mutual, up 34% this year in Johannesburg, climbed 2.2% to R46.64 as of 9:15am. The benchmark FTSE/JSE Africa All Share Index was 0.5% higher.
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