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With a more favourable environment, OLD MUTUAL LTD improves to Slightl...
OLD MUTUAL LTD (GB), a company active in the Full Line Insurance industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 4 out of 4 stars, as well as its unchanged, moderately risky market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date March 22, 2022, the closing price was GBp 68.00 and its poten...
- David Talpert
- Gari Chigwedere
- Harry Botha
- Warwick Bam
Avior Financials | Old Mutual and MTM trading updates | Jun '19 BA 900...
In this week's Avior Financials note: Old Mutual's H1'19 trading statement was disappointing. While, the African macro-environment remains a headwind OMU's SA operations are undervalued in our view at a rolled forward P/E of between 7x and 8x. Momentum (MTM) expects normalised headline earnings to rise 45% to 65% (Avior: 42%) indicating a positive operating turnaround. The recovery in earnings reflects management's actions to restore profitability. The PA/SARB BA 900 data for Jun '19 shows ...
- Warwick Bam
SA Insurance | Under pressure
The South African economy remains in its longest downward cycle since 1945, entering its 67th month of a weakening cycle in Jun ‘19. Annualising the Unemployment Insurance Fund (UIF) payments in Q2'19 implies a 33% y/y rise in terminations in CY'19f. While insurers have broadly reported persistency experience within model assumptions up to Q1'19, the severity of South Africa's economic pressures have intensified in Q2'19 as policy reform has not followed the elections casting doubt on the ba...
- Warwick Bam
Old Mutual | ESG analysis | Target disclosure required
We commend Old Mutual for well considered ESG policies. We believe improvements are required in the disclosure of remuneration targets with explicit consideration for the translation impact on Old Mutual Zimbabwe. We raise concern regarding non-executive directors with extensive external responsibilities. We believe the board's focus should be on reducing organisational complexity and matching the skills of committee and sub-committee members with the future direction of Old Mutual and the insur...
- Warwick Bam
OMU | Outperforming | FY'18 earnings preview
Old Mutual (OMU) will release their maiden full year results as a pure play African insurer on Monday 11 Mar ‘19. Since listing on 25 Jun ‘18, OMU has outperformed the market with a total return of 9.2% (JALSH: 3.4%). We believe OMU's forward P/E of 10.2x is distorted by excess assets of R2.31/share. Excluding the excess assets, OMU is trading at an 8x forward P/E. Isolating OMU's insurance and asset management operations the forward P/E falls to 7.6x. We believe OMU's mass foundation segmen...
- Warwick Bam
OMU | Cheap as Chips
Old Mutual (OMU) is the fastest growing listed SA insurer with 14% VNB CAGR since 30 Jun '11 (SLM: 12%; DSY: 8%). The final step in Old Mutual's managed separation is the unbundling of a 32% stake in Nedbank (R8/share) in Q4'18. Dissolving the Old Mutual Plc head office and rationalising the group has created R11.4bn (R2.4/share) in distributable assets. Excluding excess assets and Nedbank, Old Mutual's implied forward P/E for core operations is 6.5x. In our view, only ENX trades at a lower ...
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