Namibia contributes N$650m to Old Mutual Group profits

Old Mutual Namibia has contributed N$650 million to Old Mutual Group’s overall profits of N$8.7 billion for the 2024 financial year.

The managing director of Old Mutual Africa Regions, Clement Chinaka, said in an exclusive interview with The Namibian on Tuesday that Namibia’s has made a significant contribution to Old Mutual’s Africa portfolio and overall performance.

Old Mutual Group released its financial results yesterday for the year ended 31 December 2024, showing a growth in profits of 4%. Currently the company has 375 000 clients in Namibia, translating to 2% growth of its customer base in the last year.

Despite unsecured lending – offered through Mutual Finance – being the company’s most sought after product in Namibia, the loan book has not seen much growth.

“We were quite sensitive about economic difficulties and affordability, and what it could do to the credit loss ratios and profitability of the portfolio. So we kind of dampened down the growth [and] it’s kind of flat year-on-year,” said Chinaka.

Additionally the company plans to launch two new products (focused on income and savings) in Namibia, specifically aimed at individuals drawing down on their retirement savings.

Old Mutual Namibia achieved 6% growth in life insurance sales and a 7% increase in its property and casualty insurance sales.

Chinaka said, from a market share perspective the company was Namibia’s top provider of life insurance, and ranks third in provision of short-term insurance provision and lending.

He also mentioned challenges regarding customer retention, particularly in lower-income segments, saying that selling the right products and ensuring customers understand their commitments is key.

“Retention has not been horrible, but we saw a little bit of impact of adverse retention in 2024 itself,” said Chinaka.

However, he added that the company’s net promoter score in Namibia is 76%, meaning customers receive better service at Old Mutual Namibia compared to other companies in the industry.

Moreover, Chinaka added that the company has been investing in technology to further improve the customer experience.

“For instance, our Old Mutual Protect product is fully digital, allowing customers to interact with their advisers and manage their policies online, which is a huge leap forward in how we engage with clients,” said Chinaka.

He added that the company has been committed to cybersecurity as it moves towards digitalisation.

“We’ve implemented robust systems, and while we can never be completely immune to threats, we are continuously improving our defences,” said Chinaka.