South African insurer Old Mutual remained resilient in 2020 despite the challenges of COVID-19-related lockdowns, although the company did see a financial impact from the pandemic.
Results from operations (RFO) were 7.7 billion rand (about US$520.5 million), 14% down from the prior year, according to earnings results released by the insurer. Direct COVID-19 impacts for the full year amounted to 6.1 billion rand due to an increase in pandemic reserves, business interruption and rescue claims, and negative mark-to-market losses in Old Mutual’s credit and private equity portfolios.
Adjusted headline earnings of 2.5 billion rand were down 75%