Old Mutual resumes dividend payments

Old Mutual, a leading financial services group, has announced the resumption of dividend payments, signaling a positive turn in its operations amidst the ongoing challenges posed by the COVID-19 pandemic. The company's results from operations have surpassed 2019 levels, indicating a strong recovery in its business performance. In an exclusive interview with CNBC Africa, Old Mutual CEO, Iain Williamson, shared insights on the company's strategic outlook and response to the evolving economic landscape. Williamson emphasized that while the worst of the pandemic's impact may have passed, uncertainties remain, particularly regarding the pace of vaccine distribution and public hesitancy in South Africa. He urged individuals to get vaccinated to support efforts in curbing the spread of the virus and its severe consequences. In response to concerns about potential waves of infection and the emergence of new variants, Williamson highlighted that Old Mutual has proactively raised provisions to mitigate the impact on its operations. The company remains vigilant in assessing the risks posed by ongoing health challenges and government reactions to new strains of the virus. Regarding the revision of medium-term targets for 2023, Williamson attributed the positive outlook to market performance and revenue growth. Despite acknowledging the potential risks posed by economic setbacks, he expressed confidence in Old Mutual's ability to achieve its revised targets, barring extreme scenarios that may hinder market stability. An important aspect of Old Mutual's operations has been addressing business interruption claims resulting from lockdowns. Williamson noted significant progress in settling claims for smaller businesses at risk of closure. While larger claims are being meticulously reviewed, the company aims to expedite the process by gathering essential data to assess the full extent of losses incurred by affected businesses. Beyond South Africa, Old Mutual's operations in other regions, such as Maboy, have shown promising results, fueled by favorable stock market performance. Despite economic volatility and inflation challenges, the company remains cautious about sustained growth in such environments. Amidst the regional dynamics, Old Mutual remains committed to strategic expansion while adopting a measured approach to market opportunities. As South Africa navigates its path to recovery, Old Mutual stands ready to support economic growth and stability. The company remains a key private sector investor in infrastructure projects, including renewable energy initiatives, toll roads, and housing developments. Williamson underscored the importance of government policies that foster investment certainty and enable long-term development goals. In conclusion, while Old Mutual's dividend resumption and operational improvements are positive indicators of recovery, uncertainties persist in the broader economic landscape. The company's resilience and proactive measures position it well to navigate challenges and capitalize on opportunities for growth. As a key player in the financial sector, Old Mutual's strategic vision and commitment to sustainable development underscore its role in supporting South Africa's economic resurgence.