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Oliver Kazunga Senior Business Reporter
OLD Mutual Group’s non-covered sales were up 16 percent due to strong unit trust flows in Zimbabwe, the company said in its preliminary results for the financial year ended December 31, 2014.

The company’s group chief executive Julian Roberts said their emerging markets had a very strong year with adjusted operating profit increasing by 23 percent to R11 billion ($11 million).

“Non-covered sales were up 16 percent due to strong unit trust flows in Zimbabwe and large sales to the National Social Security Fund in Kenya,” she said.

Gross sales in the group’s emerging markets were up 12 percent to R185 billion ($18,5 million) although the NCCF was down by 14 percent to R21,3 billion ($21,3 million) due to a number of institutional outflows.

In South Africa, gross sales were up 14 percent driven primarily by product innovation.

“In our retail affluent business, APE sales were nine percent up on the previous year, as single premium sales saw growth of 29 percent, bolstered by strong XtraMax sales.”

Roberts said on a like-for-like basis, APE sales were up 17 percent on the previous year as a result of increased adviser numbers in Kenya and the inclusion of Ghana for the first time.

Asia and Latin America profits grew by 39 percent due to a strong performance by Colombia, improved results in China, significant growth in AIVA and favourable exchange rate movements.

Roberts said: “I’m delighted with the way the group has performed in 2014. We’re executing our strategy in sustainable and profitable way.

“We’ve taken significant steps in building an African financial services champion. Old Mutual in South Africa grew profits by 25 percent, Nedbank grew profits by 14 percent and collaboration among our South African business continues. In the rest of Africa, we’re seeing steady growth which we expect to accelerate.”

The group has invested significantly and reallocated capital in its key markets to grow profits over the long-term while holding appropriate levels of capital leverage.

“Our focus for 2015 is on integrating the acquisitions, delivering the operational improvements and creating value from these investments,” she said.

Old Mutual is an international investment, insurance and banking conglomerate that also has operations in Zimbabwe.