Old Mutual has made “solid progress” with the integration of Old Mutual Finance into OM Bank, reporting growth in both customer numbers and retail deposits in the first quarter.The group, which is valued at more than R54bn on the JSE, said on Friday that the integration plans are on track to conclude by year-end, subject to governance and regulatory processes.The cumulative number of customers for OM Bank increased from 284,000 at the end of December to 473,000 in the first quarter ended March, the group said.(Karen Moolman) Cumulative retail deposits increased to R541m in the first quarter from R272m at the end of December, driven by the increase in savings deposits and the migration of money accounts, with management actions focused on boosting transactional activities, it said.Releasing a voluntary operating update for the quarter ended March, the group reported strong life annual premium equivalent sales growth of 28% to R3.73bn. Excluding a large risk deal in Old Mutual Corporate, Life APE sales were up by 15%, indicating sales momentum across most clusters, notwithstanding lower guaranteed annuity sales in Personal Finance. Old Mutual Africa Regions further boosted sales, generating higher retail and corporate new business, Old Mutual said.Gross written premiums were up 1% at R7.5bn. In Old Mutual Insure, gross written premiums increased 4% from the previous year, driven by good performance in Credit Guarantee Insurance Corporation, Genric Insurance Company and ONE Financial Services Holdings. Results from operations of R2.5bn were largely in line with the previous period, despite pressure on customers and additional investment in OM Bank. Shareholder investment returns were lower in the first quarter due to market volatility caused by the geopolitical environment.In Old Mutual Africa Regions, the marginally higher volumes in general insurance and medical new business in East Africa were offset by the appreciation of the rand against the Kenyan shilling.Old Mutual Africa Regions recorded strong money market inflows in Malawi and higher unit trust flows in Uganda. This was partially offset by slightly lower inflows in the Old Mutual Life and Savings cluster, particularly in Wealth Management where low-margin cash and liquidity solutions inflows were lower compared to the previous period.Gross loans and advances were marginally higher than the previous period. In the Old Mutual Banking cluster, Old Mutual Finance’s lending book was broadly stable year on year, reflecting deliberate actions to manage asset quality, including right-sizing the non-performing loan portfolio and cautious origination in anticipation of macroeconomic pressures. OM Bank will launch its lending activities in the second half of the year. Gross loans and advances in Old Mutual Africa Regions marginally improved, driven by loan book migration away from retail into secured small and medium-sized enterprise, which have larger loan sizes.The group completed its R3bn share buyback on May 15 after repurchasing about 214.8-million shares at an average of 1,396c per share. The group said while South Africa’s outlook continues to be positive, supported by the gradual improvement in fiscal position and ongoing reforms, inflation is expected to increase in the near term due to high fuel prices and food inflation, raising the risk of interest rate hikes. The growth outlook also remains positive across Old Mutual Africa Regions, though rising costs driven by the US-Israel and Iran conflict are expected to increase consumer inflation and weigh on topline and insurance margin growth.The group continues to execute on its strategic priorities to generate growth over the medium to long term. These include driving the competitiveness of the South African business; deepening market leadership in Southern Africa; establishing the right to win for OM Bank; and evaluating and pivoting on growth markets.“We remain on track to achieve our cost-saving commitments. Management actions to improve persistency and the quality of new business in Mass and Foundation are progressing as planned,” it said.The pressure on customers’ disposable income and elevated cost of living create headwinds to improvement. The observed rotation from guaranteed to market linked annuities continues to exert pressure on new business margins, it said.“In Old Mutual Africa Regions, we will continue to drive underwriting margin improvements through disciplined pricing, claims and cost management. In our life businesses, we will continue to progress value of new business margin growth through sustained volume growth and an improved sales mix,” it said.