Story audio is generated using AIOld Mutual has reported strong new business growth and robust underlying operating earnings despite market volatility.Releasing a voluntary operating update on Monday, the group said Life annual premium equivalent (APE) sales increased by 21% to R7.86bn, mainly driven by strong group risk and annuity sales in Old Mutual Corporate and higher living annuity and endowment sales in Wealth Management. Old Mutual Africa Regions delivered strong growth across both retail and corporate sales, it said. Excluding Old Mutual Corporate risk sales secured in the current period, which are not expected to recur at the same level in the second half of the year, Life APE sales increased by 12%.Gross flows increased by 21% to R128.9bn, primarily driven by strong inflows in Wealth Management, particularly in the local platform business and the inclusion of 10X Investments. Old Mutual Investments also delivered higher inflows, reflecting improved third-party client activity across key investment capabilities. In Old Mutual Africa Regions, growth was driven by strong money market inflows in Malawi and improved unit trust flows in East Africa, it said.Gross written premiums increased by 3% to R14.9bn, supported by growth in Old Mutual Insure, partially offset by the effects of currency movements and lower renewals as a result of underwriting management actions in Old Mutual Africa Regions.Value of new business was up 32% to R569m.Old Mutual said for the six months to end-June, it expects results from operations, which it considers the primary measure of the operating business performance of the group’s segments, to be 2% to 12% higher in a range of R5.039bn to R5.533bn. Results from operations per share is seen 6% to 16% higher at 120.3c to 131.7c, primarily driven by stronger revenue in Wealth Management and Old Mutual Investments, supported by a higher average base of assets under management and administration and lower central costs, it said. This was partially offset by lower underwriting earnings in Old Mutual Insure relative to the strong prior period and the investments to scale Old Mutual Banking. Adjusted headline earnings, the group’s primary profit metric, is seen 25% to 35% lower at R2.733bn to R3.153bn, and adjusted headline earnings per share is expected to decline 22% to 32% to 65.7c to 75.3c.The decrease in adjusted headline earnings was driven by lower shareholder investment returns compared to the prior period, it said.The performance of the shareholder portfolio followed that of equity and bond indices over the period. “This should be seen against sharp risk-off conditions driven by ongoing geopolitical conflicts in the Middle East which have negatively impacted equity and bond performance.”Headline earning per share is expected to be between 91.6c to 101.4c compared with 97.5c a year ago. Headline earnings benefited from a strong performance in Zimbabwe which is not included in adjusted headline earnings, it said.Business Day