Old Mutual (JSE: OMU) share price, discussion & sentiment

Balance sheet holding up but equity release book weighing on sentiment today

@jse_tttrading what's your read on when claims actually stabilize though, that's the million rand question hey

wealth mgmt carrying them but equity release book is a millstone, claims keep eating into earnings. at R13.53 the yield is decent but you're betting on rand recovery and claims normalizing, neither guaranteed. solvency ratios look ok but that's about it.

wealth mgmt carrying the dead weight of equity release right now but thats just noise, balance sheet is actually solid. rand getting smashed keeps the offshore boys nervous but at r13.53 youre not paying for upside, youre just getting paid to wait. dividend yield alone makes sense if you can stomach the short term wobbles.

@trpine_patient exactly, balance sheet is doing the heavy lifting here while everyone freaks out about the noise

Come on OMU, show us something

R13.55 and going nowhere man, eish

equity release drag is real but wealth mgmt is actually printing money, solvency ratios give them room to move. long-term view hasn't changed, markets are shaky but at R13.55 you're not paying much for that dividend yield plus the upside when claims stabilize. rand weakness is a headwind though, keeps institutional offshore stuff messy.

OMU getting hammered today but the dividend yield is still decent if you're holding for income. life insurance side is solid, asset management fees are the real drag when markets are flat like this. reckon it bounces when the rand steadies a bit, GLTA

after reading the second document, the solvency ratios look solid but equity release keeps dragging on earnings. at R13.55 thats pricing in maybe 2% growth which is rough when you look at the wealth management division actually gaining traction. problem is everyone just sees the insurance side struggling with claims and bails.

honestly think people are overdoing the panic on OMU right now. yeah we're down but the dividend yield is still decent and life insurance demand isnt going anywhere, especially with all the economic stress. if the rand stabilizes a bit this could surprise on the upside come earnings.

Pulled the latest results, balance sheet holding up ok

Worth reading the latest asset mgmt breakdown, fee pressure real

rand weakness is actually a double edge for omu hey. offshore earnings look better on paper but if locals cutting back on savings products because they're broke, that fee pool shrinks. insurance side holding but asset mgmt is where the real margins are and that's looking thin.

@cape_steel but institutional flows and offshore assets are growing, retail inflows just one part of the mix no?

Let's gooo OMU, come on!

@cape_steel clients stressed or not, they're not pulling life cover. asset mgmt fees matter more here, where's the actual outflow data.

pulled the latest sens filing, dividend cover looks solid still

Good Morning Everyone. Asset management revenue pressure showing but insurance underwriting holding up okay on the data.

Not sure about this. Rand weakness helps offshore but if local savings inflows dry up because people are stretched, doesn't that hurt the asset base they earn fees on. Swordfish might be onto something with the fee compression angle.