Old Mutual Swings to Loss as Virus Pounds South African Economy

(Bloomberg) --

Old Mutual Ltd. swung to a first-half loss as South Africa plunged into recession amid the coronavirus.

The insurer will post a net per-share loss of between 1.29 rand and 1.54 rand for the six months through June, compared with a year-earlier profit of 1.27 rand, Johannesburg-based Old Mutual said in a statement Monday. EPS excluding one-time items probably fell 20% to 30%, it said.

An increase in business-interruption claims as a result of the lockdown to contain Covid-19 and settlements to small-, medium- and micro-enterprises weighed on income. The bottom line was also squeezed by “material impairments” Old Mutual took for its stake in South African lender Nedbank Group Ltd.

Old Mutual Profit Slumps as S. African Lockdown Curbs Sales (1)

The insurer will publish its interim results on Sept. 1.

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