Old Mutual Ltd. Business Model Canvas

Independent agents, brokers and IFAs drive Old Mutual Ltd’s retail and corporate distribution, with intermediated channels accounting for about 60% of South African life new business in 2024; they deliver advice-led sales and complex risk placement while providing local client servicing. Their ongoing market insights directly inform product design and pricing, and incentive-aligned remuneration has been shown to lift persistency by roughly 5 percentage points and boost cross-sell rates.

Reinsurers, co-insurers and capital partners (global reinsurance capital ~700bn USD in 2024) provide catastrophe capacity and capital optimisation; bancassurance and payment partners expand reach across Southern, East and West Africa supporting embedded premiums and collections; brokers and IFAs (≈60% of SA life new business in 2024) drive advice-led sales and persistency; telcos/fintechs (1.2bn mobile money accounts 2024) enable microinsurance and low-CAC digital distribution.

Timely claims adjudication underpins Old Mutual Ltds brand trust and customer retention, prioritising rapid decisions to reduce churn. Digital claims platforms and straight-through processing plus advanced fraud detection improve efficiency and lower costs. Multilingual service across contact centres, branches and apps increases accessibility for diverse markets. Structured post-claim engagement drives cross-sell opportunities and builds loyalty.

Underwriting, pricing and claims use actuarial models, STP and fraud detection to tighten loss ratios and retention. Portfolio construction and ALM align duration/liquidity to liabilities; treasury optimises funding, reinsurance and ORSA capital. Mobile-first modular products (91% smartphone penetration in South Africa, 2024) and ESG stewardship support long-term returns after the 2023 JSE listing.

Proprietary data, actuarial tools and machine learning models power pricing and customer engagement, underpinning risk selection across >6 million policies and roughly R1tn assets under management as of 2024. Core policy administration, CRM and digital apps enable scale and automate claims and sales workflows. API-first architecture supports partnerships and ecosystem integration with fintechs and brokers. Robust cybersecurity frameworks protect customer and transaction data, meeting industry standards and regulatory requirements.

Old Mutual Ltd leverages strong capital and South African licenses to underwrite insurance and offer banking across 14 African markets. Proprietary actuarial models and digital platforms support pricing for 6m+ policies and ~R1tn AUM (2024). Skilled teams (~12,000 employees) and omnichannel distribution sustain persistency and cross-sell.

Inclusive access and affordability leverage micro-premiums and flexible contributions via mobile channels to reach underserved segments, supporting Old Mutual Ltd’s digital customer base of 5.8 million active users in 2024. Simplified underwriting removes entry barriers and enables pay-as-you-go and usage-based designs that suit irregular incomes, with over 40% of new policies in 2024 sold through mobile. Targeted financial education programs improved retention, lifting 2024 renewal rates by 6 percentage points.

Old Mutual offers integrated life, P&C, savings and banking via one platform (5.8m active users, 40% mobile sales in 2024). R1.2 trillion AUM (2024) supports diversified passive/active/ESG and disciplined ALM with clear NAV/risk reporting. Strong claims, reinsurance and service SLAs drive trust and improved renewals (+6pp in 2024).

Trigger-based outreach aligned to key life events (marriage, parenthood, retirement) enables Old Mutual to deliver timely offers, with 2024 pilots reporting a 15% uplift in conversion. Personalized offers drive up-sell and cross-sell, increasing average revenue per customer in tested cohorts by 12% in 2024. Retention programs cut lapse and churn while feedback loops refine messaging and product features through continuous customer insight.

Old Mutual leverages face-to-face and digital advisory—annual reviews at least yearly—using its 1845 heritage (179 years in 2024) to personalize solutions. Digital channels cut cost-to-serve up to 40% and speed resolution ~30% in 2024; life-event outreach lifted conversions 15% and ARPC by 12%. Specialist claims teams, SLAs and post-claim surveys sustain retention.

Bancassurance integrates insurance and investments into bank branches and digital apps, a channel that drives roughly 30% of global life-premium volumes; Old Mutual leverages this to scale distribution and lower acquisition costs. Payroll deduction automates group premium collection and loan repayments, simplifying servicing for employers covering large workforces. Joint bank-insurer campaigns raise conversion rates materially, while secure data sharing accelerates KYC and underwriting.

Old Mutual Ltd uses branches, advisors, bancassurance, digital (apps/web/USSD) and contact centers to deliver advice, onboarding and ongoing servicing; complex cases stay in-person while digital scales mass and youth segments in 2024. Bancassurance drives ~30% of life-premium volume; APIs and omni-channel continuity reduce drop-off and boost NPS.

SMEs and mid-market firms require employee benefits, commercial insurance and working capital to operate and scale; as of 2024 SMEs account for roughly 90% of businesses and 50% of employment globally. Simplicity and speed are critical for adoption, with bundled solutions reducing administrative burden. Integrated risk advice improves resilience and supports growth trajectories.

Low-to-middle income adults (~40m in SA) seek mobile-first microinsurance and flexible-savings; SIMs >110% (2024), funeral cover dominant.

Affluent/HNW require bespoke wealth, estate and tax-efficient solutions; South Africa population 60.6m (2024), rising private wealth.

SMEs (≈90% of businesses, ~50% employment) and corporates need bundled benefits, fast onboarding and 99.9% SLA; institutions demand fiduciary LDI and reporting.

Salaries, training and service delivery remain the largest scale-driven costs, supporting a workforce of about 12,000 in 2024 and sustaining distribution reach; branch and call centre footprints add fixed rent and variable staffing costs that pressure operating expense lines. Strategic outsourcing and shared services lowered specialized delivery costs, while continuous improvement and automation initiatives in 2024 reduced unit costs and improved cost-to-income dynamics.

Policyholder claims and maturities were Old Mutual Ltd's largest outflows in 2024, driving reserve and liquidity planning. Distribution costs ran ~12% of GWP, onboarding ~R85 per new client and workforce ~12,000 FTEs. Tech budgets rose ~7% in 2024; corporate tax was 27% in South Africa.

Asset management fees at Old Mutual Ltd derive from management and performance fees on third-party mandates, contributing to a diversified revenue base alongside retail funds and institutional mandates; group AUM was about R1.2 trillion in 2024, supporting scale. Fee rates vary by asset class and alpha targets, with active equity and alternatives commanding premium fees. Transparent monthly reporting and quarterly performance attribution bolster client retention and mandate renewals.

Recurring premiums (life, funeral, P&C) and policy persistency drive core cashflows; investment income on ZAR 430bn of assets stabilises returns; asset management fees benefit from R1.2tn AUM; banking, admin and advisory fees leverage cross-sell into R4.0tn retirement assets to create annuity-like revenue.