By Sabela Ojea

 

Old Mutual Ltd. said Thursday that funds under management fell in the first quarter of the year, and that it expects to report negatively hit profits and value of new business for the first half of 2020 after experiencing low sales levels in April and May amid the coronavirus.

The financial-services company said that funds under management fell in the first quarter to 979.7 million South African rand ($56.2 million) compared with ZAR1.05 billion for the same period a year earlier.

Gross written premiums rose 7% to ZAR4.97 billion, while life annual premium equivalent sales declined 15% to ZAR2.46 billion.

The London-listed company added that it expects to go through earnings pressure in the short term due to the pandemic, as well as for the rest of the year, despite saying that it has experienced "minimal disruption to its business."

 

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

 

(END) Dow Jones Newswires

May 28, 2020 02:46 ET (06:46 GMT)

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