According to the company’s latest B-BBEE compliance report, Old Mutual achieved a total score of 114.38 points out of a possible 120.
Image: Karen Sandison | Independent Newspapers
Old Mutual retained its Level 1 broad-based black economic empowerment (B-BBEE) status, although its management control and skills development scores fell short of target levels.
The group, established in Cape Town in 1845 as South Africa’s first mutual life insurer, has since grown into a pan-African financial services company operating in 12 countries across Africa and Asia. Old Mutual says it employs more than 27,000 people and reported revenue of R274.9 billion.
According to the company’s latest B-BBEE compliance report, Old Mutual achieved a total score of 114.38 points out of a possible 120.
The insurer exceeded several Financial Sector Code targets, achieving 108% of its ownership target and about 104% of its enterprise and supplier development target. Its socio-economic development score was also above target.
However, Old Mutual achieved about 77% of both its management control and skills development targets under the code.
According to BDO South Africa’s Women in Business report, women hold about 47% of senior management roles locally, one of the highest levels globally. Women also occupy about 38% of board seats at companies listed on the JSE, while executive committee representation stands closer to 31%.
The amended Financial Sector Code identifies ownership, skills development and enterprise and supplier development as “priority elements” for measured entities.
Old Mutual’s compliance report recorded black voting rights at 49.88% and black women voting rights at 22.43%.Black economic interest was listed at 37.61%, while black women economic interest stood at 20.39%.
Key findings from the Financial Sector Transformation Sector's Annual Transformation Report for 2023/24 - it's latest.
Image: Financial Sector Transformation Sector
The Financial Sector Transformation Council’s latest State of Transformation report identified management control and skills development as broader challenges across the financial services industry.
In the report, the council stated that “black representation at senior levels has grown yet still falls short of reflecting our demographics”.
The report also stated that while financial institutions continued investing in bursaries, internships and training, “too many young people struggle to transition from training into meaningful careers”.
Finance minister Enoch Godongwana said in the report that “transformation cannot be reduced to a series of checkboxes or symbolic gestures”.
Godongwana said: “For too long, transformation has faced the risk of being understood as a compliance burden. Targets are recorded, boxes are ticked, and reports are filed. Yet this approach misses the essence of Broad-Based Black Economic Empowerment B-BBEE.”
The amended Financial Sector Code applies across banking, insurance, asset management and other financial services industries and includes sector-specific measures relating to empowerment financing and access to financial services.
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