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JOHANNESBURG, March 14 (Reuters) – South African insurer Old Mutual Ltd OMUJ.J reported on Tuesday a 10% rise in full-year profit as it benefitted from a drop in mortality claims in its biggest life insurance business.

Its headline earnings per share, a profit measure, was at 180.1 South African cents in the year to Dec. 31, up from 163.8 cents posted a year earlier.

Old Mutual, the largest life insurer in South Africa, has managed to recover following a tough two years due to COVID-19-led mortality claim and business interruptions.

But rising interest rates and tough domestic economic conditions such as daily power cuts have made the outlook risky for insurance firms.

“Failure to address load shedding will have an impact on crop failure, higher food prices and shortages of certain food products, which will further dampen economic growth,” the company said.

It declared a dividend of 51 cents per share.

(Reporting by Promit Mukherjee; Editing by Jacqueline Wong)

((promit.mukherjee@thomsonreuters.com; +27 10 346 1093;))

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