By Sfundo Parakozov

JOHANNESBURG, Sept 26 (Reuters) - South African insurer

Old Mutual Ltd expects to launch its bank in three

stages by 2025, after receiving regulatory approval in April

this year.

The group's Chief Executive Officer, Iain Williamson,

told a news conference on Thursday that technical and

operational progress in building the bank is ahead of schedule,

with industry testing and integration into the National Payments

System completed.

The company will start with a public launch in the first

quarter of 2025, followed by a campaign to convert existing

money account customers, and finally, the commencement of full

scale operations before the end of the year, Williamson said.

On projections for the bank breaking even, he told Reuters

that clearer targets will be provided in March, but he was

hopeful.

"Any start up business is likely to run on losses for a year

or two then turn to profitability," he said.

The bank will compete against the big five lenders,

including Absa Bank, FirstRand's First

National Bank and Standard Bank.

It will also compete with digital banks such as Discovery

Bank, which was launched in 2021.

"We acknowledge the existence of the competition...and we

believe that we are well set up to both compete and to thrive,"

said Williamson.

Old Mutual has a transactional account with about 500,000

users, he told Reuters.

The company earlier reported a 38% rise in half-year

headline earnings per share, while life insurance sales rose 6%

to 6.6 billion rand ($382 million) and gross written premiums

were up 9% in the period ended June 30.

Williamson said claims have been "volatile" since the

introduction of new pension rules in September, which allow

retirement fund members to make partial withdrawals before

retirement.

"We expect a net drawdown in the first year or two, and then

stabilisation in the longer term," Williamson said.

($1 = 17.2637 rand)