INSURER Old Mutual on Friday unveiled strong results for the year to December, along with plans to separate its business units into four standalone businesses.
Pretax adjusted operating profit rose 11% to £1.7bn, with strong growth in its wealth and institutional asset management businesses, which each grew 35% and 14% to £307m and £149m respectively. This was before finance and other costs.
The wealth unit’s profits received a major boost from asset management firm Old Mutual Global Investors, which increased profit by 115%, partly as a result of the integration of the Quilter Cheviot investment management firm in the UK. Excluding Quilter Cheviot, profit at the wealth business was £273m, which surpassed Old Mutual’s £270m target for the business.
Institutional asset management profit rose as a result of higher performance and management fees. On a constant currency basis, excluding one-off exceptional performance fees and fixed-income manager Rogge Global Partners, profit remained flat on the prior year.
Old Mutual CEO Bruce Hemphill recently sold Rogge to rival Allianz for an undisclosed amount.
Nedbank and Old Mutual Emerging Markets, which both failed to grow profits or declined in the group’s reported currency during the year, remained the largest contributors to group profit, bringing in a combined £1.4bn before costs.
On a constant currency basis, profit at the emerging markets unit rose 9% to R12bn, driven by better life underwriting results, growth in asset-based revenue and its increased ownership of Old Mutual Finance.
The 75% stake in Old Mutual Finance has helped the emerging markets unit deliver an 18% surge in banking and lending profit.
Nedbank profit increased 7% on a constant currency basis but fell 2% in reported currency.
Nedbank contributes 91% of the Old Mutual’s banking and lending profits and represents 96% of the its loans and advances.
Old Mutual. Picture: BLOOMBERG/SIMON DAWSON
INSURER Old Mutual on Friday unveiled strong results for the year to December, along with plans to separate its business units into four standalone businesses.
Pretax adjusted operating profit rose 11% to £1.7bn, with strong growth in its wealth and institutional asset management businesses, which each grew 35% and 14% to £307m and £149m respectively. This was before finance and other costs.
The wealth unit’s profits received a major boost from asset management firm Old Mutual Global Investors, which increased profit by 115%, partly as a result of the integration of the Quilter Cheviot investment management firm in the UK. Excluding Quilter Cheviot, profit at the wealth business was £273m, which surpassed Old Mutual’s £270m target for the business.
Institutional asset management profit rose as a result of higher performance and management fees. On a constant currency basis, excluding one-off exceptional performance fees and fixed-income manager Rogge Global Partners, profit remained flat on the prior year.
Old Mutual CEO Bruce Hemphill recently sold Rogge to rival Allianz for an undisclosed amount.
Nedbank and Old Mutual Emerging Markets, which both failed to grow profits or declined in the group’s reported currency during the year, remained the largest contributors to group profit, bringing in a combined £1.4bn before costs.
On a constant currency basis, profit at the emerging markets unit rose 9% to R12bn, driven by better life underwriting results, growth in asset-based revenue and its increased ownership of Old Mutual Finance.
The 75% stake in Old Mutual Finance has helped the emerging markets unit deliver an 18% surge in banking and lending profit.
Nedbank profit increased 7% on a constant currency basis but fell 2% in reported currency.
Nedbank contributes 91% of the Old Mutual’s banking and lending profits and represents 96% of the its loans and advances.
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