Old Mutual Returns to Profit in a Year of Realignment
March 12, 2012 by Robert O'Connor
March 09, 2012
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| By Robert O’Connor |
| A.M. Best Company, Inc. |
As it moved closer to the completion of its strategy of building a long-term savings, protection and investment group,Old Mutual plcreported a 2011 after-tax profit of 667 million pounds ($1.04 billion), compared with a loss of 282 million pounds in 2010.
Pretax operating profit rose 14% to 1.51 billion pounds from 1.33 billion pounds.
Adjusted operating earnings per share rose 13% to15.7 pence(24.6 cents). Funds under management fell 5% to 267.2 billion pounds. Group return on equity was 14.6%, up from 14.2%. The ordinary dividend was increased by 25% to5 pence.
Old Mutual, which is headquartered inLondon, said it had established a “positive foundation for growth.”
During 2011,Old Mutualsaid it concluded the$350 millionsale of its U.S. life insurance business, stopped taking new business inSwitzerland, agreed to sell its Nordic operations to Skandia Liv for 2.1 billion pounds, announced that it would sell its Finnish wealth management business toOP-Pohjola Groupand moved to consolidate the management of its European operations.
The company said it is continuing to look at a partial initial public offering of its U.S. asset management business as it seeks improvements in margins, investment performance and overall growth.
Old Mutualis two-thirds of the way through a three-year strategic plan that was unveiled inMarch 2010, said Chief ExecutiveJulian Roberts. “We have either met, exceeded or are well on track to achieve these goals,” he said in a statement.
Roberts describedOld Mutual’sspread of business as “attractive and resilient,” with operations inSouth Africa,Europeandthe United States, and in emerging markets.
“While there has been a significant amount of change over the past two years, we remain committed to building a long-term savings, protection and investment group and to drive and supportNedbankto becomeAfrica’smost admired bank,” Roberts said.
(ByRobert O’Connor, Londoneditor: Robert.OConnor@ambest.com)
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(c) 2012 A.M. Best Company, Inc. |
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