| Wed 17 Sep 2008, 10:45 | | OML - Old Mutual statement on exposure to Lehman Brothers |
|
OML
OLOML
OML - Old Mutual statement on exposure to Lehman Brothers
Old Mutual plc
ISIN CODE: GB0007389926
JSE SHARE CODE: OML
NSX SHARE CODE: OLM
ISSUER CODE: OLOML
Old Mutual statement on exposure to Lehman Brothers
The announcement on 15 September 2008 that Lehman Brothers Holdings Inc.
("Lehman") has filed for Chapter 11 bankruptcy protection in the US has
resulted in a sharp fall in the market value of Lehman`s debt and equity
securities. In relation to shareholder funds:
Old Mutual Group ("Old Mutual") does not hold common equity in Lehman.
Old Mutual US Life ("US Life") has counterparty exposure to Lehman through
derivatives contracts and securities lending transactions. These exposures
are either collateralised or on bankruptcy remote entities. The effect of
unwinding these transactions is not expected to have a material impact on
Old Mutual`s earnings or capital position.
As of 12 September 2008, US Life had a total general account fixed income
exposure of $50 million senior unsecured debt exposure and $5.7 million of
collateralised derivatives exposure. These exposures are not material
within the context of Old Mutual.
Enquiries
Investor Relations
Mary Jackets UK +44 (0)20 7002 7149
Aleida White UK +44 (0)20 7002 7287
Deward Serfontein SA +27 (0)82 810 5672
Media
Matthew UK +44 (0)20 7002 7133
Gregorowski
Nad Pillay SA +44 (0)78 3414 5959
Notes to Editors
Old Mutual
Old Mutual plc is an international savings and wealth management company
based in the UK. Originating in South Africa in 1845, the group has a
portfolio of businesses offering asset management, life assurance, banking
and general insurance services in over 40 countries in Europe, the Americas,
Africa and Asia-Pacific. Old Mutual plc is listed on the London Stock
Exchange and the JSE, among others.
In the year ended 31 December 2007, the group reported adjusted operating
profit of GBP1.62 billion (on an IFRS basis) and had GBP279 billion of funds
under management at the year end. The Company has approximately 53,000
employees.
For further information on Old Mutual plc, please visit the corporate
website at www.oldmutual.com
Forward-looking statements
This announcement or presentation may contain certain forward-looking
statements with respect to certain of Old Mutual plc`s plans and its current
goals and expectations relating to its future financial condition,
performance and results. By their nature, all forward-looking statements
involve risk and uncertainty because they relate to future events and
circumstances that are beyond Old Mutual plc`s control, including, among
other things, UK domestic and global economic and business conditions,
market-related risks such as fluctuations in interest rates and exchange
rates, policies and actions of regulatory authorities, the impact of
competition, inflation, deflation, the timing and impact of other
uncertainties or of future acquisitions or combinations within relevant
industries, as well as the impact of tax and other legislation and other
regulations in territories where Old Mutual plc or its affiliates operate.
As a result, Old Mutual plc`s actual future financial condition, performance
and results may differ materially from the plans, goals and expectations set
forth in Old Mutual plc`s forward-looking statements. Old Mutual plc
undertakes no obligation to update any forward-looking statements contained
in this announcement or presentation or any other forward-looking statements
that it may make.
Ref 142/08
17 September 2008
Sponsor
Merrill Lynch South Africa (Proprietary) Limited
Date: 17/09/2008 10:45:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
