| Fri 12 Dec 2008, 9:43 | | OML - Old Mutual Plc - Acceptance of Offer to Bermuda Clients |
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OML
OLOML
OML - Old Mutual Plc - Acceptance of Offer to Bermuda Clients
Old Mutual plc
ISIN CODE: GB0007389926
JSE SHARE CODE: OML
NSX SHARE CODE: OLM
ISSUER CODE: OLOML
Acceptance of Offer to Bermuda Clients
Old Mutual plc ("Old Mutual" or the "Group") announces that the Universal
Guarantee Option (UGO) Acceleration Offer (the "Offer") to direct customers in
its Bermuda business, as outlined in the Group`s third quarter Interim
Management Statement ("IMS") on 6 November, is now closed and that
policyholders representing 14% of that part of the Bermuda book of business
subject to the Offer, have accepted the Offer.
For those policyholders who accepted the Offer, all guarantees linked to their
products will be terminated and all fees associated with those guarantees will
no longer be charged, in exchange for their account values being topped up to
85% of their initial investment, subject to the terms of the Offer. All costs
associated with the Offer will be more than offset by the release of reserves
against those guarantees.
Julian Roberts, Chief Executive of Old Mutual, commented:
"The take-up of the Offer is a further step in the continuing de-risking
process of our Bermuda book. Along with our ongoing hedging improvement, this
gives us greater certainty about future guarantee costs. In addition, the
Offer was fully funded by the release of reserves, so this was an efficient
way to work towards addressing the issues in our Bermuda business."
For further information on Old Mutual plc, please visit the corporate website
at www.oldmutual.com
Enquiries
Investor Relations
Aleida White UK +44 (0)20 7002
7287
Deward Serfontein SA +27 (0)82 810 5672
Media
Matthew UK / SA +44 (0)20 7002
Gregorowski 7133
Mike Smith UK +44 (0)20 7251
(Finsbury) 3801
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.
12 December 2008
Sponsor
Merrill Lynch South Africa (Proprietary) Limited
Date: 12/12/2008 09:43:55 Produced by the JSE SENS Department.
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