| Wed 18 Mar 2009, 9:00 | | OML - Old Mutual Plc - US Life Offshore Business closing to new business |
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OML
OLOML
OML - Old Mutual Plc - US Life Offshore Business closing to new business
OLD MUTUAL PLC
ISIN: GB0007389926
SHORT: OLDMUTUAL
CODE: OML
REG NO: 3591559
US LIFE OFFSHORE BUSINESS CLOSING TO NEW BUSINESS
Old Mutual plc ("Old Mutual" or the "Group") announces that its US Life
offshore business, Old Mutual Bermuda ("OMB") is being closed to new business
with immediate effect. As the Group reported at its preliminary results on 4
March, the OMB management team has been focused on rebuilding the business by
writing specialist investment products which would meet its customers` needs
as long as this could be done within the Group`s agreed risk appetite.
Management has now concluded that it is unlikely OMB will be able to launch
products that meet these risk requirements successfully and provide a
satisfactory return on capital.
Furthermore, closing to new business is expected to facilitate further de-
risking and reduce costs by running OMB under a more streamlined team. Old
Mutual has therefore decided to close OMB to all new business applications
(unless contractually bound to accept them).
OMB remains firmly committed to all existing policy obligations. Hedging
effectiveness has continued to improve from the 92% in the fourth quarter of
2008, as reported on 4 March, to more than 94% for the period 1 January to 8
March 2009. The business remains well capitalised with a significant amount
of excess capital over and above its regulatory requirement.
Julian Roberts, Old Mutual Group Chief Executive, said:
"One of our key priorities is strengthening governance and risk management
and we have taken the decision to close OMB to new business with this in mind.
We have improved controls across the Group and each business has been allocated
clear risk appetites within which it must trade. The action in connection with
OMB will provide greater certainty in respect of the business`s future
liabilities and will therefore strengthen the Group as a whole."
For further information on Old Mutual plc, please visit the corporate
website at www.oldmutual.com
18 March 2009
Sponsor in South Africa
Merrill Lynch South Africa (Pty) Limited
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
Brian Cattell 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 life assurance, asset management, banking and general
insurance services in over 40 countries in Europe, the Americas, Africa and
Asia. Old Mutual plc is listed on the London Stock Exchange and the JSE, among
others.
In the year ended 31 December 2008, the group reported adjusted operating profit
of GBP1.0 billion (on an IFRS basis) and had GBP265 billion of funds under
management at the year end. The Company has approximately 57,000 employees.
Date: 18/03/2009 09:00:02 Produced by the JSE SENS Department.
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