| Thu 13 May 2010, 8:19 | | OML - Old Mutual Plc -Interim management statement for the three months |
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OML
OLOML
OML - Old Mutual Plc -Interim management statement for the three months
ended 31 March 2010
OLD MUTUAL Plc
Issuer code: OLOML
JSE Share code: OML
NSX share code: OLM
ISIN: GB0007389926
Old Mutual plc Interim Management StatementFor the three months ended 31
March 2010
13 May 2010
Robust sales performance across Long-Term Savings
(All percentage movements quoted in constant currency compared to Q1 2009)
* APE sales up 21% to GBP397 million
* South Africa (incl. Namibia) APE sales up 7% to R1.1 billion
* Wealth Management APE sales up 62% to GBP210 million, UK up
72%
* APE sales in Nordic fell 23% to SEK606 million as management
actions take effect
* Unit trust sales up 39% to GBP1,956 million, rapid growth in the UK and
Nordic
* Strongest quarter to date on UK platform with net inflows of nearly
GBP1 billion
Strong growth in funds under management
* Funds under management up 8% in quarter to GBP309 billion
* Retention and net client cash flow strong across Long-Term Savings
(LTS)
* LTS inflow of GBP1.4 billion, compared to outflow of GBP1.6
billion in Q1 2009
Julian Roberts, Group Chief Executive, commented:
"The Group delivered an excellent underlying sales performance during the
first quarter, showing a marked improvement on the equivalent period last
year and continuing the good recovery that began in the second half of 2009.
The UK performance is particularly pleasing, reinforcing our confidence in
the position of our Skandia platform model and its prospects for capturing
funds.
"We have created a firm foundation upon which our LTS businesses are
beginning to deliver the strategic targets on cost savings and return on
equity which we set out in our preliminary announcement in March. Cost
reduction programmes are already underway across our LTS division and we
continue to enhance our sales and distribution mechanisms."
GROUP RESULTS
Group Highlights for the three Q1 2010 Q1 2009 % Q1 % Change
months (consta Change 2009
to 31 March 2010 (GBPm) nt (as
currenc report
y ed)
basis)
Long-Term Savings life 397 327 21% 307 29%
assurance sales (APE)
Emerging Markets1 97 93 4% 76 28%
Nordic 54 70 (23%) 65 (17%)
Retail Europe 17 15 13% 15 13%
Wealth Management 210 130 62% 130 62%
US Life 19 19 0% 21 (10%)
Unit trust / mutual fund sales 2,199 1,586 39% 1,458 51%
Long-Term Savings unit trust / 1,956 1,409 39% 1,266 55%
mutual fund sales
Emerging Markets 711 785 (9%) 645 10%
Nordic 160 44 264% 41 290%
Retail Europe 7 6 17% 6 17%
Wealth Management 1,078 574 88% 574 88%
US Asset Management unit trust 243 177 37% 192 27%
/ mutual fund sales
Group Highlights as at 31 March Q1 2010 FY 2009 %
2010 (GBPbn) Change
Funds under management (FUM) 308.6 285.0 8%
Long-Term Savings 122.6 112.2 9%
Nedbank 9.5 8.2 16%
Mutual & Federal 0.2 0.2 -
US Asset Management 173.2 161.5 7%
Bermuda 3.1 2.9 7%
Group Highlights for the three Q1 2010 Q1 2009 Annuali Q1
months (consta sed % 2009
to 31 March 2010 (GBPbn) nt of
currenc opening
y FUM
basis)
Net Client Cash Flow (NCCF) (0.3) (2.9) 0% (2.9)
Long-Term Savings 1.4 (1.8) 5% (1.6)
Nedbank 0.4 0.2 20% 0.1
US Asset Management (2.1) (1.3) (5%) (1.4)
1. Nedlife sales are excluded from current and prior year totals. Including
Nedlife sales, Emerging Market sales were GBP84m in Q1 2009 and Long-Term
Savings total sales were GBP315m in Q1 2009.
Note, all percentage changes in the above table are shown as rounded
sterling balances.
Overview
Sales in the first quarter of 2010 (`the period`) continued the strong
momentum seen in the fourth quarter of 2009. Total life assurance sales on
an Annual Premium Equivalent (APE) basis (`APE sales`) for the Long-Term
Savings (`LTS`) division increased by 21%, and unit trust sales increased by
39% compared to the first quarter of 2009 (`the comparative period`). There
were particularly strong results in Wealth Management, with APE and unit
trust sales increasing by 62% and 88% respectively against the comparative
period. The UK platform experienced its strongest quarter to date, with net
inflows of almost GBP1 billion.
Funds under management (`FUM`) increased by 8% since 31 December 2009, and
increased by 26% compared to 31 March 2009. Rapid improvements in equity
markets in the Nordic and UK regions contributed to particularly strong
growth for our operations and led to positive net client cash flow (`NCCF`)
across the LTS business as a whole. Surrenders in the LTS division
stabilised during the period, consistent with surrender experience in the
fourth quarter of 2009. Conservation programmes are in place in all our
businesses, and there was a continued improvement in retentions in US Life.
We have begun to implement our cost reduction programme, and all of our
businesses are focused on delivering the 2012 target of GBP100 million of
annual cost savings and ROE improvements outlined in our 2009 Preliminary
Results Announcement. Consultation with staff and management on material
reductions in headcount for Wealth Management was launched in February 2010,
and we are making good progress in this Business Unit. The LTS management
team are actively working on product cross-fertilisation opportunities
around the Group.
We have appointed JP Morgan to advise us on the possible sale of the US Life
business with a process now underway, and we will provide a further update
at the appropriate time.
We are pleased to welcome a new joint venture partner to our Chinese
business. China Goudian Corporation is one of the five largest nationwide
power generation groups approved by the State Council of China in the power
industry restructuring. The company is involved in power generation, coal
mining, engineering and finance throughout the country, and has over 110,000
employees. Management teams from Skandia:BSAM and Goudian are currently
working on their joint plans for the development of the business.
Capital and Liquidity
The pro-forma Financial Groups Directive ("FGD") surplus at 31 March 2010
was GBP1.7 billion compared with GBP1.5 billion at 31 December 2009. The
increase was due to the strengthening of the rand, the improvement in equity
markets in the period, and the earnings achieved in the period. All our
businesses remain individually well capitalised. During the period the Group
has broadly maintained its liquidity headroom. At 31 March 2010, the Group
holding company had total liquidity headroom of GBP1.1 billion (31 December
2009: GBP1.2 billion), comprising cash of GBP0.4 billion and undrawn
facilities of GBP0.7 billion.
The Group has no exposure to sovereign debt in Portugal, Ireland, Greece, or
Spain, and less than GBP1 million exposure to Italy.
LONG-TERM SAVINGS: Emerging Markets
Excellent single premium sales
Sales
We achieved APE sales of R1,141 million (GBP97 million), representing growth
of 4% compared to the first quarter of 2009. This was mainly as a result of
excellent single premium sales growth of 19%, partially offset by a slight
reduction in recurring premium sales growth.
In South Africa (including Namibia), APE sales grew in aggregate by 7% to
R1,117 million. Single premium APE sales of R421 million in the period
exceeded the comparative period by 20%, bolstered by a strong performance in
the Investment Frontiers fixed bond product and improved retail immediate
annuity sales. Corporate single premium sales were 12% lower than in the
comparative period. Improved smoothed bonus sales were offset by a slow
start to immediate annuity sales which we expect to pick up as the year
progresses.
Recurring premium APE sales were flat at R696 million relative to the
comparative period, with an increase in risk product sales offset by lower
savings product sales. Recurring premium risk APE sales in South Africa
increased by 4%, partially as a result of the enhancement made to the
Greenlight protection range offered by Retail Affluent in June last year.
Recurring premium APE savings sales in total were down 4% over the
comparative period, with an increase in Retail Mass savings APE sales more
than offset by lower APE sales to umbrella funds in Corporate and lower APE
sales in the Retail Affluent Max product range. Retail Mass recurring
premium sales are expected to improve during the remainder of the year as a
consequence of our continued focus on adviser headcount growth and
productivity. The Corporate segment maintained protection sales in the
quarter after a very good sales year in 2009.
Sales in Kotak Mahindra Old Mutual (`Kotak`) increased marginally to INR4.6
billion (GBP65 million). Kotak continues to grow at an encouraging rate and
is now the ninth largest player in the Individual business market (up from
tenth position in December 2009), and the seventh largest player in the
Group business market (up from ninth position in December 2009).
South African (including Namibia) unit trust sales of R5,335 million were
13% below sales in the comparative period due to lower money market flows
following a decline in market interest rates and lower flows into
international funds as a result of the stronger rand. Unit trust sales in
the balance of the Emerging Markets business performed well.
Net client cash flow
Emerging Markets NCCF was a negative R1.4 billion (GBP0.1 billion) in
aggregate, a result that was R0.6 billion worse than the comparative period
(excluding the impact of the R21.7 billion withdrawal by PIC in 2009)
despite the good inflows in Latin America due to a new large pension scheme
mandate, improved flows in the Corporate segment in South Africa and higher
inflows in India. This was mainly attributable to a large single fund
withdrawal of R901 million in Namibia and lower unit trust sales in South
Africa. The Retail Mass segment recorded positive flows of R660 million.
Funds under management and investment management
FUM improved by 3% in rand terms from the 31 December 2009 level to R536
billion as a result of positive market returns net of the small negative
NCCF. In sterling terms, the FUM increased by 11% to GBP49 billion.
Old Mutual Investment Group (South Africa) (OMIGSA)
There has been a strong turnaround in investment performance across all
boutiques over the last twelve months, and 33% (2009: 26%) of our collective
investment schemes are in the top quartile of their categories over the
twelve months to the end of March. Customers continue to be well rewarded by
the specialist expertise, in particular within the financial and raw
materials sectors, of the focused investment businesses.
LONG-TERM SAVINGS: Nordic
Strong net client cash flows in non-life, rising FUM and management actions
on sales
Sales
APE sales of SEK606 million (GBP54 million) were 23% lower in local currency
than in the comparative period. The previously announced management actions
to close down an unprofitable unit-linked product in September 2009 had the
anticipated reduction in recurring premium sales in the first quarter, and
there were lower sales of the single premium Skandia Depa product.
Occupational pension sales in the Swedish Corporate sector have not
recovered from the effects of the economic downturn, and top-up sales have
reduced as a result of lower mobility and salary increases. Private
Healthcare`s performance benefited from re-pricing in Denmark and Sweden,
with claims normalising.
Nordic mutual fund sales posted an increase of 264% over the comparative
period to SEK1.8 billion (GBP160 million), particularly as a result of the
performance of the Skandia Global Hedge fund, one of the best performing
hedge funds in Sweden, and the launch of the new range of Skala funds (which
are a derivative of our UK Spectrum Fund range).
Net client cash flow
NCCF for the first quarter reached positive SEK3.0 billion (GBP0.3 billion),
7% above the comparative period in local currency. The positive NCCF
performance was mainly due to the strong sales figures in the mutual fund
business. We have seen an inflow of customer funds from other banks due to
successful marketing campaigns, and also a noticeable increase in customer
mutual fund trading on the Skandiabanken platform.
Funds under management and investment management
FUM at 31 March 2010 increased by 5% in local currency terms to SEK134
billion (in sterling terms by 11% to GBP12 billion) over the quarter. The
increase was mainly due to strong NCCF and continued improvement in the
equity markets, along with retail sentiment towards equity investment.
Investment performance for the period was good. Skandia Link`s average
client enjoyed investment performance of 4.2%, against a benchmark of 3.3%
over the same period. Customers have tended to prefer emerging markets
equities during the period. As disclosed in the 2009 results, we disposed of
private equity assets during the period, realising a gain of SEK126 million.
LONG-TERM SAVINGS: Retail Europe
Solid sales as product offerings continue to evolve
Sales
APE sales of Euro19 million (GBP17 million) showed an increase of 13% in
local currency terms over the comparative period. Extensive sales activities
resulted in a 50% increase in the number of applications in the period
compared to the first quarter of 2009, although the APE sales numbers have
not benefited to the same extent. There has been a shift to longer-term,
lower premium, retirement products, which has meant that APE growth has been
more modest than the growth in policy numbers. Polish APE sales increased
substantially as a result of new distribution partnerships, whilst German
and Austrian APE sales remained at a level consistent with those of the
comparative period. The market for unit-linked products as a whole has
softened as customers move into guaranteed products. Despite this, we have
held our market share, and we are continually adapting our product range to
respond to this shift in customer demand.
We are progressing well with the planned move of parts of our customer
service and IT functions to South Africa.
Net client cash flow
NCCF of Euro130 million (GBP115 million) in the period, equating to 9% of
opening FUM in local currency, was driven by the stability of our regular
premium businesses and lower surrenders.
Funds under management and investment management
FUM reached Euro5.0 billion (GBP4.5 billion), an increase of 6% over the
period in local currency terms. This very positive performance was a result
of strong inflows, lower surrenders, and the positive development of our
customers` equity-weighted fund portfolios, driven by the rise in equity
markets.
LONG-TERM SAVINGS: Wealth Management
Excellent trading performance in our markets
Sales
Across all our markets, new business sales performed exceptionally well in
the first quarter, and showed significant year-on-year growth as the global
economy moves out of recession. Improving investor sentiment and recovering
equity markets resulted in enhanced market conditions, while our strong
distribution relationships and attractive platform proposition have helped
us to capture the growing demand. APE sales grew by 62% to GBP210 million
from GBP130 million for the comparative period, and mutual fund sales grew
by 88% to GBP1,078 million from GBP574 million.
In the UK, our platform business attracted large inflows and high
transaction volumes during a seasonally strong first quarter. APE sales in
our UK business were up 72% year-on-year to GBP98 million, while mutual fund
sales in the UK increased by 116% against the comparative period to GBP796
million. Our platform attracted almost GBP1 billion in net inflows, its
strongest quarter to date. Business connected to the UK tax year-end was
significantly higher than the previous year, with ISA volumes up 181% year-
on-year and pension applications on the platform up 130%. The UK platform
sales as reported to Lipper were up 45%, compared to the first quarter of
2009 and 13% compared to the fourth quarter of 2009.
In markets served by Skandia International, sales held up well despite
reduced activity in Finland following changes in legislation implemented in
late 2009. Our strong relationships in the Middle East and Latin America
were maintained during the first quarter, resulting in APE sales being up 5%
against the comparative period to GBP60 million.
In Italy, APE sales increased by 300% against the comparative period to
Euro51 million (GBP45 million). Our strong distribution relationships have
allowed us to capture significant volumes from the repatriation of assets
held overseas permitted by a temporary concession from the Italian
government. The market has also become increasingly aware of our
independent open-architecture proposition and the flexible investment
solutions and opportunities that this provides. Our market share in Italy
has grown significantly over the last six months, now reaching approximately
14% in the unit-linked segment. In France, volumes are 51% up on prior year
to Euro8 million (GBP7 million) despite the unit-linked market in France
proving slower to recover than initially expected.
Net client cash flow
The strong new business inflows have resulted in excellent NCCF of GBP1.1
billion, 9% of opening FUM on an annualised basis. This compares to NCCF of
GBP0.2 billion for the comparative period.
Funds under management and investment management
FUM benefited from the strong NCCF development, and from continued
recoveries in equity markets, ending the period at GBP51 billion, up 8% over
the quarter. This reflected increases in all businesses, with the UK FUM
increasing by 7% to GBP30.3 billion, International FUM increasing by 7% to
GBP15.7 billion, and FUM in the Continental Europe business increasing by
13% to GBP4.5 billion. According to Lipper, the UK maintained its leading
platform position, with a market share of 31% of assets.
LONG-TERM SAVINGS: US Life
Well positioned after business transformation successes and market recovery
With the business transformation and market recovery successes of 2009 as a
foundation, the business is well positioned to maintain sales without
requiring further capital injections. Prior year management actions have
resulted in a lower expense base, which enables the business to write
profitable new business.
Sales
Total US Life APE sales of $29 million (GBP19 million) were flat against the
comparative period in constant currency terms, although total gross sales
increased to $263 million for the period compared to $219 million for the
comparative period. APE for annuity products increased but was more than
offset by a decline in life product APE as a result of the elimination of
some products in 2009. The sales results in the period are in line with our
plans, and reflect the reduction in the product set that was undertaken in
2009 as part of our focus on business transformation.
Net client cash flow
As expected, NCCF improved against the comparative period, primarily due to
lower surrender activity, with an outflow of $213 million (GBP137 million),
compared to an outflow of $408 million in the comparative period.
Funds under management and investment management
FUM ended the period at $16.8 billion (GBP11.1 billion).
The net unrealised loss position on the fixed income security portfolio
improved to $0.2 billion at 31 March 2010 ($0.5 billion at 31 December
2009), reflecting narrowing spreads across structured securities and
selective de-risking. IFRS impairments for the first three months of 2010
were $2 million, compared to $12 million for the same period in 2009. These
impairments related to structured securities. There were no defaults in the
first quarter of 2010. Net cash holdings at the end of the first quarter
were $251 million, in line with our decision in late 2009 to start investing
cash in the yield curve. Investment gains were realised through the sale of
corporate bonds and structured securities as part of ongoing efforts to de-
risk the portfolio further and improve issuer diversification.
Nedbank Group (Nedbank)
Improving economic conditions support growth in NIR
The full text of Nedbank`s business update for the three months ended 31
March 2010, released on 4 May 2010, can be accessed on Nedbank`s website:
http://www.nedbankgroup.co.za. The following is an extract from it.
"Nedbank has performed in line with the guidance given in the 2009 annual
results announcement for their key financial indicators.
Net interest income (NII) decreased by 2.0% to R4,046 million for the
quarter ended 31 March 2010 (Q1 2009: R4,128 million). The prime rate
averaged 10.47% for the quarter, 3.89% lower than the average rate in Q1
2009. Average interest-earning banking assets increased by 0.8%. The net
interest margin (NIM) narrowed from 3.39% for the 2009 year to 3.38% for the
quarter (Q1 2009: 3.48%). Continued focus on risk-adjusted asset pricing has
partially offset the compression in margins which was primarily driven by
lower endowment resulting from the reduction in interest rates and liability
margin compression.
Improved economic conditions and risk management practices resulted in
Nedbank`s credit loss ratio improving to 1.46% for the period (Q1 2009:
1.67%). This ratio is in line with seasonal expectations for the first
quarter.
Non-interest revenue (NIR) increased by 18.9% to R3,034 million (Q1 2009:
R2,551 million). On a like-for-like basis, excluding the acquisition of the
balance of the Bancassurance & Wealth joint ventures in June 2009, NIR
growth was 10.4%. Commission and fee income grew by 25.6% (18.4% excluding
the joint ventures) from good transactional volume in all clusters and
annual inflation-linked price increases. Trading income increased by 31.8%
to R555 million on the back of improved equity trading. Importantly the
ratio of NIR to expenses has improved from the December 2009 ratio. These
improvements were offset to an extent by negative fair value adjustments and
lower private equity earnings in Nedbank Capital.
Capital and liquidity management remains fundamental to Nedbank. As
previously communicated, the strong capital ratios which are above Nedbank`s
internal targets, allowed for the acquisition of the minority shareholding
in Imperial Bank to be settled in cash. This resulted in a marginal decrease
of approximately 0.5% in Nedbank`s capital adequacy ratios as the full
purchase consideration has been accounted for during the period. Nedbank`s
capital ratios remain well above target levels and it is anticipated that
for the 2010 year, these ratios will return to levels similar to those
reported at the end of 2009."
The Group`s shareholding in Nedbank at 31 March 2010 was 54% for IFRS AOP
purposes.
Mutual & Federal
Signs of operational improvement
Premium growth proved difficult in the first quarter due to subdued levels
of consumer spending and a slow recovery from the recession. The gross
written premium decreased by 7% from R2,385 million to R2,207 million
reflecting the residual impact of the cancellation of unprofitable business
in 2009 and the restructuring undertaken at that time.
The claims were lower in both their number and severity than in the same
period in 2009, although overall underwriting results were disappointing as
there were a number of large commercial fire claims and weather-related
losses due to abnormally high rainfall levels.
Investment income was satisfactory and benefited from the ongoing recovery
in the value of listed equities, although interest rates remained low.
The first quarter of the year is traditionally a weaker quarter for the
business because of the South African rainy season, however performance for
the first quarter of 2010 in relative terms represents an improvement to
comparative quarters in prior years.
Mutual & Federal delivered improvements in client service during the period,
as it succeeded in restoring stability to the processing environment
following disruptions associated with the implementation of significant IT
systems in 2009. It is now working actively with the LTS businesses to
commence joint product offerings.
Following the successful completion of the minority buy-out, the business is
now treated as a wholly-owned subsidiary of the Old Mutual Group.
US Asset Management
Funds under management up $2 billion
At 31 March 2010, FUM were $263.1 billion (GBP173.2 billion), up 1% from the
2009 year-end, and 19% compared to 31 March 2009 in local currency terms,
benefiting from positive market returns for the quarter. Strong inflows into
global fixed income and cash were offset by outflows from real estate, U.S.
stable value fixed income and global equity, and net flows across the
remaining firms were broadly neutral. Overall net outflows were $3.3
billion, compared to a net outflow of $2.0 billion in the first quarter of
2009. Outflows in the quarter were driven by reallocations of continuing
clients and variable investment performance. They included a $900 million
withdrawal by a continuing real estate client subsequent to significant
market appreciation in U.S. Real Estate Investment Trusts. An additional
$1.1 billion in withdrawals came from continuing stable value fixed income
clients as investors began seeking higher yielding investments.
Long term investment performance of our affiliates remains competitive, and,
as is expected with more volatile market cycles, the diversification of our
managers and bias to style purity has protected the business from
experiencing more dramatic performance swings across the business. At 31
March 2010, 57% of assets had outperformed their benchmarks over the
trailing three-year period and 58% of assets outperformed their respective
benchmarks over a five-year period. Assets ranked above the median of their
peer group over a three-year period declined from 50% to 32%. On a five-
year basis 51% of assets ranked above the median of their peer group. As
during much of 2009, broad market performance has favoured high beta
(momentum) strategies due to the extraordinary run-up in cyclical sectors.
Our style-pure active managers will perform well over complete market cycles
and will be challenged during shorter periods of market volatility.
Management fees for the quarter reflected higher average FUM for the period
compared to the equivalent quarter in 2009. Performance fees were lower than
the comparative period, however this was largely timing-driven, as they do
not accrue uniformly throughout the calendar year.
International and global strategies continue to drive institutional investor
search activity, and Old Mutual seeded two new products in the first quarter
in recognition of this longer-term trend. Rogge launched the Global
Selective High Yield fund that invests in higher quality high yield bonds
globally, while Copper Rock introduced a global small cap strategy to invest
in high quality growth companies worldwide. Both products will be managed
by teams brought into Old Mutual affiliates over the past two years, part of
the firm`s ongoing commitment to expand its investment capabilities.
Old Mutual affiliates were recognised for their service to retail investors
with two mutual funds earning awards for performance excellence from Lipper.
These awards reflect Old Mutual`s retail strategy of bringing institutional-
quality investment management to the individual investor.
Bermuda
Continued progress in execution of the run-off plan
The business continues to deliver on its core objectives as a closed book.
The business hedging team continually assesses the hedging strategy, with
any proposed changes to the strategy subject to strict oversight. During the
quarter to 31 March 2010, changes were made to the hedging programme to
strengthen hedge protection across a number of core components with hedging
completely restored on the European and UK equity indices, complete hedging
of the yen and pound sterling currency exposures, and partial hedge cover
across all other equity and FX indices. As previously announced, the
business selectively released interest rate hedges over the quarter, driven
by the low level of interest rates across most markets. The Group monitors
the Value at Risk, cash and profit and loss effects on a daily basis, and
maintains the hedging stop-loss protection protocol. The dynamic hedging
strategy continues to focus on the underlying economics, striking a balance
between potential changes in the income statement, cash flow movements and
transaction costs.
Aggregate surrender activity trended marginally higher than expectations,
although most guarantees remain "in the money". The business anticipates a
pronounced increase in the level of redemptions if markets continue to rise
and the value of customers` contracts move above the guarantee level, which
will accelerate the run-off.
Material Events and Transactions
Other than as disclosed in this Interim Management Statement, there have
been no material events and transactions since 31 March 2010.
Enquiries
External
Communications
Patrick Bowes UK +44 (0)20 7002
7440
Investor
Relations
Deward Serfontein SA +27 (0)82 810
5672
Aleida White UK +44 (0)20 7002
7287
Media
Don Hunter UK +44 (0)20 7251
(Finsbury) 3801
Notes to Editors:
A conference call for analysts and investors will take place at 9.00am (UK
time), 10.00am (Central European and South African time) today. Analysts and
investors who wish to participate in the call should dial the following
numbers quoting conference ID 3372424:
UK +44 (0)20 7806 1950South Africa 0800 991
538Sweden +46 (0)853 52 6408US +1 212 444
0412International +44 (0)20 7806 1950
Playback (available until midnight on 27 May 2010), access code: 3372424#:
UK / Standard International +44 (0)20 7111 1244US +1 347
366 9565
Copies of this update, together with high-resolution images and biographical
details of the Executive Directors of Old Mutual plc, are available in
electronic format to download from the Company`s website at
http://www.oldmutual.com.
This Interim Management Statement has been prepared in accordance with
section 4.3 of the Disclosure and Transparency Rules (DTR) and covers the
period 1 January to 13 May 2010. The business update is included in this
Interim Management Statement.
A Disclosure Supplement relating to the Company`s business update can be
found on our website. This contains key financial data for the first three
months of 2010 and 2009.
Life assurance APE sales are calculated as the sum of (annualised) new
recurring premiums and 10% of the new single premiums written in an annual
reporting period. Our joint ventures in India and China are not consolidated
for APE purposes.
Average foreign exchange rates used for constant currency calculations
Q1 2010 Q1 Appreciation / FY Appreciation
2009 (depreciation) 2009 /
of local (depreciation
currency ) of local
currency
Rand 11.71 14.26 21.8% 13.17 12.5%
USD 1.56 1.44 (8.0%) 1.57 0.3%
SEK 11.22 12.04 7.3% 11.97 6.7%
Euro 1.13 1.10 (2.5%) 1.12 (0.4%)
Subject to being approved by shareholders at the Annual General Meeting on
13 May 2010, the final dividend of 1.5p (or its equivalent in other
applicable currencies) for year ended 31 December 2009 will be paid on 25
June 2010 or in the case of Sweden (where 25 June 2010 is a public holiday)
on 28 June 2010. The record date for this dividend payment is the close of
business on 14 May 2010 for all the Exchanges where the Company`s shares are
listed, and the shares are now trading ex-dividend on all Exchanges. Further
information about the dividend was included in the Company`s announcement
Ref 37/10 dated 6 May 2010.
Sponsor
Merrill Lynch South Africa (Pty) Limited
Cautionary statement
This announcement has been prepared solely to provide additional information
to shareholders to assess the Group`s strategies and the potential for those
strategies to succeed. It should not be relied on by any other party or for
any other purpose.
This announcement contains forward-looking statements with respect to
certain of Old Mutual plc`s and its subsidiaries` 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 subsidiaries 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 any other forward-looking statements that it may
make.
Date: 13/05/2010 08:19:17 Produced by the JSE SENS Department.
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