Old Mutual Plc - Special Dividend Announced By Mut
Company Ltd
ISIN : GB0007389926OML
OLD MUTUAL PLC
Special Dividend Announced by Mutual & Federal Insurance Company Ltd
Old Mutual plc announces that the Board of Mutual & Federal Insurance
Company Ltd ("Mutual & Federal"), its 51% general insurance subsidiary
listed on the JSE Securities Exchange South Africa, has made a declaration
to shareholders of a further special dividend payment.
The special dividend of 350 cents per share will have the effect of
returning a further R847 million (approximately GBP60 million based on
yesterday's closing mid rate of exchange*) to shareholders. The dividend
will be paid on 10 December 2001.
Mutual & Federal has now declared three special dividends in three
consecutive years returning R1,444 million, R723 million and now R847
million in capital to shareholders. This reduction forms part of a critical
ongoing review of the efficient use of capital. The solvency margin of
Mutual and Federal is currently about 80% and will reduce to 60% after the
payment of this dividend. The legislated minimum requirement is 25%.
Old Mutual plc has voting control of Mutual & Federal. It owns 51% of Mutual
& Federal Investments Ltd., which in turn owns 77% of Mutual & Federal. In
addition, Old Mutual owns 12% of Mutual & Federal directly, giving it an
aggregate economic interest of 51%. Royal & Sun Alliance Insurance Group
owns the remaining 49% of Mutual & Federal Investments Ltd.
* Closing mid rate yesterday R14.12/GBP1
13 November 2001
ENQUIRIES:
Old Mutual plc, London
Zoleka Mzimba Tel: + 44 20 7569
Corporate Communications 0100
Old Mutual, South Africa
Bruce Allen Tel: + 27 21 509
Group Media Communications 2732
College Hill, London
Nicholas Williams Tel: + 44 20 7457
2020
College Hill, Johannesburg
Robyn Hunt Tel: + 27 11 447
3030
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