Financial Services Editor
OLD Mutual's South African new business sales fell 11% on an indexed basis in the first 10 months of this year as poor stock market conditions turned consumers off single premium products.
But the group has gained market share in recurring premium products and its South African margin on new business has improved in recent months.
In a trading update yesterday, the group said sterling earnings for the second half of its financial year to end-December would be similar to those of the first half, with poor results from banking subsidiary Nedcor countered by better conditions in other parts of its business.
Finance director Julian Roberts said with equity markets off their lows in the US, the group had seen its US assets under management increase and margins improve.
Old Mutual saw a positive net inflow of client funds in local operations for the first time in some years. Total South African client funds under management were R281bn at end-October, up 8% on the end-June figure.
Old Mutual shares lost 6c to close at R11,19 on the JSE Securities Exchange SA yesterday.
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