View more on these topics

Old Mutual boosts capital but life sales fall 25 per cent

Old Mutual has reported a 25 per cent drop in group-wide life sales from £423m to £316m but it has boosted its capital position by almost 20 per cent to £900m in the first quarter of 2009.

Single premium sales at Skandia UK and International dropped a significant 40 per cent in the first quarter although sales of products on the Skandia wrap platform jumped 62 per cent due to a re-price in September.

The firm says the boost in sales on the platform partially offset the decline in sales in the more traditional sector.

The South African-based company boosted its capital surplus in the first quarter from £749m at year-end to £900m at March 31. The increase was a result of accrued profits as well as £40m from a Nedbank rights issue.

The firm experienced impairments of £28.4m in the US in Q1 and no defaults but it maintains defaults and impairments are the major risks to surplus.

The firm closed its Bermuda operations to new business in March this year and is set to acquire ACSIS, a South African asset management firm with funds under management, advice and administration of £1.58bn.

Group chief executive Julian Roberts says: “The group has delivered a solid performance for the first quarter despite the operating environment being profoundly different to the same period last year.

“Sales were affected by a shift in consumer sentiment, the closure of Bermuda to new business and the deliberate downsizing of our US Life business. Our Nordic and South African businesses, where we have significant scale, once again performed well.

“Funds under management have held up well over the past year relative to the marked fall in equity markets, and we continue to tighten expenses across the group.

“Strengthening our capital position remains a key priority for the group and I am pleased to report that our FGD surplus now stands at £900m, a significant increase on the year end principally as a result of accrued profits and a Nedbank subordinated debt issue.”


Three Midas funds added to FundsNetwork

Midas has made three of its Miton-branded funds available on the FundsNetwork platform for the first time. The CF Miton Strategic Portfolio and CF Miton Special Situations Portfolio, managed by Martin Gray, and the CF Miton Global Portfolio, managed by Sam Liddle, are now listed on the fund supermarket. Midas, Miton’s parent company, says it […]

Skills Academy chooses chief exec

Her primary role is to increase awareness among employers, employees and potential new joiners to the industry of the training and development opportunities that exist.

Aberdeen remains acquisitive

Aberdeen Asset Management is still on the acquisition trail following its takeover of Credit Suisse Asset Management, its chief executive says. In its interim results, released today, the group said the merger will be completed on June 30.Martin Gilbert, the chief executive, said in a statement: “We have a broad spread of activities, a strong […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm