Old Mutual has dismissed fears that the costs of its replatforming project would increase further as it confirms a date for its new platform to launch.
In May this year, Old Mutual cut ties with technology provider IFDS after spending at least £330m on upgrading its systems with the firm.
Having previously estimated the total cost of the replatforming project with IFDS could reach £450m, the firm said there was a possibility that this budget could still be met as it switched to new provider FNZ.
In a market update this morning, Old Mutual said: “The expected timing of delivery and cost estimates of the UK platform transformation programme, as previously announced, remain unchanged. The operational delivery of the FNZ system remains in the order of £120-160 million and we intend to have the new platform in place by the end of 2018/early 2019, with the migration of the book swiftly thereafter.”
Old Mutual also announced this morning that it will shut the Institutional business within its Heritage line to new customers as it is “not core” to its strategy and is “very low margin”.
Meanwhile, the future of Old Mutual Global Investor’s single strategy business is still uncertain.
According to reports, Goldman Sachs is running a sale of the division, led by star manager Richard Buxton, which would split it from its multi-asset business and could be worth around £500m.
The update this morning reads: “Old Mutual Wealth and Old Mutual continue to assess, together with the management of Old Mutual Global Investors, internal and external structures for the single strategy part of that business to continue to develop it further.”