Old Mutual Wealth chief executive Paul Feeney says the business is ready to list as Quilter, as the business reports a 40 per cent increase in adjusted operating profit to £363m for 2017.
That figure includes net performance fees of £101m in 2017 (2016: £26m).
According to the results statement, pre-tax adjusted-operating profit for the single strategy business increased to £152m from £60m the year before.
In December, Old Mutual Wealth announced Old Mutual Global Investors chief executive Richard Buxton and the senior management team was partnering with private equity house TA Associates to buy the single strategy asset management business.
According to the results, operating profit for Old Mutual Wealth’s platform decreased 5 per cent to £158m in 2017.
Pre-tax normalised operating profit for the advice and wealth management arm was up 39 per cent to £82m, which the business attributed to increased contributions from its multi-asset business.
Old Mutual Wealth also confirmed in the results statement a remediation payment it has set aside relating to the FCA investigation into the treatment of closed-book customers.
Old Mutual Wealth says it has allocated £69m for remediation costs in the 2017 results.
It says: “This has been reported outside of adjusted operating profit, firstly because of the significant and historical nature of the cost, and secondly, because it does not reflect the underlying performance of Old Mutual Wealth during 2017.”
Following FCA reviews, Old Mutual Wealth says it has voluntarily decided to cap early encashment charges at 5 per cent for pension customers under 55, and refund early encashment charges over 5 per cent on pensions applied since 1 July 2009. Additionally, Old Mutual Wealth is refunding certain paid-up charges incurred since the same date.
Old Mutual Wealth says it is continuing to “cooperate and work openly with the FCA” on further concerns highlighted in the thematic review in 2016.
Old Mutual Wealth chief executive Paul Feeney says the firm is now set to list as Quilter following the completion of its separation from Old Mutual.
Feeney says: “2017 was a great year for our business. We have attracted very high levels of net flows; our business model is proving a huge success in providing what customers want and our normalised profitability has been stable despite significant investment into the business ahead of our listing.”