The group saw a 66 per cent drop in profits last year to £595m from £1.75bn in 2007.
Profits adjusted to reflect long-term investment returns are down by 38 per cent to £999m from £1.62bn. Skandia UK and offshore adjusted profits are down by 3 per cent to £167m from £173m.
Total UK life sales fell by28 per cent from £468m to £335m. Unit trust and mutual fund business was down by 25 per cent from £2.28bn to £1.72bn.
A strategic review will include the sale of Old Mutual’s Australian business and the group’s exit from Portugal.
Chief executive Julian Roberts says the group’s portfolio of businesses is too broad geographically and in its scope of business lines. He says: “The rapid deterioration combined with volatility in global financial markets, most notably in the fourth quarter, gave rise to an extremely difficult operating environment while we faced a number of specific issues in our US life business.”