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Skandia denies that cutbacks mean sale

Old Mutual has denied that cutbacks in Skandia’s IFA support is a precursor to a sale.

Group chief executive Julian Roberts says the UK business is core. He says: “The Skandia business is absolutely key to this group. People speculate from time to time on all elements of our group because we said we would go through a restructuring. The changes we have made in the sales area are because of the success of the platform.

“We finished the integration of the old Skandia and Selestia platform and that is working extremely well. Our model in the UK is different from what it has been in the past and therefore we have decided to restructure our organisation.”

Skandia recently annnounced plans to close its nine regional offices and replace them with a central adviser support service at its Southampton headquarters. Around 100 staff could be made redundant.

Old Mutual reported an 11 per cent drop in long-term savings business on an annual premium equivalent basis to £960m for the first nine months of 2009. Unit trust sales showed an increase of 12 per cent across the group to £4.4bn.

UK life sales were up by 6 per cent to £72m and unit trust sales rose by 53 per cent to £536m.

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