Old Mutual has a diverse investment portfolio with significant stakes in listed and unlisted companies. The group underwent a separation, which resulted in two new listed entities, Old Mutual Limited and Quilter plc. Old Mutual contains the emerging market operations and a 19.9percent stake in Nedbank. Quilter consists of the group’s wealth business in the UK.
Old Mutual’s primary operations are in South Africa and Africa. With more than 170 years of heritage across sub-Saharan Africa, the group is a crucial part of the communities it serves and broader society on the continent.
Several management actions and initiatives were taken last year to drive performance in a harsh economic environment. Within the Personal Finance division (contributing 20percent of profits), the group re-priced guaranteed annuity products and made tactical improvements to the pricing of disability and severe illness to improve competitiveness.
Old Mutual Corporate (17percent contribution) earnings will continue to be impacted by market levels this year. Management expects headwinds within the insurance division if a normalised claims environment returns. This year is expected to be politically stable in the African countries, currently contributing about 13percent of profits.