Old Mutual

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For the football (soccer) club, see Old Mutual FC.
Old Mutual plc
Type Public company
Traded as
Industry Financial services
Founded 1845 (Cape Town, Cape Colony)
Headquarters London, England
Key people Patrick O'Sullivan, Chairman
Julian Roberts, Group CEO
Products Life assurance, savings and investment, asset management, banking and short-term insurance
Revenue £19,810 million (2013)[1]
Operating income £1,612 million (2013)[1]
Net income £983 million (2013)[1]
Employees 56,812 (2013)[2]
Website www.oldmutual.com

Old Mutual plc is an international investment, savings, insurance and banking group. Established in 1845 in South Africa, it is now a FTSE100 listed company and has more than 16 million customers and £293.8bn assets under management.[3]

History[edit]

John Fairbairn, Founder and first Chairman

The company was founded 1845 as a mutual insurance company by John Fairbairn, together with several other prominent Cape Town figures such as the liberal politician Saul Solomon.[4] The original name The Mutual Life Assurance Society of the Cape of Good Hope was changed to The South Africa Mutual Life Assurance Society in 1885.[5]

In 1939 the Old Mutual art deco office opened in Darling Street as the Mutual Building (or, Mutual Gebou in Afrikaans)[5] which has since been converted to residential use and known as "Mutual Heights".[6] In 1956 Old Mutual relocated its Head Office to Mutualpark in Pinelands which was the largest office block in the southern hemisphere at the time.[5]

In 1970 Old Mutual acquired a major shareholding in the newly formed Mutual & Federal, and later acquiring the remaining shares in 2010.

In 1973 Old Mutual acquired shareholdings in Nedcor Bank (renamed the Nedbank Group in 2005).[5]

In 1997 and 1998 it acquired UK stockbrokers Capel-Cure Myers and Albert E. Sharpe respectively which then merged to form Capel-Cure Sharp.[5]

In 1999 it was demutualised and the company listed on the London, Johannesburg, Zimbabwe, Malawi and Namibian Stock Exchanges as Old Mutual. Old Mutual establishes a head office in London.[5]

In 2000 it bought the Gerrard Group, a financial services concern, for $857m.[7] Capel-Cure Sharp subsequently merged with Greig Middleton, Gerrard Group's private client business. Old Mutual sold Gerrard to Barclays Bank PLC in 2003.[5]

Later in 2000 Old Mutual purchased United Asset Management, based in Boston, for US$1.46 billion in cash and assumed ownership of UAM net debt of around US$769 million,[8] thus acquiring a large and diverse US-based asset manager. Among the holdings of UAM were the PBHG Funds of Pilgrim Baxter & Associates. In 2003, PBA was one of many companies who faced charges related to market timing brought by the U.S. Securities and Exchange Commission (SEC) and the Attorney General of New York. Ultimately, the PBHG Funds (which had been renamed Liberty Ridge) were absorbed into the Old Mutual Funds group.[9]

In 2005, Mike Levett retired as Chairman and was succeeded by Christopher Collins.[5] A Black Economic Empowerment deal was introduced at Old Mutual South Africa, Nedbank and Mutual & Federal in 2005.[5]

In 2006 Old Mutual acquired the Swedish insurer, Skandia, in a $6.5bn deal, bringing additional business in the United Kingdom, several other countries in Europe, in Latin America, the Far East and Australia (which Old Mutual has since exited).[10] Old Mutual also announced its Black Economic Empowerment deal in Namibia.[5]

In 2010, Patrick O'Sullivan became Chairman of Old Mutual plc, succeeding Christopher Collins.[5] In 2011 Old Mutual sold US Life to Harbinger Group Inc. for $350 million.[11]

In 2012, Old Mutual sold its Nordic operations to Skandia Liv for £2.1 billion.[12]

In 2013, Old Mutual strengthened operations in Africa with the acquisition of Provident Life Assurance in Ghana[13] and Oceanic Life in Nigeria.[14]

Operations[edit]

Old Mutual Head Office in London.

Old Mutual Emerging Markets[edit]

Old Mutual South Africa, Old Mutual Investment Group, Old Mutual Wealth (South Africa), China, Colombia, Ghana, India, Kenya, Malawi, Mexico, Namibia, Nigeria, Swaziland, Uruguay and Zimbabwe

Old Mutual Wealth[edit]

UK, France, Italy, Germany, Austria, Switzerland, South Africa, Skandia International and Old Mutual Global Investors

Nedbank[edit]

  1. Nedbank (53% owned) is one of the four largest banking groups in South Africa.[2]
  2. Nedbank Private Wealth (South Africa) provides wealth management for individuals, families, trusts and non-profit organisations.[15]
  3. Nedbank Private Wealth (International) provides private banking, investment management and fiduciary services to a wide range of clients.[15]

Property & Casualty[edit]

  1. Mutual & Federal – provides insurance services in South Africa to the personal, commercial and corporate markets.[2]
  2. iWYZE is a collaboration between Mutual & Federal and Old Mutual. It enables Old Mutual to offer a new product to its customer base.[16]
  3. RM Insurance Company (Zimbabwe)

Institutional Asset Management[edit]

Operates a multi-boutique model offering institutional clients access to a range of entrepreneurial asset managers. Affiliates include Acadian Asset Management.

Non-core[edit]

The offshore life business in Bermuda, which is now closed to new business. Austria, Germany and Switzerland are also closed to new business.

Old Mutual formerly owned businesses in Australia, Chile, Hong Kong and Portugal before exiting those markets.

Senior management[edit]

The Group Executive Committee meets regularly to address strategic issues, to review the Group's progress against its business plan for the year and to discuss other high-level matters affecting the Group's performance or prospects.[17]

The members are:

  • Julian Roberts, Group Chief Executive, Old Mutual Group [17]
  • Ingrid Johnson, Group Finance Director, Old Mutual Group [17]
  • Peter Bain, President and Chief Executive Officer, Institutional Asset Management (US) [17]
  • Paul Feeney, Chief Executive Officer, Old Mutual Wealth
  • Mike Brown, Chief Executive, Nedbank Group [17]
  • Ian Gladman, Group Strategy Director, Old Mutual Group [17]
  • Paul Hanratty, Chief Operating Officer, Old Mutual Group [17]
  • Sue Kean, Group Risk Officer, Old Mutual Group [17]
  • Gail Klintworth, Group Customer Director, Old Mutual Group [17]
  • Ralph Mupita, Chief Executive Officer, Emerging Markets [17]
  • Don Schneider, Group Human Resources Director, Old Mutual Group [17]

Sponsorships[edit]

Old Mutual and its subsidiaries, like Skandia and Nedbank, are involved in a number of sponsorships. Some of the Group's key sponsorships from around the world are:

Bursaries[edit]

Old Mutual South Africa awards a number of bursaries every year for exceptional actuarial students at South African universities. It also offers part-qualified actuarial employees study leave before actuarial exams. Actuarial students are also typically awarded salary increases following exam passes.[19] Although generous, these bursaries are accompanied by onerous financial conditions. As of 2012, a typical bursary will require a student, upon graduating, to enter an employment contract with Old Mutual for at least 6 years.

Responsible business[edit]

Old Mutual Group released their first annual Responsible Business Report in 2010, alongside their Annual Report and Accounts. The report covers the progress the Group has made against their five pillars of Responsible Business - Customers, Investment, Employees, Communities and Environment.

Old Mutual participates in the United Nations Global Compact (UNGC),[20] Johannesburg Stock Exchanges’ Socially Responsible Investment Index (JSE SRI)[21] and FTSE4Good[22] as well as the Carbon Disclosure Project.[23] In 2012, Old Mutual joined the United Nations-backed Principles for Responsible Investment (PRI),[24] and, in October 2013, sponsored the seventh annual 'PRI in Person' conference, held in Cape Town.[25]

Office locations[edit]

The Old Mutual Group Head Office is located at 5th Floor, Millennium Bridge House, 2 Lambeth Hill, London EC4V 4GG.

Main office locations of subsidiaries include:

  • Colombia: Skandia Colombia, Avenida 19 No 109 A - 30, Bogotá D.C., Colombia
  • Mutual & Federal: Mutual & Federal Building, 75 President Street, Johannesburg, 2001, South Africa [26]
  • Nedbank: 135 Rivonia Road, Sandown, 2196, South Africa [26]
  • Old Mutual Asset Management (US): 200 Clarendon Street, 53rd Floor, Boston, United States of America [26]
  • Old Mutual Kenya: Corner of Mara Road and Hospital Road, Upper Hill, Nairobi, Kenya
  • Old Mutual Malawi: Old Mutual Building, 30 Glyn Jones Road, Blantyre, Malawi
  • Old Mutual Mexico: 162 Plum Forest, Bosques de las Lomas, 11700, Mexico [26]
  • Old Mutual Namibia: Mutual Tower, 223 Independence Ave, Windhoek, Namibia
  • Old Mutual Nigeria: 2nd Floor, Ecobank Head Office, Plot 21, Ahmadu Bello Way, Victoria Island, Lagon, Nigeria
  • Old Mutual South Africa:
  • Old Mutual Swaziland: 4th Floor Public Services Pension Fund Building, Mhlambanyatsi Road, Mbabane, Swaziland
  • Provident Life Assurance: Provident Towers, Ring Road Central, Accra-North, Ghana
  • United Kingdom: Skandia House, Portland Terrace, Southampton, SO14 7EJ, United Kingdom [26]
  • Old Mutual Zimbabwe: 100 The Chase West, Emerald Hill, Harare, Zimbabwe

See also[edit]

References[edit]

  1. ^ a b c "Preliminary Results 2013" (PDF). Retrieved 5 March 2014. 
  2. ^ a b c "Old Mutual Fast Facts". Oldmutual.com. 31 December 2012. Retrieved 6 March 2013. 
  3. ^ "About Old Mutual". Oldmutual.com. 13 October 2010. Retrieved 19 March 2014. 
  4. ^ "Business Times article". Sunday Times. Retrieved 8 June 2012. 
  5. ^ a b c d e f g h i j k "Old Mutual History". Oldmutual.com. Retrieved 18 April 2011. 
  6. ^ "Web site for the residential community in "Mutual Heights" in Darling Street, Cape Town". Mutualheights.net. Retrieved 18 April 2011. 
  7. ^ "Old Mutual reaches deal". New York Times. 19 January 2000. Retrieved 18 April 2011. 
  8. ^ "Old Mutual extends US reach". The Independent. UK. 20 June 2000. Retrieved 18 April 2011. 
  9. ^ Curtain to close on Liberty Ridge Capital Morningstar Advisor, 24 November 2008
  10. ^ Old Mutual seals deal for Skandia BBC News, 26 January 2006
  11. ^ Harbinger Capital Buys Old Mutual's U.S. Life Operations for $350 Million Bloomberg, 6 August 2010
  12. ^ Old Mutual to Sell Nordic Operations to Skandia Liv for $3.25 Billion Bloomberg, 15 December 2011
  13. ^ Old Mutual Buys Out Ghana Insurance Firm Business Today, 5 September 2013
  14. ^ Old Mutual plans to acquire Nigerian firm Fin 24, 22 February 2012
  15. ^ a b "Old Mutual Structure". Oldmutual.com. Retrieved 31 July 2013. 
  16. ^ "Accessing insurance through different channels case study". Oldmutual.com. Retrieved 31 July 2013. 
  17. ^ a b c d e f g h i j k "Old Mutual Group Executive". Oldmutual.com. Retrieved 18 April 2011. 
  18. ^ a b c d e f g h i j "Old Mutual Sponsorships". oldmutual.com. Retrieved 29 August 2012. 
  19. ^ "Old Mutual Learners’ Scholarship Programme for South Africans, South Africa". Scholarship-positions.com. 30 July 2010. Retrieved 18 April 2011. 
  20. ^ "Communication on progress - Old Mutual". unglobalcompact.org. Retrieved 4 October 2013. 
  21. ^ "SRI Index Constituents for 2012". jse.co.za. Retrieved 4 October 2013. 
  22. ^ "Affiliations". oldmutual.com. Retrieved 4 October 2013. 
  23. ^ "Company Responses". cdproject.net. Retrieved 4 October 2013. 
  24. ^ "Signatories to the Principles for Responsible Investment". unpri.org. Retrieved 4 October 2013. 
  25. ^ "Old Mutual sponsors first PRI in Person conference on African soil". moneymarketing.co.za. Retrieved 4 October 2013. 
  26. ^ a b c d e "Old Mutual Media Contacts". oldmutual.com. Retrieved 29 August 2012. 

External links[edit]