Old Mutual

Old Mutual plc

Type	Public company
Traded as	LSE: OML JSE: OML
Industry	Insurance, banking and asset management
Founded	1845
Headquarters	London, England
Key people	Patrick O'Sullivan, Chairman Julian Roberts, Group CEO
Revenue	£21,403 million (2010)
Operating income	£1,481 million (2010)
Net income	£(24) million (2010)
Employees	55,730
Website	www.oldmutual.com

Old Mutual plc (LSE: OML, JSE: OML) is an international long-term savings group. Established in 1845 in South Africa, it is now a FTSE100 listed company operating in 33 countries.

History

The company was founded by John Fairbairn, as a mutual insurance company in 1845 under the name of The Mutual Life Assurance Society of the Cape of Good Hope and became The South Africa Mutual Life Assurance Society in 1885.

John Fairbairn, Founder and first Chairman

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

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).

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

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.

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

Later in 2000 Old Mutual purchased United Asset Management, based in Boston, for US$1.46 billion in cash and assumed UAM net debt of around US$769 million, 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.

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

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). Old Mutual also announced its Black Economic Empowerment deal in Namibia.

In 2010, Patrick O'Sullivan became Chairman of Old Mutual plc, succeeding Christopher Collins. In 2011 Old Mutual sold US Life to Harbinger Group Inc.

In 2011, Old Mutual announced its intentions to sell its Nordic operations to Skandia Liv for £2.1 billion.

Operations

Old Mutual Head Office in London.

Old Mutual's primary operations are in the following geographies:

Long-Term Savings (southern Africa, Europe, Colombia, Mexico, India and China)

The Long-Term Savings division is made up of three main businesses:

1. Emerging Markets – Old Mutual South Africa, Namibia, Kenya, Malawi, Swaziland, Zimbabwe, India, China, Colombia and Mexico
2. Nordic – Sweden, Norway and Denmark
3. Wealth Management – Skandia (UK), Skandia Investment Group (SIG), Skandia International and Wealth Management Europe

US Asset Management (United States)

Operates a multi-boutique model offering institutional clients access to a range of entrepreneurial asset managers.

Banking (southern Africa)

Nedbank (55% owned) is one of the four largest banking groups in South Africa.

Short-Term Insurance (southern Africa)

Mutual & Federal provides insurance services in South Africa to the personal, commercial and corporate markets.

Legacy

The offshore life business in Bermuda, which is now closed to new business.

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

Senior management

The Chief Executive, Group Finance Director and seven other members make up the Group Executive. The 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.

The members are:

Julian Roberts, Group Chief Executive Old Mutual Group
Philip Broadley, Group Finance Director Old Mutual Group
Peter Bain, President and Chief Executive Officer Old Mutual Asset Management (US)
Mike Brown, Chief Executive Nedbank Group
Ian Gladman, Group Strategy Director Old Mutual Group
Paul Hanratty, Chief Executive Officer, Long-Term Savings Old Mutual Group and Chairman Old Mutual South Africa
Don Hope, Head of Strategy Development Old Mutual Group
Sue Kean, Group Risk Officer Old Mutual Group
Don Schneider, Group Human Resources Director Old Mutual Group

Sponsorships

Old Mutual and its subsidiaries, like Skandia and Nedbank, are involved in a number of sponsorships. Some of Old Mutual's key sponsorships from around the world are: the Old Mutual Two Oceans Marathon (South Africa), the Old Mutual National Choir Festival (South Africa) and the Nedbank Golf Challenge (South Africa). Skandia sponsors the British Sailing team and Old Mutual US sponsors Trevor Immelman, a South African Golfer.

Bursaries

Old Mutual South Africa awards a number of bursaries every year for 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.

Office locations

The Old Mutual Group Head Office is located at 5th Floor, Old Mutual Place, 2 Lambeth Hill, London EC4V 4GG. The South African subsidiary, Old Mutual South Africa, has its head office located at 93 Grayston Drive, Sandton, Johannesburg. The subsidiary also has a large office at Jan Smuts Drive, Pinelands, Cape Town. It also has many smaller offices throughout the country.

See also

• Skandia
• BoE Stockbrokers
• Nedbank

External links

• Official site
• Official Old Mutual South Africa site
• Official Old Mutual US site
• Official Skandia site
• Official Nedbank Group site
• Old Mutual's Facebook page