Old Mutual metamorphosis on track

The big change has centred on its managed separation strategy which hopefully will result in four separately listed businesses. And just to cloud the works further, references in the annual figures to Old Mutual Emerging Markets and Old Mutual Wealth relate to the performance and corporate activity prior to this report, while references to Old Mutual Limited and Quilter relate to the future actions of those independent business following completion of managed separation.

The complex process has already begun to show benefits, principally through cost and debt reduction, and profits on continuing operations more than doubled. Completion of the separation process is on track to complete by the end of 2018, subject to regulatory and shareholder approval, and annual savings on costs are expected to total £95m, including the wind-down of the head office.

On the operating front, the group performed better than expected in South Africa despite weakness in consumer and business confidence, and headline earnings grew by 2.8 per cent. In Old Mutual Wealth, net performance fees were behind the sharp increase in profits, while assets under management grew by a fifth to £138.5bn.