View News

09 April 2018 Update on US legacy matters

On 13 March 2018, Old Mutual plc announced that The Travelers Companies, Inc. and St. Paul Fire and Marine Insurance Company ('Travelers') had lodged a claim in the United States District Court for the Southern District of New York in relation to pre-existing plc Head Office legacy items relating to previously disposed of US assets.  Old Mutual plc continues to believe that this claim was without merit.

As set out in the 2017 Annual Results published on 15 March 2018, Old Mutual plc will need to satisfy the UK court, in relation to any legacy items, that it will continue to hold sufficient liquid, high quality assets to meet its liabilities and deal with any contingencies, plus adequate headroom, taking into account relevant insurances.

Since 15 March 2018, Travelers have withdrawn all of the remedies they were claiming and Old Mutual Limited, which will become the new holding company of Old Mutual plc, has agreed, inter alia, to provide an intragroup guarantee to Old Mutual plc in the circumstances where Old Mutual plc is unable to satisfy the highly remote obligations in respect of the legacy items which were the subject of the claim.