More about managed separation
What is our strategy?
Before Managed Separation
Four Strong Independent Businesses
How we have progressed with the managed separation strategy*
The Old Mutual plc managed separation strategy aims to unlock and create significant long-term value for our shareholders which is currently trapped within the Group structure as well as removing the significant costs arising from that structure. We intend to unlock value through the separation of the four businesses from each other.Removal of plc central operational and debt costs
Delivered annualised cost savings of £31 million
Conducting ongoing regulatory and stakeholder engagement to secure required approvals for managed separation
Asset realisations significantly progressed
OMAM is now independent from Old Mutual plc. During H1 2017 we have sold and contracted to sell approximately 45% of the business for net proceeds of $785 million, which would reduce Old Mutual plc's stake to 5.5%
Sale of 26% stake in Kotak Mahindra Old Mutual Life insurance for net proceeds of £138 million, due to complete in H2 2017
Completion of sale of Old Mutual Wealth Italy for £210 million
Materially reduced plc holding company debt following a £273 million repurchase and redemption in February 2017
We expect the listing of OMW and Old Mutual Limited (OML), the South African holding company which will initially consist of OMEM, the Group's Nedbank shareholding and Old Mutual plc, to take place in 2018 at the earliest opportunity after Old Mutual's 2017 full year results
OMEM (Old Mutual Emerging Markets) - appointed new CEO with a focus on cost efficiency leadership; defending and growing market position in South Africa; turnaround of Old Mutual Insure and East Africa on track and improving the RoE across Rest of Africa; appointed Mike Ilsley as Chief Financial Officer
OMW (Old Mutual Wealth) - appointed new CFO, Tim Tookey; continued reshaping and strengthening of the Board and executive; completed successful acquisitions of distribution networks; Platform transformation programme transitioned to FNZ
OMEM and OMW implementing new standalone operating models
£200 million of capital injected into OMW as an initial step in preparing capital structures and transition of centrally held liquidity buffers
*A summary of external progress updates as at 11 August 2017
How are we working with our businesses to implement our strategy?
Our three transition anchors
Working with our businesses to separate from Old Mutual plc, prepare to be standalone businesses and continue to deliver enhanced performance relative to their peer groups.
Stewardship of the managed separation process, balancing value, cost, time and risk.
Fulfilling Old Mutual plc's ongoing regulatory obligations; and managing its debt obligations, central cost reductions and distributions to shareholders.
Your Old Mutual policy will not be affected. This separation is relevant to shareholders who directly own shares in the UK- and/or South African-listed businesses of Old Mutual plc and/or Nedbank Ltd and/or OM Asset Management in the US.
Will this have any impact on me as a customer?
No, it will not. However, we do believe in time that this process will lead to each of our underlying businesses being more competitive and more relevant to our customers and so should be beneficial for customers.
Retail shareholder queries
If you hold a direct investment in Old Mutual plc or Nedbank Ltd on the UK or South African stock exchange, please visit the investor relations section of our website for more detailed information.
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