At a Glance
We have used our broad and well-established South African base to create a multinational business and are building businesses in the US and Europe that focus on sectors of the market with good fundamentals and where our skills can add value.
As at 31 December 2007, Funds under Management were £279bn (22% in Europe, 15% in South Africa, 61% in the United States and 2% in the Rest of World).
Twelve Month Sales: Worldwide life APE sales +12% to £1,760m. Unit Trust/ Mutual Fund sales -2% to £8,268m.
Where we operate
Europe
Old Mutual operates in Europe mainly through Skandia, the Swedish insurance company acquired in 2006. With Skandia, Old Mutual has an enlarged footprint in Europe and has the potential to grow a strong franchise. The business model of Skandia centres around three main elements: distribution, product and investment management in three geographies: UK & Offshore, Europe & Latin America (ELAM) and Nordic.
South Africa
Old Mutual South Africa's (OMSA) financial services business, comprising life and asset management business, has at its core one of the largest distribution capabilities in the South African industry. This uses a combination of tied agents, independent financial advisers, bank distribution, corporate advisers and direct distribution to ensure that the business appears in front of a full spectrum of potential clients. OMSA's investment and risk products, as well as its strong links with other Group businesses, positions the business to meet a full array of client needs.
USA
Old Mutual has built significant asset management and life assurance businesses in the USA through a number of acquisitions during the past six years. Our US businesses are well placed strategically to take advantage of demographic and other related trends as we enhance our products and investment styles. We have introduced a common management structure across the life and asset management businesses, and are working on the implementation of a co-ordinated retail distribution strategy.
Asia Pacific
Our operations in India, China and Australia continue to benefit from our strategy to take our business skills into other developing markets.
A strong combination
In combination, Old Mutual and Skandia are well positioned to become a formidable force in the European savings market through efficient distribution networks, leading products and optimal service and systems. The Group will be financially robust, with strong growth potential and more broadly-spread risk. Skandia's strong position in Europe adds to Old Mutual's existing strengths in the USA and Africa, giving the Group a diverse earnings base and more sustainable earnings patterns.
Leading open architecture player
The Group will be a leading provider of a variety of innovative and flexible products, designed according to clients' preferences and needs. These market segments are expected to grow at a faster rate than the traditional life assurance market.
Outlook
We are committed to ensuring that not only do we deliver the prospective returns from Skandia factored into our acquisition planning, but also that our other businesses continue to make good progress.
Corporate Citizenship
We value our role as corporate citizens. We have a comprehensive social investment programme and provide support to charities in the regions where we operate. We concentrate on:
- education
- the arts
- local economic development
- the environment
- sport
- health and welfare
In South Africa particular attention was given to Black Economic Empowerment and HIV/AIDS.