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Financial Highlights
Old Mutual plc Interim Results for the six months ended 30 June 2008
Solid progress in turbulent markets
- Net client cash inflows of £3.2 billion, 2% of opening funds under management (FUM) on an annualised basis despite volatile market conditions
- FUM down 7% from 31 December 2007 to £259.4 billion, steady in the second quarter
- Life APE sales up 2% to £872 million
- Mutual fund sales down 18% to £3,420 million: strong Nordic (up 103%) and SA growth more than offset by market declines in UK and US
- Value of new business down 10% at £112 million
- Profit before tax from continuing operations (IFRS) down 2% to £835 million, with basic earnings per share of 11.2p
- Adjusted operating profit* from continuing operations (IFRS basis) up 3% to £745 million (30 June 2007: £721 million)
- Bermuda variable annuity guarantee reserve strengthened, £63 million impacting adjusted operating profit, with a total £107 million impact on IFRS earnings; remedial management actions underway
- Adjusted operating profit* from continuing operations (EEV basis) up 26% to £937 million (30 June 2007: £746 million)
- Adjusted operating earnings per share** (IFRS basis) of 7.7p (30 June 2007: 8.2p)
- Adjusted Embedded Value per share of 143.2p at 30 June 2008 (31 December 2007: 173.3p)
- Interim dividend up 6.5% to 2.45p (34.84 cents***) per share
- Capital position remains strong; £1.5 billion pro-forma FGD surplus
Jim Sutcliffe, Chief Executive, commented:
"We have maintained our earnings at a similar level to last year despite extremely difficult market conditions, which is a testament to our strategy. We have big brands, a leading open architecture business and a track record of providing good investment returns to our clients.
"I am determined to resolve the difficulties in our US Life business and to return it to a proper level of profitability.
"We have solid foundations, a clear strategy and a robust business that is operating well. The dividend increase reflects our strong capital position and the Board's confidence in Old Mutual's prospects."