Our business at a glance
Group
Old Mutual is an international long-term savings, protection and investment Group. Our primary operations are in the following geographies:
LTS - Southern Africa, Europe, Colombia, Mexico, India and China
US Asset management - US
Banking - Southern Africa
Short-term insurance - Southern Africa
Opertational Highlights
- Good earnings growth in the second half of the year after a difficult first half
- Excellent progress in delivering against the five strategic priorities set in March 2009
- Capital position strengthened: FGD surplus increased from £0.7bn to £1.5bn
- Return to paying a dividend: Final dividend 1.5p per share.
- Adjusted operating profit (AOP) 2009
£1,170m2008: £1,136m
- Funds under management 2009
£285bn2008: £265bn
- Number Employed
53,706 12008: 56,546
Long-Term Savings (LTS)
We provide innovative life assurance based solutions which address both protection and retirement savings needs.
Opertational Highlights
- Positive second half sales momentum with a particularly strong fourth quarter
- Net client cash inflow of £1.9bn
- Strong profitability in Emerging Markets
- Good growth in funds under management in Nordic and Wealth Management
- US Life returned to profitability.
- Adjusted operating profit (AOP) 2009
£685m2008: £452m
- Number Employed
22,2692008: 24,515
- Funds under management 2009
£112.2bn2008: £91bn
- Contribution to group
Banking
We have a majority shareholding in Nedbank, one of South Africa's leading banks, which also has banking interests in other countries in southern Africa.
Opertational Highlights
- Performance affected in 2009 by the impact of the global recession, a difficult local economic environment and overall lower interest rates
- Growth in net interest income and non-interest revenue was offset, like other South African banks, by rising bad debts, resulting in operating profit down on 2008
- Further strengthened capital and liquidity positions.
- Tier 1 Capital Adequacy Ratio
£11.5%2008: £9.6%
- Number Employed
27,3462008: 27,570
- Total Assets
£47.9bn2008: £41.3bn
- Contribution to group
Short-Term Insurance
We provide short-term insurance solutions in southern Africa through Mutual & Federal.
Opertational Highlights
- Profits down on 2008 but a good recovery in the second part of the year after a very difficult first half
- New system implemented to enable efficient growth
- 100% owned by Old Mutual with effect from February 2010.
- Adjusted operating profit (AOP) 2009
£70m2008: £76m
- Number Employed
2,3312008: 2,703
- Combined Ratio
98%2008: 96.1%
- Contribution to group
US Asset Management
We aim to grow our customers' savings and wealth, whether through active and direct asset management or the selection of funds and managers for customers to invest in.
Opertational Highlights
- Second-half operating profit 83% higher than the first half due to market growth and the success of cost-management initiatives within the business
- Nearly half the affiliates maintained positive net client cash flows although NCCF was negative and worse than 2008 for the business as a whole. This is very much in line with industry trends this past year
- Long-term investment performance remains strong.
- Adjusted operating profit (AOP) 2009
£83m2008: £97m
- Number Employed
1,5442008: 1,600
- Funds under management 2009
£161.5bn2008: £164.9bn
- Contribution to group
* Pre-tax AOP of operating segments less finance and other corporate costs.
** Pie charts do not include Bermuda's contribution to the total Groups Funds under management.
1 Includes Group Head Office and Bermuda.