US Business Showcase
Ref 126/08
25 June 2008
US Business Showcase
Jim Sutcliffe, Old Mutual Chief Executive, Tom Turpin, Bruce Parker and other key members of the US senior management team will be giving a series of presentations today to UK analysts and investors, starting at 12.30pm at Old Mutual Place, 2 Lambeth Hill, London, EC4V 4GG.
The presentations will outline the US strategy and recent structural changes, including the appointment of Tom Turpin and Bruce Parker as Chief Executive Officers of the Asset Management and Life businesses respectively. They will provide an overview of both businesses, including an explanation of the multi-boutique operating model in Asset Management and the Life off-shore operations. They will also cover products, risk management and the investment process, as well as showcasing the US brand building strategy.
Both the Asset Management and Life businesses in the US are performing well and continue to make good progress. As we are approaching the half year end, we are today also providing some guidance on trading for both Old Mutual's US businesses for the first half.
In the US Asset Management business, our net client cashflow continues to be positive, which is pleasing in the current environment. Reflecting the impact of tougher markets, Adjusted Operating Profits are running at a little over 10% below the 2007 rate, when we reported $324 million for the full year.
In the US Life business, sales have continued at roughly the same rate as we achieved for the full year last year and margins have been comparable. However, due to the difficult economic operating environment, additional credit impairments are required and the cost associated with guarantees has risen. We have therefore decided to strengthen our guarantee reserves, and accordingly will make allowance for $60-$70 million in the first half. Despite the impact of this reserve, Adjusted Operating Profits for the first half will be in a range around 75% of the 2007 rate, when we reported $195 million for the full year. Underlying operating profits for the half are likely to be in the $130-$140 million range.
A live webcast of the presentations will be available on our website www.oldmutual.com and the presentations will be available from 12 noon. A conference call facility is also available for those unable to attend the presentation. Details are set out below:
Time: 12.30pm UK time
UK dial in: 0500 551 088
US dial-in: +1 866 803 8344
South Africa dial-in: 0800 991 461
Sweden dial-in: +800 0208 0208
Enquiries
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Investor Relations |
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Mary Jackets |
UK |
+44 (0)20 7002 7149 |
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Aleida White |
UK |
+44 (0)20 7002 7287 |
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Deward Serfontein |
SA |
+27 (0)82 810 5672 |
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Media |
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Matthew Gregorowski |
UK |
+44 (0)20 7002 7133 |
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Nad Pillay |
SA |
+27 (0)82 553 7980 |
Notes to Editors
Old Mutual
Old Mutual plc is an international savings and wealth management company based in the UK. Originating in South Africa in 1845, the group has a portfolio of businesses offering asset management, life assurance, banking and general insurance services in over 40 countries in Europe, the Americas, Africa and Asia-Pacific. Old Mutual plc is listed on the London Stock Exchange and the JSE, among others.
In the year ended 31 December 2007, the group reported adjusted operating profit of £1.62 billion (on an IFRS basis) and had £279 billion of funds under management at the year end. The Company has approximately 53,000 employees.
For further information on Old Mutual plc, please visit the corporate website at www.oldmutual.com
Forward-looking statements
This announcement or presentation may contain certain forward-looking statements with respect to certain of Old Mutual plc's plans and its current goals and expectations relating to its future financial condition, performance and results. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that are beyond Old Mutual plc's control, including, among other things, UK domestic and global economic and business conditions, market-related risks such as fluctuations in interest rates and exchange rates, policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing and impact of other uncertainties or of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in territories where Old Mutual plc or its affiliates operate.
As a result, Old Mutual plc's actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in Old Mutual plc's forward-looking statements. Old Mutual plc undertakes no obligation to update any forward-looking statements contained in this announcement or presentation or any other forward-looking statements that it may make.
This information is provided by RNS
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