Old Mutual to split company into 4 units
Old Mutual says changes to regulations in Europe and South Africa have made it more complex to run.
JOHANNESBURG - Financial services group Old Mutual has now confirmed it will split the company into four main units.
The companies will now be called Old Mutual Emerging Markets, Old Mutual Wealth, the Nedbank Group, and Old Mutual Asset Management.
The company says its current structure is inefficient and that changes to regulations in Europe and South Africa have made it more complex to run.
Old Mutual says it hasn't yet decided how it will go about spinning off the units, but it expects the process to be largely finished by the end of 2018.
"It's a costly structure with insufficient synergies to justify those costs," chief executive Bruce Hemphill said in a statement.
The group said it has not yet decided how it will go about spinning off the units, but that it expected the separation to be largely completed by the end of 2018.
Old Mutual announced its strategic review in November, after former Standard Bank executive Hemphill took over as chief executive.
The group said its pretax adjusted operating profit for 2015 rose four percent in reported currency terms to $2.4 billion.
Its solvency capital ratio under new European rules was 135 percent, lower than many of the other major insurers that have reported earnings so far this year.
Additional reporting by Reuters.