Wikipedia

Old Mutual

Old Mutual Limitedis a pan-Africaninvestment,savings,insurance, and banking group. It is listed on theJohannesburg Stock Exchange,theZimbabwe Stock Exchange,theNamibian Stock Exchangeand theBotswana Stock Exchange.It was founded inSouth AfricabyJohn Fairbairnin 1845 and wasdemutualisedand listed on theLondon Stock Exchangeand other stock exchanges in 1999. It introduced a new strategy, called 'managed separation', that entailed the separation of its four businesses – Old Mutual Emerging Markets, Nedbank,UK-based Old Mutual Wealth and Boston-based Old Mutual Asset Management (OMAM) – into standalone entities in 2018. This led to the demerger ofQuilter plc(formerly 'Old Mutual Wealth') and the unbundling of its shareholding in Nedbank. The business, which is now largely based in South Africa, provides sponsorship and supports bursaries at South African universities.

Old Mutual Ltd
Company typeLimited company
IndustryFinancial services
Founded17 May 1845;179 years ago(1845-05-17)
(Cape Town,Cape Colony)
HeadquartersSandton, South Africa
Key people
Trevor Manuel,Chairman
Iain Williamson,CEO[1][2]
Casper Troskie,CFO[3]
ProductsLife insurance
Savings and investment
Asset management
Banking
Short-terminsurance
RevenueR109,877 million (2018)[4]
R9,963 million (2018)[4]
AUMR1.04 trillion (2018)[4]
Number of employees
31,000 (2018)
Websiteoldmutual

History

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John Fairbairn,Founder and first Chairman

The company was founded in 1845 as amutual insurancecompany byJohn Fairbairn,together with several other prominentCape Townfigures, such as the liberal politicianSaul Solomon.[5]The original nameThe Mutual Life Assurance Society of the Cape of Good Hopewas changed toThe South Africa Mutual Life Assurance Societyin 1885.[6]

Original Old Mutual headquarters inCape Town.The building now serves as residential accommodation.

In 1939, the Old Mutualart decooffice opened in Darling Street as theMutual Building('Mutualgebou' in Afrikaans)[6]which has since been converted to residential use and known as "Mutual Heights". In 1956, Old Mutual relocated its head office to Mutualpark inPinelands,at that time the largest office block in the southern hemisphere.[6]

Old Mutual acquired a major shareholding in the newly formedMutual & Federalin 1970, acquiring the remaining shares in 2009.[7]Mutual & Federal was renamed as Old Mutual Insure on 5 June 2017, and is now a part of the Old Mutual Emerging Markets business.[8]

In 1973, Old Mutual acquired shareholding inNedcor Bank(renamed the Nedbank Group in 2005).[6]

In 1997 and 1998, the company acquired UKstockbrokersCapel-Cure MyersandAlbert E. Sharprespectively, which then merged to form Capel-Cure Sharp.[6]

By 1999, it wasdemutualisedand the company listed on theLondon,Johannesburg,Zimbabwe,MalawiandNamibianStock Exchanges asOld Mutual.Old Mutual also established a head office in London.[6]

In 2000, it bought theGerrard Group,a financial services concern, for $857 million.[9]Capel-Cure Sharp subsequently merged with Greig Middleton, Gerrard Group's private client business. Old Mutual sold Gerrard to Barclays Bank plc in 2003.[6]

Old Mutual Head Office inSandton.

Later in 2000, Old Mutual purchasedUnited Asset Management,based inBoston,for US$1.46 billion in cash and assumed ownership of UAM net debt of around US$769 million,[10]thus acquiring a large and diverse US-based asset manager. Among the holdings of UAM were the PBHG Funds ofPilgrim Baxter & Associates.In 2003, PBA was one of many companies who faced charges related to market timing brought by theU.S. Securities and Exchange Commission(SEC) and theAttorney General of New York.Ultimately, the PBHG Funds (renamed Liberty Ridge) were absorbed into the Old Mutual Funds group.[11]

In 2005, Mike Levett retired as chairman and was succeeded by Christopher Collins.[6]In the same year aBlack Economic Empowermentdeal was introduced atOld Mutual South Africa,NedbankandMutual & Federal.[6]

In 2006, Old Mutual acquired the Swedish insurer,Skandia,in a $6.5billion deal, bringing additional business in the United Kingdom, several other countries in Europe, Latin America, the Far East and Australia (that Old Mutual has since exited).[12]Old Mutual also announced its Black Economic Empowerment deal in Namibia.[6]

Patrick O'Sullivanbecame chairman of Old Mutual in 2010, succeeding Christopher Collins.[6]The same yearHSBCbacked away from its plan to acquire 70% of Nedbank, including Old Mutual's 53% share.[13]In 2011, Old Mutual soldUS Lifeto Harbinger Group Inc. for $350 million.[14]

Old Mutual sold its Nordic operations to Skandia Liv for £2.1 billion in 2012.[15]

In 2013, Old Mutual strengthened operations in Africa with the acquisition of Provident Life Assurance in Ghana[16]and Oceanic Life in Nigeria.[17]

Also in 2013, Old Mutual acquired the Fairheads Trust Company, one of the oldest trust companies in South Africa,[18]and established the Old Mutual Wealth Trust Company.[19]Old Mutual Wealth Trust Company has two divisions: Old Mutual Wealth Fiduciary and the Old Mutual Wealth Family Office, that continues to work closely with the Fairheads Trust individuals and families with whom it has built relationships over the past 90 years.[19]However, Old Mutual did not acquire Fairheads Benefit Services.[20]

As of January 2014, with the additions of attorney Adiba Ighodaro, daughter ofNigeria's3rd Secretary-General of the Commonwealth of Nations,ChiefEmeka Anyaoku,[21]and formerWall StreetpowerhouseZoe Cruz,Old Mutual's Board became 30% female represented.[22]

In 2014 Skandia Colombia was renamed to Old Mutual Colombia, Provident Life Assurance to Old Mutual Ghana and Skandia UK became Old Mutual Wealth. Later in 2014, Old Mutual Wealth sold Skandia Germany, Skandia Austria and Skandia Poland.[6]

May 2015 saw Old Mutual celebrating 170 years of operations[6]and Bruce Hemphill becoming group chief executive in November.[23]

In March 2016, Old Mutual plc announced a new strategy for the group, called 'managed separation', that sought to unlock and create value for shareholders. The strategy would entail the separation of its four businesses – Old Mutual Emerging Markets, Nedbank, UK-based Old Mutual Wealth and Boston-based Old Mutual Asset Management (OMAM) – into standalone entities.[24]In August 2016, Old Mutual Investment Group signed a deal with theNigeria Sovereign Investment Authorityto invest $700 million in hospitality, retail, commercial sectors, and food security,[25]and sold its Italian wealth management arm to theERGO Groupfor €278 million.[26]

A significant strategic milestone was reached during the first half of 2017 with the announcement of a series of transactions that would reduce Old Mutual plc's stake in OM Asset Management (OMAM) to 5.5%. OMAM is now independent from Old Mutual plc.[27]Additionally, in 2017 Old Mutual completed the sale of Indian-based Kotak Mahindra Old Mutual Life Insurance Ltd.[28]

The company announced in November 2017 that Old Mutual Wealth would be demerged asQuilter plcin 2018.[29]

In June 2018 the company executed the 'managed separation' strategy. Old Mutual plc shares were de-listed and Old Mutual Limited and Quilter plc, now independent businesses, listed on the Johannesburg, Zimbabwe, Malawi, Namibian and London Stock Exchanges. On 15 October 2018, Old Mutual unbundled their majority shareholding in Nedbank, marking a distribution worth approximately R43.2 billion to Old Mutual shareholders, and the completion of Old Mutual Group's managed separation.[30]Old Mutual's head office moved to No 1 Mutual Place, Sandton in the same year.[31]

In April 2019 the company sold its Latin American businesses to Lily Bermuda Capital, a wholly owned subsidiary of Singapore-based CMIG International Holding.[32]This was followed in May by Peter Moyo being suspended as CEO due to "a material breakdown in trust and confidence between him and the board". Iain Williamson, previous COO, was appointed as acting CEO.[33]

Operations

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The structure of the business is as follows:[34]

Sponsorships

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Old Mutual and its subsidiaries are involved in a number of sponsorships worldwide:[35]

  • The Old Mutual National Choir Festival (South Africa)
  • The Old Mutual Victory Race (Namibia)
  • Go2Berg
  • Music at the Gardens

Bursaries

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Old Mutual South Africa awards a number of bursaries every year for exceptional matriculants and actuarial students at South African universities. It also offers partly qualified actuarial employees study leave before actuarial exams. Actuarial students are also typically awarded salary increases following exam passes.[36]

Responsible business

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Old Mutual participates in theUnited Nations Global Compact(UNGC),[37]as well as theCarbon Disclosure Project.[38]

Old Mutual Amazing Voices

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Old Mutual Amazing Voicesis apan-Africanmusic competitionreality television series produced by Destiny TV and launched by Old Mutual forDStvandM-Net's various local interest channels across Africa in their respective regions.[39]

See also

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References

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  1. ^"Iain Williamson | Biography".oldmutual.Archived fromthe originalon 13 August 2020.Retrieved15 July2020.
  2. ^"Old Mutual appoints Iain Williamson as new CEO".BusinessLIVE.
  3. ^"Casper Troskie".7 August 2023.
  4. ^abc"Annual Report 2018"(PDF).Old Mutual.Retrieved11 June2019.[permanent dead link‍]
  5. ^"Business Times article".Sunday Times.Archived fromthe originalon 4 April 2012.Retrieved8 June2012.
  6. ^abcdefghijklm"Old Mutual History".Oldmutual. Archived fromthe originalon 13 January 2020.Retrieved18 April2011.
  7. ^"Old Mutual buys out M&F".Fin 24. 14 October 2009.Retrieved9 April2017.
  8. ^"Mutual & Federal rebranding to Old Mutual Insure"(PDF).Old Mutual Insure. Archived fromthe original(PDF)on 7 September 2017.Retrieved7 September2017.
  9. ^"Old Mutual reaches deal".New York Times.19 January 2000.Retrieved18 April2011.
  10. ^"Old Mutual extends US reach".The Independent.UK. 20 June 2000.Retrieved18 April2011.
  11. ^Curtain to close on Liberty Ridge CapitalMorningstar Advisor, 24 November 2008
  12. ^Old Mutual seals deal for SkandiaBBC News,26 January 2006
  13. ^Paul J Davies; Sharlene Goff (15 October 2010)."Old Mutual stunned as HSBC shuns Nedbank".Financial Times.Retrieved28 September2016.
  14. ^Harbinger Capital Buys Old Mutual's U.S. Life Operations for $350 MillionBloomberg, 6 August 2010
  15. ^Old Mutual to Sell Nordic Operations to Skandia Liv for $3.25 BillionBloomberg, 15 December 2011
  16. ^Old Mutual Buys Out Ghana Insurance FirmArchived15 October 2013 atarchive.todayBusiness Today, 5 September 2013
  17. ^Old Mutual plans to acquire Nigerian firmFin 24, 22 February 2012
  18. ^"Fairheads About".fairheads. Archived fromthe originalon 29 September 2018.Retrieved26 April2019.
  19. ^ab"Solutions - Our Journey".Omwealth.co.za. Archived fromthe originalon 25 April 2019.Retrieved25 April2019.
  20. ^"Fairheads beneficiary fund business not sold to Old Mutual".Fanews.co.za. 17 September 2013.Retrieved25 April2019.
  21. ^Bloomberg"Company Overview of Actis LLP"
  22. ^Costello, MilesThe Times:"Glass ceiling is wiped out as Cruz missile hits Old Mutual"; 7 January 2014.
  23. ^"Old Mutual turns to African financial services veteran".FT. 15 April 2015.Retrieved26 March2016.
  24. ^"Old Mutual to split into four units".Bbc.11 March 2016.Retrieved28 September2016.
  25. ^"Why Old Mutual is investing millions in Nigeria".Afrikonomics.22 September 2016. Archived fromthe originalon 27 September 2016.Retrieved28 September2016.
  26. ^Marion Dakers (9 August 2016)."Old Mutual sells £238m Italian wealth arm as part of separation".Telegraph.co.uk.Retrieved28 September2016.
  27. ^Old Mutual (12 May 2017)."Sale of first tranche of OM Asset Management shares to HNA Capital US closes".Old Mutual plc.Retrieved7 September2017.
  28. ^"Old Mutual to sell India insurance JV stake to Kotak for $202 mln".Reuters. 28 April 2017.Retrieved11 March2018.
  29. ^"Old Mutual Wealth to rebrand as Quilter following managed separation".Investment Week. 15 November 2017.Retrieved1 June2018.
  30. ^"Old Mutual Unbundles Nedbank Shares worth R43.2 billion".Old Mutual. Archived fromthe originalon 15 October 2018.Retrieved15 October2018.
  31. ^"Old Mutual's African arm lists on the JSE as 'managed separation' continues".Fin 24. 26 June 2018.Retrieved26 June2018.
  32. ^"Old Mutual completes divestment of Latin American units".S&P Global. 2 April 2019.Retrieved10 April2019.
  33. ^"Old Mutual suspends CEO Moyo over 'breakdown in trust and confidence'".iol. 24 May 2019.Retrieved24 May2019.
  34. ^"Old Mutual Structure".Oldmutual.Retrieved7 September2017.
  35. ^"Old Mutual Sponsorships".oldmutual. Archived fromthe originalon 12 August 2012.Retrieved29 August2012.
  36. ^"Old Mutual Learners' Scholarship Programme for South Africans, South Africa".Scholarship-positions. 30 July 2010.Retrieved18 April2011.
  37. ^"Communication on progress - Old Mutual".unglobalcompact.org. Archived fromthe originalon 4 October 2013.Retrieved4 October2013.
  38. ^"Company Responses".cdproject.net. Archived fromthe originalon 4 October 2013.Retrieved4 October2013.
  39. ^"Old Mutual Amazing Voices FAQs".oldmutual.Archived fromthe originalon 11 April 2020.Retrieved20 January2020.
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