Interim Management Statement

RNS Number : 8270L

Old Mutual PLC

13 May 2010

 



13 May 2010

Old Mutual plc Interim Management Statement
For the three months ended 31 March 2010

Robust sales performance across Long-Term Savings

(All percentage movements quoted in constant currency compared to Q1 2009)

·      APE sales up 21% to £397 million

o  South Africa (incl. Namibia) APE sales up 7% to R1.1 billion

o  Wealth Management APE sales up 62% to £210 million, UK up 72%

o  APE sales in Nordic fell 23% to SEK606 million as management actions take effect

·      Unit trust sales up 39% to £1,956 million, rapid growth in the UK and Nordic

·      Strongest quarter to date on UK platform with net inflows of nearly £1 billion

Strong growth in funds under management

·      Funds under management up 8% in quarter to £309 billion

·      Retention and net client cash flow strong across Long-Term Savings (LTS)

o  LTS inflow of £1.4 billion, compared to outflow of £1.6 billion in Q1 2009

Julian Roberts, Group Chief Executive, commented:

"The Group delivered an excellent underlying sales performance during the first quarter, showing a marked improvement on the equivalent period last year and continuing the good recovery that began in the second half of 2009.  The UK performance is particularly pleasing, reinforcing our confidence in the position of our Skandia platform model and its prospects for capturing funds.

"We have created a firm foundation upon which our LTS businesses are beginning to deliver the strategic targets on cost savings and return on equity which we set out in our preliminary announcement in March. Cost reduction programmes are already underway across our LTS division and we continue to enhance our sales and distribution mechanisms."

Business Update

GROUP RESULTS

Group Highlights for the three months to 31 March 2010 (£m)		Q1 2010	Q1 2009 (constant currency basis)	% Change	Q1 2009 (as reported)	% Change
Long-Term Savings life assurance sales (APE)		397	327	21%	307	29%
Emerging Markets1		97	93	4%	76	28%
Nordic		54	70	(23%)	65	(17%)
Retail Europe		17	15	13%	15	13%
Wealth Management		210	130	62%	130	62%
US Life		19	19	0%	21	(10%)
Unit trust / mutual fund sales		2,199	1,586	39%	1,458	51%
Long-Term Savings unit trust / mutual fund sales		1,956	1,409	39%	1,266	55%
Emerging Markets		711	785	(9%)	645	10%
Nordic		160	44	264%	41	290%
Retail Europe		7	6	17%	6	17%
Wealth Management		1,078	574	88%	574	88%
US Asset Management unit trust / mutual fund sales		243	177	37%	192	27%
Group Highlights as at 31 March 2010 (£bn)		Q1 2010	FY 2009	% Change
Funds under management (FUM)		308.6	285.0	8%
Long-Term Savings		122.6	112.2	9%
Nedbank		9.5	8.2	16%
Mutual & Federal		0.2	0.2	-
US Asset Management		173.2	161.5	7%
Bermuda		3.1	2.9	7%
Group Highlights for the three months to 31 March 2010 (£bn)		Q1 2010	Q1 2009 (constant currency basis)	Annualised % of opening FUM	Q1 2009
Net Client Cash Flow (NCCF)		(0.3)	(2.9)	0%	(2.9)
Long-Term Savings		1.4	(1.8)	5%	(1.6)
Nedbank		0.4	0.2	20%	0.1
US Asset Management		(2.1)	(1.3)	(5%)	(1.4)
1. Nedlife sales are excluded from current and prior year totals. Including Nedlife sales, Emerging Market sales were £84m in Q1 2009 and Long-Term Savings total sales were £315m in Q1 2009. Note, all percentage changes in the above table are shown as rounded sterling balances.

Overview

Sales in the first quarter of 2010 ('the period') continued the strong momentum seen in the fourth quarter of 2009. Total life assurance sales on an Annual Premium Equivalent (APE) basis ('APE sales') for the Long-Term Savings ('LTS') division increased by 21%, and unit trust sales increased by 39% compared to the first quarter of 2009 ('the comparative period'). There were particularly strong results in Wealth Management, with APE and unit trust sales increasing by 62% and 88% respectively against the comparative period. The UK platform experienced its strongest quarter to date, with net inflows of almost £1 billion.

Funds under management ('FUM') increased by 8% since 31 December 2009, and increased by 26% compared to 31 March 2009. Rapid improvements in equity markets in the Nordic and UK regions contributed to particularly strong growth for our operations and led to positive net client cash flow ('NCCF') across the LTS business as a whole. Surrenders in the LTS division stabilised during the period, consistent with surrender experience in the fourth quarter of 2009.  Conservation programmes are in place in all our businesses, and there was a continued improvement in retentions in US Life. 

We have begun to implement our cost reduction programme, and all of our businesses are focused on delivering the 2012 target of £100 million of annual cost savings and ROE improvements outlined in our 2009 Preliminary Results Announcement. Consultation with staff and management on material reductions in headcount for Wealth Management was launched in February 2010, and we are making good progress in this Business Unit.  The LTS management team are actively working on product cross-fertilisation opportunities around the Group.

We have appointed JP Morgan to advise us on the possible sale of the US Life business with a process now underway, and we will provide a further update at the appropriate time.

We are pleased to welcome a new joint venture partner to our Chinese business. China Goudian Corporation is one of the five largest nationwide power generation groups approved by the State Council of China in the power industry restructuring.  The company is involved in power generation, coal mining, engineering and finance throughout the country, and has over 110,000 employees. Management teams from Skandia:BSAM and Goudian are currently working on their joint plans for the development of the business. 

Capital and Liquidity

The pro-forma Financial Groups Directive ("FGD") surplus at 31 March 2010 was £1.7 billion compared with £1.5 billion at 31 December 2009. The increase was due to the strengthening of the rand, the improvement in equity markets in the period, and the earnings achieved in the period.  All our businesses remain individually well capitalised. During the period the Group has broadly maintained its liquidity headroom. At 31 March 2010, the Group holding company had total liquidity headroom of £1.1 billion (31 December 2009: £1.2 billion), comprising cash of £0.4 billion and undrawn facilities of £0.7 billion.

The Group has no exposure to sovereign debt in Portugal, Ireland, Greece, or Spain, and less than £1 million exposure to Italy.

LONG-TERM SAVINGS: Emerging Markets

Excellent single premium sales

Sales

We achieved APE sales of R1,141 million (£97 million), representing growth of 4% compared to the first quarter of 2009. This was mainly as a result of excellent single premium sales growth of 19%, partially offset by a slight reduction in recurring premium sales growth.

In South Africa (including Namibia), APE sales grew in aggregate by 7% to R1,117 million. Single premium APE sales of R421 million in the period exceeded the comparative period by 20%, bolstered by a strong performance in the Investment Frontiers fixed bond product and improved retail immediate annuity sales. Corporate single premium sales were 12% lower than in the comparative period. Improved smoothed bonus sales were offset by a slow start to immediate annuity sales which we expect to pick up as the year progresses.

Recurring premium APE sales were flat at R696 million relative to the comparative period, with an increase in risk product sales offset by lower savings product sales. Recurring premium risk APE sales in South Africa increased by 4%, partially as a result of the enhancement made to the Greenlight protection range offered by Retail Affluent in June last year. Recurring premium APE savings sales in total were down 4% over the comparative period, with an increase in Retail Mass savings APE sales more than offset by lower APE sales to umbrella funds in Corporate and lower APE sales in the Retail Affluent Max product range. Retail Mass recurring premium sales are expected to improve during the remainder of the year as a consequence of our continued focus on adviser headcount growth and productivity. The Corporate segment maintained protection sales in the quarter after a very good sales year in 2009.  

Sales in Kotak Mahindra Old Mutual ('Kotak') increased marginally to INR4.6 billion (£65 million). Kotak continues to grow at an encouraging rate and is now the ninth largest player in the Individual business market (up from tenth position in December 2009), and the seventh largest player in the Group business market (up from ninth position in December 2009).

South African (including Namibia) unit trust sales of R5,335 million were 13% below sales in the comparative period due to lower money market flows following a decline in market interest rates and lower flows into international funds as a result of the stronger rand. Unit trust sales in the balance of the Emerging Markets business performed well.

Net client cash flow

Emerging Markets NCCF was a negative R1.4 billion (£0.1 billion) in aggregate, a result that was R0.6 billion worse than the comparative period (excluding the impact of the R21.7 billion withdrawal by PIC in 2009) despite the good inflows in Latin America due to a new large pension scheme mandate, improved flows in the Corporate segment in South Africa and higher inflows in India. This was mainly attributable to a large single fund withdrawal of R901 million in Namibia and lower unit trust sales in South Africa. The Retail Mass segment recorded positive flows of R660 million.

Funds under management and investment management

FUM improved by 3% in rand terms from the 31 December 2009 level to R536 billion as a result of positive market returns net of the small negative NCCF. In sterling terms, the FUM increased by 11% to £49 billion.

Old Mutual Investment Group (South Africa) (OMIGSA)

There has been a strong turnaround in investment performance across all boutiques over the last twelve months, and 33% (2009: 26%) of our collective investment schemes are in the top quartile of their categories over the twelve months to the end of March. Customers continue to be well rewarded by the specialist expertise, in particular within the financial and raw materials sectors, of the focused investment businesses. 

LONG-TERM SAVINGS: Nordic

Strong net client cash flows in non-life, rising FUM and management actions on sales

Sales

APE sales of SEK606 million (£54 million) were 23% lower in local currency than in the comparative period. The previously announced management actions to close down an unprofitable unit-linked product in September 2009 had the anticipated reduction in recurring premium sales in the first quarter, and there were lower sales of the single premium Skandia Depå product. Occupational pension sales in the Swedish Corporate sector have not recovered from the effects of the economic downturn, and top-up sales have reduced as a result of lower mobility and salary increases. Private Healthcare's performance benefited from re-pricing in Denmark and Sweden, with claims normalising.

Nordic mutual fund sales posted an increase of 264% over the comparative period to SEK1.8 billion (£160 million), particularly as a result of the performance of the Skandia Global Hedge fund, one of the best performing hedge funds in Sweden, and the launch of the new range of Skala funds (which are a derivative of our UK Spectrum Fund range).

Net client cash flow

NCCF for the first quarter reached positive SEK3.0 billion (£0.3 billion), 7% above the comparative period in local currency.  The positive NCCF performance was mainly due to the strong sales figures in the mutual fund business. We have seen an inflow of customer funds from other banks due to successful marketing campaigns, and also a noticeable increase in customer mutual fund trading on the Skandiabanken platform. 

Funds under management and investment management 

FUM at 31 March 2010 increased by 5% in local currency terms to SEK134 billion (in sterling terms by 11% to £12 billion) over the quarter. The increase was mainly due to strong NCCF and continued improvement in the equity markets, along with retail sentiment towards equity investment.

Investment performance for the period was good. Skandia Link's average client enjoyed investment performance of 4.2%, against a benchmark of 3.3% over the same period. Customers have tended to prefer emerging markets equities during the period. As disclosed in the 2009 results, we disposed of private equity assets during the period, realising a gain of SEK126 million.

LONG-TERM SAVINGS: Retail Europe

Solid sales as product offerings continue to evolve

Sales

APE sales of €19 million (£17 million) showed an increase of 13% in local currency terms over the comparative period. Extensive sales activities resulted in a 50% increase in the number of applications in the period compared to the first quarter of 2009, although the APE sales numbers have not benefited to the same extent. There has been a shift to longer-term, lower premium, retirement products, which has meant that APE growth has been more modest than the growth in policy numbers. Polish APE sales increased substantially as a result of new distribution partnerships, whilst German and Austrian APE sales remained at a level consistent with those of the comparative period. The market for unit-linked products as a whole has softened as customers move into guaranteed products. Despite this, we have held our market share, and we are continually adapting our product range to respond to this shift in customer demand.

We are progressing well with the planned move of parts of our customer service and IT functions to South Africa.

Net client cash flow

NCCF of €130 million (£115 million) in the period, equating to 9% of opening FUM in local currency, was driven by the stability of our regular premium businesses and lower surrenders. 

Funds under management and investment management 

FUM reached €5.0 billion (£4.5 billion), an increase of 6% over the period in local currency terms. This very positive performance was a result of strong inflows, lower surrenders, and the positive development of our customers' equity-weighted fund portfolios, driven by the rise in equity markets.

LONG-TERM SAVINGS: Wealth Management

Excellent trading performance in our markets

Sales

Across all our markets, new business sales performed exceptionally well in the first quarter, and showed significant year-on-year growth as the global economy moves out of recession.  Improving investor sentiment and recovering equity markets resulted in enhanced market conditions, while our strong distribution relationships and attractive platform proposition have helped us to capture the growing demand. APE sales grew by 62% to £210 million from £130 million for the comparative period, and mutual fund sales grew by 88% to £1,078 million from £574 million.

In the UK, our platform business attracted large inflows and high transaction volumes during a seasonally strong first quarter. APE sales in our UK business were up 72% year-on-year to £98 million, while mutual fund sales in the UK increased by 116% against the comparative period to £796 million. Our platform attracted almost £1 billion in net inflows, its strongest quarter to date. Business connected to the UK tax year-end was significantly higher than the previous year, with ISA volumes up 181% year-on-year and pension applications on the platform up 130%.  The UK platform sales as reported to Lipper were up 45%, compared to the first quarter of 2009 and 13% compared to the fourth quarter of 2009.

In markets served by Skandia International, sales held up well despite reduced activity in Finland following changes in legislation implemented in late 2009.  Our strong relationships in the Middle East and Latin America were maintained during the first quarter, resulting in APE sales being up 5% against the comparative period to £60 million.

In Italy, APE sales increased by 300% against the comparative period to €51 million (£45 million).  Our strong distribution relationships have allowed us to capture significant volumes from the repatriation of assets held overseas permitted by a temporary concession from the Italian government.  The market has also become increasingly aware of our independent open-architecture proposition and the flexible investment solutions and opportunities that this provides.  Our market share in Italy has grown significantly over the last six months, now reaching approximately 14% in the unit-linked segment.  In France, volumes are 51% up on prior year to €8 million (£7 million) despite the unit-linked market in France proving slower to recover than initially expected.

Net client cash flow

The strong new business inflows have resulted in excellent NCCF of £1.1 billion, 9% of opening FUM on an annualised basis. This compares to NCCF of £0.2 billion for the comparative period.

Funds under management and investment management

FUM benefited from the strong NCCF development, and from continued recoveries in equity markets, ending the period at £51 billion, up 8% over the quarter. This reflected increases in all businesses, with the UK FUM increasing by 7% to £30.3 billion, International FUM increasing by 7% to £15.7 billion, and FUM in the Continental Europe business increasing by 13% to £4.5 billion. According to Lipper, the UK maintained its leading platform position, with a market share of 31% of assets.

LONG-TERM SAVINGS: US Life

Well positioned after business transformation successes and market recovery

With the business transformation and market recovery successes of 2009 as a foundation, the business is well positioned to maintain sales without requiring further capital injections. Prior year management actions have resulted in a lower expense base, which enables the business to write profitable new business.

Sales

Total US Life APE sales of $29 million (£19 million) were flat against the comparative period in constant currency terms, although total gross sales increased to $263 million for the period compared to $219 million for the comparative period. APE for annuity products increased but was more than offset by a decline in life product APE as a result of the elimination of some products in 2009. The sales results in the period are in line with our plans, and reflect the reduction in the product set that was undertaken in 2009 as part of our focus on business transformation.

Net client cash flow

As expected, NCCF improved against the comparative period, primarily due to lower surrender activity, with an outflow of $213 million (£137 million), compared to an outflow of $408 million in the comparative period. 

Funds under management and investment management 

FUM ended the period at $16.8 billion (£11.1 billion).

The net unrealised loss position on the fixed income security portfolio improved to $0.2 billion at 31 March 2010 ($0.5 billion at 31 December 2009), reflecting narrowing spreads across structured securities and selective de-risking. IFRS impairments for the first three months of 2010 were $2 million, compared to $12 million for the same period in 2009. These impairments related to structured securities. There were no defaults in the first quarter of 2010. Net cash holdings at the end of the first quarter were $251 million, in line with our decision in late 2009 to start investing cash in the yield curve. Investment gains were realised through the sale of corporate bonds and structured securities as part of ongoing efforts to de-risk the portfolio further and improve issuer diversification.

Nedbank Group (Nedbank)

Improving economic conditions support growth in NIR

The full text of Nedbank's business update for the three months ended 31 March 2010, released on 4 May 2010, can be accessed on Nedbank's website: http://www.nedbankgroup.co.za. The following is an extract from it.

"Nedbank has performed in line with the guidance given in the 2009 annual results announcement for their key financial indicators.

Net interest income (NII) decreased by 2.0% to R4,046 million for the quarter ended 31 March 2010 (Q1 2009: R4,128 million). The prime rate averaged 10.47% for the quarter, 3.89% lower than the average rate in Q1 2009. Average interest-earning banking assets increased by 0.8%. The net interest margin (NIM) narrowed from 3.39% for the 2009 year to 3.38% for the quarter (Q1 2009: 3.48%). Continued focus on risk-adjusted asset pricing has partially offset the compression in margins which was primarily driven by lower endowment resulting from the reduction in interest rates and liability margin compression.

Improved economic conditions and risk management practices resulted in Nedbank's credit loss ratio improving to 1.46% for the period (Q1 2009: 1.67%). This ratio is in line with seasonal expectations for the first quarter.

Non-interest revenue (NIR) increased by 18.9% to R3,034 million (Q1 2009: R2,551 million). On a like-for-like basis, excluding the acquisition of the balance of the Bancassurance & Wealth joint ventures in June 2009, NIR growth was 10.4%. Commission and fee income grew by 25.6% (18.4% excluding the joint ventures) from good transactional volume in all clusters and annual inflation-linked price increases. Trading income increased by 31.8% to R555 million on the back of improved equity trading. Importantly the ratio of NIR to expenses has improved from the December 2009 ratio. These improvements were offset to an extent by negative fair value adjustments and lower private equity earnings in Nedbank Capital.

Capital and liquidity management remains fundamental to Nedbank. As previously communicated, the strong capital ratios which are above Nedbank's internal targets, allowed for the acquisition of the minority shareholding in Imperial Bank to be settled in cash. This resulted in a marginal decrease of approximately 0.5% in Nedbank's capital adequacy ratios as the full purchase consideration has been accounted for during the period. Nedbank's capital ratios remain well above target levels and it is anticipated that for the 2010 year, these ratios will return to levels similar to those reported at the end of 2009."

The Group's shareholding in Nedbank at 31 March 2010 was 54% for IFRS AOP purposes.

Mutual & Federal

Signs of operational improvement

Premium growth proved difficult in the first quarter due to subdued levels of consumer spending and a slow recovery from the recession. The gross written premium decreased by 7% from R2,385 million to R2,207 million reflecting the residual impact of the cancellation of unprofitable business in 2009 and the restructuring undertaken at that time.

The claims were lower in both their number and severity than in the same period in 2009, although overall underwriting results were disappointing as there were a number of large commercial fire claims and weather-related losses due to abnormally high rainfall levels.

Investment income was satisfactory and benefited from the ongoing recovery in the value of listed equities, although interest rates remained low.

The first quarter of the year is traditionally a weaker quarter for the business because of the South African rainy season, however performance for the first quarter of 2010 in relative terms represents an improvement to comparative quarters in prior years.

Mutual & Federal delivered improvements in client service during the period, as it succeeded in restoring stability to the processing environment following disruptions associated with the implementation of significant IT systems in 2009. It is now working actively with the LTS businesses to commence joint product offerings.

Following the successful completion of the minority buy-out, the business is now treated as a wholly-owned subsidiary of the Old Mutual Group.

US Asset Management

Funds under management up $2 billion

At 31 March 2010, FUM were $263.1 billion (£173.2 billion), up 1% from the 2009 year-end, and 19% compared to 31 March 2009 in local currency terms, benefiting from positive market returns for the quarter. Strong inflows into global fixed income and cash were offset by outflows from real estate, U.S. stable value fixed income and global equity, and net flows across the remaining firms were broadly neutral.  Overall net outflows were $3.3 billion, compared to a net outflow of $2.0 billion in the first quarter of 2009. Outflows in the quarter were driven by reallocations of continuing clients and variable investment performance. They included a $900 million withdrawal by a continuing real estate client subsequent to significant market appreciation in U.S. Real Estate Investment Trusts.  An additional $1.1 billion in withdrawals came from continuing stable value fixed income clients as investors began seeking higher yielding investments. 

Long term investment performance of our affiliates remains competitive, and, as is expected with more volatile market cycles, the diversification of our managers and bias to style purity has protected the business from experiencing more dramatic performance swings across the business.  At 31 March 2010, 57% of assets had outperformed their benchmarks over the trailing three-year period and 58% of assets outperformed their respective benchmarks over a five-year period. Assets ranked above the median of their peer group over a three-year period declined from 50% to 32%.  On a five-year basis 51% of assets ranked above the median of their peer group.  As during much of 2009, broad market performance has favoured high beta (momentum) strategies due to the extraordinary run-up in cyclical sectors.  Our style-pure active managers will perform well over complete market cycles and will be challenged during shorter periods of market volatility.

Management fees for the quarter reflected higher average FUM for the period compared to the equivalent quarter in 2009. Performance fees were lower than the comparative period, however this was largely timing-driven, as they do not accrue uniformly throughout the calendar year.

International and global strategies continue to drive institutional investor search activity, and Old Mutual seeded two new products in the first quarter in recognition of this longer-term trend.  Rogge launched the Global Selective High Yield fund that invests in higher quality high yield bonds globally, while Copper Rock introduced a global small cap strategy to invest in high quality growth companies worldwide.  Both products will be managed by teams brought into Old Mutual affiliates over the past two years, part of the firm's ongoing commitment to expand its investment capabilities. 

Old Mutual affiliates were recognised for their service to retail investors with two mutual funds earning awards for performance excellence from Lipper.  These awards reflect Old Mutual's retail strategy of bringing institutional-quality investment management to the individual investor.

Bermuda

Continued progress in execution of the run-off plan

The business continues to deliver on its core objectives as a closed book.

The business hedging team continually assesses the hedging strategy, with any proposed changes to the strategy subject to strict oversight. During the quarter to 31 March 2010, changes were made to the hedging programme to strengthen hedge protection across a number of core components with hedging completely restored on the European and UK equity indices, complete hedging of the yen and pound sterling currency exposures, and partial hedge cover across all other equity and FX indices. As previously announced, the business selectively released interest rate hedges over the quarter, driven by the low level of interest rates across most markets. The Group monitors the Value at Risk, cash and profit and loss effects on a daily basis, and maintains the hedging stop-loss protection protocol. The dynamic hedging strategy continues to focus on the underlying economics, striking a balance between potential changes in the income statement, cash flow movements and transaction costs.

Aggregate surrender activity trended marginally higher than expectations, although most guarantees remain "in the money". The business anticipates a pronounced increase in the level of redemptions if markets continue to rise and the value of customers' contracts move above the guarantee level, which will accelerate the run-off.

Material Events and Transactions

Other than as disclosed in this Interim Management Statement, there have been no material events and transactions since 31 March 2010.

Enquiries

External Communications
Patrick Bowes	UK	[phone]
Investor Relations
Deward Serfontein	SA	[phone]
Aleida White	UK	[phone]
Media
Don Hunter (Finsbury)	UK	[phone]

Notes to Editors:

A conference call for analysts and investors will take place at 9.00am (UK time), 10.00am (Central European and South African time) today. Analysts and investors who wish to participate in the call should dial the following numbers quoting conference ID 3372424:

UK                                           [phone]
South Africa                            0800 991 538
Sweden                                  [phone]
US                                           [phone]
International                             [phone]

Playback (available until midnight on 27 May 2010), access code: 3372424#:

UK / Standard International     [phone]
US                                           [phone]

Copies of this update, together with high-resolution images and biographical details of the Executive Directors of Old Mutual plc, are available in electronic format to download from the Company's website at http://www.oldmutual.com.

This Interim Management Statement has been prepared in accordance with section 4.3 of the Disclosure and Transparency Rules (DTR) and covers the period 1 January to 13 May 2010. The business update is included in this Interim Management Statement.

A Disclosure Supplement relating to the Company's business update can be found on our website. This contains key financial data for the first three months of 2010 and 2009.

Life assurance APE sales are calculated as the sum of (annualised) new recurring premiums and 10% of the new single premiums written in an annual reporting period. Our joint ventures in India and China are not consolidated for APE purposes.

Average foreign exchange rates used for constant currency calculations

	Q1 2010	Q1 2009	Appreciation / (depreciation) of local currency	FY 2009	Appreciation / (depreciation) of local currency
Rand	11.71	14.26	21.8%	13.17	12.5%
USD	1.56	1.44	(8.0%)	1.57	0.3%
SEK	11.22	12.04	7.3%	11.97	6.7%
Euro	1.13	1.10	(2.5%)	1.12	(0.4%)

Subject to being approved by shareholders at the Annual General Meeting on 13 May 2010, the final dividend of 1.5p (or its equivalent in other applicable currencies) for year ended 31 December 2009 will be paid on 25 June 2010 or in the case of Sweden (where 25 June 2010 is a public holiday) on 28 June 2010. The record date for this dividend payment is the close of business on 14 May 2010 for all the Exchanges where the Company's shares are listed, and the shares are now trading ex-dividend on all Exchanges. Further information about the dividend was included in the Company's announcement Ref 37/10 dated 6 May 2010.

Cautionary statement

This announcement has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. It should not be relied on by any other party or for any other purpose.

This announcement contains forward-looking statements with respect to certain of Old Mutual plc's and its subsidiaries' 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 subsidiaries 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 any other forward-looking statements that it may make.

 

END

 

 

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