Life Insurance Licence

Old Mutual PLC 10 January 2001 LIFE INSURANCE LICENCE AWARDED IN INDIA Old Mutual plc ('Old Mutual') announces that OM Kotak Mahindra Life Insurance ('OMKM'), its joint venture with Kotak Mahindra Finance Ltd ('KMFL'), has received a licence from the Insurance Regulatory and Development Authority ('IRDA') to commence life insurance business in India. Old Mutual will initially own 26% of the share capital of the company and KMFL and its affiliates 74%. The total capitalisation of the company will be R1,500 million (£22.25million, R232 million). Old Mutual is a London listed financial services group with a substantial life assurance business in South Africa and an international portfolio of activities in asset management, banking and general insurance. Old Mutual has approximately £190bn assets under management. KMFL is one of India's leading financial services companies, with operations covering asset management, investment banking, securities trading and research and auto and consumer finance. The new venture brings together the complementary skills of Old Mutual in developing and introducing innovative products and the strong distribution capability of KMFL. The first product launch is targeted for April 2001. OMKM anticipates being able to develop rapidly in the deregulated Indian market for life assurance, which is expected to grow substantially over the next decade. OMKM will be headquartered in Mumbai and operate nation- wide. The Chairman is Uday Kotak of KMFL and the Deputy Chairman is Hasan Askari of Old Mutual. A dedicated management team has been appointed - including Andrew Cartwright, previously with Old Mutual in South Africa, as the appointed Actuary and managers of Finance, Technology and Marketing. Old Mutual CEO Life, Jim Sutcliffe said: 'This is an excellent start to 2001. We and our partners are already well advanced in planning the launch of our first products into the Indian market - one of our key international emerging markets growth opportunities for insurance and financial services. Our team is already in place and excited by the opportunity and challenges.' Kotak Mahindra Chairman, Uday Kotak, said: 'We are delighted to have been awarded the licence. We are committed to playing a key role in the development of the life insurance business in India and look forward to the opportunities ahead.' For further information please contact: Old Mutual plc Hasan Askari, Director Developing Markets +44 (0) 20 7569 0100 +44 (0) 7785 307 759 Hasan.askari@omg.co.uk James Poole / Anna Quenby, Investor Relations +44 (0) 20 7569 0100 Bruce Allen, Media Relations South Africa +27 (0) 21 509 2732 Kotak Mahindra Finance Ltd Shivaji Dam +91 22 285 4650 Shivajid@kotakmahindra.com College Hill Associates Nicholas Williams / Gareth David +44 (0) 20 7457 2020 NOTES TO EDITORS OLD MUTUAL PLC Old Mutual plc is an international financial services company based in London, with expanding operations in life assurance, asset management, banking and general insurance. Following demutualisation in May 1999, it is listed on the London Stock Exchange with a market capitalisation at 8 January 2001 of approximately £5.9 billion. It is also listed in South Africa, Namibia, Malawi and Zimbabwe. In addition to the joint venture with Kotak Mahindra to establish a new life assurance operation on the Indian sub- continent, Old Mutual also has plans to develop international life assurance and long term savings operations in Europe and North America, as well as in the UK. Financials for the six months ended 30 June 2000 *Operating profits based on a long-term investment return increased 61% to £457m. *Operating earnings per share based on a long-term investment return rose 50% to 9 pence. *Total funds under management increased 23% to £55.1 billion from £44.9 billion at December 1999. *Continuing life assurance operating profits based on a long- term investment return rose 26% to £249 million. *Banking operating profits increased 59% to £156 million. Key Businesses: Life Assurance In southern Africa, Old Mutual provides life, disability, health, retirement savings and investment products to individuals and groups. With over 3.2 million policyholders, Old Mutual has approximately 30% of the life assurance market in South Africa. The development of a fully integrated eCommerce capability is a strategic priority. During the past six months, Old Mutual has extended its partnerships in networks and systems, working with Nedcor and Dimension Data, including joint investments in Internet Solutions, a leading South African corporate internet service provider, and Miraculum, a business-to-business electronic marketplace. Old Mutual International is the offshore and international investment subsidiary providing individually tailored offshore investments, life assurance and unit trusts from product companies based in Guernsey. On 2 August 2000 Old Mutual announced a joint venture with Kotak Mahindra Finance Ltd, one of India's largest financial services companies, to establish a life assurance business in India. Asset Management Old Mutual Asset Managers provides a multi-country asset management capability with global investment and asset management expertise. Old Mutual Unit Trusts is the leading unit trust provider in South Africa. On 31 March 2000, Old Mutual completed the acquisition of Gerrard Group plc, parent company of Greig Middleton. On 10 May 2000, Old Mutual's subsidiary, Albert E Sharp Securities, and Greig Middleton's institutional and stockbroking businesses, merged to form Old Mutual Securities, which focuses on the growth sector of corporate and advisory services for smaller and medium sized UK and European companies. Old Mutual's private client businesses, Greig Middleton/Capel Cure Sharp, is one of the leading providers of portfolio management and stockbroking services to high net-worth individuals in the UK. GNI, the leading derivatives house in London and Europe, is Old Mutual's specialised broking and derivatives market subsidiary. On 26 September 2000, Old Mutual plc acquired United Asset Management Corporation, one of the largest investment management organisations in the world, increasing the group's total assets under management to approximately $275bn (£190bn). On 20 November 2000, Old Mutual announced it was embarking on a phased restructuring of the UAM Group with the acquisition of additional revenue streams from Pilgrim Baxter, the major US mutual funds franchise. Banking Old Mutual's banking business is conducted principally by Nedcor, in which the company has a 53.5% controlling interest. Nedcor is the highest rated bank listed on the JSE Securities Exchange South Africa. Its activities include retail, commercial, corporate and investment banking and asset management, with more than 2.4 million banking customers. On 20 September 2000, Old Mutual and Nedcor strengthened their partnership with Dimension Data Holdings plc, a global network services company listed in London. In July 2000, Nedcor acquired FBC Fidelity Bank, which is being merged with Peoples Bank to create the biggest empowerment bank in South Africa. General Insurance Old Mutual holds a 51% controlling interest in Mutual & Federal Insurance Company, which writes motor, fire, accident, engineering and marine business. M&F is one of the largest general insurers in South Africa. It is listed on the JSE Securities Exchange South Africa, with operations in South Africa, Namibia, Botswana and Zimbabwe. On 17 October 2000, it completed its acquisition of CGU Holdings Ltd for £115 million. Website address: www.oldmutual.com KOTAK MAHINDRA FINANCE LTD Key Points Amongst the top three in all its businesses. Consistent Credit Rating of AA+ or higher. Caters to over a million investors. Provides financial solutions to over 800 large and mid sized corporates. Over 60,000 shareholders and half a million depositors across 32 Indian cities. Ranked the most trusted securities house in India for FY 1996 by 'Euromoney'. Ranked as No 2 investment banker in 1998 and 1999 by Prime database (based on amount raised). Companies Each of the companies within the Kotak Mahindra Group specialises in particular sectors of the financial services market. The main companies include: Kotak Mahindra Finance Limited: corporate and consumer finance. Kotak Mahindra Capital Company: investment banking. Kotak Securities: brokerage and distribution. Kotak Mahindra Primus Limited: auto-finance. Matrix Information Services Limited: online information services. Kotak Mahindra Mutual Fund: mutual funds. KMFL Financials Kotak Mahindra Finance Ltd's networth increased to about Rs 4750 million (£68.3 million) as on 31 March 2000. KMFL posted for the year 1999-2000 a record Profit Before Tax (PBT) of Rs 906 million (£13 million) (P.Y. Rs 345.8 million / £5 million) and a Profit After Tax (PAT) of Rs 611 million (£8.8 million) (P.Y. Rs 121.8 million / £1.75 million). History 1985 Kotak Mahindra Group began as Kotak Capital Management Finance Limited 1986 KMFL enters the lease and hire purchase market 1990 Auto-finance division started 1991 Investment banking division started 1992 Enters the fund syndication sector 1995 Brokerage and distribution businesses incorporated into a separate company, Kotak Securities. Investment banking division incorporated into a separate company, Kotak Mahindra Capital Company. 1996 Auto finance business hived off into a separate company, Kotak Mahindra Primus Limited. They take a significant stake in Ford Credit Kotak Mahindra Limited for financing Ford vehicles. 1997 Launch of Matrix Information Services Limited marks the group's entry into information distribution. 1998 Enters the mutual fund market with the launch of the Kotak Mahindra Asset Management Company. Website address: www.kotakmahindra.com
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