OML agrees sale of Finnish branch of Skandia

RNS Number : 3800U

Old Mutual PLC

21 December 2011

 



Ref 242/11

21 Dec 2011

Old Mutual agrees sale of Finnish branch of Skandia Life Assurance Company Ltd

Old Mutual plc ("Old Mutual" or "the Group") announces today that it has agreed terms to sell the Finnish branch of Skandia Life Assurance Company Ltd to OP-Pohjola osk ("OP-Pohjola Group"). As at 30 September 2011, the Finnish branch had gross assets of €1.3 billion¹.

The transaction is part of Old Mutual's commitment to streamlining its business. Net proceeds after tax will be applied to reduce debt in accordance with the Group's stated debt reduction target. The transaction is subject to regulatory approvals and other customary conditions and is anticipated to close by the end of Q2 2012.

¹ Unaudited. Gross assets as at 31 December 2010 of €1.5 billion.

Enquiries

External Communications / Investor Relations
Patrick Bowes		[phone]
Media
William Baldwin-Charles		[phone]

Macquarie Capital (Europe) Limited (financial adviser to Old Mutual)
Jonny Allison		[phone]

Kavita Choitram

Notes to Editors

Old Mutual

Old Mutual plc is an international long-term savings, protection and investment Group.  Originating in South Africa in 1845, the Group provides life assurance, asset management, banking and general insurance to more than 15 million customers in Europe, the Americas, Africa and Asia.  Old Mutual plc is listed on the London Stock Exchange and the Johannesburg Stock Exchange, among others.

In the year ended 31 December 2010, the Group reported adjusted operating profit before tax of £1.5 billion (on an IFRS basis) and had £309 billion of funds under management, from core operations. 

For further information on Old Mutual plc, please visit the corporate website at www.oldmutual.com 

OP-Pohjola Group

OP-Pohjola Group is a leading Finnish financial services group providing a unique range of banking, investment and insurance services. The Group has the mission of promoting the sustainable prosperity, well-being and security of its owner-members, customers and operating regions through its local presence. OP-Pohjola Group consists of some 200 Group member banks and the Group's central institution OP-Pohjola Group Central Cooperative with its subsidiaries and closely related companies, the largest of which is the listed company Pohjola Bank plc.

Forward-Looking Statements

This statement may contain certain 'forward-looking statements' with respect to certain of Old Mutual's plans and its current goals and expectations relating to its future financial condition, performance, results, strategy and objectives. Statements containing the words 'believes', 'intends', 'expects', 'plans', 'seeks' and 'anticipates', and words of similar meaning, are forward-looking. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Old Mutual's control including among other things, economic and business conditions, market related risks such as fluctuations in interest rates and exchange rates, and the performance of financial markets generally; the policies and actions of regulatory authorities, the impact of competition, inflation, and deflation; experience in particular with regard to mortality and morbidity trends, lapse rates and policy renewal rates; the timing, impact and other uncertainties of future acquisitions or combinations within relevant industries; and the impact of changes in capital, solvency or accounting standards, and tax and other legislation and regulations in the jurisdictions in which Old Mutual and its affiliates operate. This may for example result in changes to assumptions used for determining results of operations or re-estimations of reserves for future policy benefits. As a result, Old Mutual's actual future financial condition, performance and results may differ materially from the plans, goals, and expectations set forth in Old Mutual's forward-looking statements. Old Mutual undertakes no obligation to update the forward-looking statements contained in this statement or any other forward-looking statements it may make.

This announcement is for information purposes only and does not constitute an offer or invitation to acquire or dispose of any securities or investment advice in any jurisdiction.

Macquarie Capital (Europe) Limited ("Macquarie Capital"), which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting as financial adviser to Old Mutual and no one else in connection with the transaction and will not be responsible to any person other than Old Mutual for providing the protections afforded to the clients of Macquarie Capital, nor for providing advice in relation to the transaction, the contents of this announcement or any other matters referred to herein.

 

END

 

 

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