Update on timetable for sale

RNS Number : 0048Y

Old Mutual PLC

15 December 2010

 



Ref 181/10

15 December 2010

Update on timetable for sale of US Life

Further to the announcements made at the 2010 Q3 IMS and the 2010 Interim Results, Old Mutual plc ("Old Mutual") today announces an update to the timetable for the contracted sale of Old Mutual's US Life operations to affiliates of Harbinger Capital Partners LLC ("Harbinger").

Old Mutual and Harbinger are continuing discussions with state regulators to obtain the approvals that are required prior to the consummation of the transaction.  Old Mutual is assisting Harbinger in exploring possible modifications to the transaction structure from that envisaged in the sale agreement announced on 6 August 2010.  If agreed, it would, inter alia, remove or reduce certain of the residual refinancing obligations of Old Mutual on completion.  Any agreed changes to the transaction structure will be communicated to the regulatory authorities and will be subject to their approval.

We expect these discussions will take some weeks to conclude and, as a result, closing is now expected during the first quarter of 2011.

OM Financial Life Insurance Company (OMFLIC) continues to perform satisfactorily and is expected to pay a dividend of $59 million before the year end.  We estimate that after this dividend is paid its RBC ratio will still be in excess of 350%.  $522 million of the total $551 million of the specified securities in the stock purchase agreement have been sold at terms better than those expected on signing of the sale agreement.  The general account portfolio had a net unrealised gain at 30 November 2010 of $501 million.

Enquiries

External Communications
Patrick Bowes	UK	[phone]
Investor Relations
Deward Serfontein	SA	[phone]
Aleida White	UK	[phone]
Media
William Baldwin-Charles	UK	[phone]

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 in Europe, the Americas, Africa and Asia.  Old Mutual plc is listed on the London Stock Exchange and the JSE, among others.

In the year ended 31 December 2009, the Group reported adjusted operating profit before tax of £1.2 billion (on an IFRS basis) and had £285 billion of funds under management at the year end.  The Group has approximately 54,000 employees.

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

 

END

 

 

MSCFFEFSIFSSEIE