Sale of Old Mutual (Bermuda) Ltd

RNS Number : 7799K

Old Mutual PLC

04 January 2016

 

Old Mutual plc

Ref 01/16

4 January 2016

sale of old mutual (bermuda) ltd and certain Related obligations to beechwood bermuda limited

Old Mutual plc (Old Mutual) announces that its subsidiary, Old Mutual (Bermuda) Holdings Limited (OMBH), completed the sale of Old Mutual (Bermuda) Ltd (OMB) to Beechwood Bermuda Limited (Beechwood) on 31 December 2015.

In anticipation of the sale, OMB's remaining Variable Annuity guaranteed minimum accumulation benefits (GMAB obligations), which mature in 2017 and 2018, were reinsured to another of OMBH's subsidiaries, Old Mutual (Bermuda) Re Ltd, and Old Mutual repaid approximately $100m of internal loan notes to OMB in December 2015.

As part of the transaction, Old Mutual has agreed to provide Beechwood with administration services for three years.  Save for the GMAB obligations referred to above, all other guarantees and responsibilities for remaining policyholder administration have been transferred to the buyer.

Other terms of the transaction are not being disclosed.  Certain regulatory approvals required for the transfer of future policy administration arrangements are expected to be received by the end of Q1 2016.

Don Hope, Chairman of OMBH, said:

"This transaction represents an important step in the preparations for the Group's exit from its Bermuda businesses by the end of 2018 when the GMAB liabilities to customers are due to expire." 

Enquiries

External communications

Patrick Bowes                                      UK          [phone]

Investor relations

Dominic Lagan                                    UK          [phone]

Sizwe Ndlovu                                        SA           [phone]

Media

William Baldwin-Charles                                    [phone]

                                                                                 [phone]

Notes to Editors

Old Mutual provides investment, savings, insurance and banking services to more than 17 million customers in Africa, the Americas, Asia and Europe. Originating in South Africa in 1845, Old Mutual has been listed on the London and Johannesburg Stock Exchanges, among others, since 1999.

In the year ended 31 December 2014, the Group reported adjusted operating profit before tax of £1.6 billion (on an IFRS basis) and had £319 billion of funds under management from core operations.

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

 

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