12th Dec 2008 07:30
Ref 160/08
12 December 2008
Acceptance of Offer to Bermuda Clients
Old Mutual plc ("Old Mutual" or the "Group") announces that the Universal Guarantee Option (UGO) Acceleration Offer (the "Offer") to direct customers in its Bermuda business, as outlined in the Group's third quarter Interim Management Statement ("IMS") on 6 November, is now closed and that policyholders representing 14% of that part of the Bermuda book of business subject to the Offer, have accepted the Offer.
For those policyholders who accepted the Offer, all guarantees linked to their products will be terminated and all fees associated with those guarantees will no longer be charged, in exchange for their account values being topped up to 85% of their initial investment, subject to the terms of the Offer. All costs associated with the Offer will be more than offset by the release of reserves against those guarantees.
Julian Roberts, Chief Executive of Old Mutual, commented:
"The take-up of the Offer is a further step in the continuing de-risking process of our Bermuda book. Along with our ongoing hedging improvement, this gives us greater certainty about future guarantee costs. In addition, the Offer was fully funded by the release of reserves, so this was an efficient way to work towards addressing the issues in our Bermuda business."
For further information on Old Mutual plc, please visit the corporate website at www.oldmutual.com
Enquiries
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Investor Relations |
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Aleida White |
UK |
+44 (0)20 7002 7287 |
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Deward Serfontein |
SA |
+27 (0)82 810 5672 |
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Media |
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Matthew Gregorowski |
UK / SA |
+44 (0)20 7002 7133 |
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Mike Smith (Finsbury) |
UK |
+44 (0)20 7251 3801 |
Notes to Editors
Old Mutual
Old Mutual plc is an international savings and wealth management company based in the UK. Originating in South Africa in 1845, the group has a portfolio of businesses offering asset management, life assurance, banking and general insurance services in over 40 countries in Europe, the Americas, Africa and Asia-Pacific. Old Mutual plc is listed on the London Stock Exchange and the JSE, among others.
In the year ended 31 December 2007, the group reported adjusted operating profit of £1.62 billion (on an IFRS basis) and had £279 billion of funds under management at the year end. The Company has approximately 53,000 employees.
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