Old Mutual Posts 2012 Rise in Profit, Focus On Africa Growth

JOHANNESBURG--Old Mutual PLC (OML.LN), the global insurer with a strong focus on South Africa, posted an increase in profit for 2012 and said growth in Africa is one of its key strategies during the year ahead.

"Old Mutual has four strategic priorities: expanding in Africa; developing our business in the fast growing South African markets; building our Wealth business; and growing US Asset Management," said Chief Executive Julian Roberts.

He said the company has set aside 5 billion rand ($561.82 million) to spend over the next three to five years on furthering growth in Africa. In 2012, its customer base on the continent, excluding South Africa, rose 13% on the year with most of that growth in Zimbabwe and Kenya.

Old Mutual has been reorganizing its business. In 2011 it announced a deal to sell its Nordic long-term savings and banking business, Skandia Insurance Co. Ltd., for GBP2.1 billion.

Along with the Skandia deal, it sold its U.S. life insurance business in 2010. The insurer has shed assets both in the U.S. and Europe over the past year, markets where growth is constrained.

In its preliminary results for the year ended Dec. 31, Old Mutual said adjusted operating profit before tax was GBP1.61 billion compared with GBP1.36 billion in 2011.

Funds under management rose GBP262.2 billion in 2012 from GBP255.6 billion the year before.

Profit attributable to equity holders rose to GBP1.17 billion from GBP667 million the year before. The company said higher profits in entities like South African bank Nedbank Group Ltd. (NED.JO), which Old Mutual has a 51% stake in, helped increase its overall profit as well as increase its focus on emerging markets.

Write to Devon Maylie at [e-mail]

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