Old Mutual Finishes Restructuring to Focus on S. African Market


South Africa’s prodigal insurer had a warm welcome on Tuesday.

Old Mutual Ltd., with shares in Johannesburg at 28.20 rand and 29.39 rand. Namibia, Malavi and other people in Zimbabwe, the list puts an end to a global buying frenzy that takes the old main Mutual Plc from Cape Town roots to London, New York, Beijing and even Bogota.

On Monday, the insurer at age 173 sold Quilter Plc, asset manager in the United Kingdom, and sold the United States asset manager and Latin American units, and the divisions would be more valuable on their own. With the old insurance policy, asset management and banking operations of the Ex-Stock Exchange, Old Mutual Ltd. was left behind and at the same time the Old Stock Exchange was listed on the London Stock Exchange for 19 years.

Renier de Bruyn, investment analyst at Sanlam Private Wealth, says: “It is not a price that reflects” the chance of mutual appreciation “. Nonetheless, this means that the stock has gone up 7.5 times at an “attractive” price, he said. This is the largest South African competitor, Sanlam Ltd. compared with a historical P / E of 13 for

Nearly 2.4 million former Mutual Ltd. shares in Johannesburg 10:47, Sanlam, MMI Holdings Ltd. and at more than three times the volumes seen at Discovery Ltd., at 28.60 rand.

Strategy Shift
Separation reminds us that the Old Mutual Plc never really ruined the African heritage. The South African business has consistently generated a great deal of earnings despite the 2006 acquisition of Stockholm-based Skandia AB, which bought about $ 8 billion in 2006 and Boston-based United Asset Management Corp. for $ 1.4 billion in 2000.

Mergence Investment Managers Ltd. in Cape Town. “I think Old Mutual has clearly failed its strategy of building a global business entirely,” said Brad Preston, chief investment officer of the company. “We saw them completely reversed.”

The approach, which shows that the Old Mutual approach concentrates mostly in developing markets, contradicts Sanlam. Sanlam, based in Cape Town, began processing its shares in Johannesburg in November 1998. Old Mutual listed his stocks in the US capital nearly seven months ago, when he moved his headquarters to London. In the meantime, Sanlam stocks have returned almost 2 percent. Old Mutual’s securities on the Johannesburg list returned by 480 percent.

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Preston said, “Sanlam has certainly performed well in recent years and has performed well.” “They performed a lot better on the Strategies.”

Beginning in 1918, Sanlam focused on Africa and other emerging markets by enabling the IPO to reach 34 countries in the continent. This was driven by Moroccan purchases of Saham Finances SA’s shares of $ 1.1 billion this year. t already own.

In order to save space in Africa where Old Mutual operates in 13 countries, Former Chief Executive Officer Peter Moyo will focus on preserving and growing South Africa’s market share by renewing the company’s digital offerings. It will also carry cross-selling insurance products to the East African customer base, such as Kenya-based micro-lender Fauli, according to the company’s sales.

The next step in the separation process will see the shareholders of Nedbank Group Ltd. join the shareholders in about six months. The former Mutual Johannesburg-based lender will have a 19.9% ​​share.

Michael Porter, a trader at Unum Capital in Johannesburg, said that the stocks are likely to be limited due to the listing of Old Mutual Ltd., which ignores their business. “We expect some sales pressure on it, but if you have a mid-long term expectation, you should take advantage of it.”

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