By Frank Prenesti
UK and South African insurance group Old Mutual said its pre-tax adjusted operating profits came in broadly flat at £1.6bn.
Full year adjusted Net Asset Value (NAV) rose to 228.6p a share compared with 178.9p in 2015per share, due to favourable currency movements and an increase in the market value of its Nedbank operation, Old Mutual said.
IFRS Pre-tax profits were the same at £1.2bn including impairments of £160m in respect of Ecobank Transnational Incorporated, Old Mutual Southern and East Africa and Old Mutual Wealth Italy.
Adjusted operating profit earnings per share were 19.4p compared with 19.3p. Basic earnings were 11.9p a share compared with 12.7p in 2015.
A final dividend of 3.39p a share was declared, making a total dividend of 6.06p.
Funds under management rose 30% to £394.9bn excluding the bond investor arm Rogge which is being sold to rival outfit Allianz as Old Mutual splits itself into four parts.
“This is a resilient performance, and a much improved second half, given the overall flat markets and the external challenges the businesses had to face in our main markets,” Old Mutual said.
“In the UK, investors remained cautious following the result of the Brexit vote although we experienced more normalised flows in the fourth quarter and also changes in regulation with regard to pension exit fees.”
South African operations remained under pressure due to weak economic which was offset by cost management, higher asset based fee income as well as assumption and basis changes.
The company said the outlook for economic growth in the region was improving but remained weak compared to previous periods.
“While the macroeconomic and political environment remains uncertain in our three largest markets of South Africa, the UK and the US, our businesses are well positioned to navigate these challenges,” Old Mutual said.
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