UK insurer Old Mutual plc’s break-up of its UK business could see its emerging markets unit, with holdings that include Old Mutual South Africa and Mutual & Federal, listed in Johannesburg.
Old Mutual South Africa CEO David Macready told reporters in Johannesburg: “There’s nothing definitive on the listing. It intuitively makes sense that Old Mutual Emerging Markets will be re-domiciled and listed in South Africa.”
Bruce Hemphill, CEO of London-based Old Mutual, carried out a review of the insurer’s operations, and in March revealed plans to split the company to reverse years of flagging returns. The insurer will spin off its controlling stake in South African lender Nedbank Group to shareholders and separate the US-based asset management business, its UK wealth operations and its emerging markets unit, which includes the South African operations, by the end of 2018.
Macready said Old Mutual will continue its ‘working relationship with Nedbank’, and added the insurer ‘will always have a significant and strategic stake in Nedbank’.
