Old Mutual is to split into four separate companies.
The decision comes after an internal strategic review and stories in the media about certain parts of the Anglo-South African group being targeted by private equity groups about to launch bids.
The four companies will be known as Old Mutual Emerging Markets, Old Mutual Wealth, Nedbank Group and OM Asset Management. The separation is not expected to complete until 2018.
Old Mutual also announced its results for the year ended 31 December, 2015. Adjusted pre-tax was up 11% at £1.7 billion and adjusted earnings per share was up 15% at 19.3p. Net client cash flow was £6.6 billion.
Group CEO Bruce Hemphill said: “The strategy we have announced today sets out a bold new course to unlock value currently trapped within the Group structure.
“We have four strong businesses that can reach their full potential by freeing them from the costs and constraints of the Group. As you can see from our results, these businesses are performing strongly, have excellent competitive positions in sizeable markets and the underlying growth potential to flourish independently.
“Our new strategy will allow each business to have simpler access to capital markets to fund its growth more easily and be valued more appropriately, with more straight forward regulatory arrangements. We are announcing today a strategy that will allow us to release the potential within the Group for the benefit of all its stakeholders for many years to come.
“There is likely to be a range of external influences on future Group reported earnings including slower economic growth, exchange rates and equity market volatility and how we execute the managed separation. We nevertheless believe that our four strong businesses are well placed to continue to perform strongly in their domestic markets.”
