Insurer Old Mutual reports 11% rise

LONDON – Insurance company Old Mutual PLC reported an 11 per cent rise in first quarter life sales yesterday, helped by growth in South Africa and newly acquired savings firm Skandia.

The London-listed company – South Africa’s largest insurer – said in a trading update that life sales on an annual premium equivalent basis, which strips out big sales of single-premium policies, rose to 395 million pounds (N$4,4 billion) for the three months to March 31. A five per cent rise in life sales in South Africa and contributions from Sweden’s Skandia offset a 16 percent fall in life sales in the United States.Shares in Old Mutual, which controls more than 30 different brands, including asset managers and banking operations such as Nedbank Group Ltd., were 2,4 per cent lower at 195 pence on the London Stock Exchange.Old Mutual gained control of Sweden’s Skandia in January with a US$6,8 billion hostile takeover.The deal increased its presence in Britain, where Skandia has a fast-growing business.Skandia is retaining its well-known brand name as will its other units such as Heitman LLC, a US-based real estate investment company.- Nampa-APA five per cent rise in life sales in South Africa and contributions from Sweden’s Skandia offset a 16 percent fall in life sales in the United States.Shares in Old Mutual, which controls more than 30 different brands, including asset managers and banking operations such as Nedbank Group Ltd., were 2,4 per cent lower at 195 pence on the London Stock Exchange.Old Mutual gained control of Sweden’s Skandia in January with a US$6,8 billion hostile takeover.The deal increased its presence in Britain, where Skandia has a fast-growing business.Skandia is retaining its well-known brand name as will its other units such as Heitman LLC, a US-based real estate investment company.- Nampa-AP