Old Mutual sales up

LONDON – Insurer Old Mutual’s new business sales in the first half of this year rose eight per cent from a year ago, boosted by its takeover of Swedish savings firm Skandia and strong unit-trust sales, it said yesterday.

The London-listed insurer said group life sales in the six months to the end of June rose to 802 million pounds, marking a slowdown from the first quarter, when sales rose 11 per cent to 395 million pounds, but broadly in line with analysts’ forecasts. It said the progress of Skandia, which it bought for US$6,8 billion in January after a long takeover battle, had been ahead of its expectations and helped drive a 16 per cent rise in European new business to 491 million pounds.Chief Executive Jim Sutcliffe said the figures showed Skandia had transformed the shape of the company, with 60 per cent of life sales now coming from Europe, reducing its dependence on South Africa.”The Skandia business has landed well, unit trusts have gone very fast and …you can see the diversity now produces a very robust, lower risk business,” he told reporters on a conference call.Unit trust and mutual fund sales across the group jumped 72 per cent to 4,1 billion pounds.But life insurance sales in the United States fell 17 per cent from a year earlier, as Old Mutual caps sales growth and targets capital self-sufficiency from next year.It said US second-quarter sales were ahead of the first quarter, and it was on track to achieve its 2006 gross sales target of US$4 billion.South African sales rose four per cent to 2,06 billion rand, as strong retail sales were constrained by a fall in healthcare and protection business sales.The insurer said it would restructure the healthcare business.Nampa-ReutersIt said the progress of Skandia, which it bought for US$6,8 billion in January after a long takeover battle, had been ahead of its expectations and helped drive a 16 per cent rise in European new business to 491 million pounds.Chief Executive Jim Sutcliffe said the figures showed Skandia had transformed the shape of the company, with 60 per cent of life sales now coming from Europe, reducing its dependence on South Africa.”The Skandia business has landed well, unit trusts have gone very fast and …you can see the diversity now produces a very robust, lower risk business,” he told reporters on a conference call.Unit trust and mutual fund sales across the group jumped 72 per cent to 4,1 billion pounds.But life insurance sales in the United States fell 17 per cent from a year earlier, as Old Mutual caps sales growth and targets capital self-sufficiency from next year.It said US second-quarter sales were ahead of the first quarter, and it was on track to achieve its 2006 gross sales target of US$4 billion.South African sales rose four per cent to 2,06 billion rand, as strong retail sales were constrained by a fall in healthcare and protection business sales.The insurer said it would restructure the healthcare business.Nampa-Reuters