OM operating profit climbs 30%

LONDON – South African insurer Old Mutual reported a 30 per cent increase in 2005 operating profit on Monday on the back of good life and investment sales in South Africa and an earnings recovery at its Nedbank banking unit.

The London-based group said adjusted operating profit rose to 1,244 billion pounds (US$2.2 billion) from 954 million pounds in 2004. Adjusted operating earnings per share were up 22 per cent to 18,2 pence, compared with 14,9p in 2004, higher than the 17,9p average forecast in a Reuters poll of nine analysts.Estimates ranged from 17,0p to 19,6p.”We achieved strong organic growth in our major business platforms in South Africa, the USA and the UK, with significantly improved life assurance and unit trust sales in South Africa,” said Old Mutual Chief Executive Jim Sutcliffe in a statement.The company is recommending a final dividend of 3,65p, bringing the total payout for the year to 5,5p, an increase of five per cent.The average forecast in the Reuters poll was for 5,7p.The company faces the task of digesting Swedish insurer Skandia this year, after winning control of the company in a hard-fought US$6,8 billion hostile takeover.-Nampa-ReutersAdjusted operating earnings per share were up 22 per cent to 18,2 pence, compared with 14,9p in 2004, higher than the 17,9p average forecast in a Reuters poll of nine analysts.Estimates ranged from 17,0p to 19,6p.”We achieved strong organic growth in our major business platforms in South Africa, the USA and the UK, with significantly improved life assurance and unit trust sales in South Africa,” said Old Mutual Chief Executive Jim Sutcliffe in a statement.The company is recommending a final dividend of 3,65p, bringing the total payout for the year to 5,5p, an increase of five per cent.The average forecast in the Reuters poll was for 5,7p.The company faces the task of digesting Swedish insurer Skandia this year, after winning control of the company in a hard-fought US$6,8 billion hostile takeover.-Nampa-Reuters