The Long-Term Savings (LTS) division offers life assurance,
pensions and investment products and operates through four main
business units: Emerging Markets, Nordic, Retail Europe and Wealth
KEY FINANCIAL HIGHLIGHTS
- Adjusted operating profit
(pre-tax) 2010 £897m 2009: £636m
- Number of
employees 24,044 2009: 22,269
- Funds under
management £131.8bn 2009: £105.5bn
- Some of our
LTS EXECUTIVE COMMITTEE1
Paul Hanratty CEO
Old Mutual South Africa
Kuseni Dlamini CEO
OMSA & Emerging Markets
Mårten Andersson CEO
Jonas Jonsson CEO
Bob Head CEO
CIO Long-Term Savings
OMSTA and Head of LEAN, LTS
In each of these markets our vision is to be "our customers'
most trusted partner, passionate about helping them achieve their
lifetime financial goals". Our strategy to achieve this vision is
to build a cohesive long-term savings, protection and investment
division through leveraging the strength of our people and
capabilities both in South Africa and around the world.
- Emerging Markets: Old Mutual South Africa
(OMSA) is one of the largest and longestestablished financial
services provider in South Africa, providing individuals,
businesses, corporates and institutions with long-term savings,
protection and investment solutions. Because we are now leveraging
the business into other high growth economies, we have combined it
with our Latin American, Asian and African businesses.
- Nordic: Operating in Sweden, Norway and
Denmark under the Skandia brand, we offer banking and insurance
services for individuals and corporates.
- Retail Europe: Operating in Austria, Germany,
Poland and Switzerland under the Skandia brand, we are one of the
leading unit-linked providers - offering innovative and flexible
products and strong investment knowledge.
- Wealth Management: Operating mainly under the
Skandia brand with businesses in the UK, Italy, France and in our
offshore International bases. Our offer is based on open and guided
architecture accessed through unit-linked life insurance, pensions
and mutual funds.
Within LTS we have three different types of businesses which
together provide high returns combined with high growth:
- High returns on equity (RoE) and high cash generation
- High revenue growth potential businesses but
which are not operationally efficient at this stage. Because of
their product design and structure these businesses are very
capitalefficient and new business is self-financing
- Businesses in emerging markets, which we have the
opportunity to grow. These will require funding
for a number of years but in the long run will produce growth and
value for shareholders.
The funding needs of the latter two business types are modest in
relation to the rest of the portfolio, so in combination the three
different categories provide an excellent mixture of high RoE and
good growth potential, in both the medium and longer term.
Our strategy aims to:
- complement our strong, highly profitable and mature OMSA
business by leveraging our South African capabilities to grow and
develop our businesses in selected African, Latin American and
- operate capital-efficient, fast-growth businesses in selected
UK and European markets
- exploite capital, cost and revenue synergies between the
The strategy is underpinned by building a culture of customer
focus and value creation internationally.