Annual Report and Accounts 2010



Long-term Savings

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 Management.

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 brands

LTS EXECUTIVE COMMITTEE1

  • Paul Hanratty CEO
    Long-Term Savings,
    and Chaiman,
    Old Mutual South Africa

  • Kuseni Dlamini CEO
    OMSA & Emerging Markets

  • Mårten Andersson CEO
    Nordic

  • Jonas Jonsson CEO
    Retail Europe

  • Bob Head CEO
    Wealth Management

  • Richard Boynett
    CIO Long-Term Savings

  • Steven Levin
    Director
    Group Product

  • Rose Keanly
    Managing Director
    OMSTA and Head of LEAN, LTS

  • Mike Harper
    Managing Director
    Customer Solutions

1 Andrew Birrell, Don Hope and Don Schneider, members of the Group Executive Committee, are also on the LTS Executive Committee.

Overview

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.

Business units:

  • 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.

Strategy

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 businesses
  • 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 Asian markets
  • operate capital-efficient, fast-growth businesses in selected UK and European markets
  • exploite capital, cost and revenue synergies between the various businesses.

The strategy is underpinned by building a culture of customer focus and value creation internationally.

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