Annual Report and Accounts 2010

Our business at a glance

Old Mutual is an international long-term savings, protection and investment Group.

Adjusted operating profit (AOP) 2010 £1,481m 2009: £1,133m
Funds under management 2010 £309.3bn 2009: £275.4bn
Number of employees 55,7301 2009: 53,706
 

Primary locations

  • Long-Term Savings - southern Africa, Europe, Colombia, Mexico, India and China
  • US Asset Management - US
  • Banking - southern Africa
  • Short-term insurance - southern Africa

Operational highlights

  • Profits up in each business unit, with Group Return on Equity (RoE) of 12.2%
  • Earnings per Share (EPS) constant currency growth of 20%
  • Capital position strengthened: FGD (Financial Groups Directive) surplus increased from £1.5 billion to £2.1 billion
  • Total dividend for year increased from 1.5p to 4.0p
  • Good progress towards delivering the 2012 financial targets

1 This includes: US Life, Bermuda and Group Head Office

Read the full Business review

We provide investment management and innovative life assurance-based solutions which address both protection and retirement savings needs.

Adjusted operating profit (AOP) 2010 £897m 2009: £636m
Funds under management 2010 £131.8bn 2009: £105.5bn
Number of employees 24,044 2009: 22,269
 

Operational highlights

  • Strong sales and earnings momentum
  • Annual Premium Equivalent (APE) margin improvement to 13%, improved product mix with better margins
  • Unit trust sales up 28% on a constant currency basis to £8.8 billion with strong performance from Wealth Management and Emerging Markets
  • Net Client Cash Flow (NCCF) doubled during the year to £5 billion, with positive contribution from Emerging Markets

*Pre-tax AOP of core operating segments less finance and other corporate costs
**FUM of core operating segments

Read the full Long-term savings report

We have a majority shareholding in Nedbank, one of South Africa's leading banks, which also has banking interests in other countries in southern Africa.

Adjusted operating profit (AOP) 2010 £601m 2009: £470m
Tier 1 adequacy ratio 2010 11.7% 2009: 11.5%
Number of employees 27,525 2009: 27,047
 

Operational highlights

  • Headline earnings growth of 15%
  • Improved credit loss ratio from 1.52% to 1.36%
  • Capital adequacy ratios above targets, liquidity remains sound
  • On track to meet medium- to long-term financial targets in 2013

*Pre-tax AOP of core operating segments less finance and other corporate costs
**FUM of core operating segments

Read the full Banking Report

We provide short-term insurance solutions in southern Africa through Mutual & Federal.

Adjusted operating profit (AOP) 2010 £103m 2009: £70m
Combined ratio 2010 92.4% 2009: 98.0%
Number of employees 2,222 2009: 2,115
 

Operational highlights

  • Strong performance following renewed focus
  • Better claims experience, resulting in good underwriting result
  • Solvency strengthened
  • Step Change Programme implemented
  • Launch of iWYZE direct insurance

*Pre-tax AOP of core operating segments less finance and other corporate costs.
**FUM of core operating segments

Read the full Short-term insurance report

Old Mutual Asset Management, a multi-boutique investment organisation consisting of 18 distinct asset managers, serves individual and institutional investors around the world.

Adjusted operating profit (AOP) 2010 £87m 2009: £83m
Funds under management 2010 £166.6bn 2009: £161.5bn
Number of employees 1,537 2009: 1,544
 

Operational highlights

  • Profits up 4%
  • Funds Under Management (FUM) up 3% with market movement and inflows more than offsetting outflows
  • New affiliate: Echo Point Investment Management

*Pre-tax AOP of core operating segments less finance and other corporate costs
**FUM of core operating segments

Read the full USAM report
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