Old Mutual
Encyclopedia
Old Mutual plc is an international long-term savings group. Established in 1845 in South Africa, it is now a FTSE100 listed company operating in 33 countries.
, as a mutual
insurance company in 1845 under the name of The Mutual Life Assurance Society of the Cape of Good Hope and became The South Africa Mutual Life Assurance Society in 1885.
In 1939 the Old Mutual art deco
office opened in Darling Street as the Mutual Building (or, Mutual Gebou in Afrikaans) which has since been converted to residential use and known as "Mutual Heights". In 1956 Old Mutual relocated its Head Office to Mutualpark in Pinelands and was the largest office block in the southern hemisphere at the time.
In 1970 Old Mutual acquired a major shareholding in the newly formed Mutual & Federal, and later acquiring the remaining shares in 2010.
In 1973 Old Mutual acquired shareholdings in Nedcor Bank
(renamed the Nedbank Group in 2005).
In 1997 and 1998 it acquired UK stockbrokers Capel-Cure Myres and Albert E. Sharpe respectively which then merged to form Capel-Cure Sharp.
In 1999 it was demutualised
and the company listed on the London
, Johannesburg, Zimbabwe
, Malawi
and Namibian
Stock Exchanges as Old Mutual. Old Mutual establishes a head office in London.
In 2000 it bought the Gerrard Group, a financial services concern, for $857m. Capel-Cure Sharp subsequently merged with Greig Middleton, Gerrard Group's private client business. Old Mutual sold Gerrard to Barclays Bank PLC in 2003.
Later in 2000 Old Mutual purchased United Asset Management
, based in Boston
, for US$1.46 billion in cash and assumed UAM net debt of around US$769 million, thus acquiring a large and diverse US-based asset manager. Among the holdings of UAM were the PBHG Funds of Pilgrim Baxter & Associates. In 2003, PBA was one of many companies who faced charges related to market timing brought by the U.S. Securities and Exchange Commission (SEC) and the Attorney General of New York. Ultimately, the PBHG Funds (which had been renamed Liberty Ridge) were absorbed into the Old Mutual Funds group.
In 2005, Mike Levett retired as Chairman and was succeeded by Christopher Collins. A Black Economic Empowerment
deal was introduced at Old Mutual South Africa, Nedbank and Mutual & Federal in 2005.
In 2006 Old Mutual acquired the Swedish insurer, Skandia
, in a $6.5bn deal, bringing additional business in the United Kingdom, several other countries in Europe, in Latin America, the Far East and Australia (which Old Mutual has since exited). Old Mutual also announced its Black Economic Empowerment deal in Namibia.
In 2010, Patrick O'Sullivan became Chairman of Old Mutual plc, succeeding Christopher Collins. In 2011 Old Mutual sold US Life to Harbinger Group Inc.
(55% owned) is one of the four largest banking groups in South Africa.
, which is now closed to new business.
Old Mutual formerly owned businesses in Australia, Chile, Hong Kong and Portugal before exiting those markets.
The members are:
Julian Roberts, Group Chief Executive Old Mutual plc
Philip Broadley, Group Finance Director Old Mutual plc
Peter Bain, President and Chief Executive Officer Old Mutual Asset Management (US)
Andrew Birrell, Head of Risk and Actuarial Old Mutual plc
Mike Brown, Chief Executive Nedbank Group
Paul Hanratty, Chief Executive Officer, Long-Term Savings Old Mutual plc and Chairman Old Mutual South Africa
Don Hope, Head of Strategy Development Old Mutual plc
Don Schneider, Group Human Resources Director Old Mutual plc
and Nedbank
, are involved in a number of sponsorships. Some of Old Mutual's key sponsorships from around the world are: the Old Mutual Two Oceans Marathon (South Africa), the Old Mutual National Choir Festival (South Africa) and the Nedbank Golf Challenge
(South Africa). Skandia
sponsors the British Sailing team and Old Mutual US sponsors Trevor Immelman
, a South African Golfer.
. The subsidiary also has a large office at Jan Smuts Drive, Pinelands, Cape Town
. It also has many smaller offices throughout the country.
History
The company was founded by John FairbairnJohn Fairbairn (educator)
John Fairbairn was a newspaper proprietor, educator, financier and politician. According to the Standard Encyclopaedia of Southern Africa, “The embryo of the State education system we know today, trial by jury, the principle of the mutual life assurance company – all these were fruits of his...
, as a mutual
Mutual insurance
A mutual insurance company is an insurance company which has no shareholders but instead is owned entirely by its policyholders. The primary form of financial business set up as a mutual company in the United States has been mutual insurance. Under this idea, what would have been profits are...
insurance company in 1845 under the name of The Mutual Life Assurance Society of the Cape of Good Hope and became The South Africa Mutual Life Assurance Society in 1885.
In 1939 the Old Mutual art deco
Art Deco
Art deco , or deco, is an eclectic artistic and design style that began in Paris in the 1920s and flourished internationally throughout the 1930s, into the World War II era. The style influenced all areas of design, including architecture and interior design, industrial design, fashion and...
office opened in Darling Street as the Mutual Building (or, Mutual Gebou in Afrikaans) which has since been converted to residential use and known as "Mutual Heights". In 1956 Old Mutual relocated its Head Office to Mutualpark in Pinelands and was the largest office block in the southern hemisphere at the time.
In 1970 Old Mutual acquired a major shareholding in the newly formed Mutual & Federal, and later acquiring the remaining shares in 2010.
In 1973 Old Mutual acquired shareholdings in Nedcor Bank
Nedbank
Nedbank is one of the largest banks in South Africa; however it is one of the newest banks to be incorporated in South Africa. It is headquartered in Johannesburg...
(renamed the Nedbank Group in 2005).
In 1997 and 1998 it acquired UK stockbrokers Capel-Cure Myres and Albert E. Sharpe respectively which then merged to form Capel-Cure Sharp.
In 1999 it was demutualised
Demutualization
Demutualization is the process by which a customer-owned mutual organization or co-operative changes legal form to a joint stock company. It is sometimes called stocking or privatization. As part of the demutualization process, members of a mutual usually receive a "windfall" payout, in the form...
and the company listed on the London
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
, Johannesburg, Zimbabwe
Zimbabwe Stock Exchange
The Zimbabwe Stock Exchange, or ZSE, is the official stock exchange of Zimbabwe. It has been open to foreign investment since 1993. The exchange has about a dozen members and over 65 listed securities...
, Malawi
Malawi Stock Exchange
The Malawi Stock Exchange is a fully fledged stock market, with a single licensed broker. It was inaugurated in March 1995 and opened for business for the first time on 11 November 1996, under the aegis of the Reserve Bank of Malawi, with 2300 Malawian citizens buying shares in the first company...
and Namibian
Namibian Stock Exchange
The first Namibian Stock Exchange was founded in Lüderitz, southern Namibia at the start of the 1900s, because the diamond rush brought hundreds of prospectors to the desert whom built towns. After a few years, the exchange closed when the diamond rush ended....
Stock Exchanges as Old Mutual. Old Mutual establishes a head office in London.
In 2000 it bought the Gerrard Group, a financial services concern, for $857m. Capel-Cure Sharp subsequently merged with Greig Middleton, Gerrard Group's private client business. Old Mutual sold Gerrard to Barclays Bank PLC in 2003.
Later in 2000 Old Mutual purchased United Asset Management
United Asset Management
United Asset Management was an American holding company headquartered in Boston, Massachusetts that owned a number of financial-sector companies. It was founded in 1980 by Norton Reamer, who previously had served as the CEO of Putnam Investments...
, based in Boston
Boston
Boston is the capital of and largest city in Massachusetts, and is one of the oldest cities in the United States. The largest city in New England, Boston is regarded as the unofficial "Capital of New England" for its economic and cultural impact on the entire New England region. The city proper had...
, for US$1.46 billion in cash and assumed UAM net debt of around US$769 million, thus acquiring a large and diverse US-based asset manager. Among the holdings of UAM were the PBHG Funds of Pilgrim Baxter & Associates. In 2003, PBA was one of many companies who faced charges related to market timing brought by the U.S. Securities and Exchange Commission (SEC) and the Attorney General of New York. Ultimately, the PBHG Funds (which had been renamed Liberty Ridge) were absorbed into the Old Mutual Funds group.
In 2005, Mike Levett retired as Chairman and was succeeded by Christopher Collins. A Black Economic Empowerment
Black Economic Empowerment
Black Economic Empowerment is a programme launched by the South African government to redress the inequalities of Apartheid by giving previously disadvantaged groups economic opportunities previously not available to them...
deal was introduced at Old Mutual South Africa, Nedbank and Mutual & Federal in 2005.
In 2006 Old Mutual acquired the Swedish insurer, Skandia
Skandia
Skandia is a Swedish insurance company that was started in 1855. It has operations in Europe, Latin America, Asia and Australia. Skandia also operates an internet bank called Skandiabanken....
, in a $6.5bn deal, bringing additional business in the United Kingdom, several other countries in Europe, in Latin America, the Far East and Australia (which Old Mutual has since exited). Old Mutual also announced its Black Economic Empowerment deal in Namibia.
In 2010, Patrick O'Sullivan became Chairman of Old Mutual plc, succeeding Christopher Collins. In 2011 Old Mutual sold US Life to Harbinger Group Inc.
Operations
Old Mutual's primary operations are in the following geographies:Long-Term Savings (Southern Africa, Europe, Colombia, Mexico, India and China)
The Long-Term Savings division is made up of five main businesses:- Emerging Markets – Old Mutual South Africa, Namibia, Kenya, Malawi, Swaziland, Zimbabwe, India, China, Colombia and Mexico
- Nordic – Sweden, Norway and Denmark
- Retail Europe – Poland, Austria, Germany and Switzerland (which is now closed to new business)
- Wealth Management – Skandia (UK), Skandia Investment Group (SIG), Skandia International, Skandia Link (France), Skandia Vita (Italy) and Spain
US Asset Management (United States)
Operates a multi-boutique model offering institutional clients access to a range of entrepreneurial asset managers.Banking (Southern Africa)
NedbankNedbank
Nedbank is one of the largest banks in South Africa; however it is one of the newest banks to be incorporated in South Africa. It is headquartered in Johannesburg...
(55% owned) is one of the four largest banking groups in South Africa.
Short-Term Insurance (Southern Africa)
Mutual & Federal provides insurance services in South Africa to the personal, commercial and corporate markets.Legacy
The offshore life business in BermudaBermuda
Bermuda is a British overseas territory in the North Atlantic Ocean. Located off the east coast of the United States, its nearest landmass is Cape Hatteras, North Carolina, about to the west-northwest. It is about south of Halifax, Nova Scotia, Canada, and northeast of Miami, Florida...
, which is now closed to new business.
Old Mutual formerly owned businesses in Australia, Chile, Hong Kong and Portugal before exiting those markets.
Senior management
The Chief Executive, Group Finance Director and six other members make up the Group Executive. The Committee meets regularly to address strategic issues, to review the Group's progress against its business plan for the year and to discuss other high-level matters affecting the Group's performance or prospects.The members are:
Julian Roberts, Group Chief Executive Old Mutual plc
Philip Broadley, Group Finance Director Old Mutual plc
Peter Bain, President and Chief Executive Officer Old Mutual Asset Management (US)
Andrew Birrell, Head of Risk and Actuarial Old Mutual plc
Mike Brown, Chief Executive Nedbank Group
Paul Hanratty, Chief Executive Officer, Long-Term Savings Old Mutual plc and Chairman Old Mutual South Africa
Don Hope, Head of Strategy Development Old Mutual plc
Don Schneider, Group Human Resources Director Old Mutual plc
Sponsorships
Old Mutual and its subsidiaries, like SkandiaSkandia
Skandia is a Swedish insurance company that was started in 1855. It has operations in Europe, Latin America, Asia and Australia. Skandia also operates an internet bank called Skandiabanken....
and Nedbank
Nedbank
Nedbank is one of the largest banks in South Africa; however it is one of the newest banks to be incorporated in South Africa. It is headquartered in Johannesburg...
, are involved in a number of sponsorships. Some of Old Mutual's key sponsorships from around the world are: the Old Mutual Two Oceans Marathon (South Africa), the Old Mutual National Choir Festival (South Africa) and the Nedbank Golf Challenge
Nedbank Golf Challenge
The Nedbank Golf Challenge is an annual men's professional golf tournament played at the Gary Player Country Club in Sun City, North West province, South Africa. It is not an official money event for any of the major tours, and like many high profile unofficial tournaments in professional golf it...
(South Africa). Skandia
Skandia
Skandia is a Swedish insurance company that was started in 1855. It has operations in Europe, Latin America, Asia and Australia. Skandia also operates an internet bank called Skandiabanken....
sponsors the British Sailing team and Old Mutual US sponsors Trevor Immelman
Trevor Immelman
Trevor John Immelman is a South African professional golfer and winner of the 2008 Masters Tournament.-Early years:Immelman was born in Cape Town, South Africa. Born into a golfing family , he took up golf at the age of five. He attended Hottentots Holland High School...
, a South African Golfer.
Bursaries
Old Mutual South Africa awards a number of bursaries every year for actuarial students at South African universities. It also offers part-qualified actuarial employees study leave before actuarial exams. Actuarial students are also typically awarded salary increases following exam passes.Office locations
The Old Mutual Group Head Office is located at 5th Floor, Old Mutual Place, 2 Lambeth Hill, London EC4V 4GG. The South African subsidiary, Old Mutual South Africa, has its head office located at 93 Grayston Drive, Sandton, JohannesburgJohannesburg
Johannesburg also known as Jozi, Jo'burg or Egoli, is the largest city in South Africa, by population. Johannesburg is the provincial capital of Gauteng, the wealthiest province in South Africa, having the largest economy of any metropolitan region in Sub-Saharan Africa...
. The subsidiary also has a large office at Jan Smuts Drive, Pinelands, Cape Town
Cape Town
Cape Town is the second-most populous city in South Africa, and the provincial capital and primate city of the Western Cape. As the seat of the National Parliament, it is also the legislative capital of the country. It forms part of the City of Cape Town metropolitan municipality...
. It also has many smaller offices throughout the country.