Old Mutual. Picture: BLOOMBERG/SIMON DAWSON
Old Mutual. Picture: BLOOMBERG/SIMON DAWSON

Old Mutual raised its interim dividend by 32% to 3.53p for the six months to end-June.

Thanks to the pound weakening against the rand, this will translate into a 40% increase to 65c for its JSE investors.

The insurance group’s interim revenue grew 45% to £10.8bn and its aftertax profit grew 60% to £679m, its results released on Friday morning showed.

Old Mutual cut its debt repayment costs by £10m to £35m in the first half of its financial year, and intends cutting this to £21m by the end of 2017, CEO Bruce Hemphill said in the results statement.

Having sold nearly all if its stake in New York-lised OM Asset Management, Old Mutual’s next step is to unbundle its UK arm, Old Mutual Wealth (OMW), into a separately London-listed company.

"We expect the listing of OMW and Old Mutual Limited (OML), the South African holding company, to take place in 2018 at the earliest opportunity after Old Mutual’s 2017 full year results," Hemphill said.

Old Mutual will release its final results for the year to end-December early in March.

The group intends to strip itself down to Old Mutual Emerging Markets (OMEM) by making its shareholders direct rather than indirect investors in Nedbank.

"OML will retain an appropriate strategic minority stake in Nedbank to underpin the ongoing commercial relationship, with the exact level still to be determined with Nedbank," Hemphill said.

"We have made several significant appointments at OMEM: Trevor Manuel as chairman; Peter Moyo as chief executive; and Mike Ilsley as chief financial officer.

"Each of these individuals is also designated for the same roles in Old Mutual Limited, the new South African holding company (comprising OMEM, the group’s stake in Nedbank and Old Mutual plc) that will be listed next year.

"Iain Williamson, the current chief financial officer, will become chief operating officer," Hemphill said in the results statement.

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