Old Mutual Limited is a pan-African
investment
Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort.
In finance, the purpose of investing i ...
,
savings
Wealth is the abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions. This includes the core meaning as held in the originating Old English word , which is from an ...
, insurance, and banking group. It is listed on the
Johannesburg Stock Exchange
JSE Limited (previously the JSE Securities Exchange and the Johannesburg Stock Exchange) is the largest stock exchange in Africa. It is located in Sandton, Johannesburg, South Africa, after it moved from downtown Johannesburg in 2000. In 2003 ...
, the
Zimbabwe Stock Exchange
The Zimbabwe Stock Exchange, or ZSE, is the official stock exchange of Zimbabwe. Its history dates back to 1896 but has only been open to foreign investment since 1993. The exchange has about a dozen members, and currently lists 63 equities. The ...
, the
Namibian Stock Exchange
The Namibian Stock Exchange (NSX) ( af, Namibiese Effektebeurs; german: Börse Namibia) is the only stock exchange in Namibia. Based in Windhoek, it is one of the largest stock exchanges on the African continent. It has a partnership with JSE ...
and the
Botswana Stock Exchange
The Botswana Stock Exchange (BSE) is a stock exchange located in Gaborone, Botswana. The Botswana share market was established in 1989 and became the Botswana Stock Exchange in 1994. It is governed by thBotswana Stock Exchange Act
The BSE has 36 ...
. It was founded in
South Africa
South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. It is bounded to the south by of coastline that stretch along the South Atlantic and Indian Oceans; to the north by the neighbouring countri ...
by
John Fairbairn in 1845 and was
demutualised
Demutualization is the process by which a customer-owned mutual organization (''mutual'') or co-operative changes legal form to a joint stock company. It is sometimes called stocking or privatization. As part of the demutualization process, memb ...
and listed on the
London Stock Exchange
London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. , the total market value of all companies trading on LSE was £3.9 trillion. Its current premises are situated in Paternoster Square close to St P ...
and other stock exchanges in 1999. It introduced a new strategy, called 'managed separation', that entailed the separation of its four businesses – Old Mutual Emerging Markets, Nedbank,
UK-based Old Mutual Wealth and Boston-based Old Mutual Asset Management (OMAM) – into standalone entities in 2018. This led to the demerger of
Quilter plc (formerly 'Old Mutual Wealth') and the unbundling of its shareholding in Nedbank. The business, which is now largely based in South Africa, provides sponsorship and supports bursaries at South African universities.
History
![John-Fairbairn-Painting](https://upload.wikimedia.org/wikipedia/commons/0/0b/John-Fairbairn-Painting.jpg)
The company was founded in 1845 as a
mutual insurance
A mutual insurance company is an insurance company owned entirely by its policyholders. Any profits earned by a mutual insurance company are either retained within the company or rebated to policyholders in the form of dividend distributions or ...
company by
John Fairbairn, together with several other prominent
Cape Town
Cape Town ( af, Kaapstad; , xh, iKapa) is one of South Africa's three capital cities, serving as the seat of the Parliament of South Africa. It is the legislative capital of the country, the oldest city in the country, and the second largest ...
figures, such as the liberal politician
Saul Solomon
Saul Solomon (25 May 1817 – 16 October 1892) was an influential liberal politician of the Cape Colony, a British colony in what is now South Africa. Solomon was an important member of the movement for responsible government and an opponent ...
. The original name ''The Mutual Life Assurance Society of the Cape of Good Hope'' was changed to ''The South Africa Mutual Life Assurance Society'' in 1885.
![Old Mutual headquarters](https://upload.wikimedia.org/wikipedia/commons/d/db/Old_Mutual_headquarters.jpg)
In 1939, the Old Mutual
art deco
Art Deco, short for the French ''Arts Décoratifs'', and sometimes just called Deco, is a style of visual arts, architecture, and product design, that first appeared in France in the 1910s (just before World War I), and flourished in the Unite ...
office opened in Darling Street as the
Mutual Building
The Mutual Building ( af, Mutual Gebou), in Cape Town, South Africa, was built as the headquarters of the South African Mutual Life Assurance Society, now the "Old Mutual" insurance and financial services company. It was opened in 1940, but befor ...
('Mutualgebou' 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, at that time the largest office block in the southern hemisphere.
Old Mutual acquired a major shareholding in the newly formed ''Mutual & Federal'' in 1970, acquiring the remaining shares in 2009. Mutual & Federal was renamed as Old Mutual Insure on 5 June 2017, and is now a part of the Old Mutual Emerging Markets business.
In 1973, Old Mutual acquired shareholding in
Nedcor Bank (renamed the Nedbank Group in 2005).
[
In 1997 and 1998, the company acquired UK ]stockbrokers
A stockbroker is a regulated broker, broker-dealer, or registered investment adviser (in the United States) who may provide financial advisory and investment management services and execute transactions such as the purchase or sale of stocks a ...
''Capel-Cure Myers'' and ''Albert E. Sharp'' respectively, which then merged to form Capel-Cure Sharp.
By 1999 it was demutualised
Demutualization is the process by which a customer-owned mutual organization (''mutual'') or co-operative changes legal form to a joint stock company. It is sometimes called stocking or privatization. As part of the demutualization process, memb ...
and the company listed on the London
London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...
, Johannesburg
Johannesburg ( , , ; Zulu and xh, eGoli ), colloquially known as Jozi, Joburg, or "The City of Gold", is the largest city in South Africa, classified as a megacity, and is one of the 100 largest urban areas in the world. According to Demo ...
, Zimbabwe
Zimbabwe (), officially the Republic of Zimbabwe, is a landlocked country located in Southeast Africa, between the Zambezi and Limpopo Rivers, bordered by South Africa to the south, Botswana to the south-west, Zambia to the north, and ...
, Malawi
Malawi (; or aláwi Tumbuka: ''Malaŵi''), officially the Republic of Malawi, is a landlocked country in Southeastern Africa that was formerly known as Nyasaland. It is bordered by Zambia to the west, Tanzania to the north and northeas ...
and Namibian Stock Exchanges as ''Old Mutual''. Old Mutual also established a head office in London.
In 2000, it bought the ''Gerrard Group'', a financial services concern, for $857 million. 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
BrightSphere Investment Group Inc. (previously United Asset Management and Old Mutual Asset Management) is an American holding company that is headquartered in Boston, Massachusetts.
Background
The company was founded in 1980 as United Asset Ma ...
, based in Boston
Boston (), officially the City of Boston, is the state capital and most populous city of the Commonwealth of Massachusetts, as well as the cultural and financial center of the New England region of the United States. It is the 24th- mo ...
, for US$1.46 billion in cash and assumed ownership of 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
The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...
(SEC) and the Attorney General of New York. Ultimately, the PBHG Funds (renamed Liberty Ridge) were absorbed into the Old Mutual Funds group.
In 2005, Mike Levett retired as Chairman and was succeeded by Christopher Collins.[ In the same year a ]Black Economic Empowerment
Black Economic Empowerment (BEE) is a policy of the South African government which aims to facilitate broader participation in the economy by black people. A form of affirmative action, it is intended especially to redress the inequalities creat ...
deal was introduced at ''Old Mutual South Africa'', ''Nedbank'' and ''Mutual & Federal''.[
2006 saw Old Mutual acquiring the Swedish insurer, ]Skandia
Skandia is a financial services corporation in Sweden.
History
Skandia started out as a Swedish insurance company in 1855. Today the brand operates in Europe, Latin America, and Asia. Skandia also operates an internet bank called Skandiab ...
, in a $6.5billion deal, bringing additional business in the United Kingdom, several other countries in Europe, Latin America, the Far East and Australia (that Old Mutual has since exited). Old Mutual also announced its Black Economic Empowerment deal in Namibia.
Patrick O'Sullivan
Patrick O'Sullivan (born February 1, 1985) is a Canadian-born American former professional ice hockey forward who played in the National Hockey League (NHL) for the Los Angeles Kings, Edmonton Oilers, Carolina Hurricanes, Minnesota Wild and P ...
became chairman of Old Mutual in 2010, succeeding Christopher Collins.[ The same year HSBC backed away from its plan to acquire 70% of Nedbank, including Old Mutual's 53% share. In 2011, Old Mutual sold ]US Life
American International Group, Inc. (AIG) is an American multinational finance and insurance corporation with operations in more than 80 countries and jurisdictions. , AIG companies employed 49,600 people.https://www.aig.com/content/dam/aig/amer ...
to Harbinger Group Inc. for $350 million.
Old Mutual sold its Nordic operations to Skandia Liv for £2.1 billion in 2012.
In 2013, Old Mutual strengthened operations in Africa with the acquisition of Provident Life Assurance in Ghana and Oceanic Life in Nigeria.
Also in 2013, Old Mutual acquired the Fairheads Trust Company, one of the oldest trust companies in South Africa, and established the Old Mutual Wealth Trust Company. Old Mutual Wealth Trust Company has two divisions: Old Mutual Wealth Fiduciary and the Old Mutual Wealth Family Office, that continues to work closely with the Fairheads Trust individuals and families with whom it has built relationships over the past 90 years. However, Old Mutual did not acquire Fairheads Benefit Services.
As of January 2014, with the additions of attorney Adiba Ighodaro, daughter of Nigeria
Nigeria ( ), , ig, Naìjíríyà, yo, Nàìjíríà, pcm, Naijá , ff, Naajeeriya, kcg, Naijeriya officially the Federal Republic of Nigeria, is a country in West Africa. It is situated between the Sahel to the north and the Gulf o ...
's 3rd Secretary-General of the Commonwealth of Nations, Chief Emeka Anyaoku
Chief Emeka Anyaoku, GCVO, CFR, CON (born 18 January 1933)"Anyaoku, Eleazar Chukwuemeka", in ''Africa Who's Who'', London: Africa Journal for Africa Books Ltd, 1981, p. 137. is a Nigerian diplomat of Igbo descent. He was the third Commonwea ...
, and former Wall Street powerhouse Zoe Cruz, Old Mutual's Board became 30% female represented.
In 2014 Skandia Colombia was renamed to Old Mutual Colombia, Provident Life Assurance to Old Mutual Ghana and Skandia UK became Old Mutual Wealth. Later in 2014, Old Mutual Wealth sold Skandia Germany, Skandia Austria and Skandia Poland.[
May 2015 saw Old Mutual celebrating 170 years of operations][ and Bruce Hemphill becoming Group Chief Executive in November.
In March 2016, Old Mutual plc announced a new strategy for the Group, called 'managed separation', that sought to unlock and create value for shareholders. The strategy would entail the separation of its four businesses – Old Mutual Emerging Markets, Nedbank, UK-based Old Mutual Wealth and Boston-based Old Mutual Asset Management (OMAM) – into standalone entities. In August 2016, Old Mutual Investment Group signed a deal with the ]Nigeria Sovereign Investment Authority
The Nigeria Sovereign Investment Authority is a Nigerian establishment which manages the ''Nigeria sovereign wealth fund'', into which the surplus income produced from Nigeria's excess oil reserves is deposited. This sovereign wealth fund was f ...
to invest $700 million in hospitality, retail, commercial sectors, and food security, and sold its Italian wealth management arm to the ERGO Group
ERGO (ERGO Group) is a group of insurance companies owned by Munich Re. ERGO is one of the largest insurance groups in Europe. It operates in over 30 countries, especially in Europe and Asia. In Europe, ERGO claims to be number 1 in the health ...
for €278 million.
A significant strategic milestone was reached during the first half of 2017 with the announcement of a series of transactions that would reduce Old Mutual plc's stake in OM Asset Management (OMAM) to 5.5%. OMAM is now independent from Old Mutual plc. Additionally, in 2017 Old Mutual completed the sale of Indian-based Kotak Mahindra Old Mutual Life Insurance Ltd.
The company announced in November 2017 that Old Mutual Wealth would be demerged as Quilter plc in 2018.
In June 2018 the company executed the 'managed separation' strategy. Old Mutual plc shares were de-listed and Old Mutual Limited and Quilter plc, now independent businesses, listed on the Johannesburg, Zimbabwe, Malawi, Namibian and London Stock Exchanges. On 15 October 2018, Old Mutual unbundled their majority shareholding in Nedbank, marking a distribution worth approximately R43.2 billion to Old Mutual shareholders, and the completion of Old Mutual Group's managed separation. Old Mutual's head office moved to No 1 Mutual Place, Sandton, Johannesburg in the same year.
In April 2019 the company sold its Latin American businesses to Lily Bermuda Capital, a wholly owned subsidiary of Singapore-based CMIG International Holding. This was followed in May by Peter Moyo being suspended as CEO due to "a material breakdown in trust and confidence between him and the board". Iain Williamson, previous COO, was appointed as acting CEO.
Operations
The structure of the business is as follows:
*Old Mutual South Africa
**Old Mutual Investment Group
**Old Mutual Insure
**Old Mutual Wealth (South Africa)
*Old Mutual Botswana
*Old Mutual Ghana
*Old Mutual Malawi
*Old Mutual Namibia
*Old Mutual Nigeria
*Old Mutual Swaziland
*Old Mutual Zimbabwe
* UAP Old Mutual Group
** UAP Old Mutual Holdings
**Faulu Microfinance Bank Limited
Faulu Microfinance Bank Limited, commonly referred to as Faulu Kenya, is a microfinance bank based in Kenya. It is regulated by the Central Bank of Kenya. The word ''Faulu'' is Swahili for succeed.
History
Faulu Microfinance Bank is a limi ...
*Old Mutual-Guodian (China)
Sponsorships
Old Mutual and its subsidiaries are involved in a number of sponsorships worldwide:
* The Old Mutual National Choir Festival (South Africa)
* The Old Mutual Soweto Marathon (South Africa)
* The Old Mutual Victory Race (Namibia)
Bursaries
Old Mutual South Africa awards a number of bursaries every year for exceptional matriculants and actuarial students at South African universities. It also offers partly qualified actuarial employees study leave before actuarial exams. Actuarial students are also typically awarded salary increases following exam passes.
Responsible business
Old Mutual participates in the United Nations Global Compact
The United Nations Global Compact is a non-binding United Nations pact to encourage businesses and firms worldwide to adopt sustainable and socially responsible policies, and to report on their implementation. The UN Global Compact is a princi ...
(UNGC), as well as the Carbon Disclosure Project.
Old Mutual Amazing Voices
''Old Mutual Amazing Voices'' is a pan-African
Pan-Africanism is a worldwide movement that aims to encourage and strengthen bonds of solidarity between all Indigenous and diaspora peoples of African ancestry. Based on a common goal dating back to the Atlantic slave trade, the movement ext ...
music competition
A music competition is a public event designed to identify and award outstanding musical ensembles, soloists, composers, conductors and musicologists. Pop music competitions are music competitions which are held to find pop starlets.
Exampl ...
reality television series produced by Destiny TV and launched by Old Mutual for DStv and M-Net
M-Net (an abbreviation of Electronic Media Network) is a South African pay television channel established by Naspers in 1986. The channel broadcasts both local and international programming, including general entertainment, children's series, ...
's various local interest channels across Africa in their respective regions.
See also
References
External links
*
Official Old Mutual South Africa site
{{Authority control
Companies established in 1845
Financial services companies established in 1845
Publicly traded companies
Companies listed on the London Stock Exchange
Companies listed on the Johannesburg Stock Exchange
Former mutual insurance companies
Insurance companies
Insurance companies of South Africa
Companies of South Africa
Companies of the United Kingdom
Insurance companies of the United Kingdom
Mutual organizations
Financial services companies based in London
Companies based in the City of London
Companies based in Johannesburg
1845 establishments in the Cape Colony