Old Mutual Wealth tipped to list separately from group

Old Mutual Wealth tipped to list separately from global group

Old Mutual Wealth has been tipped to be separately listed from the Old Mutual global group.

Old Mutual Wealth is the UK arm of South African insurance company Old Mutual, headed by chief executive Paul Feeney (pictured).

It includes advice network Intrinsic, asset manager Old Mutual Global Investors (OMGI), an investment platform and discretionary fund manager (DFM) Quilter Cheviot.

According to a note by analysts Gordon Aitken and Kamran Hossain at RBC Capital Markets, the complexity of Old Mutual’s current business make a separate listing likely.

Currently Old Mutual plc is primarily listed on the London Stock Exchange, with secondary listings in Johannesburg, Malawi, Namibia and Zimbabwe.

The analysts said they expected Old Mutual Wealth to be separately listed but this would not happen for three years.

‘Old Mutual is complex – the dual listed group sells life, property and casualty, banking and asset management product in several geographies,’ the note said.

‘We believe the UK business will be separately listed, we see this at least three years away as it would not achieve a full valuation yet.’

The note said Old Mutual would not yet achieve full valuation for its UK business because it was still in the early stages of integrating Intrinsic and Quilter Cheviot.

Old Mutual Wealth acquired Intrinsic in February 2014 for £98 million. It acquired Quilter Cheviot in October 2014 for a reported £585 million.

‘[Old Mutual] is in the early stages of bringing together its asset manager (OMGI), its advice business Intrinsic and its wealth manager Quilters,’ the note said.

It also said Old Mutual would benefit from pension freedoms due to its its asset management business.

‘In addition Old Mutual should be well placed to gain share in the UK savings market now that no one is required to buy an annuity. However, these pensions freedoms only began in April 2015,’ it said.

It would not be the first time Old Mutual separated a subsidiary business.

In October 2014, Old Mutual listed its American asset management business Old Mutual Asset Management on the New York Stock Exchange

Spokesmen for Old Mutual and Old Mutual Wealth declined to comment.

Source New Model Adviser

Menu

Pear Talent