The Group said that the separation would offer value to shareholders over time. Nedbank and OM Asset Management are already publicly traded and the managed separation "may involve equity market activity for Old Mutual Wealth and Old Mutual Emerging Markets as well", according to a statement.
In its full year results, Old Mutual reported an 11% rise in pre-tax adjusted profits as profits after tax increased by 5% to £614m
Its UK Platform saw profit increase by 74% to £33 million, driven by strong net pension sales.
Following the introduction of new pension reforms in April 2015, Old Mutual Wealth introduced the full range of flexible withdrawal options and removed its drawdown charge leading to a 52% increase in pension net sales compared to 2014.
It confirmed that online functionality for its protection offering will be launched during H1 2016.
Paul Feeney, chief executive of Old Mutual Wealth, commented:
“Old Mutual plc’s announcement today is a great endorsement of our successful business strategy. We have a very exciting future ahead of us.
“By putting client needs at the heart of our business strategy, Old Mutual Wealth has transformed from a standalone platform into an award-winning, next generation wealth management business. Beating the objectives we set three years ago, our company has delivered outstanding results for 2015 despite being faced with some of the most difficult global stock markets I have ever seen. By outperforming many of our peers in the industry in 2015, we have kept the promises we made in 2012 to create a new force in wealth management.
“We have solid foundations in place to support the next stage of our journey. Our aim is to be a changemaker, creating prosperity for today’s generation and those of tomorrow. We will continue to grow by being close to our clients, true to our values and supportive of our communities. Our vertically integrated business strategy is now delivering results for our customers and shareholders. It is this strategy which truly differentiates us from our industry peers.”
