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London - Anglo-South African insurer Old Mutual narrowly missed forecasts with a 17% increase in 2011 earnings, which were lifted by cost cuts and strong growth at majority-owned lender Nedbank Group [JSE:NED].
Old Mutual [JSE:OML], a financial conglomerate with insurance, banking and asset management businesses across four continents, made an operating profit of £1.61bn last year, shy of the £1.63bn expected by analysts in a company poll.
The figure includes Old Mutual’s Nordic life businesses, sold in December as part of a retrenchment plan aimed at soothing investor fears the group’s sprawling structure has dulled its focus and held back its share price.
Excluding the Nordic businesses, the company had a 2011 profit of £1.52bn, a 14% increase.
Old Mutual last year offloaded its US life unit. It also intends to float its US asset management arm and sell its 52% stake in Nedbank, partly unwinding an acquisition spree it launched in 1999.
Old Mutual shares closed at 162.6 pence on Thursday, valuing the company at about £8.8 bn. The stock has risen 20% since the start of the year, reflecting optimism over Old Mutual’s restructuring, outpacing a 13% rise for the Stoxx 600 European share index.
Old Mutual [JSE:OML], a financial conglomerate with insurance, banking and asset management businesses across four continents, made an operating profit of £1.61bn last year, shy of the £1.63bn expected by analysts in a company poll.
The figure includes Old Mutual’s Nordic life businesses, sold in December as part of a retrenchment plan aimed at soothing investor fears the group’s sprawling structure has dulled its focus and held back its share price.
Excluding the Nordic businesses, the company had a 2011 profit of £1.52bn, a 14% increase.
Old Mutual last year offloaded its US life unit. It also intends to float its US asset management arm and sell its 52% stake in Nedbank, partly unwinding an acquisition spree it launched in 1999.
Old Mutual shares closed at 162.6 pence on Thursday, valuing the company at about £8.8 bn. The stock has risen 20% since the start of the year, reflecting optimism over Old Mutual’s restructuring, outpacing a 13% rise for the Stoxx 600 European share index.
