Old Mutual unfazed by failed Nedbank deal

London - Insurer Old Mutual on Thursday reported better-than-expected sales and said plans to streamline the company were on track despite a failed attempt to sell banking subsidiary Nedbank to HSBC.

Old Mutual CEO Julian Roberts said HSBC's surprise withdrawal last month from the deal, seen as a key plank of Old Mutual's overhaul, was "a shock to everybody," but would not derail the three-year restructuring effort.

"Right now we're thinking of what is the appropriate option for us moving forward. We're not in any rush to do anything," he told reporters on a conference call.

Old Mutual, an Anglo-South African financial conglomerate with operations in over 30 countries, had intended to sell its majority stake in Nedbank as part of a strategy to concentrate on life insurance amid investor concerns its lack of focus had held back its share price.

Roberts declined to comment on why HSBC pulled out of the deal, which was heralded as the British lender's first foray into the African market, currently enjoying strong growth due to burgeoning trade links with Asia.

"We feel the group remains unfocused and is unlikely to achieve a premium rating until it achieves greater focus in its business lines," Oriel Securities analyst Marcus Barnard wrote in a note.

Old Mutual shares were up 3.2% at 133.2 pence on Thursday morning while the FTSE 100 share index was 1.7% higher.

Old Mutual also reported unit trust sales for the three months to September 30 of £2.9bn, up 36% percent compared with the same period last year, and well ahead of the £2.2bn expected by analysts, according to a consensus forecast calculated by the company.

The strong unit trust sales offset a flat performance in life insurance, where sales rose 1% on the year to £351m, lagging consensus at £372m.