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Cape Town – US insurance company Travelers and its subsidiary has dropped a court case against Old Mutual [JSE:OML].
According to a notice to shareholders, issued on Monday morning, Travelers had "withdrawn all of the remedies they were claiming".
Old Mutual has maintained that there was no merit to the case. In a notice issued on March 13, Old Mutual said of the matter: "The Group believes that this action is without merit and it will be resisted accordingly."
The matter relates to previously disposed US assets. Travelers and its subsidiary St. Paul Fire and Marine Insurance Company laid a complaint with the United States District Court for the Southern District of New York.
In the meantime as Old Mutual Limited transitions to Old Mutual plc - the group said in a note to clients that it still has to satisfy the UK courts regarding legacy items.
"Old Mutual plc will need to satisfy the UK court, in relation to any legacy items, that it will continue to hold sufficient liquid, high quality assets to meet its liabilities and deal with any contingencies, plus adequate headroom, taking into account relevant insurances," the notice read.
The group announced its "managed separation plan" in March 2016. It involved separating Old Mutual's four constituents – Old Mutual Emerging Markets, the Nedbank Group, Old Mutual Wealth, and Old Mutual Asset Management – into stand-alone entities, Fin24 reported.
Late last year, the group reduced its stake in Nedbank from 54% to 19.9%.
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