News

09 May 2013: Old Mutual released their Quarter 1 Interim Management Management Statement today. Julian Roberts, Group Chief Executive, said:

“Old Mutual has had a good start to the year, with positive net client cash flow in all of our businesses. Sales in Emerging Markets were strong. The UK recorded positive net flows despite some market disruption following the introduction of the Retail Distribution Review.

Nedbank has continued the progress it has established over the past 18 months and the improvement at USAM continued with net client cash flow of £2.6 billion. We are pleased with the continuing trends in performance of our businesses, following the rising equity markets in the first quarter and, against a backdrop of continued challenging macroeconomic conditions, we are confident in the prospects for the Group for the full year.”

Highlights

A good first quarter with positive NCCF in all businesses

• - Funds under management up 7% to £288.4 billion
• - Net Client Cash Flow of £3.9 billion, representing an annualised 6% of opening FUM
• - Gross Sales are up 14% in the life and savings businesses

Africa expansion progress:

• - Nigerian life insurance business gaining customers and recording sales for the first time
• - Terms agreed for Nigerian general insurance acquisition
• - Nedbank acquires a stake in a Mozambican bank

Download the full Q1 Announcement pdf

13 September, 2012: Old Mutual has appointed the head of Old Mutual Life Assurance Company, Mr Jonas Mushosho, to succeed Mr Luke Ngwerume as group chief executive of its Zimbabwe operations. The group has also elevated Mr Zomunoda Chizura to the position of deputy CEO (Life and Asset Management). CABS managing director Mr Kevin Terry moves into the position of deputy CEO for Zimbabwe.

Announcing the appointments, Old Mutual Africa Operations managing director Mr Johannes Gawaxab said he was confident the new team headed by Mr Mushosho would steer the Zimbabwe operations to greater heights.

“I am pleased to inform you that following a rigorous and robust recruitment process, Jonas Mushosho has been appointed to the position of Zimbabwe CEO effective 1 September 2012. Jonas’ strategic leadership ability, emotional maturity, knowledge of the business and industry and his ability to influence make him the most suitable candidate for the top job,” said Mr Gawaxab in a statement.

Mr Mushosho, who is a chartered accountant and holds a B. Accounting, B. Compt and MBA, has been with the insurance and property giant for 22 years and previously held the positions of group finance director and general manager retail business.

“I’m also pleased to announce that we have promoted Zomunoda Chizura to the role of deputy CEO: Life and Asset Management, effective 1 September 2012. Zomunoda has demonstrated excellent leadership in his current role and I look forward to the contributions he will continue to make.”

Mr Gawaxab said new deputy CEO for Zimbabwe Operations, Mr Terry, would retain his current responsibilities at CABS and take on management responsibility for RMI.

“CABS is becoming a key growth platform for the group in Zimbabwe and Kevin’s thorough knowledge of the business, especially from a bancassurance perspective, stands him in good stead to help grow the group business.

Mr Ngwerume, whose career with Old Mutual spans over 29 years, leaves at the end of September after opting for an early retirement to pursue other interests.

Said Gawaxab: “Luke will continue his leadership with Old Mutual in a different capacity, when he joins as a strategic partner as part of the indigenisation scheme in Zimbabwe.

“Though Luke’s presence will be sorely missed, he has indeed groomed a solid layer of next generation leadership and I am confident he is passing the helm on to very capable hands under the leadership of Jonas.”

30 August, 2012: It’s official - Old Mutual is the Top Employer in Africa, specifically in South Africa, Namibia, Zimbabwe and Kenya. Old Mutual also won the best large employer in South Africa, according to the Corporate Research Foundation (CRF) Institute’s annual Best Employers Certification Index for 2012/13.

Old Mutual leads the pack in the Giants category (for companies with more than 10 001 employees) and is also number one in the Financial Services category.

Comments Anisha Archary, Old Mutual’s Human Resources Director, ‘Our people strategy enables our business strategy and is built on a compelling vision that Old Mutual is a great place to work with people who do great things. Homegrown and now operational in across six continents, the secret ingredient for Old Mutual is that it is a values led and customer centric business. Our employee value proposition ranges from global career opportunities, competitive reward offerings, developing talent, focusing on building future fit leaders, and a great culture to win as one committed team.’

Says Ralph Mupita, CEO of Old Mutual Emerging Markets, ‘The very best thing about the announcement is that it will unite and strengthen us in our purpose : by enabling positive futures and improving the financial wellbeing of our customers, employees and the communities in which we live.’

A total of 73 organisations were certified in 2012 – the largest number since the Best Employer campaign began in 2002.

‘This increase in certifications indicates a promising rise in awareness that excellent Human Resources practices can give companies a competitive advantage, particularly in the context of a combative labour market and increasingly complex business environment,’ says Samantha Crous, the CRF Institute’s Country Manager.

With more and more South African companies cultivating emerging market strategies, the CRF Institute is extending its tried-and-tested Best Employers South Africa index into Africa for the first time in 2012.

The following seven companies were certified as the first Top Employers in Africa - Old Mutual, British American Tobacco, Ernest & Young, Microsoft, Siemens, G4S and Unilever.

‘As businesses increase their foothold on the continent, it becomes more and more important to develop applicable, relevant HR policies and practices alongside,’ says Crous. ‘These policies become essential for managing the massive redistribution of talent that will be necessary to sustain successful business development in the continent’s many emerging markets,’ she says. ‘And it’s for this reason that we have created the Top Employers in Africa audit.’

08 August, 2012: Julian Roberts, Old Mutual Group Chief Executive commented: ‘Against a backdrop of sustained low growth and falling interest rates we continue to deliver good strategic and operational progress. We are expanding in attractive African markets; introducing new products across the Group; and today are unveiling our UK Platform pricing ahead of the introduction of the Retail Distribution Review. 'We have built a portfolio of resilient, high quality and cash generative businesses. Although economic conditions remain uncertain, we remain confident that we have the right offering, the right people and exposure to both emerging and developed markets that will allow us to continue to create value for both shareholders and customers.’

Financial and operational highlights

• IFRS AOP up 12% to £791 million; interim dividend up 17%; and core continuing Group NCCF of £4.4 billion
• Targets: cost reduction met; ROE and margins on track
• A further £603 million of debt repaid in 2012, less than £450 million left to hit £1.5 billion target
• Completion of sale of Nordic and £1 billion special dividend paid 7 June 2012

Expanding our African footprint

• Continued strong sales and margins in South African mass market, and excellent sales momentum in emerging markets
• Nigerian life acquisition expected to complete Q3; and considering entry into the Nigerian non-Life market
• Nedbank delivers another excellent six months, driven by growth in NII, NIR and improved impairments

Growing Wealth Management

• Merger of OMAM UK and Skandia Investment Group to create asset management engine to power Wealth Management
• UK Platform £1.2 billion NCCF
• Post-RDR pricing structure for UK Platform unveiled

Turning around US Asset Management

• Positive NCCF of £2.2 billion
• Continued trend of improved investment performance; margins strengthening

View the full interim results on the Old Mutual plc website.

April 2012 - As part of the indigenisation legislation response agreed between Old Mutual Zimbabwe and the Government of the Republic of Zimbabwe, a special award of shares in Old Mutual Zimbabwe has been granted to those pensioners who acquired a Pensions Plus pension or an Emerald Managed pension from Old Mutual Zimbabwe.

The award is due to any pensioner who was entitled to receive these types of pension payments between 01 April 2009 and 01 January 2012, both dates being inclusive.

The scheme is now at implementation stage and communication to the pensioners/clients concerned has been sent by post.

• Kwayedza A - C
• Kwayedza D - K
• Kwayedza L - MC
• Kwayedza MD - MZ
• Kwayedza N - R
• Kwayedza S - Z

For more information, call 0800 4302 or email us.

18 April 2012 - Last week, the Old Mutual Zimbabwe Board formally approved the final stages of its plan to comply with Indigenization legislation in Zimbabwe, resulting in the immediate implementation of the agreement in Zimbabwe.

The allocation of shares to staff, clients and strategic business partners, as well as a Youth Fund, is part of the indigenization agreement reached between Old Mutual and the Zimbabwean government. The agreement, which was concluded in November last year, results in 10% of Old Mutual Zimbabwe Limited being awarded to qualifying staff (comprised of 7% to staff share schemes and 3% to the staff pension fund).

Pensioners will benefit from an equivalent of 9% of the company (8% to client pensioners and 1% to retired staff pensioners), whilst the strategic partners and the Youth Fund have been allocated 3.5% and up to 2.5% respectively.

The internal component of this plan was formally announced to senior management on 11 April and a wider staff audience in Harare on 12 April. The main internal launch event was held at Mutual Gardens and attended by over 500 Old Mutual Group employees, as well as senior officials from Old Mutual Africa (OMA), including OMA Managing Director, Johannes !Gawaxab.

“As a business, Old Mutual is committed to playing an active role in sustainable economic development wherever we operate. Our business fully subscribes to the principle of broad-based wealth creation, be it here in Zimbabwe or in Namibia, South Africa and other countries in which we operate and this transaction is yet another tangible demonstration of this commitment,” said !Gawaxab in his address to employees in attendance.

Luke Ngwerume, Group CEO Old Mutual Zimbabwe further emphasized, “We believe that by empowering our staff, clients and partners in this manner, we are creating sustainable wealth for them and helping improve their livelihood and such, making a tangible contribution to the ongoing growth of the Zimbabwean economy in general.”

The internal announcement has been made alongside communication to client pensioners, informing them of their potential eligibility to participate in the client pensioner portion of the transaction. A celebration of the comprehensive formal launch will be held in conjunction with key stakeholders in Zimbabwe at a date to be confirmed in the near future.

The group’s indigenization plan is broad-based in nature and makes provision for meaningful empowerment and development of staff and management, customers and strategic partners.

4 January 2012 - CABS, a subsidiary of Old Mutual Zimbabwe, today signed a Memorandum of Understanding with the Harare City Council on the establishment of a US$15 million housing fund that will see the construction of over 3 000 housing units in the Budiriro high density suburb.

The launch of this fund further endorses Old Mutual’s commitment to support the development and growth of the Zimbabwean economy through initiatives that foster the development of housing, infrastructure, agriculture and the recovery of businesses.

Luke Ngwerume, Group Chief Executive Officer, Old Mutual Zimbabwe explained that the group’s commitment towards this project was underpinned by its sense of responsibility to make ongoing contributions to Zimbabwe’s economic development.

“As a leader in the financial services sector and broader economy, we remain committed to continue contributing towards the sustainable development of this economy. The initiative will see 3 000 high density housing units constructed in Budiriro. This is very critical in meeting our strategic thrust to play a key and pivotal role towards the reconstruction and recovery of the economy.”

Speaking at the launch, CABS Managing Director, Kevin Terry expressed the group’s commitment towards genuine participation in land and housing development. “It is a great honour to be entrusted to undertake a project of this magnitude that will yield over
3 000 housing units to benefit Harare residents on the waiting list. We hope that this will go a long way in alleviating the current immense pressure on housing.”

16 November 2011 - Old Mutual Zimbabwe today confirmed that it has reached agreement with the Zimbabwean government on the first phase of its proposal to comply with indigenization legislation for the financial sector.

Luke Ngwerume, MD: Old Mutual Zimbabwe, explained that the plan is broad-based in nature and makes provision for meaningful empowerment and development with staff and management, customers and strategic business partners. It also provides for investment in the Zimbabwean economy through specific funds that will be set up in this regard to support the recovery of the Zimbabwean economy.

Old Mutual’s significant expertise and sound track record of delivery in the setting up of development impact funds will be deployed in Zimbabwe to ensure successful implementation and empowerment.

Ngwerume said: “We are very encouraged that the plan presents significant and far-reaching opportunities for Old Mutual to play its part in the sustainable development of the Zimbabwean economy and its people. For more than 109 years we have been the custodians of the nations’ savings and investments, and trust that our indigenization plans speak to our commitment to be a force for good in the lives of the Zimbabwean people”.

21 September 2011 - Old Mutual has reached an agreement with the Ministry of Youth Development, Indigenisation and Empowerment towards the implementation and compliance with the Indigenisation and Economic Empowerment legislation of Zimbabwe.

The First Phase of implementation and compliance with the law will be 25% indigenisation with beneficiaries as follows:

• A Grant to Pensioners equivalent to 10% of Old Mutual Limited.
• Grant and awards to Staff equivalent to 9% of Old Mutual Limited.
• Allocation to strategic indigenous partners on a commercial basis equivalent to 3.5% of Old Mutual Limited.
• Grant to Youth Development Fund equivalent to 2.5% and valued at US$10 million and an extra US$1 million will be made available from the Old Mutula Fund. The fund will be co-administered by the Ministry and Old Mutual and disbursed through Old Mutual/CABS.

There are further additional commitments from Old Mutual in support of the development and growth of the Zimbabwean economy:

• Agriculture Fund: Old Mutual to work with the Ministry of Agriculture and the Ministry of Finance to support the development of Agriculture in the country within the framework of the National Indigenisation policy and legislation.
• Housing Funds: a) US$15 million towards the construction of 1 500 housing units in Budiriro Township. b) Participation in a US$40 million National Housing Fund.
• US$20 million Liquidity Fund towards supporting businesses and disbursed through CABS.
• Infrastructure Fund: Old Mutual to work with the relevant Ministries to support the development of infrastructure in the country.

Old Mutual and the Ministry have agreed to review progress on these initiatives at the end of November 2011.

CABS has just launched its innovative mobile banking solution – Textacash. This is the first service designed to provide banking and a money transfer service using cell phone technology, to both banked and unbanked Zimbabweans nationwide. Textacash is convenient, safe and designed to be affordable to everyone.

By registering for Textacash, CABS account holders are able to link their CABS card to their cell phone allowing them to conduct banking transactions, such as checking their account balance, viewing a mini-statement or transferring cash between accounts. This can be carried out at their own convenience without the need to travel to a banking hall.

Non-CABS customers, upon registering, will be issued with a Textacash bank card that is linked to their phone. This Textacash bank card requires no minimum balance and has no monthly service charge. It works like an ordinary bank card and can be used at any swipe machine to make purchases and receive cash back, removing the need to carry large amounts of cash, and resolving the issue of supermarket credit notes.

By dialing *227# to access the Textacash menu and following the simple on-screen instructions, users are able to send cash in minutes to anyone with a cellphone – regardless of the network they subscribe to. The minimum amount that can be sent is $10.00 and the maximum is $1 000.00 per day.

Textacash benefits unbanked Zimbabweans who are now able to receive money without having a bank account. The receiver will get an SMS informing them that they have received cash and will give them a PIN code. The sender then messages them a reference number. By taking both the reference number and PIN code along with their ID to their local Textacash Agent or CABS Branch, they will be able to redeem their cash.

In order for Textacash to be convenient to the majority of Zimbabweans, CABS has developed a nationwide network of over 100 Textacash agents as well as the 62 CABS branches across the country. The agents are able to register customers, take deposits, perform withdrawals and carry out cash send and receive transactions.

CABS Textacash is currently operating on the Telecel network, using the Zimswitch mobile platform. It is anticipated that in the near future a number of other banks will be launching mobile banking using the Zimswitch mobile platform, which will create a true ‘ecosystem’. This will allow inter-bank payments and lead to the sharing of infrastructural resources thus offering maximum convenience for Zimbabweans.

CABS is currently working on phase two of the Textacash service development which will see the introduction of bill payments and other exciting products and functionalities.

15 February 2011 - The Kurera–Ukondla Youth Fund was established on 16 November 2011 as part of Old Mutual’s indigenization agreement with the Zimbabwean Government. An amount of 2.5% of the transaction, worth US$10 million, was allocated to the Youth of Zimbabwe, in an effort to improve levels of unemployment and act as a stimulus to economic growth in the country.

In addition to the US$10 million allocation, a further investment of $1 million will be made available by the Old Mutual Foundation in Zimbabwe, to be applied towards capacity building and skills development.

CABS and Old Mutual together with the Ministry of Youth Development, Indigenization and Empowerment, are pleased to announce that the process of projects assessment and fund disbursement is under way in earnest across Zimbabwe. Several projects have been approved and funding released to the recipients to date.

As at 13 February 2012, 10 000 application forms have been distributed across the country through CABS branches and Ministry of Youth Development, Indigenization and Empowerment offices. Of the 2 816 completed applications received so far, 69 have been approved to the value of US$248 275 with hundreds of applications in the final stage of vetting and approval. This process is being approached not only with speed but also caution and prudence in order to widen the catchment areas to all corners of Zimbabwe.

The majority of approved loans are split across the economic sectors of agriculture (23%), distribution (30%) and manufacturing (36%) sectors, with a minority in the service (7%), retail (1%) and horticulture (1%) sectors.

Whilst the overwhelming initial response to the Youth Fund at inception resulted in some administrative backlog, this has since been addressed and the pace at which applications are being processed and funds disbursed is steadily increasing.

We remain committed to the successful implementation of Kurera-Ukondla, ensuring fair distribution of these funds to deserving projects that not only benefit the nation but the local communities in which qualifying youths are based. The parties to the Fund, Old Mutual, CABS and The Ministry of Youth Development, Indigenization and Empowerment confirm that the priority remains the sustainable socio-economic development of Zimbabwe and its people and will continue to play an active role in the recovery of the economy.”

Luke Ngwerume, Group Chief Executive, Old Mutual Zimbabwe