Old Mutual announces sale of Old Mutual Wealth Italy | Old Mutual Wealth
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Old Mutual announces sale of Old Mutual Wealth Italy

09/08/2016

Old Mutual plc (“Old Mutual”) today announces that it has agreed to sell Old Mutual Wealth Italy to ERGO Italia, owned by Cinven, the European private equity firm. The consideration for the transaction is €278 million in cash, plus interest to completion. The transaction is subject to usual regulatory approvals and customary conditions and is expected to complete within six months.

The sale is the final part of the divestment of Old Mutual Wealth’s continental European businesses allowing it to focus on its core UK and cross border markets.

Paul Feeney, CEO of Old Mutual Wealth, comments: “Old Mutual Wealth Italy is a strong, successful and profitable business that has made a positive contribution to Old Mutual Wealth in recent years. I am extremely proud of the Italian team and what they have achieved. I believe that the growth prospects of Old Mutual Wealth Italy will be enhanced under Cinven and ERGO Italia’s ownership.”

Erik Stattin, CEO of ERGO Italia, commented: “We are pleased to announce the acquisition of Old Mutual Wealth Italy. This transaction is the result of a clear vision, whose goal is to create a leading player through consolidation in the Italian life insurance market. We look forward to building on Old Mutual Wealth Italy’s capabilities to enhance our distribution network and our product line, gaining access to a high-growth market.”

Caspar Berendsen, a Partner at Cinven, said: “Cinven has a strong track record of successfully growing European insurance businesses. We intend to do this with ERGO Italia through acquiring scale and providing differentiated products and distribution channels. Both ERGO Italia and Old Mutual Wealth Italy will continue to benefit from the experience and insight Cinven has gained in the European insurance industry.”

Old Mutual Wealth Italy was established in 1997. The business employs 110 people and manages €7 billion for more than 53,000 affluent and high net worth customers. The post-tax adjusted operating profit for the year ended 31 December 2015 was €22 million. Old Mutual Wealth Italy is a leading independent unit linked provider in the financial adviser market. It also has a strong presence in the banking channel and dedicated product development, offering attractive integrated wealth solutions.

Rothschild advised Old Mutual on the divestiture.


For more information contact

Vee Montebello
Tel: + 44 (0) 20 7778 3550
Mobile: + 44 (0) 7872 665149
Vee.Montebello@omwealth.com

Sophie Heywood
Tel: +44 2380 916 770
Mobile: +44 7834 499 558
Sophie.Heywood@omwealth.com

Notes to editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £116.5 billion in customer investments (as at 30 June 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Old Mutual Wealth Private Client Advisers; discretionary fund management business, Quilter Cheviot; and the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• Private Client Advisers to Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.