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.