Old Mutual completes sale of Italian business

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Old Mutual completes sale of Italian business

Old Mutual has completed the sale of Old Mutual Wealth Italy to an international private equity firm.

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

Old Mutual Wealth announced the sale of its Italian business to Ergo Italia – since rebranded as Phlavia Investimenti – in August for €278m (£240m).

Paul Feeney, chief executive of Old Mutual Wealth, said: “This represents an important landmark for our business as it completes Old Mutual Wealth’s exit from Continental Europe.

“Whilst we are sorry to lose our colleagues from Old Mutual Wealth Italy, we believe their growth prospects will be enhanced under the new ownership.

“I would like to thank the team for the fantastic contribution they have made over the years and wish them well in the future.”

Old Mutual Wealth Italy was established in 1997.  The business employs 110 people and manages €7bn (£6bn) 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 €22m (£19m).

Erik Stattin, group chief executive of Phlavia Investimenti, said: “We are extremely satisfied to announce this new milestone on our path to become a consolidator in the Italian market.

“We have already sold our non-life insurance company in order to concentrate on life insurance; the acquisition of Old Mutual Wealth Italy is another step to strengthen our position through financial, operational and commercial synergies and diversify our product portfolio and distribution network, generating further cross selling opportunities for our business.”

Last year Old Mutual announced it was planning to split the group into four separate parts.

The company also plans to sell 10 per cent of its UK wealth management business, Old Mutual Wealth, in an initial public offering this year.