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Old Mutual Wealth profits slide

Old Mutual Wealth profits slide

Old Mutual Wealth saw a slump in its profits last year, following the firm’s radical restructure of its operations.

Old Mutual Wealth posted profits of £260m in 2016, down from the £307m posted in the previous year.

According to its 2016 results, published today (9 March), Old Mutual revealed the total costs in developing its platform amounted to £102m last year, up from the £97m posted at the end of 2015.

Looking across the whole group, Old Mutual’s pre-tax profits remained relatively flat last year, with its pre-tax profits hitting £1.35bn, up just slightly from the £1.32bn posted in 2015.

The UK-based insurance giant also saw its adjusted operating profit before tax hit £1.67bn in 2016, nudging up slightly from the £1.66bn posted in the previous year.

During the second half of 2016, Old Mutual purchased a number of advice businesses, paying a total consideration of £8m initially and an additional potential deferred consideration of £8m.

On 28 February, Old Mutual Wealth revealed that it had struck a deal to acquire the financial adviser network, Caerus Capital Group, with the transaction expected to complete in the second quarter of this year.

Old Mutual said the acquisition will complement its existing distribution footprint in the UK, which includes Intrinsic, and Old Mutual Wealth Private Client Advisers.

The group has announced an interim dividend of 3.39p to be paid on the 28 April.

katherine.denham@ft.com