Old Mutual profit up on Nedbank strength

LONDON (Reuters) - Anglo-South African insurer Old Mutual narrowly missed forecasts with a 17 percent increase in 2011 earnings, which were lifted by cost cuts and strong growth at majority-owned South African lender Nedbank.

London-listed Old Mutual, a financial conglomerate with insurance, banking and asset management businesses across four continents, made an operating profit of 1.61 billion pounds last year, shy of the 1.63 billion pounds expected by analysts in a company poll.

The figure includes Old Mutual's Nordic life businesses, sold in December as part of a retrenchment plan aimed at soothing investor fears the group's sprawling structure has dulled its focus and held back its share price.

Excluding the Nordic businesses, the company had a 2011 profit of 1.52 billion pounds, an increase of 14 percent.

Old Mutual last year offloaded its U.S. life unit, and also intends to float its U.S. asset management arm and sell its 52 percent stake in Nedbank, partly unwinding an acquisition spree it launched in 1999.

Old Mutual shares closed at 162.6 pence on Thursday, valuing the company at about 8.8 billion pounds. The stock has risen 20 percent since the start of the year, reflecting optimism over Old Mutual's restructuring, outpacing a 13 percent rise for the Stoxx 600 European share index.

Source: http://news.yahoo.com/old-mutual-profit-nedbank-strength-075513284.html

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