OLD MUTUAL PLC - Old Mutual Plc Announces the Sale of Skandia Germany and Skandia Austria

Old Mutual Plc Announces the Sale of Skandia Germany and Skandia Austria

       Old Mutual plc
       ISIN CODE: GB00B77J0862
       JSE SHARE CODE: OML
       NSX SHARE CODE: OLM
       ISSUER CODE: OLOML


       Ref 24/14
       27 March 2014


       OLD MUTUAL PLC ANNOUNCES THE SALE OF SKANDIA GERMANY AND SKANDIA
       AUSTRIA

       Old Mutual plc (“Old Mutual” or “the Group”) today announces that terms have been agreed to sell
       Skandia Germany and Skandia Austria, part of Old Mutual Wealth, to a Cinven and Hannover Re
       acquisition vehicle (shortly to be renamed Heidelberger Leben Group).* The consideration for the
       transaction is €220 million in cash, plus interest to completion.
       As at 31 December 2013, Skandia Germany and Skandia Austria had combined funds under
       management of €4.9 billion and post-tax adjusted operating profit for the year ended 31 December
       2013 of €27 million.
       The transaction is part of Old Mutual Wealth’s commitment to simplify its operations in Europe and
       focus on a select number of core growth markets. The transaction is subject to regulatory approvals
       and other customary conditions and is expected to complete by the end of the third quarter of 2014.
       Proceeds will be retained by the Group for general corporate purposes.
       As at 31 December 2013, the market consistent embedded value (MCEV) of the Skandia Germany
       and Skandia Austria businesses was approximately £262 million, representing 5.4p** of the Group’s
       adjusted MCEV per share. As a consequence of the sale, pro-forma adjusted Group MCEV as at 31
       December 2013 would be expected to decrease by 1.9p**. As at 31 December 2013, the net asset
       value (NAV) of the Skandia Germany and Skandia Austria businesses was approximately £259
       million, representing 5.3p** of the Group’s IFRS NAV per share. As a consequence of the sale, pro-
       forma adjusted Group IFRS NAV as at 31 December 2013 would be expected to decrease by 1.9p**.
       * Cinven and Hannover Re have an unconditional agreement to acquire Heidelberger Leben, on completion the
       Cinven and Hannover Re acquisition vehicle will be renamed Heidelberger Leben Group.
       ** Based on the 4,897 million shares used in the 2013 Group Preliminary Results.

       Enquiries
       External communications
       Patrick Bowes                     UK      +44 20 7002 7440
       Investor relations
       Dominic Lagan                     UK      +44 20 7002 7190
       Kelly de Kock                     SA      +27 21 509 8709

       Media
       William Baldwin-Charles                   +44 20 7002 7133
                                                 +44 7834 524833
       Notes to Editors




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       Old Mutual provides life assurance, asset management, banking and property & casualty insurance to
       more than 16 million customers in Africa, the Americas, Asia and Europe. Originating in South Africa
       in 1845, Old Mutual has been listed on the London and Johannesburg Stock Exchanges, among
       others, since 1999.
       In the year ended 31 December 2013, the Group reported adjusted operating profit before tax of £1.6
       billion (on an IFRS basis) and had £294 billion of funds under management from core operations.
       For further information on Old Mutual plc, please visit the corporate website at www.oldmutual.com


       Sponsor:
       Merrill Lynch South Africa (Pty) Ltd

       Joint Sponsor:
       Nedbank Capital




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