Wrap Text
Annual Financial Report 2014 and Annual General Meeting 2015
OLD MUTUAL PLC
ISIN CODE: GB00B77J0862
JSE SHARE CODE: OML
NSX SHARE CODE: OLM
ISSURE CODE: OLOML
Old Mutual plc
Ref 244/15
31 March 2015
NEWS RELEASE
ANNUAL FINANCIAL REPORT 2014 AND ANNUAL GENERAL MEETING 2015
Old Mutual plc (the “Company”) has today published its Annual Financial Report for 2014. Copies of
the Annual Financial Report, the Strategic Report for 2014, the shareholder circular containing Notice
of the 2015 Annual General Meeting (“AGM”) and the Form of Proxy for the AGM have been
submitted to the National Storage Mechanism and will shortly be available for inspection at
www.hemscott.com/nsm.do. These documents will also be available later today on the Company’s
own website at www.oldmutual.com. Copies of the Annual Financial Report may also be obtained
from Investor Relations, Old Mutual plc, 5th Floor, Millennium Bridge House, 2 Lambeth Hill, London
EC4V 4GG or Old Mutual Square, Isibaya Building, 2nd Floor, 93 Grayston Drive, Sandton 2196,
South Africa.
The AGM will be held in the Presentation Suite, 2nd Floor, Millennium Bridge House, 2 Lambeth Hill,
London EC4V 4GG on 14 May 2015 at 11.00 a.m. As usual, the meeting will be webcast so that
shareholders who cannot readily attend it in London can, if they have access to a computer, observe
the proceedings. A link to the webcast will be available on our website on Thursday, 14 May 2015
from 10.45 a.m. (UK time).
In compliance with the Company's obligations under DTR 6.3.5, additional information is set out below
which has been extracted in full unedited text from the Annual Financial Report. Accordingly, page
references and section numbers in the text below refer to page numbers and section numbers in the
Annual Financial Report. This extracted information should be read in conjunction with the
Company’s preliminary results announcement, which was released on 27 February 2015 and is
available on our website.
“The Group has remained resilient and the risk management focus is now on execution given
a number of recent strategic changes.
Our principal risks have been determined by assessing the possible effects on our reputation, our
stakeholders, our earnings, capital and liquidity, and the future sustainability of our business. They are
summarised in the table below. These risks are largely strategic in nature. They are closely monitored
and overseen by Group management and are reported to the Board on a regular basis.
During the year the Group underwent a number of strategic changes. The pace and scale of these
changes mean that strategic execution risk is now our key principal risk. As in previous years,
economic conditions in South Africa, the changing location of credit risk across the Group and the
level of currency translation risk remain principal risks impacting Old Mutual. The risk of changing
customer needs and regulatory change remains important for Old Mutual and its peers.
Our business is also affected by a number of risks inherent to the products we offer, such as
exposure to market levels, interest rates and insurance liability risk. These drive a significant
proportion of our capital requirements and earnings volatility exposure. Given the nature of our
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product offering, market risk is material, as we are exposed to the impact of market movements on
asset-based fees – which are generated from client-selected investments. More information on our
risk and capital management and risk profile is contained in the ‘Risk and capital management’
section of this Annual Report. Additional risk information is disclosed in the consolidated financial
statements, note E, in this Annual Report.
1. Strategic execution risk and pace of change across the Old Mutual Group
How it impacts Old Mutual 2014 and beyond Risk mitigation and management
actions
Currently, and for the foreseeable As part of delivering our growth Strong governance structures
future, there is a high degree of strategy, we announced and exist, combining Group
execution risk associated with the completed various acquisitions and executives, local executive
pace and scale of change across partnerships in 2014. leadership and non-executive
the Group. Most notably: directors with the requisite blend
Old Mutual Emerging Markets
of skills and experience to
• Nedbank and Old Mutual acquired stakes in a number of
challenge key strategic initiatives
Emerging Markets are businesses across Africa during
effectively.
simultaneously expanding into 2014. Work will continue on
key African growth markets. At integrating these businesses. Within the business units,
the same time they are Acquisitions are planned to oversight committees exist at
increasing collaboration across continue, with the intended both executive and Board levels
the South African investment, acquisition of the majority holding in to oversee strategic IT and
savings, insurance and banking UAP expected to complete during outsourcing projects.
businesses. In addition, 2015.
significant investment is planned For key projects across the
in updating and enhancing In 2014 Nedbank finalised the Group, there is centralised
technology within these acquisition of a 36% shareholding in oversight at Group level over and
businesses Banco Único in Mozambique and above the business unit
exercised its option to take a 20% oversight.
• Old Mutual Wealth is focusing on
share in Ecobank. Further strategic
the integration of recent The impact of these changes on
partnerships and acquisitions will be
acquisitions, growing its asset the risk profile of the business is
management capability and pursued.
managed dynamically through
implementing its outsourcing of The Old Mutual Wealth strategy Group risk governance and
technology and administration to seeks to transform the business into monitoring processes.
IFDS a simpler, vertically integrated
We mitigate the increased
• OM Asset Management plans to business with updated IT systems.
operational risk by maintaining
expand and grow a multi- While the level of operational risk in
our focus on the control
boutique asset management Old Mutual Wealth is within risk
environment and prompt
business through acquisitions of appetite, it remains high in the
escalation.
additional affiliates short-term, reflecting the execution
of the outsourcing arrangement with
• Across the Group we aim to IFDS and the acquisitions of
become recognised as the Intrinsic and Quilter Cheviot.
financial services leader in
responsible business across our The partial IPO of the OM Asset
markets. This will require Management business was
operational, performance and completed in 2014. OM Asset
management changes Management set out its growth
throughout the business. agenda in the IPO. It will identify
and seize opportunities as they
arise, in line with the key risks
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outlined at the time of its listing. The
additional litigation and regulatory
risks introduced by listing are
managed through our ongoing risk
management processes.
2. Uncertain economic conditions in South Africa
How it impacts Old Mutual 2014 and beyond Risk mitigation and management
actions
A significant portion of our The global economic outlook We monitor multiple external
earnings comes from our South remains uncertain. The South economic factors and incorporate
African businesses. African economy is integrated in them into stress and scenario
the global economy but is also testing to understand our
In our insurance and investment
impacted by domestic factors. earnings and capital resilience to
businesses, our earnings are at
severe macro-economic events.
risk if our customers are unable to During 2014 South Africa’s
keep up premiums, cancel economic growth forecasts were We offer solutions to help clients
existing policies or withdraw their revised downwards after in tougher times, and focus on
savings earlier than anticipated. protracted labour disputes and understanding individual
Additionally, our future profits will power shortages. These also customers’ financial positions at
be at risk if customers do not buy prompted a sovereign credit the point of sale. For example, the
insurance policies from us or downgrade by rating agencies. 2-IN-ONE savings product for the
invest their savings with us at the mass foundation market launched
If sovereign credit was further
levels we anticipate. in 2014. See the case study in the
downgraded, the impact on the
‘Our markets’ section on page 27.
Low interest rates may also Group’s business outside South
negatively impact endowment Africa would be limited. Within Our businesses manage premium
income in our banking South Africa the impact would be collections and credit payments,
businesses. reflected in consequential changes while monitoring for early
in underlying economic and indicators of financial distress.
All our businesses are exposed to
market-related factors, such as the
increased expense growth from We manage our cost base
level of interest rates, foreign
high levels of inflation. judiciously, while investing
exchange rates and international
sustainably for the future.
A weak economic environment capital flows.
impacts credit risk in our The Group’s plan to grow the
Subdued global demand and
investment, insurance and sources of earnings outside South
persistent infrastructure constraints
banking businesses. (Credit risk Africa, in the medium-term, is
are expected to limit growth in the
is discussed further below.) expected to diversify its exposure
South African economy. This will
to this risk.
We have exposure to South continue to weigh on household
African sovereign debt and disposable income in the medium
parastatals, but only within the term. However, a prolonged period
South African businesses, in line of low oil prices, leading to lower
with market and regulatory transport and food costs, could
expectations. help support disposable income
and spending.
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3. Credit risk and location of credit risk across the Group (continued overleaf)
How it impacts Old Mutual 2014 and beyond Risk mitigation and management
actions
One of our largest risks to Group Credit risk across the Group We monitor credit loss ratios on
earnings is our exposure to banking increased during 2014 due to an ongoing basis and they are
credit risk from lending and other the acquisition of Faulu and broadly within target range. In
financing activities through our an increase in Old Mutual addition, we review the quality of
ownership of Nedbank, and to a lesser Emerging Markets’ stake in credit portfolios to ensure credit
extent our exposure within Old Mutual Old Mutual Finance from impairment provisions are
Emerging Markets. Credit risk exposure 50% to 75%. adequate.
within Old Mutual Emerging Markets is
Although Nedbank’s 20% For unsecured lending, Nedbank
growing as a proportion of this
ownership of Ecobank is and Old Mutual Finance continue
division’s own risk exposure.
accounted for as an equity to focus on quality of business
Despite tight controls and processes, share, this indirectly through regular adjustment of
banking profits remain sensitive to increases our credit risk. affordability and credit scorecards
relatively small movements in credit and risk-based product metrics
Our credit risk remains within
loss ratios. (loan term, size and interest
appetite. However, the high
rates), based on changing market
Our exposure to Nedbank is primarily levels of personal
conditions.
risk to earnings, as Nedbank’s capital indebtedness and pressure
and liquidity requirements are both met on consumers in South Stress testing is carried out at
from its own available resources. Africa remain a challenge, as both Nedbank and Old Mutual
do other macro-economic Emerging Markets to understand
factors outside our control, exposure to credit events.
such as commodity prices.
Our portfolio tilt strategy in our
Our lending credit exposure banking loan exposures is
is concentrated in secured designed to provide more robust
lending through Nedbank. long term returns with lower
volatility for deteriorating credit
experience.
Within Old Mutual Emerging Markets, Unsecured lending exposure Large concentrations are
banking credit risk is expected to increase is small in comparison to the monitored at Group level.
due to planned growth. Banking credit risk total lending book. Within These relate primarily to
arises in: Old Mutual Finance we have investment credit, as there is
experienced controlled little concentration or
• Our unsecured lending business, Old
growth in unsecured lending aggregation of individual credit
Mutual Finance
from a low base, applying exposures outside Nedbank
• Faulu, a Kenyan consumer finance stringent affordability and Old Mutual
business acquired in 2014 requirements and strict Emerging Markets.
credit criteria. Within
• A building society in Zimbabwe known
Nedbank, unsecured lending
as CABS.
growth is expected to
Investment credit risk arises in: remain slow.
• Old Mutual Specialised Finance We are planning to further
grow our lending businesses
• The South African life business,
predominantly through the management of in Faulu, CABS, Old Mutual
Finance and Old Mutual
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assets backing annuity products. Specialised Finance, and
this will be underpinned by
There is also credit risk exposure within
strong credit risk
Mutual & Federal through holdings in the
management together with
credit guarantee insurer, CGIC.
risk oversight and
Credit risk outside Nedbank and Old governance.
Mutual Emerging Markets is relatively
limited.
4. Currency translation risk and location of capital
How it impacts Old Mutual 2014 and beyond Risk mitigation and management
actions
At Group level our earnings, In 2014, the rand depreciated from We hold our capital resources
dividend and regulatory surplus R17.43 to R18.00 against the (including the Group’s issued
capital are expressed in sterling pound, following a 27% debt) to meet capital
but the majority of the Group’s depreciation during 2013. This requirements in matched
earnings and its surplus capital reflects the relative weakness of currencies and service interest on
are denominated in South African South Africa’s economic outlook debt with matching earnings.
rand. and also, in part, a reduction in US
The balance of cash flows earned
appetite for emerging market
The translation of our rand in rand and other currencies is
currencies.
earnings will be affected by closely monitored and the
movements in exchange rates. We see macro-economic factors dividend policy, through its link to
that point to possible further rand earnings, in part addresses this
From a capital perspective, our
weakness in the medium term. risk.
capital is held where our risks are
These include the current account
located and the risk would only be We use forward currency
deficit and the possibility of capital
realised if we were to require a contracts to hedge expected rand
outflows from South Africa as
transfer of surplus capital cash flows needed to make
some external investors may sell
between regions during periods of dividend payments in sterling.
their holdings of South African
stress.
government bonds should global Regular stress and scenario
Our philosophy is to maintain interest rates rise. testing supports understanding
strongly capitalised subsidiaries and monitoring of the resilience of
We are preparing to comply with
reflecting local regulatory capital the Group’s capital and capacity
Solvency II and SAM regulatory
requirements. Our principal to pay dividends in the event of
requirements, which will be
balance sheet businesses in significant currency movements
effective from January 2016. The
South Africa (including their own or restrictions (however remote)
rules have yet to be finalised. We
subsidiaries) are appropriately on the flow of funds from South
expect greater clarity to emerge
capitalised for the international Africa.
during 2015.
standards of Basel III and
The Group’s plan to broaden the
expected Solvency II equivalent
source of earnings in currencies
regimes.
other than the rand is expected to
provide more diversified earnings
by currency, although this is
a longer-term mitigant.
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5. Changing shape of the industry due to changing customer needs and regulations,
particularly consumer-focused regulations
How it impacts Old Mutual 2014 and beyond Risk mitigation and management
actions
Attracting new and retaining existing Our customers’ needs are Strategic initiatives across the
customers is key to the delivery of evolving. Consumers want to be Group are streamlining our
our strategy. more in control of their finances. business so we can adapt more
As digital technology advances, easily to changing customer
New and evolving consumer-
they increasingly rely on and needs and regulations. They
focused regulation, non-traditional
prefer technological tools for a include implementation of IT
distribution methods, new
variety of tasks. solutions that allow us to deploy
technologies, changing
new products and system
demographics and changing Despite this, the need for
changes more quickly, making
customer needs and preferences individual attention remains.
use of outsourcing partners where
are altering the distribution and Consumers seek quality as well
IT is not our core competitive
competitive landscape across our as original offerings that meet
proposition.
geographies. This may place their personal needs, and it is
business plans and our growth important that service remains In addition, our brand promise
strategy at risk if our business model convenient in terms of both time and commitment to operating as a
is not flexible enough to let us adapt and effort. responsible business, with a
quickly and effectively to the strong customer focus and
Regulators in many jurisdictions
changing landscape. culture, position us well to
continue to focus on the fair
respond to consumer-focused
Within Old Mutual Wealth our treatment of customers and both
regulation.
acquisition of Intrinsic increases the principles and appropriate
risks associated with providing regulation in this area are Where similar regulatory themes
advice to customers, such as evolving. In particular, there is are developing, we transfer
litigation and regulatory intervention. increased focus on product knowledge from different
design, advice, and the product geographies across the Group to
Specific consumer-focused
life cycle after the sales anticipate and implement new
regulation impacting Old Mutual
process. regulations.
includes:
Products and practices which We proactively prepare for
• In the UK, the ongoing impacts of
might in the past have been anticipated regulatory changes
the Retail Distribution Review
considered normal might no and engage with regulators to
(RDR) and new pension withdrawal
rules effective from April 2015 longer be acceptable. There will avoid or mitigate unexpected
be a need to adapt and evolve adverse impacts.
• In South Africa, Treating Customers new products and operations –
Fairly, Retirement Fund Reform and A group-wide Information Security
while remaining mindful that the
a review of adviser remuneration Steering Committee considers
long-term nature of the business
models similar to the UK’s RDR. In cyber security, with particular
means legacy products will take
addition, the planned move to Twin focus on education, awareness,
time to run off.
Peaks regulation. monitoring and understanding of
the threat environment.
Furthermore, increasing regulatory
requirements impact the cost and Our ACT NOW! Leadership
complexity of doing business. Behaviours, which are formally
measured as part of our
Consumers’ use and preference for performance management
digital technology is increasing. system, include a metric for
Maintaining adequate cyber security, ‘putting the customer first’.
with appropriate protection for client We measure our culture around
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assets and data, is also a key risk treatment of customers annually
for Old Mutual’s retail businesses through our group-wide culture
given the external threat survey.
environment and increasing reliance
on technology.
Group’s risk profile
We assess the Group’s risk profile through several different lenses, in line with our risk appetite. We
seek to optimise capital efficiency, avoiding excessive risk concentrations and diversifying risk where
possible. In this context, we view risk concentration and diversification within each business unit.
Each of the Group’s business units (and regulated companies within business units) is sufficiently
capitalised in its own right. The distribution and allocation of capital to our businesses largely reflects
the different risk profiles within their regions and the prevailing regulatory requirements. Even when
applying significant economic stresses to our current capital, the Group remains adequately
capitalised. We have also identified management actions that could be taken to remedy the Group’s
capital or liquidity position in an extreme shock event (where capital or liquidity levels could
significantly breach our risk appetite limits for a sustained period).
As our capital is largely located where our risks lie, any balance sheet impact would be seen as an
unrealised accounting translation risk. This applies primarily to the translation of rand earnings to
sterling. Factors affecting the level of the rand include changes in the level of foreign investment in
South Africa. The risk of rand weakness remains high given the current and capital account deficits
South Africa is running and the potential for external investors to sell their holdings of South African
government bonds if global interest rates rise. A substantial capital outflow could potentially trigger a
decline in the rand, and this would also reduce our earnings as reported in sterling. We have
modelled scenarios involving a severe rand drop and are comfortable that the Group has sufficient
capital and liquidity resilience in such events, if they happened.
During 2014 we continued to execute our growth strategy, acquiring stakes in a number of businesses
in Africa and the UK. These businesses are small compared with our large in-force insurance and
banking businesses and do not yet have a significant impact on our risk profile with reference to
capital (although they do impact the returns earned on the capital deployed). As a result, earnings
volatility and other business metrics such as operational risk now play an increasing role in the
determination of our risk and business strategy.
Across the Group, most risks have increased in line with business growth. Within Old Mutual
Emerging Markets, credit risk has grown due to the increased stake in Old Mutual Finance and the
acquisition of Faulu: we have reassessed risk appetite accordingly. Credit risk has a greater
proportional impact on earnings at risk than it does on capital at risk.
We recognise that there could be a short-term increase in operational risk in the next few years while
we execute and integrate the various strategic change initiatives. We have accepted this increase to
reduce our longer-term strategic risk, and continue to monitor and manage it closely.
Business risk and market risk remain our two most material risks. While they have remained relatively
stable over the year, they are influenced by the economies in the key regions where we operate – and
by the impact on consumers in those countries, notably South Africa, where we currently have our
largest retail earnings base. As well as monitoring economic factors to understand our earnings and
capital resilience to severe macro-economic events, we have maintained a strong focus on
customers, considering how we can help them in tougher times and monitoring for early indicators of
financial distress.
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Liability risk diversifies well against our other risks and we continue to seek to increase the proportion
of this risk where appropriate. Our liability risk exposure remains small outside the South African
businesses. Our business plans include a number of actions to increase this exposure, but only where
it meets our risk and return requirements.
In line with our peers, there is significant regulatory change impacting the financial services sector in
the territories we operate. Clarity on outstanding regulatory capital uncertainties in relation to
Solvency II and SAM is expected to emerge during 2015. There is also substantial change in the
conduct agenda in terms of the way business is sold or the nature of the products which meet our
customers’ needs. Our focus on responsible business, core values and culture gives us confidence to
embrace these changes, and we continue to monitor the position carefully.
Risk Risk description
Market risk This is the risk of a financial impact arising from changes in the value of
financial assets or financial liabilities from changes in equity, bond and
property prices, interest rates and foreign exchange rates.
We separately consider currency translation risk, which relates to the
translation of earnings and capital to our reporting currency.
Business risk The risk that business performance will be below projections as a result
of negative variances in new business volumes and margins, and
lapse, rebate and expense experience.
Liability risk We assume liability risk, sometimes referred to as insurance risk, by
issuing insurance contracts under which we agree to compensate the
policyholder or beneficiary if a specified uncertain future event affecting
the policyholder occurs. This risk includes mortality and morbidity risk,
as well as non-life risk from events such as fire or accident.
Credit and This relates to the risk of credit defaults. It includes lending risk, where
counterparty risk a borrower becomes unable to repay outstanding balances (for
instance banking credit risk), as well as counterparty risk where an
asset is not repaid in accordance with the terms of the contract. The
risk of credit spreads changing is included under market risk.
Operational risk The risk arising from operational activities, for example a failure of a
major system, or losses incurred as a consequence of people and/or
process failures, including external events.
Liquidity risk The risk that liquid assets may not be available to pay obligations at a
reasonable cost, when due.
Compliance and The risk that laws and regulations will be breached. This includes risk
regulatory risk of regulatory intervention resulting in sanctions being imposed or a
temporary restriction on the business’ ability to operate and/or an
additional regulatory capital charge. It also includes failure to adapt to
regulatory change and business conduct risk.
Strategic risk The risk of failing to implement the business strategy and the
management of associated changes to the business.”
“H3: Related parties
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The Group provides certain pension fund, insurance, banking and financial services to related parties.
These are conducted on an arm’s length basis and are not material to the Group’s results.
(a) Transactions with key management personnel, remuneration and other compensation
Key management personnel are those persons having authority and responsibility for planning,
directing and controlling the activities of the Group, directly or indirectly, including any director
(whether executive or otherwise) of the Group. Details of the compensation paid to the Board of
directors as well as their shareholdings in the Company are disclosed in the Remuneration Report on
pages 94 to 117.
(b) Key management personnel remuneration and other compensation
Year ended 31 December Year ended 31 December
2014 2013
Number of Value Number of Value
personnel £’000 personnel £’000
Directors’ fees 11 1,366 12 1,313
Remuneration 22,593 25,301
Cash remuneration 12 4,931 13 4,944
Short-term employee benefits 12 7,879 13 9,700
Long-term employee benefits 12 343 13 373
Share-based payments 11 9,440 11 10,284
23,959 26,614
Year ended 31 December Year ended 31 December
2014 2013
Number of Number of
Number of options/shares Number of options/shares
Share options personnel ’000s personnel ’000s
Outstanding at beginning of the year 5 1,103 6 1,770
Leavers – – 2 (178)
New appointments 1 7 1 9
Granted during the year 22 –
Exercised during the year (1,084) (498)
Outstanding at end of the year 5 48 5 1,103
Year ended 31 December Year ended 31 December
2014 2013
Number of Number of
Number of options/shares Number of options/shares
Restricted shares Notes personnel ’000s personnel ’000s
Outstanding at beginning of the year 10 20,495 14 22,557
Leavers 1 (4,230) 5 (2,121)
New appointments 1 112 1 576
Granted during the year 6,041 5,439
Exercised during the year (421) (1,505)
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Vested during the year (4,942) (4,451)
Effect of share exchange in connection
with the OM Asset Management plc IPO H2(c) (3,283) – –
Outstanding at end of the year 10 13,772 10 20,495
(c) Key management personnel transactions
Key management personnel and members of their close family have undertaken transactions with Old
Mutual plc and its subsidiaries, joint ventures and associated undertakings in the normal course of
business, details of which are given below. For current accounts positive values indicate assets of the
individual whilst for credit cards and mortgages positive values indicate liabilities of the individual.
Year ended 31 December Year ended 31 December
2014 2013
Number of Value Number of Value
personnel £000s personnel £000s
Current accounts
Balance at beginning of the year 4 2,535 4 1,204
Net movement during the year (100) 1,331
Balance at end of the year 5 2,435 4 2,535
Credit cards
Balance at beginning of the year 2 24 4 18
Net movement during the year 5 6
Balance at end of the year 4 29 2 24
Mortgages
Balance at beginning of the year 1 143 2 219
Net movement during the year 322 (76)
Balance at end of the year 5 465 1 143
Property & casualty contracts
Total premium paid during the year 4 15 3 13
Claims paid during the year 2 7 – –
Life insurance products
Total sum assured/value of investment at end of the
year 10 25,739 11 24,498
Pensions, termination benefits paid
Termination benefits paid – – 1 608
Value of pension plans as at end of the year 10 4,889 10 4,838
Various members of key management personnel hold or have at various times during the year held,
investments managed by asset management businesses of the Group. These include unit trusts,
mutual funds and hedge funds. None of the amounts concerned are material in the context of the
funds managed by the Group business concerned, and all of the investments have been made by the
individuals concerned either on terms which are the same as those available to external clients
generally or, where that is not the case, on the same preferential terms as were available to
employees of the business generally.”
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“Related parties
Old Mutual plc enters into transactions with its subsidiaries in the normal course of business. These
are principally related to funding of the Group’s businesses and head office functions. Details of loans,
including balances due from/to the Company accounts are set out below. Disclosures in respect of the
key management personnel of the Company are included in the Group accounts related parties
disclosures in note G3.
There are no transactions entered into by the Company with associated undertakings.
£m
At At
31 31
December December
2014 2013
Balances due from subsidiaries 4,161 4,242
Balances due to subsidiaries (4,367) (4,264)
Balances due from other related parties – Fairbairn Trust Company Limited 2 2
Income statement information
£m
Year ended 31 December 2014 Year ended 31 December 2013
Ordinary Other Ordinary Other
Interest dividends amounts dividends amounts
At 31 December 2014 paid received paid Interest paid received paid
Subsidiaries 23 632 (31) (31) 147 (99)”
“Responsibility statement of the directors in respect of the annual financial report
We confirm that to the best of our knowledge:
• The financial statements, prepared in accordance with the applicable set of accounting standards,
give a true and fair view of the assets, liabilities, financial position and profit or loss of the
Company and the undertakings included in the consolidation taken as a whole, and
• The Strategic Report includes a fair review of the development and performance of the business
and the position of Old Mutual plc and the undertakings included in the consolidation taken as a
whole, together with a description of the principal risks and uncertainties that they face.
We consider the Annual Report and Accounts, taken as a whole, are fair, balanced and
understandable and provide the information necessary for shareholders to assess the Group’s
position and performance, business model and strategy.
Julian Roberts Ingrid Johnson
Group Chief Executive Group Finance Director
27 February 2015”
Enquiries
External communications
Patrick Bowes UK +44 20 7002 7440
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Investor relations
Dominic Lagan UK +44 20 7002 7190
Sizwe Ndlovu SA +27 11 217 1163
Media
William Baldwin-Charles +44 20 7002 7133
+44 7834 524833
Notes to Editors
Old Mutual provides investment, savings, insurance and banking services to more than 17 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 2014, the Group reported adjusted operating profit before tax of £1.6 billion (on
an IFRS basis) and had £319 billion of funds under management from core operations.
For further information on Old Mutual plc, please visit the corporate website at www.oldmutual.com
Lead Sponsor:
Merrill Lynch South Africa (Pty) Ltd
Joint Sponsor:
Nedbank Capital
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