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OLD MUTUAL PLC - Sale of Old Mutual (Bermuda) Ltd and certain related obligations to Beechwood Bermuda Limited

Release Date: 05/01/2016 08:52
Code(s): OML     PDF:  
Wrap Text
Sale of Old Mutual (Bermuda) Ltd and certain related obligations to Beechwood Bermuda Limited

OLD MUTUAL PLC

ISIN CODE: GB00B77J0862
JSE SHARE CODE: OML

NSX SHARE CODE: OLM

ISSUER CODE: OLOMOL



Ref 01/16

5 January 2016



SALE OF OLD MUTUAL (BERMUDA) LTD AND CERTAIN RELATED OBLIGATIONS TO BEECHWOOD
BERMUDA LIMITED


Old Mutual plc (Old Mutual) announces that its subsidiary, Old Mutual (Bermuda) Holdings Limited (OMBH),
completed the sale of Old Mutual (Bermuda) Ltd (OMB) to Beechwood Bermuda Limited (Beechwood) on 31
December 2015.

In anticipation of the sale, OMB’s remaining Variable Annuity guaranteed minimum accumulation benefits (GMAB
obligations), which mature in 2017 and 2018, were reinsured to another of OMBH’s subsidiaries, Old Mutual
(Bermuda) Re Ltd, and Old Mutual repaid approximately $100m of internal loan notes to OMB in December 2015.

As part of the transaction, Old Mutual has agreed to provide Beechwood with administration services for three
years. Save for the GMAB obligations referred to above, all other guarantees and responsibilities for remaining
policyholder administration have been transferred to the buyer.

Other terms of the transaction are not being disclosed. Certain regulatory approvals required for the transfer of
future policy administration arrangements are expected to be received by the end of Q1 2016.

Don Hope, Chairman of OMBH, said:

“This transaction represents an important step in the preparations for the Group’s exit from its Bermuda
businesses by the end of 2018 when the GMAB liabilities to customers are due to expire.”


Enquiries
External communications
Patrick Bowes                   UK      +44 20 7002 7440

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


Sponsor
Merrill Lynch South Africa (Pty) Ltd

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