Old Mutual sells India insurance JV stake for 156 million pounds

Owen Stevens
April 28, 2017

The agreement will see the shareholding in Kotak Mahindra Old Mutual Life Insurance pass on to joint venture partner Kotak Mahindra Bank, with an aimed for completion date during the second half of 2017.

"Net interest margin (NIM) for Q4FY17 at 4.6 per cent up from 4.4 per cent in Q4FY16", the company said in a statement.

Old Mutual, which is in the middle of a split, says the net proceeds of £141 million will be for general corporate purposes.

Kotak Mahindra Old Mutual Life, which collected a total first-year premium of Rs2,849.74 crore during the financial year that ended 31 March, is ranked sixth among 24 life insurers in the industry in terms of premium collections.

Old Mutual is also planning to list or sell Old Mutual Wealth, cut its stake in South Africa's Nedbank NEDJ.J and has already begun cutting its stake in US firm Old Mutual Asset Management OMAM.N .

"Old Mutual Wealth has taken another positive step in its preparation for managed separation".

"He brings a wealth of capital markets, regulatory and operating experience with large publicly listed financial services companies".

"We will be seeking to appoint a further non-executive director in due course, given Tim's executive appointment".

Old Mutual is in the midst of breaking up its business in four parts by the end of next year.

"We expect 2017 to be a year characterised by the hard work required to get the businesses ready for separation in 2018".

The percentage of gross NPAs to gross advances rose to 2.59 per cent from 2.36 per cent previous year and 2.42 per cent in the preceding quarter.

"Our Q1 2017 net flows, particularly onto the Platform and into OMGI, demonstrates that advisers and customers are increasingly recognising the strength of our model and that we are offering investment solutions that meet their needs".

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