Old Mutual sells Italian business

Old Mutual Wealth have announced today it has agreed a deal to sell off its Italian wealth management arm – Old Mutual Wealth Italy.
The move comes after Old Mutual announced in March it was undergoing a significant business review, and planned to split the business into four separate parts. Selling the Italian arm aligns with plans to focus more heavily on the UK operation and is the final part of divestment of Old Mutual Wealth’s continental European businesses.
Old Mutual Wealth Italy will be acquired by Ergo Italia, the Milan-based provider of life and non life insurance products, for €278m (£237m).  Ergo Italia was acquired in June by European private firm Cinven, who at the time stated ‘Cinven’s Financial Services and Italian teams identified ERGO Italia as an attractive platform from which to lead consolidation’.
Chief executive of Old Mutual Wealth, Paul Feeney, is reported to have said he thought the growth prospects of Old Mutual Wealth Italy will be enhanced under Cinven’s ownership.
Erik Stattin, chief executive of Ergo Italia, said the move will boost Ergo’s distribution network and product line, while also helping gaining access to a high-growth market.
Old Mutual Wealth Italy manages €7bn (£6bn) of assets for more than 53,000 clients. The business reported post-tax earnings of €22 million to end December 2015.
The deal is expected to be completed in the next six months.
If you are interested in understanding more about the opportunity to sell your business to Old Mutual Private Client Adviser contact louise.jeffreys@gunnerandco.com