Earlier this week, Bloomberg reported that the cost of moving Old Mutual Wealth’s platform to technology provided by International Financial Data Services (IFDS) meant the insurance giant was considering selling the business rather than pursing an initial public offering.
According to financial statements, published in March, Old Mutual has so far spent £450m ($584m, €523m) on the technology upgrade.
Still on track
However, the insurance behemoth confirmed with International Adviser on Thursday that its wealth division remains on track to be listed as a stand-alone business following the insurer’s announcement in March that it will break up its business into four separate units as it believes they will perform better independently.
“As announced in June 2016, as part of the managed separation, Old Mutual’s intention is to deliver Old Mutual Wealth into the hands of its shareholders by way of a demerger and listing on both the London and Johannesburg stock exchanges.
“No announcement to the contrary has been made,” said Old Mutual in a statement.
The four units, due to be separated by 2018, will be South African bank Nedbank; UK wealth manager Old Mutual Wealth; OM Asset Management, a US asset manager; and Old Mutual Emerging Markets, its life assurance, investment and lending operation which spans Asia, Africa, and Latin America.
Old Mutual added that it will give an update on the business on 11 October.
