Old Mutual on a transformation path in South African markets

Old Mutual South Africa (OMSA), a unit
of UK insurer Old Mutual Plc, has clinched a deal that will see it
acquire full control of acsis, a financial advisory and consulting
firm active in the South African private client and retirement
funds markets. OMSA’s managing director, Paul Hanratty, termed the
acquisition a key step in OMSA’s strategy of transforming itself
into a savings and wealth management business.

acsis, which will retain its brand and function autonomously,
has enjoyed strong growth in recent years and according to the
South African Association of Collective Investments, increased
assets under advice from ZAR10 billion ($1 billion) in 2005 to
ZAR20.3 billion in 2008.

Founded in 1999 as ipac SA, acsis was originally a joint venture
(JV) between local investment company Brait and Australian asset
consulting and financial planning firm ipac Securities which was
acquired by French insurer AXA in 2002. The name acsis was adopted
in 2004 following a management buy-out of ipac’s share with acsis
retaining in perpetuity the exclusive license to ipac’s
intellectual property in South Africa.

Also of significance in Old Mutual’s strategy is its quashing of
rumours in the UK press that it plans to sell its 55 percent stake
in Nedbank, South Africa’s fourth-largest retail bank.

Also of significance in Old Mutual’s strategy is its quashing of
rumours in the UK press that it plans to sell its 55 percent stake
in Nedbank, South Africa’s fourth-largest retail bank. Old Mutual
noted in its 2008 results release that OMSA and Nedbank have
several wealth management JVs and that Nedbank would acquire them
in 2009 in exchange for which OMSA would up its stake in
Nedbank.