Without citing sources, it said the group is working on a plan to divide itself into standalone companies comprising its stake in South African lender Nedbank, its UK-focused wealth unit, its emerging markets operation based in South Africa, and its institutional asset management business.
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Analysts said a breakup would make sense because European capital requirements for insurers, known as Solvency II, force the company to discount some of its operations.
At the open, Old Mutual’s listed on the FTSE 100, was up by as much as 11% as investors reacted to the potential split.
Buxton’s appointment was part of a restructure of OMGI that saw Martin Baines appointed as chief executive of OMW, previously he had been chief of Quilter Cheviot the discretionary fund manager acquired by Old Mutual in 2014 for a reported £585 million.
The insurance and asset management sectors have seen several deals in recent years.
Sky News reported that private equity firms London-based Cinven and New York-based Warburg Pincus have reportedly already tabled a multi-billion-pound joint cash offer for Old Mutual Wealth.
Last December OMW was tipped to list separately from the Old Mutual global group.
Hemphill said on the company’s website in mid-November that he would examine Old Mutual’s businesses, management and markets over next few months and was meeting “key customers, investors and stakeholders”. Many bankers think it would be worth more if broken up, as there is little overlap between between its disparate divisions.
Old Mutual plc (“Old Mutual”) notes the press speculation on Saturday 5 March 2016.
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England rugby sponsor and insurance giant Old Mutual shot up in trading after confirming it was mulling a £9 billion carve up of the business but added: “no decision has yet been made”.
