Old Mutual plc is an international financial services group, whose activities are focussed on asset gathering and asset management.

Financial highlights
 

Adjusted operating profit* (IFRS basis):
up 16% to £1,459 million (2005: £1,261 million) 
Adjusted operating profit (European Embedded Value (EEV) basis):
up 22% to £1,687 million (2005: £1,387 million) 
Profit for the financial year attributable to equity holders of the parent (IFRS basis):
£836 million (2005: £867 million) 
Adjusted operating earnings per share* (IFRS basis):
down 18% to 15.1p (2005: 18.5p) 
Adjusted operating earnings per share (EEV basis):
down 14% to 17.8p (2005: 20.7p) 
Basic earnings per share (IFRS basis): 
17.0p (2005: 25.1p) 
Net cash flow in relation to funds under management of £24 billion (2005: £13 billion) 
Funds under management of £239 billion at 31 December 2006 (2005: £182 billion), an increase of 31% 
Total life assurance sales, on an EEV Annual Premium Equivalent (APE) basis, of £1,535 million, an increase of 137% (2005: £648 million) 
Adjusted embedded value per share (EEV basis):
157.2p at 31 December 2006 (2005: 174.0p) 
Recommended final dividend up 13.7% to 4.15p (58c)** 
Jim Sutcliffe, Chief Executive, commented:
"This set of results reflects a healthy overall performance from around the group. Funds under management grew an impressive 31% with operating profits benefiting both from a better than expected result from the Skandia acquisition and from investment in our existing businesses.  Despite earnings being impacted by unfavourable currency translation impact, our strong financial position has enabled us to declare a final dividend increase of 13.7%.

The current year has started well.  Although exchange rates, the cost of investing to achieve synergies across Europe, and costs in Sweden and at our South African life business to put these businesses on a sound basis for the future will hold back earnings growth for 2007, we have an excellent set of growing businesses and are clear about the tasks we must complete.  We are on track to achieve over £300 billion of funds under management by the end of 2008, which should provide a solid basis for substantial future earnings growth." 

26 February 2007

Wherever the items asterisked in the Highlights are used, whether in the Highlights, the Chief Executive's Statement or the Group Business Review, the following definitions apply:

 * For long-term and general insurance business, adjusted operating profit is based on a long-term investment return, includes investment returns on life funds' investments in Group equity and debt instruments and is stated net of income tax attributable to policyholder returns. For all businesses, adjusted operating profit excludes goodwill impairment, the impact of acquisition accounting, initial costs of Black Economic Empowerment schemes, the impact of closure of unclaimed shares trusts, profit / (loss) on disposal of subsidiaries, associated undertakings and strategic investments and dividends declared to holders of perpetual preferred callable securities.

Adjusted operating earnings per ordinary share is calculated on the same basis as adjusted operating profit. It is stated after tax attributable to adjusted operating profit and minority interests. It excludes income attributable to Black Economic Empowerment trusts of listed subsidiaries. The calculation of the adjusted weighted average number of shares includes own shares held in policyholders' funds and Black Economic Empowerment trusts.

** Indicative only, being the Rand equivalent of 4.15p converted at the exchange rate prevailing on 20 February 2007. The actual amount to be paid by way of final dividend to holders of shares on the South African branch register will be calculated by reference to the exchange rate prevailing at the close of business on 19 April 2007, as determined by the Company, and will be announced on 20 April 2007.