Old Mutual has finalised the sale of Old Mutual Wealth Italy to international private equity firm, Phlavia Investiminti.
Phlavia Investiminti, formerly trading under the name Ergo Italia, acquired Old Mutual Wealth Italy’s books and assets for a fee totalling €278m (£240m) in August 2016.
The sale of Old Mutual’s Italian operations is the final phase in Old Mutual’s strategy to pull out of Continental Europe. A spokesman from Old Mutual explained that the UK market would benefit from deeper focus. Moreover, the sale of the Italian Old Mutual firm will allow for greater efforts in securing a stronger foothold in Britain along with developing other strategic growth areas, such as their recent developments in Singapore.
Paul Feeney, Old Mutual Wealth’s Chief Executive, quotes, “This represents an important landmark for our business as it completes Old Mutual Wealth’s exit from Continental Europe.”
He went on further to admit sorrow for the loss of colleagues from the Italian branch of Old Mutual Wealth, yet commended the ability of the ownership, adding, “enhanced growth prospects” to the buyer Phlavia Investiminti.
Furthermore, Mr. Feeney thanked the team for their “Fantastic contribution” to their Italian operations, wishing them well in the future.
Old Mutual Wealth Italy had established itself 20 years ago in 1997. The firm employs 110 people and manages €7bn (£6bn) of assets for more than 53,000 high net worth customers.
Post-tax, it’s operating profit totalled €22m (£19m) in 2015.
Meanwhile, Erik Stattin, Group Chief Executive of Phlavia Investiminti detailed the benefits of the deal, stating, “We are extremely satisfied to announce this new milestone on our path to become a consolidator in the Italian market.”
“We have already sold our non-life insurance assets in order to concentrate on life insurance; the acquisition of Old Mutual Wealth Italy is another step to strengthen our position through financial, operational and commercial synergies and diversify out product portfolio and distribution network, generating further cross-selling opportunities for our business.”
In 2016 Old Mutual announced that they were planning to split their company into four separate parts.
Looking ahead for 2017, Old Mutual Wealth also plans to sell 10% of it’s UK Wealth Management business, in an initial public offering with an unspecified release date.
Old Mutual looks to continue the growth of their private client offering, which is part of the Intrinsic Network, acquired by Old Mutual in 2014. This growth has been sustained through efforts by Old Mutual Wealth’s private client advisers.
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