Old Mutual shares jumped 11% in early morning trading following reports the firm is planning a break-up of the business into stand-alone companies.
According to reports at the weekend, the firm is understood to have already received an offer for its wealth management arm in the UK.
Shares in Old Mutual soared 11.3% this morning following the news to trade at 198.6p. They fell back to trade up 6.6% by 10.45am.
The various divisions would include: Old Mutual Wealth (including asset management arm Old Mutual Global Investors), its stake in South African lender Nedbank, the institutional asset management division and the group's emerging market operation.
Old Mutual is expected to make an announcement on Friday when it publishes its annual results.
Sky News reported buyout firms Cinven and Warburg Pincus have already approached the group with a joint cash offer for Old Mutual Wealth. According to The Times, the offer could value this part of the business at around £4.5bn.
Bruce Hemphill, group chief executive of Old Mutual, is believed to have put plans in place for a break-up of the group following his appointment in November 2015.
The firm, which was founded in South Africa, has struggled with issues such as tough UK regulation, a weaker rand in South Africa and a complex business structure. According to the Times, the move could see the group's headquarters shifted to South Africa.
Old Mutual Wealth, which includes investment manager Quilter Cheviot and adviser network Intrinsic as well as OMGI, has had a busy year as the group pursues plans to develop a vertically integrated business.
In a recent interview with Investment Week, OMGI managing director Warren Tonkinson (pictured) said he had ambitious plans for the business.
"The biggest challenge is executing on the big plans in place; we have ambitious growth plans and need to turn them into real results. We want to deliver that in a consistent manner, invest in the right parts of the business, invest in infrastructure and hire the right people.
"We are on a journey and hopefully next year we will be even further ahead."
In response to media speculation, Old Mutual said this morning; "When our new chief executive Bruce Hemphill joined on 1 November 2015, we announced that we would be conducting a strategic review.
"We can confirm that all options for the strategic review are being considered but no decision has yet been made."
