Old Mutual Wealth pre-tax profits fall amid ongoing managed separation

OMGI AUM and profits higher

Old Mutual Wealth's pre-tax operating profits fell 15% in 2016 as a result of its ongoing managed separation, with costs expected to further increase in 2017.

In the firm's preliminary annual results for the full year to 31 December 2016, the firm said the adjusted operating profit fell from £307m in 2015 to £260m, but said this would have been higher at £298m if it had not allowed for the reduction in exit fees in the Heritage business, and costs related to managed separation and changes to the executive management team. The group said it expected costs would increase further as it moves to a standalone entity as it picks up costs previously paid by Old Mutual plc. This was estimated to be between £50m and £55m over the next three years. H...