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Half-year results for the six months ended 30 June 2009, showed that the insurance giant had seen the worst, posting an after-tax profit of GBP538 million compared with GBP773 million a year ago.
"For the past 12 months, our primary focus has been on addressing our problems and protecting ourselves against the downside. "With the actions to do that largely complete, we can start to look past the immediate market challenges and begin to position ourselves for the upside which will come as the market recover," said Old Mutual chief executive, Mr Julian Roberts.
Mr Roberts was appointed chief executive of the group in November last year. At the earnings level, it posted a basic loss per share of 1,8p for the six months ended June after earnings per share of 11,2p a year ago.
"We have delivered a creditable performance despite continued volatility in equity markets, and have taken a number of decisive actions in line with the strategic priorities we set out in March," Mr Roberts said.
"Our capital position was reinforced during the second quarter and our group pro-forma FGD position is now above GBP1 billion. We have substantially derisked our US businesses and our new operating model represents a fundamental shift to stronger governance from the centre".
The group reported positive net client cash flows of GBP0,2 billion despite lower sales.
It added that Old Mutual South Africa's long-term business reported an adjusted operating profit of R1,82 billion from 2008's R1,84 billion, which demonstrates the strength of a diverse product offering.Nordic Life's sales were up 22 percent to AGBP134 million due to improved product range and stronger distribution, while the group reported UK net client inflows of 0,4 billion driven by growth in platform sales.
US Asset Management recorded net client inflows of US$0,6 billion, which demonstrates strength of the boutique mode. The group said it made good progress in delivering on its priorities.
During the period it closed the Hong Kong office, sold Australian businesses and withdrew from ABN-Amro TEDA Chinese asset management acquisition. It also withdrew from markets where scale was not achievable Portugal, Hungary and Czech Republic.
The major restructuring of the US Life and OMCAP businesses is creating a greater focus and lower cost base, it said.
The group also announced that with Mr Chris Collin's retirement at the end of the year, Patrick O'Sullivan would join the group as chairperson, bringing strong financial services and corporate restructuring experience.
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