Old Mutual Mulls Admin Location Shift

August 17 - South Africa's largest insurer, the 164 year old firm, Old Mutual, has announced plans to streamline its operation in a bid to cut costs, all the while making plans to inject hundreds of millions of dollars into the US life insurance business.

Old Mutual Place said it is mulling the option of moving the administration of its long term European retail business to Cape Town in bid to reduce costs.

The Chief Executive Officer, Julian Roberts confirmed this in Johannesburg last week, and said that he would be giving more details about the potential move in March.

The bulk of Old Mutal's staff in South Africa work from Cape Town.

In an interview last week, a spokesperson for Old Mutual, Matthew Gregorowski, said that Old Mutual may inject up to $300 million into the US life insurance division.

"We are committed to maintaining the risk based capital ration at 300 percent and may need to inject between $200 million and $300 million into the US business next year," said the spokesman.

Old Mutual has recently completed a "major" overhaul of its US business.

Old Mutual has been embarked on a process of streamlining operations and cutting costs, against the backdrop of a net loss of GBP 70 million in the first half of 2009, ending June 30th.

The company sold its Australian unit, closed its Hong Kong office and announced that it would not be paying dividends this year.