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Mutual & Federal competitive sale process terminated due to tough market conditions

27 November 2008 Mutual & Federal

The competitive sale process by Old Mutual plc to dispose of its majority shareholding in leading insurer Mutual & Federal has been terminated. Extremely difficult and rapidly changing global economic conditions have lead to the termination of the sale process. The disposal of Mutual &Federal was initiated in August this year, generating a high level of interest and reaching an advanced stage in November.

Keith Kennedy (pictured), Mutual &Federal MD says “The uncertainty around the change in ownership has been cause for concern for many of our stakeholders and particularly our staff. We are pleased that we can now remove this uncertainty and move ahead. Old Mutual has assured us that it will be business as usual at Mutual & Federal and that any further exploration of a sale has been terminated.”

Kennedy says the cessation of the sale process marks the end of a big year in the life of Mutual & Federal. “We have worked hard to correct poorly performing books of business and have also completed a significant restructure whereby we moved to a new operating model that allows us to provide better products and service to brokers and their customers at more competitive rates. This leaves us with a sound base from which we can drive growth going forward. We now have certainty around the last issue that has been hanging over us as a business – the sale. We remain part of the Old Mutual Group, and anticipate taking the business forward within that context.

“We expect 2009 to be a year where the focus is on the core business of underwriting quality insurance risks with intermediary partners. Our aim is to deliver rewarding returns to shareholders and innovative products to our intermediaries and clients” concludes Kennedy.

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