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Old Mutual scuppers US offshore arm
18.03.09
Old Mutual's new boss Julian Roberts attempted to draw a line under losses at the insurer's beleaguered US life arm today, shutting the offshore firm to new business.
After a brief attempt to rebuild a company that has been little but trouble, management has now concluded it is "unlikely" it will be able to launch products that "provide a satisfactory return on capital".
Old Mutual Bermuda is based offshore and sells into America, and predominantly the Asian market. The onshore US business remains open to new business.
The insurer took a hit of more than $500 million (£358 million) last year because of hedging that went awry at OMB. This contributed to a 66% slump in annual profits to £595 million, from £1.75 billion previously.
Roberts replaced Jim Sutcliffe at the helm last September. Sutcliffe resigned partly because of the problems at OMB for which he took responsibility.
