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TROUBLED insurer Old Mutual today reported an unexpectedly large fall in profits despite signs it is sorting out its stricken US business.
The insurer also confirmed it has joined the sector's lengthening list of dividend axers.
Old Mutual, the London-listed South African insurance group which last year came a cropper selling bets on the Far Eastern markets to US savings customers, said half-year profits slumped more than 80% to £160 million, or down 16% on an underlying basis.
However, while its US division is in recovery, Old Mut's figures reveal weakness in its European and South African businesses. "The markets are particularly tough out there," said chief executive Julian Roberts, who replaced his ousted predecessor - Jim Sutcliffe - last year.
Shareholders without a divi were, however, offered the carrot of a potential payout at the full-year results.
"The board will consider the position in respect of a final ordinary dividend for 2009 at the appropriate time in light of the then-prevailing market and economic conditions," Old Mut said in a statement.
It also announced former Zurich Financial Services executive Patrick O'Sullivan has been hired as chairman to replace the retiring boardroom veteran Chris Collins.
The shares, which have tripled since their March low, were 1.2p better at 96.2p.
