Old Mutual completes sale of Old Mutual Wealth Italy
Old Mutual has completed the sale of Old Mutual Wealth Italy to Phlavia Investimenti (previously ERGO Italia), owned by Cinven, the international private equity firm.
The transaction was announced on 9 August 2016.
The sale is the final part of the divestment of Old Mutual Wealth’s continental European businesses allowing it to focus on its core UK and cross border markets.
Paul Feeney, CEO of Old Mutual Wealth, says: “This represents an important landmark for our business as it completes Old Mutual Wealth’s exit from Continental Europe. Whilst we are sorry to lose our colleagues from Old Mutual Wealth Italy, we believe their growth prospects will be enhanced under the new ownership. I would like to thank the team for the fantastic contribution they have made over the years and wish them well in the future.”
Erik Stattin, group CEO of Phlavia Investimenti, says: “We are extremely satisfied to announce this new milestone on our path to become a consolidator in the Italian market. We have already sold our non-life insurance company in order to concentrate on life insurance; the acquisition of Old Mutual Wealth Italy is another step to strengthen our position through financial, operational and commercial synergies and diversify our product portfolio and distribution network, generating further cross selling opportunities for our business.”
Old Mutual Wealth Italy was established in 1997. The business employs 110 people and manages EUR7 billion for more than 53,000 affluent and high net worth customers. The post-tax adjusted operating profit for the year ended 31 December 2015 was EUR22 million.
Old Mutual Wealth Italy is an independent unit linked provider in the financial adviser market. It also has a strong presence in the banking channel and dedicated product development, offering integrated wealth solutions.
Rothschild advised Old Mutual on the divestiture.