Old Mutual Third-Quarter Sales Rise 11% on Wealth Business Gains

Old Mutual Plc (OML), the U.K.’s third-biggest insurer, said quarterly gross sales climbed 11 percent, led by growth in its wealth business.

Gross sales climbed to 6.5 billion pounds ($10.5 billion) from 5.85 billion pounds a year earlier, London-based Old Mutual said in a statement today. That beat the 6.27 billion-pound estimate of 15 analysts surveyed by the company. Old Mutual shares rose the most in three months in Johannesburg.

“Gross sales in emerging markets continue to be healthy and Old Mutual Wealth saw a large rise in gross sales on the U.K. platform and in Old Mutual Global Investors,” Chief Executive Officer Julian Roberts said in the statement. “U.S. Asset Management produced positive cash flows of 1.5 billion pounds and Nedbank improved its operational performance.”

Old Mutual, Africa’s largest insurer, also operates in Latin America, Europe, the U.K., the U.S. and Asia. The insurer, which set aside 5 billion rand ($490 million) for expansion in emerging markets, is focusing on fast-growing countries such as Kenya, where it plans to buy a majority stake in lender Faulu Kenya DTM Ltd.

Funds under management rose 14 percent to 287.5 billion pounds in the nine months through September, after client inflows of 2.6 billion pounds, the insurer said.

Old Mutual climbed as much as 3.6 percent, the most since Aug. 8, and was up 2.7 percent to 33.30 rand as of 9:27 a.m. in Johannesburg trading. The stock is the best performer on the five-member FTSE/JSE Africa Life Assurers Index this year, having gained 36 percent.

To contact the reporter on this story: Renee Bonorchis in Johannesburg at rbonorchis@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net

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