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Old Mutual falls after results while Shire slips on deal talk

Discussion in 'Market News' started by Lily, Aug 11, 2016.

  1. Lily

    Lily Forum Member

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    Insurer disappoints investors as it warns of uncertain environment

    Leading shares have recovered some of their early losses but are still in negative territory, mainly due to the number of companies going ex-dividend.

    But Old Mutual is down sharply - 11p lower at 214.5p - after disappointing results, which saw a 9% drop in first half operating profit to £709m. This was well below the £769m expected by analysts. It also warned of an uncertain environment in its three key markets of South Africa, the UK and US. The insurer plans to split into four businesses, and hopes to complete the move by the end of 2018. Analysts at UBS said:

    Adjusted operating profit came in well behind our and consensus’ estimates, driven by significantly weaker UK Wealth Management earnings than expected form both the “invest and grow” businesses (£90m versus UBS estimate £121m) and a higher charge to the heritage book than we had expected for changes to exit penalties on those products.

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