Old Mutual is to separate its four main businesses - Old Mutual Emerging Markets, Old Mutual Wealth, Nedbank Group and OM Asset Management in the US, following the conclusion of a strategic review.
The firm said the managed separation of the group will be handled with the view to maximise shareholder value over time. The breakup is expected to complete by 2018.
Nedbank and US-based OM Asset Management are already publicly traded, and the managed separation "may involve equity market activity" for Old Mutual Wealth and Old Mutual Emerging Markets as well, the firm said.
Old Mutual Wealth chief executive Paul Feeney (pictured) said: "Old Mutual's announcement today is a great endorsement of our successful business strategy. We have a very exciting future ahead of us.
"By putting client needs at the heart of our business strategy, Old Mutual Wealth has transformed from a standalone platform into an award-winning, next generation wealth management business.
"Beating the objectives we set three years ago, our company has delivered outstanding results for 2015 despite being faced with some of the most difficult global stock markets I have ever seen.
"By outperforming many of our peers in the industry in 2015, we have kept the promises we made in 2012 to create a new force in wealth management.
"We have solid foundations in place to support the next stage of our journey. Our aim is to be a changemaker, creating prosperity for today's generation and those of tomorrow.
"Our vertically integrated business strategy is now delivering results for our customers and shareholders. It is this strategy which truly differentiates us from our industry peers."
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Strong annual results
In its annual results today, the group as a whole reported an 86% increase in net client cash flow for the year, up to £6.9bn from £3.7bn in 2014. Old Mutual Global Investors (OMGI) saw this figure increase by 40% to £3.5bn.
Pre-tax profit for the firm as a whole increased by 35% to £307m during the year, from £227m in 2014.
At OMGI, profits more than doubled to £71m, from £33m, while funds under management in the UK asset management division increased by 18% to stand at £24.7bn.
The firm said it has seen strong flows through the UK platform, from Intrinsic advisers through the Old Mutual Cirilium portfolios range, as well as into popular funds such as the Old Mutual Global Equity Absolute Return and Richard Buxton's UK Alpha funds.
It noted WealthSelect also continued to attract good levels of net new investments over 2015, taking overall FUM in this area to £1.7bn.
Old Mutual, which was founded in South Africa, has struggled with issues such as tough UK regulation, a weaker rand in South Africa and a complex business structure.
The news the company may be planning a breakup of its separate divisions as a result of its strategic review emerged earlier this week.
Bruce Hemphill, group chief executive of Old Mutual, is believed to have put plans in place for a break-up of the group following his appointment in November 2015.
