Old Mutual's influx of cash

ANGLO-South African insurance and financial services giant Old Mutual got off to a strong start this year, with UK and US business in particular 'firing on all cylinders'.

External fund inflows into its UK asset management operations, Selestia and Old Mutual Asset Managers (UK), totalled £123m for the first quarter, against £300m for the whole of 2003.

In America, which accounts for about 50% of the group's life insurance profits, OM posted first-quarter sales of $103m on the industry standard annual premium equivalent basis, up from $99m last year.

Net first-quarter cash inflow in the US came to $2.3bn, compared with $5bn for the whole of last year.

'It has been encouraging and we are firing on all cylinders,' said group finance director Julian Roberts.

Restructuring of Nedcor, the South African bank 53% owned by OM, has started in earnest with 399 staff cut in the first quarter and a further 1343 expected to go later this year after the conclusion of 'voluntary retrenchment procedures'.