Old Mutual Wealth is being separated from parent Old Mutual plc and plans to list in 2018. The company says that to reflect the “separate identity” of the newly-listed business and its strategy to become one of the UK’s leading integrated wealth management businesses, Old Mutual Wealth will on separation adopt the name of subsidiary Quilter plc.
The business will also be divided into two divisions: ‘Advice and Wealth Management’ and ‘Wealth Platforms’. The businesses within these two segments will be re-branded to Quilter over a period of two years following separation from Old Mutual.
The Advice and Wealth Management segment will include: Intrinsic, which intends to rebrand to Quilter Financial Planning including Private Client Advisers, which will become Quilter Private Client Advisers. The multi-asset business will become Quilter Investors and Quilter Cheviot which will retain its name.
The Wealth Platforms segment will include the UK Platform, which will become Quilter Wealth Solutions and the International business will become Quilter International. The Heritage life assurance business will become Quilter Life Assurance.
Paul Feeney, chief executive, said: “We are well-positioned to build on what we have achieved in one of the world’s largest and growing wealth management markets.”“Having two distinct but complementary segments will help
us to continue to deliver good customer outcomes for new and existing customers.
“Our recently reported Q3 year to date flows demonstrate continued strong demand for our investment solutions and services. However, having individually strong businesses is not enough by itself to drive success. We are focused on ensuring the businesses work together to build better solutions and drive integrated flows. “We very much look forward to listing in 2018 as Quilter. We believe that we have a compelling investment opportunity as we continue to deliver strong and sustainable returns for shareholders in our own right as a fast-growing, independent and publicly listed company.”
In changes to the platform business the company says that the expected timing of delivery and cost estimates of the UK platform transformation programme remains unchanged. The move to the the FNZ system remains in the range of £120m¬£160m and the company intends to have the new platform in place by the end of 2018 / early 2019, with the migration of the book “swiftly thereafter.”
It will be closing the Institutional business within Heritage to new customers as it is not “core to the strategy and is very low margin.” It is expected that this book of business will run¬off over the next couple of years.