United Kingdom-listed international savings and wealth management group Old Mutual is looking to grow its Asian presence in the next few years.
“We’re looking at opening in two Chinese cities and many Indian cities each year in the next few years,” Old Mutual group CEO Jim Sutcliffe said on Monday.
He disclosed that plans were under way to apply for at least two further branch licences in China before the end of the year and to open two sub-branches in other major cities in the Jiangsu Province.
“Our joint venture with the Beijing state-owned Asset Management Company (BSAM) in China has now been in operation for two years and continues to show strong sales growth. The business sells unit-linked products and has licences to operate in Beijing, Shanghai and Jiangsu Province.
“Plans are under way to apply for at least two further branch licenses before the end of the year and to open two sub-branches in other major cities in Jiangsu Province,” Sutcliffe said.
For the year ended 31 December 2006 the venture reported a loss of 59-million renminbi. Despite its recent entry into the market, of the 25 foreign owned joint-venture insurance companies in China, Skandia BSAM had the 10th largest gross premium flows.
The group’s 26% life associate in India, Kotak Mahindra Old Mutual, also continued to make robust progress, Sutcliffe said.
“Old Mutual has an option to increase its shareholding in the business, when the Indian government’s proposed increase in the foreign direct investment limit, currently capped at 26%, comes into effect,” he added.
In line with the Kotak Mahindra Group, KMOM has a 31 March year-end.
Net losses for the nine months ended on 31 December 2006 amounted to 482-million rupees. Gross premiums for the nine months totalled 5 047 million rupees, representing a 96% increase on 2005. – I-Net Bridge