Old Mutual quiet on Standard Chartered move for Nedbank

Insurer Old Mutual gave no comment on whether it had received an offer for its majority stake in South African Nedbank as it met forecasts with a 29% rise in first-quarter sales.

Emerging markets bank Standard Chartered has moved to buy a majority stake in Nedbank, South Africa's fourth largest bank, according to a source.

Old Mutual's life sales for the first three months of the year rose to £397 million, exactly in line with consensus forecasts, helped by a boost in wealth management. Excluding the impact of currency volatility, sales were up 21%.

Unit trust and mutual fund sales jumped 51%, or 39% on a constant currency basis.

The insurer said in March that it would sell its life insurance unit and list its American funds operation as part of a strategic overhaul, disappointing investors who had hoped for a more far-reaching shake-up of the sprawling conglomerate. Today it said it had appointed JP Morgan to advise on the sale, which is underway.

Old Mutual, which owns banking, insurance and asset management operations in over 30 countries, is under pressure to slim down amid shareholder concerns that its complex structure is holding back its share price.

Funds under management rose by 8% on the end of last year and 26% compared with the end of March 2009.