Old Mutual sells Italian wealth management business

"The sale is the final part of the divestment of Old Mutual Wealth's continental European businesses allowing it to focus on its core UK and cross border markets. Proceeds will be retained by Old Mutual for general corporate purposes," the insurance group said in a statement.

As at the end of 2015, Old Mutual Wealth Italy had EUR7bn of funds under management and contributed EUR22m to the group's aftertax earnings.

The buyer is Cinven's subsidiary, Ergo Italia, and the transaction is subject to usual regulatory approvals and customary conditions. It is expected to be completed within six months.

Old Mutual CEO, Bruce Hemphill, said in July that the group intended to split itself into four parts: Old Mutual Emerging Markets, Nedbank, OM Asset Management and Old Mutual Wealth.