antique Mutual’s CEO Roberts Steps Down, Hemphill Appointed

old Mutual %’s Julian Roberts is stepping down as chief govt officer of Africa’s largest insurer and will be replaced by means of general financial institution group Ltd.’s Bruce Hemphill.

Roberts, 57, is resigning after nearly seven years main the London-based organisation, and could live on until the fourth zone, vintage Mutual stated in a statement Wednesday.

due to the fact that becoming CEO in 2008 all through the worldwide monetary crisis, Roberts has offered property, overseen an initial public offering for the insurer’s U.S. asset management business and paid down debt. antique Mutual, shaped in South Africa more than one hundred fifty years ago, has made acquisitions inside the relaxation of the continent because it focuses on emerging markets to enhance income.

“This seems a appropriate appointment for this degree of the vintage Mutual story,” London-primarily based Sanford C. Bernstein Ltd. analyst Edward Houghton stated in a observe. “Hemphill will bring large revel in of the very markets which might be increasingly more central to the vintage Mutual institution, namely South Africa and sub- Saharan Africa. We expect a clean succession, with the modern-day CEO leaving on top phrases.”

Hemphill, fifty one, head of wealth, insurance and non-financial institution monetary offerings at Johannesburg-primarily based popular financial institution, may be an govt director of vintage Mutual and primarily based in London until he's taking over, it said. Hemphill changed into head of widespread bank’s insurance unit Liberty Holdings Ltd. till joining the figure remaining 12 months.

‘first rate desire’

“Bruce Hemphill is an super choice to be triumphant Julian Roberts and vintage Mutual has also followed a totally orderly succession plan,” stated Adrian Cloete, a cash manager at PSG Wealth in Cape town which has investments in old Mutual. “Roberts has performed everything and greater that shareholders ought to have anticipated from him.”

Roberts turned into appointed CEO to replace Jim Sutcliffe, who resigned because the company was writing off losses associated with the economic crisis. After Hemphill assumes the CEO position, Roberts will take a damage and don't forget what he wants to do subsequent, in step with an antique Mutual spokesman.

The insurer converted from being a mutual company owned with the aid of its policyholders into one owned by means of shareholders and indexed in London and Johannesburg in 1999. among then and Sutcliffe’s departure, the percentage declined 44 percent. for the reason that Roberts became CEO the stock has multiplied in value by means of extra than 2 half of times.

during his tenure, Roberts offered the majority of the enterprise’s Skandia gadgets in Europe, which Sutcliffe had fought to accumulate. He oversaw the sale of the U.S. existence business to Harbinger Capital companions for $350 million.

new york IPO

antique Mutual Asset management % finished its IPO in the big apple in October, raising $483 million. The insurer closing year also sold Intrinsic financial offerings Ltd. and U.okay.-based totally Quilter Cheviot Ltd.

“Julian has achieved an excellent activity steerage vintage Mutual through the global economic crisis and getting the marketplace to once again cost the coverage business at a slight top rate to its embedded value,” Liam Hechter, an analyst at Anchor Capital in Johannesburg, said in an e-mailed response to questions.

old Mutual rose zero.5 percent to 236.6 pence as of two:18 p.m. in London, as compared with the 0.2 percentage drop within the 8- member FTSE 350 life insurance Index.

Hemphill changed into CEO of Liberty from 2008 to March 2014. for the duration of that point, stocks in the insurer, which now operates in 14 African nations, climbed ninety six percent in Johannesburg.

profits report

net profits for the duration of Hemphill’s tenure rose to 3.ninety one billion rand ($324 million) by the stop of 2013 from 1.1 billion rand in 2008. In 2014, profit became little changed after margins on new commercial enterprise fell and cash manager Stanlib experienced fund withdrawals.

The trade in CEO is sudden, partially because Roberts had set in motion a 2013-2016 strategic plan and had recruited Ingrid Johnson from banking unit Nedbank group Ltd. as CFO only ultimate yr, stated Craig Pheiffer, head of personal consumer asset control and wealth and investment management at Barclays Africa institution Ltd.

“It’s simply a wonder and pretty disconcerting seeing as the present day strategic plan followed in 2013 continues to be being rolled out and additionally because the CFO left so recently,” stated Pheiffer. “I don’t think it became time for Roberts to head.”

the brand new CEO might also have his personal goals and targets for antique Mutual, Pheiffer stated. “Hemphill has all the proper credentials and need to be well received and maybe a brand new vision from him might be the catalyst for a in addition re-score in time -– let’s wait and see what this is.”