UK-listed insurer Old Mutual warned on Thursday it could miss a key 2008 target for funds under management and see a subsequent dent to profit if markets worsen in the coming months, Reuters reports.
Old Mutual had targeted 300 billion ($586 billion) of funds under management by the end of the year, but after hitting almost 279 billion in 2007, that slipped to 260.8 billion at the end of the first quarter.
“Clearly markets remain tough and we can’t predict where they will go later in the year,” Finance Director Jonathan Nicholls says. “But it’s a fair conclusion that achieving our target of 300 billion of funds under management by the end of 2008 will prove difficult.”
Old Mutual Chief Executive Jim Sutcliffe separately dismissed a newspaper report the group could move its headquarters away from London in response to tax issues, saying there was “no reason” to move.
He also said the group’s majority stake in general insurer Mutual & Federal remained for sale, after a deal with Royal Bafokeng Holdings fell through earlier this year.