Old Mutual to combine European divisions

Old Mutual, the FTSE 100 savings and investment group, is to combine much of its European savings business due to economic and regulatory changes.

The firm will combines its Wealth Management Continental Europe business, which serves France and Italy, with the Skandia Retail Europe business unit covering Germany, Austria, Poland and Switzerland.

Old Mutual said it had taken the decision following a strategic review of its businesses due to macro-economic and regulatory developments in the European long-term savings and investment markets and changes in customer preferences.

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"We concluded that the affluent long-term savings and investment market in Europe is attractive for Old Mutual," said Paul Hanratty, Chief Executive of Old Mutual's Long-Term Savings business.

"As a result, we have decided to combine the Wealth Management Continental Europe business and the Skandia Retail Europe business to create Wealth Management Europe."

Hein Donders has been appointed CEO of the new business unit, which will sit within Old Mutual Wealth Management, with immediate effect, the firm said.

Jonas Jonsson, currently CEO of Retail Europe, will work with Hein for several months to establish the new business unit, before assuming a new role within Old Mutual.