Old Mutual acquires strategic distribution capability in Latin America
Old Mutual plc ("Old Mutual" or "the Group") today announces that its Emerging Markets business will strengthen its distribution capability through the acquisition of a majority stake in AIVA Business Platforms (AIVA).
The new business combination will enhance Old Mutual's presence in selected emerging markets particularly in Latin America and deepen AIVA's existing relationship with the Group. Following the completion of the transaction, AIVA will work with Old Mutual to expand distribution in the region. The transaction by Old Mutual Life Assurance Company South Africa is conditional on relevant regulatory approvals and is expected to complete in early 2013. Consideration is not being disclosed.
AIVA is a family-owned, high quality business platform and distribution business based in Uruguay and spanning the Latin American region. It employs 120 people and provides services to a network of IFAs, wealth managers and other institutions. It has assets under management of over $800 million.
Old Mutual and AIVA have had a long-standing relationship for over 15 years. AIVA currently works with the Group in a number of areas, including administration and servicing as well as in the investment space. AIVA, together with Old Mutual's Emerging Markets businesses, will take advantage of operational synergies in Colombia and Mexico in due course.
Paul Hanratty, CEO of Old Mutual's Long-Term Savings business said: "The deepening of the relationship between Old Mutual and AIVA provides a firm base from which we can capitalise on opportunities in these fast-developing investment markets in an efficient and low capital manner."
Carlos Parra, one of the founding partners of AIVA, said: "The combination of our distribution experience and Old Mutual's size and strength means that together we are well placed in Latin America to take advantage of attractive growth opportunities."