U.S. insurer Travelers drops case against Old Mutual
In a statement, Old Mutual said Travelers had on March 13 lodged a claim in the U.S. District Court for the Southern District of New York "in relation to pre-existing head office legacy items relating to previously disposed of U.S. assets".
"Old Mutual continues to believe that this claim was without merit," it said, without revealing any of the case's details.
The company, which is undergoing a major restructure, said Travelers withdrew its claim on March 15.
It added that Old Mutual Limited, which will become the new holding company of Old Mutual, had agreed to provide an intragroup guarantee to Old Mutual "in the circumstances where Old Mutual is unable to satisfy the highly remote obligations in respect of the legacy items which were the subject of the claim".
Old Mutual is a holding company for several financial services companies. In March 2016, it announced a managed separation of its underlying businesses into independently-listed, standalone entities.
OM Asset Management has been rebranded as BrightSphere Investment Group, a U.S. based institutional asset manager.
The remaining underlying businesses are: Africa-focused Old Mutual Emerging Markets, Africa bank Nedbank and the UK wealth management arm now known as Quilter. ■