Insurer and wealth management Old Mutual (OML) announces plans to float its Old Mutual Wealth (OMW) arm on the London Stock Exchange. Shares are up 4.6% to 186.2p.

We reported on the company's break-up ambitions in March. The company expects to complete the spin off by the end of 2018.

The firm aims to deliver two separate entities that will be listed on both the London and Johannesburg stock exchanges 'into the hands of Old Mutual's shareholders.'

One will consist of the group's wealth operations, as discussed, while the other will focus on emerging markets operations by creating a new South African holding company.

Old Mutual intends to redesign the head office, transition underlying businesses and start winding down the London head office, with job cuts of 15% as part of a strategic review.

Brexit volatility could have some impact on underlying businesses and the company says it expects 2016 in general to be challenging if the rand remains weak for an extended period and if lower equity markets persist. However, it reassures that trading is ‘broadly’ in line with expectations for now.

Issue Date: 28 Jun 2016