Old Mutual PLC said it has closed its US Life offshore business no new customers with immediate effect.
In a statement, the Anglo-South African insurer said management concluded that it is unlikely Old Mutual Bermuda will be able to launch products that meet its risk requirements successfully and provide a satisfactory return on capital.
OMB remains firmly committed to all existing policy obligations. The business remains well capitalised with a significant amount of excess capital over and above its regulatory requirement, it said.
Old Mutual group chief executive Julian Roberts commented: “We have improved controls across the group and each business has been allocated clear risk appetites within which it must trade. The action in connection with OMB will provide greater certainty in respect of the business's future liabilities and will therefore strengthen the group as a whole.”