Old Mutual dips on loss

  Life insurer Old Mutual fell 2.9% after slumping to a full-year loss and announcing further details of a strategic shake-up. The company reported a net loss of & pound;340m ( & #36;508 million), compared with a profit of & pound;441m. The insurer, which didn & rsquo;t pay a dividend for 2008, recommended a payout of 1.5 pence a share, giving investors the option of taking stock instead of cash. & ldquo;We benefited from improved market conditions in the second half, which resulted in greater demand for equity-based products from our clients, & rdquo; Chief Executive Officer Julian Roberts said in the statement. He added that the company is exploring the disposal of its US Life business and is planning a partial initial public offering of its US asset management business. & rdquo; Old Mutual, with operations in South Africa, the U.K and the U.S., was forced to write down investments after global equity markets fell in 2008. The insurer has closed some lines of business and changed reporting methods since Roberts, 52, became CEO in September 2008. The company swung to a loss as gross premiums fell and claims increased. Financing and administrative costs also rose.  

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