Old Mutual Wealth profits jump 26% thanks to pension reforms

Old Mutual Wealth has reported a 26% jump in profits and 92% higher net client cash flows in the first half of the year, largely driven by investors taking advantage of the group's drawdown facility following the pension reforms.

In its half yearly results the group reported a 26% increase in profits to £151m, thanks to "strong growth" in its Old Mutual Global Investors business, where profits soared 88% from £16m in the first half of last year to £30m for the same period in 2015. Meanwhile, platform sales have also been strong with Intrinsic, the firm acquired by Old Mutual Wealth in February 2014, boosting flows into OMGI's fund range by £1.2bn. However, the patform's costs also increased by £90m to pay for a revamp to its technology, and it said the upgrade would costs £50m more than the expected £160m in t...