Page last updated at 09:13 GMT, Wednesday, 10 September 2008 10:13 UK

Old Mutual writes off $135m in US

Dollar bills
Old Mutual replaced its US boss after the write down

UK-listed South African insurer Old Mutual has written down $135m (£76m) of Fannie Mae and Freddie Mac preferred stock held by its US life business.

But it said it had no plans to sell the troubled US division.

However, it said chief executive Jim Sutcliffe was resigning with immediate effect, to be replaced by Julian Roberts, ex-head of its Skandia unit.

Roberts said Old Mutual would "tackle very hard" the "isolated issue" in the US and "make sure it is behind us".

Old Mutual also announced a strengthening of its reserves by $155m in the US life business.

And it said it would be putting aside a further $250m of capital to support the ongoing capital needs of its Bermuda business.

Shares in Old Mutual were down 3.27% at 0915 BST to 97.60 pence.

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