Old Mutual says Brexit 'may' impact underlying businesses

Old Mutual's underlying businesses may be affected by the UK's vote to leave the European Union, the company said on Tuesday.

The financial services company added that expected headwinds of weaker and more volatile foreign exchange and equity markets have materialised.

“However, the average value of the rand year-to-date 2016 has decreased by 22% as compared to the first half of 2015. We continue to keep operational management focused on maximising returns,” said chief executive Bruce Hemphill.

"We have started executing the managed separation and I am pleased with the progress that we have made since the announcement three months ago,” he said. Old Mutual plans to split into four separate businesses.

Gross sales in the year to date had been strong but it had seen continued weakness of the rand, the currency in which we it generates most of its profits, and volatility in other African currencies and lower average equity markets.

The company also said it would be putting a revised board remuneration policy to shareholders at its annual meeting on Tuesday.