Old Mutual, the London- and South Africa-listed insurer, is to merge its Wealth Management Continental Europe business, which covers France and Italy, with the Skandia European retail franchise across Germany, Austria, Poland and Switzerland.

The merger of the units follows a strategic review in response to macroeconomic and regulatory developments in the European long-term savings and investment markets, along with changes in customer preferences, the firm said in a statement.

The newly-combined business, named Wealth Management Europe, will be headed by Hein Donders as chief executive. Jonas Jonsson, currently CEO of the European retail business, will work with Donders on establishing the newly-structured business before taking on a new strategic role within Old Mutual.

In other developments, earlier this month Old Mutual appointed Ralph Mupita as chief executive of its emerging markets business following Kuseni Dlamini's departure in pursuit of other business interests.

Mupita, who was chief executive of emerging markets life and savings, assumes his new role on 1 February.