Making a difference: serving our customers

The Internal Ombudsman

In a groundbreaking move to improve our service to customers, in 2001 the Old Mutual Internal Ombudsman was appointed to speed up the resolution of customer complaints. In 2003 58.2% of complaints were settled in favour of the customer, and last year the figures were as follows: 2 799 cases were referred to the Internal Ombudsman's office; 301 cases were adjudicated and 37% found to be wholly or partly in favour of the customer ­ this compares favourably with the 39% recorded by the industry Ombudsman.

Customers retain the option of referring their complaints to the industry Ombudsman, ensuring added protection and enhanced dispute resolution.

The Unclaimed Shares Trust

When Old Mutual demutualised, policyholders who qualified for an allocation of free shares in the new listed company were required to first confirm their particulars with Old Mutual before they could claim them. Those shares that remained unclaimed at the time of the stock exchange listing were placed in the Unclaimed Shares Trust and a Board of Trustees was appointed to manage the Trust.

On 1 January 2004 there were 276 000 shareholders who had not yet claimed their free shares.

In terms of the Demutualisation Scheme and Trust Deed qualifying members had five years from the date of listing to claim their free shares. This period expired in August 2004. Under the terms of the Scheme, the shares remaining in the initial Unclaimed Shares Trust at that date were to be sold and the proceeds, together with accumulated dividends and interests, paid to Old Mutual plc.

In order to give unconfirmed holders a further opportunity to claim their free shares, Old Mutual plc submitted a proposal at its Annual General Meeting (AGM) in May 2004 to extend the period to claim for a further two years. In addition, it was proposed that a new Unclaimed Shares Trust be set up to hold the shares during this period. The proposal was accepted. Consequently, members who confirm their details up to August 2006 will be allocated their free shares. They will however not qualify for dividends that have accrued prior to August 2004 and for dividends accruing thereafter until confirmation. The accumulated dividends and interest in the old Trust were paid to Old Mutual plc, while future dividend receipts to the extent required will be used to defray the cost of contacting and confirming holders who have to date failed to claim their free shares. The remaining dividends will be waived.

An amount equal to the amount paid to Old Mutual when the old Trust was wound up (R190 million) will be donated to good causes.

Efforts to trace the holders of unclaimed shares were intensified during 2004. The response to those efforts were very positive, resulting in the confirmation of over 71 000 unconfirmed holders, holding 26 million shares. The various initiatives created an enormous response from the general public, resulting in a large number of telephone enquiries, peaking at 58 000 calls received in July 2004. An amount of R69 million, representing accumulated dividends and interest earned on the shares claimed before the August cutoff date, was also paid out.

Intense efforts to trace unconfirmed members will continue for the next two years.