Old Mutual will break itself into four parts by 2018 in an effort to boost its valuation and cut costs.

Bruce Hemphill, who took over as CEO in November, announced the changes on Friday.

Under the plans,  the firm's asset management arm, emerging markets unit, UK wealth management division and South Africa-based Nedbank will be split. 

The Anglo-South African company said its current structure was too costly and inefficient.

Changes to the regulatory environment in Europe and South Africa had also made the business more complex to run.

The firm added that it will cut its current 54% stake in Nedbank to a minority position.

The South African National Treasury, South African Reserve Bank, and the Financial Services Board issued a joint statement praising the move, stating that it “will have positive benefits for the South African economy and capital markets.”

The announcement came as Old Mutual announced its 2015 results, reporting pre-tax profits of £1.7bn, an increase of 4% on last year that would have been an increase of 11% if currencies, especially the rand, had remained flat.