The new chief executive of Old Mutual, the Anglo-South African insurer, will decide in the coming months whether to pursue a break-up of the £6 billion company as he appoints a new finance director.

Julian Roberts has also attempted to rid Old Mutual of the troubles gripping its American operations, which cost the job of Jim Sutcliffe, his predecessor. The insurer's US arm has been hit by hefty impairment charges against botched hedges on guaranteed annuity products sold from Bermuda.

Mr Roberts, the first non-South African chief executive, said that Old Mutual was facing an impairment charge of $531 million (£335 million) against the hedge. These had failed to protect the insurer from huge falls in the Asian markets. He refused to rule out additional charges but expressed confidence that the offer to policyholders, started on Wednesday, would be a success.

Old Mutual is offering to top up customers' funds to 85 per cent of their original balance in exchange for them surrendering the guarantees. “In this turbulence, where people don't trust anybody, they want cash,” he said.

Mr Roberts used to run Skandia, the insurance and investments business bought by Old Mutual after a hostile bid two years ago. He took the top job after Mr Sutcliffe's departure in September.

Yesterday he hired Philip Broadley, the respected former Prudential executive, as finance director.

Mr Roberts also insisted that Old Mutual could complete the sale of Mutual & Federal, its South African general insurer, by the end of the year. The company has already compiled a shortlist of bidders. Mr Roberts said yesterday that he was aware of the pressure to free up more value in Old Mutual and had been lobbied by some of the group's shareholders to sell off assets.

Shares are trading at a discount of about 50percent to analysts' estimates of its break-up value. Last night its market value stood at £2.9 billion.

“I've heard what people have been saying: we trade at a significant discount to the sum of the parts. It's my job to reduce that,” he said.

Old Mutual will update investors at its full-year results in March.

Keefe, Bruyette & Woods analysts said that Old Mutual should sell the US arm. “Management appears willing to consider a break-up of the group to release the current large discount to fair value, but only in the medium term,” they said.

The shares closed at 55, up 1p.

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