The move is part of its plans to concentrate the Old Mutual International business on only two core markets in North and Southeast Asia.
AAM Advisory is the largest expatriate advisory firm in Singapore with over 30 advisers and around $433m under management.
Old Mutual International will now focus solely on “core growth” markets of Singapore and Hong Kong within the region covering North and South East Asia.
From 1 April this year it will stop accepting new business from advisers based in surrounding jurisdictions including Malaysia, Thailand and the Philippines.
Michelle Andrews, marketing director of Old Mutual Wealth, said the international life company arm had been “putting down roots in a number of core markets” and the purchase of AAM Advisory would help to “cement” Old Mutual Wealth’s presence in Singapore.
She said AAM Advisory had been looking for a buyer and Old Mutual Wealth was keen to have a good sized financial advisory business in Asia in line with its strategy of operating on a multi-channel basis with companies such as Intrinsic in the UK.
“We’ve learned how to make it work in a multi-channel world and it was easier to buy rather than grow organically”.
The price paid for the acquisition, which is expected to complete in the next couple of months after the agreement was signed today, has not been disclosed.
Matthew Dabbs, chief executive at AAM Advisory, said: “We were looking for a partner to help us grow and we are pleased Old Mutual Wealth is acquiring the business. We recognise the value which Old Mutual’s financial strength can provide as well as its 170 years’ experience in supporting advice and distribution.”
Steve Hickman, head of region and chief executive in Singapore & SE Asia, Old Mutual International, said the acquisition would create stronger ties with the Singapore financial advisory market.
“We are more committed than ever to the advice sector. The business is experienced in managing multi-channel advice without conflict. Old Mutual International will remain focused on the wider financial adviser market in the region”, he said.
Andrews added that the decision to focus on its core markets in Asia was to “simplify the business model” and concentrate resources in markets where it had an office presence and the right infrastructure and regulations in place.
Standard Life, Generali, Zurich, Legal & General and Friends Provident International are among the international life offices to have adopted strategies aimed at core markets over the last year.