Old Mutual sells German and Austrian wealth units for $303 million

LONDON, March 27 (Reuters) - Anglo-South African insurance group Old Mutual (Other OTC: ODMTY - news) has sold the Austrian and German businesses of its wealth management arm as it is reshaped to focus on core UK and offshore markets.

The businesses are being bought by an acquisition vehicle backed by private equity investor Cinven and reinsurer Hannover Re for 220 million euros ($303 million) in cash, Old Mutual said on Thursday.

"The transaction is part of Old Mutual Wealth's commitment to simplify its operations in Europe and focus on a select number of core growth markets," Old Mutual said.

At the end of last year Old Mutual's wealth operation was managing assets of about $130 billion, with the German and Austrian businesses accounting for $6.75 billion.

Both units were part of Skandia, the Swedish insurer bought by Old Mutual in 2006. ($1 = 0.7254 Euros) (Reporting by Chris Vellacott; Editing by David Goodman)