June 20 (Bloomberg) -- Old Mutual Plc, the U.K.'s third- biggest insurer, plans to cut as many as 800 jobs following this year's acquisition of Skandia AB. The unit's growth potential is ``significantly better'' than expected, Old Mutual said.

The job cuts will occur across Skandia's operations, said Old Mutual Chief Executive Officer Jim Sutcliffe today in an interview. About 600 cuts will come in the U.K., as many as 100 in Sweden and the rest from around the world.

Today's statement follows Old Mutual's 100-day review of Stockholm-based Skandia, which it acquired in February for 56 billion kronor ($7.68 billion). The deal was designed to drive Old Mutual's expansion beyond South Africa and the U.S. Skandia generates about half its revenue in Britain.

Old Mutual shares fell 0.1 percent to 162 pence at 8:20 a.m. in London. The shares are down almost 2 percent this year, making Old Mutual the second-worst performer among eight members of the FTSE All-Share Life Insurance Index.

Sutcliffe expects ``very fast'' growth for Skandia in the U.K. and Europe, he said. Skandia's funds under management are forecast to increase by 15 percent a year, doubling in five years, London-based Old Mutual said in a statement. Skandia's contribution will triple by 2008, Old Mutual said.

Old Mutual plans to cut 70 million pounds ($129 million) of costs from the company and forecast expenses of 80 million pounds from the restructuring.

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