Shares in Old Mutual were up on the FTSE 100 in afternoon trading after the financial services company reported a rise in pre-tax profit in the full year ended 31 December 2010.

Adjusted operating pre-tax profit increased from £1.3 billion to £1.5 billion. The value of funds under management also rose from £275.4 billion to £309.3 billion.

Profits grew in each of the group's business units while overall Old Mutual managed to deliver £59 million in cost savings. The company's goal is to make savings worth £100 million by 2012.

The group said that it would be more than doubling its total dividend for the year, raising it from 1.5 pence per share to 4.0 pence per share.

Julian Roberts, Chief Executive of Old Mutual, commented, "This has been a substantially improved performance by Old Mutual in 2010, with operating profits significantly higher than last year. All our businesses have delivered increased underlying earnings and profits from our key Long-Term Savings division were up 26%.

"We have an attractive mix of businesses, with a strong franchise in high growth emerging markets and innovative business models in both developed and highly cash generative markets.

"We have made some significant operational progress and we expect 2011 to be a year of further delivery. We are committed to our three year strategy and meeting our stated operation targets."

By16:10 shares in Old Mutual were up 3.23 per cent on the FTSE 100 to 137.60 pence per share.