Mutual & Federal Insurance Final Results

Old Mutual PLC
16 February 2000
                                
                                
                                
                          OLD MUTUAL PLC
                                 
              Mutual & Federal Insurance Company Ltd
                                 
       Preliminary Results for the year to 31 December 1999


Old Mutual plc is an international financial services group, based
in  London, with a substantial life assurance business in southern
Africa  and  an  integrated  portfolio  of  activities  in   asset
management  (including  unit  trusts,  portfolio  management   and
stockbroking services), banking and general insurance.

Mutual  &  Federal Insurance Company Limited ('Mutual & Federal'),
the South African general insurance group, in which Old Mutual plc
('Old  Mutual')  has an interest of 51% (Royal Sun  Alliance  plc:
25%),  has  today  issued financial results for  the  year  to  31
December 1999.  The full text of the Mutual & Federal announcement
of  preliminary  results, which have been drawn up  in  accordance
with South African GAAP, is attached.

Commenting  on  Mutual & Federal's results, Mike Levett,  Chairman
and  CEO  of  Old Mutual and Deputy Chairman of Mutual &  Federal,
said:

'The  general  insurance market was difficult in 1999  but  rating
levels  were  increased  resulting  in  an  improved  underwriting
position by the end of the year compared to the first half. Strong
investment  performance  during the  year  contributed  to  a  14%
increase  in net asset value per share. Mutual & Federal  is  well
positioned  to  continue to reap benefits from the  recent  rating
increases during 2000.'
                                                  16 February 2000

ENQUIRIES:

Old Mutual London                          Tel: + 44 20 7569 0100
James Poole, Director Investor Relations

College Hill London                        Tel: + 44 20 7457 2020
Tony Friend
Nicholas Williams

Old Mutual Cape Town                       Tel: + 27 21 509 2732
Bruce Allen, Manager, Group Media Communications

College Hill Johannesburg                  Tel: + 27 11 447 3030
Graham Fiford
                                 
            Mutual & Federal Insurance Company Limited
  Financial results for the twelve months ended 31 December 1999
                                 
                                         12 months                 18
                                                                 months
                                           ended                 ended
INCOME STATEMENT              31/12/99   31/12/98     Change    31/12/98
                                R'm         R'm         %         R'm
                             (Audited)  (Unaudited)             (Audited)
                                                                
                                                                
Gross premiums                2,786      2,728        2.1%      4,024
Net premiums                  2,482      2,367        4.9%      3,490
Underwriting (loss) /         (53)       61                     148
surplus
Investment income             301        270          11.5%     400
Income before taxation        248        331                    548
Taxation                      49         56                     107
                              199        275                    441
Minority shareholders/share   3          4                      1
of associates
Net income/headline earnings  202        279          -27.6%    442
                                                                
BALANCE SHEET                  As at                             As at
                              31/12/99                          31/12/98
                                R'm                               R'm
                              (Audited)                         (Audited)
                                                               
                                                                
Non-current assets            3,726                             4,311
Fixed assets                     38                                40
Investments at market value                                     
Ordinary shares               3,103                             3,570
Government stock                129                               117
Other                           456                               584
Current assets                1,670                               681
Debtors                         261                               297
Bank balances                 1,317                               240
Other                           92                                144
                                                                  
Total assets                    5,396                             4,992
                                                                  
Share capital                     100                                97
Non-distributable reserve       3,229                             1,781
Contingency reserve               196                               234
Distributable reserve             490                             1,403
Total shareholders' interest    4,015                             3,515
Interest of outside                 4                                 4
shareholders in subsidiaries
Deferred taxation               (2)                               0
                              4,017                             3,519
                                                                
Current liabilities and       1,379                             1,473
provisions
  Claims outstanding            850                               846
  Provision for unearned        342                               360
premiums
  Other                         187                               267
                                                                
Total liabilities             5,396                             4,992
                                 
            Mutual & Federal Insurance Company Limited
          Financial results for the twelve months ended 31
                          December 1999

                                                                   
                                                               
Headline earnings per  share      84          116         -27.6%    184
(cents)
Ordinary dividend per  share      58          54          7.4%      69
(cents)
Special  dividend per  share     600          13                    13
(cents)
Net  asset  value per  share    1,668                             1,462
(cents)
Number  of shares  in  issue                                   
(million)
  - at period end               240.7                             240.4
  - weighted average            240.6       240.3                 240.2



 STATEMENT OF CHANGES IN EQUITY (audited)


R'm               Share    Non-                   Contingency Distribu  Total
                           distributable                       table
                           reserve
                 Capital   Unrealised    Realised  reserve    reserve      
                          
                                                                  
Balance at 31        97       700        1,081     234        1,403     3,515
December 1998
                                                                  
Current year                 1,264                                      1,264
revaluation
                                                                  
Attributable to                                                   
current year                 (600)      1384                             784
disposals
                                                                  
Net gains and                                                     
losses not
recognised in the                                                 
income
statement            97      1,364     2,465       234        1,403     5,563
                                                                  
Net profit for the                                              202       202
year
                                                                  
Transfer to                                                       
Contingency reserve                                (38)          38        
                                                                  
Dividends                                                    (1,584)   (1,584)
                                                                  
Issue of share      3                                                       3
capital
                                                                  
Transfer from non-                                                
distributable                           (600)                  600       
reserve
                                                                  
Secondary tax on                                              (169)     (169)
companies
                                                                  
Balance at 31       100     1,364       1,865      196        490       4,015
December 1999
            Mutual & Federal Insurance Company Limited
          Financial results for the twelve months ended 31
     December 1999
          
COMMENTS

The competitive conditions within the insurance industry persisted
during  1999  and  placed  pressure on  the  underwriting  margins
resulting  in  an  underwriting deficit of  R53  million.   It  is
pleasing   to  report  that,  largely  due  to  rating   increases
implemented  during  the  year, this was  an  improvement  on  the
deficit of R61 million reported at 30 June 1999.

The   frequency   of  motor  vehicle  accident  claims   increased
significantly in the light of poor driving standards and a lack of
traffic regulation enforcement.  Rating levels on the fire account
remained inadequate and a general decline in the standard of  fire
services has increased the likelihood of major losses.

The  standard  of claims administration remained high  and  strict
control  of  supplier costs ensured that increases in the  average
cost  of  claims  were  held below the inflation  rate.   Expenses
continued  to be strictly controlled and increased only marginally
over the previous year.

The  strong  capital position of the group enabled  the  Board  to
declare  a  special dividend of 600 cents per share  in  September
1999.  Despite this special payment, the Board has maintained  the
final  dividend  at  36  cents per share which  brings  the  total
ordinary  dividends for the year to 58 cents, which is an increase
of 7.4% over the corresponding period in 1998.

Following  the improvement in equities during the year, the  total
shareholders' interest grew to R4.0 billion.  The solvency  margin
(being  the  ratio  of  net  assets  to  net  premiums)  increased
accordingly and was in excess of 150% at 31 December 1999.

In view of the high incidence of motor and fire losses, the recent
rating increases within the industry are welcomed and it is  hoped
that these reflect a return to responsible underwriting standards.

YEAR 2000

The  group  did not experience any disruptions with the transition
into the year 2000.

DECLARATION OF DIVIDEND (NUMBER 60)

A  final  dividend of 36 cents per share has been declared payable
to  shareholders  registered in the books of the  company  at  the
close  of  business  on  3  March 2000.  The  transfer  books  and
register  of  members of the company will be closed from  4  March
2000  to  11 March 2000 both days inclusive, and dividend  cheques
will be posted to shareholders on or about 24 March 2000.

On behalf of the Board

K T M Saggers (Chairman)         B Campbell (Managing Director)

Registered  Office:       19th Floor, Mutual & Federal Centre,  75
President Street,
               Johannesburg 2001
Transfer Secretaries:   Mercantile Registrars Limited, 11 Diagonal
             Street, Johannesburg, 2001