Trading Statement

Old Mutual PLC
14 May 2004



                                 Old Mutual plc

                        Update on First Quarter Trading


Old Mutual's trading in the first quarter of 2004 was in line with management
expectations, with profitability at an improved run-rate from the full year
2003.  The continued comparative strength of the Rand over the quarter boosted
the Sterling value of our South African results, offsetting the negative effect
of dollar weakness on the results from our US businesses.



Life assurance sales in the USA at an Annual Premium Equivalent (APE) were $103
million (2003 - $99 million), but the promising start to the year in South
Africa was not sustained with total APE at R655 million (2003 - R803 million).
In South Africa, individual recurring premium sales were up by 7% for the
quarter, although total single premium sales fell by 29%.



Net cash flow was healthy around the world, with $2.3 billion in the USA, R1.1
billion at Old Mutual South Africa and £110 million in the UK.



Nedcor has completed its rights issue and its three-year recovery programme is
on track, but with a long way to go.  It has announced headcount reductions of
1,742, and has also continued the process of de-risking its balance sheet
through the repatriation of dollar assets.  The migration of BoE's business
banking clients on to Nedcor's platforms has now been completed, with minimal
loss of clients.



The underwriting results of Mutual & Federal Insurance Company Limited ('Mutual
& Federal') remained at the cyclical highs seen last year thanks to low levels
of claims.  Our overall stake in Mutual & Federal is now 88.1% following our
purchase of Royal & Sun Alliance's 37% stake.



Embedded value per share, at approximately 109p per share at 13 May 2004, has
improved from 107p at the beginning of the year.



The Group has renewed its bank facilities by negotiating a £1.1 billion
syndicated revolving credit facility, strongly supported by our core
relationship banks.



Outlook



We expect to progress steadily over the coming months, although our results will
be affected, as usual, by currency and market levels.  Nedcor will progress its
recovery plan and drive it into all parts of the business.  We are also taking
action to bolster our South African life sales position.  In the USA we
anticipate continued growth in assets under management at both of our
businesses, subject to market conditions remaining favourable.  In the UK our
start-up businesses are continuing to develop according to plan.





ENQUIRIES:


Old Mutual plc
James Poole (UK)                                     Tel: [phone]
Miranda Bellord                                      Tel: [phone]


Nad Pillay    (SA)                                   Tel: [phone]


College Hill (UK)                                    Tel: [phone]
Tony Friend



Julian Roberts, Group Finance Director, will host a conference call for analysts
and investors at 8.30 a.m. London time (9.30 a.m. South African time) this
morning.  The call will include a brief introduction followed by an opportunity
for questions.



Analysts who wish to participate in the conference call should dial the
following toll free numbers:


UK                         0800 953 1444
SA                         0800 994090



International participants from outside the above regions should dial the
following number (not toll free):    [phone]




14 May 2004



Further details on operating businesses



South Africa - Life Assurance and Asset Management



Funds under management at 31 March 2004 totalled R302 billion, an increase of 4%
over the position at 31 December 2003.



Aggregate net client cash flows across our life and asset management businesses
in South Africa were positive for the period at R1.1 billion (2003 - R0.5
billion), although the life business experienced negative net policyholder cash
flows.



Individual and Group business annual premium equivalent (APE) for the first
three months of the year were 5% higher and 76% lower, respectively, than in the
equivalent period in 2003. While individual recurring premium sales were 7%
higher than those achieved in the equivalent period last year, sales of
individual single premium products remained at the same depressed levels as for
the same period last year.  The new Financial Advisory and Intermediary Services
(FAIS) licensing accreditation system adversely impacted sales force
productivity and contributed towards the relatively weak sales performance in
the first quarter of 2004.  Group single premiums were 67% lower than in the
equivalent period last year, although this type of business is lumpy by nature.



The value of new business for the first three months of the year of R87 million,
at a margin of 13.3%, was 71% of that achieved in the equivalent period in 2003.
The reductions in value and margin were due to the impact of lower single
premium sales, particularly in Group business.



South Africa - Banking



Nedcor issued a trading update statement on 13 May 2004, which can be accessed
on Old Mutual's website, www.oldmutual.com.



Nedcor's trading performance for the first quarter has been in line with
management's expectations with total income at R3.4 billion, marginally up on
the same period in 2003.  Net interest income increased 11.7% to R1.8 billion,
offsetting the decline in non-interest revenue of 8.7% to R1.6 billion.  The
decline in non-interest revenue has been impacted by lower exchange and dealing
income, reflecting prevailing market conditions.  Interest margin has improved
slightly due mainly to the downward re-pricing of a large portion of the group's
long-term liabilities.



There has been no major impact of foreign currency translation gains or losses
for Nedcor in the first quarter. As Nedcor holds excess levels of capital in its
offshore operations, R630 million of foreign capital was repatriated in April
2004 from the redemption of the preference shares of one of its international
subsidiaries. This has reduced the foreign exchange volatility risk for Nedcor.



Advances have remained flat since December 2003 as Nedcor continues to refocus
its asset book.



The strategic recovery plan implemented in 2004 to restore the business to a
sustainable growth path has now been properly scoped.  The plan includes a
project to reduce expenses aggressively.  As part of this exercise, Nedcor
embarked on a retrenchment programme.  During the first quarter headcount
reduced by 399.  Since the end of March, voluntary retrenchment procedures have
been concluded with a further 1,343 staff who will be leaving Nedcor over the
next eight months.  One-off costs, relating mainly to the payment of
retrenchment benefits, are expected to neutralise the benefits of the cost
reduction programme in the short term.



Following the take-up of rights, the receipt of a scrip dividend and further
acquisitions of 2.9 million shares in the market (at a total cost of R174.6
million), the Group's overall beneficial direct and indirect interest in Nedcor
is now 52.7%.  Out of this total number, 2.0% is held by Group companies
including Mutual & Federal and by other Old Mutual life assurance companies for
the benefit of Old Mutual policyholders.



South Africa - General Insurance



Mutual & Federal achieved growth in gross premium income of 18% for the first
three months of 2004.  Premium growth was achieved in all classes of business.
With claims costs continuing to be lower than expected, a strong underwriting
result has been achieved.



USA - Life Assurance



On a funds flow basis, our US life business attracted $0.7 billion in net
policyholder cash inflow for the first quarter of 2004.  Funds under management
at 31 March 2004 totalled $14.9 billion, up from $13.3 billion at 31 December
2003.



Total sales of $103 million on an APE basis were achieved, an increase of 5%
from the equivalent period in 2003.  The value of new business for the first
three months of 2004 of $16 million, at a margin of 15.8%, has increased by 143%
compared to the equivalent period in 2003.



Product focus continued to favour equity-indexed and immediate annuity sales,
and term-life sales, where our US life business maintained its top-ten position
in the market.



International sales of US-style products including variable annuities through
OMNIA (Bermuda) continued to grow strongly.



USA - Asset Management



Funds at our US asset management business increased 3.9% during the quarter,
from $154.1 billion on 31 December 2003 to $160.0 billion at 31 March 2004.
Net inflows of client funds contributed $2.3 billion, or 1.5% of the increase
over funds under management at the beginning of the period.  Investment
performance at member firms accounted for the remaining 2.4% increase for the
quarter, in line with major benchmark indices.



The outstanding legal and regulatory issues at Pilgrim Baxter & Associates
remain unresolved.



We remain committed to a retail distribution strategy, and expect to announce
details of this in the second half of the year.



The strategy of broadening product and distribution offerings continued with the
launch of our first closed-end fund in April. This fund was a joint venture
between Thompson, Siegel & Walmsley (TSW) and Claymore Advisors, and raised $175
million in managed assets for TSW. We anticipate that further launches will
occur during the year and that these will continue the growth and innovation of
our US asset management businesses.



UK



In the UK, both Selestia and Old Mutual Asset Managers (UK) (OMAM(UK)) saw
positive external fund inflows (£98 million and £25 million respectively) during
the first quarter.  OMAM(UK)'s sales remained strong and Selestia's sales were
up 200% on the equivalent period in 2003, at £105 million.





Forward-looking statements



This announcement contains certain forward-looking statements with respect to
the financial condition and results of operations of Old Mutual plc and its
group companies, which by their nature involve risk and uncertainty because they
relate to events and depend on circumstances that may occur in the future.
Factors that could cause actual results to differ materially from those in the
forward-looking statements include, but are not limited to, global, national and
regional economic conditions, levels of securities markets, interest rates,
credit or other risks of lending and investment activities, and competitive and
regulatory factors.



Interim results



Old Mutual plc expects to announce its interim results for the six months ending
30 June 2004 on 5 August 2004.










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