Trading Statement

Old Mutual PLC
17 November 2004





                                 Old Mutual plc
                                        
                                        
            Trading update for the nine months to 30 September 2004
                                        
                                        
                                        
                Positive operating performance across Old Mutual
                                        

• Funds under management £133.6 billion, R1,562 billion at 30 September
2004 (£125.3 billion, R1,495 billion at 31 December 2003)


• Total APE* life sales for the nine months to 30 September 2004 of £397
million, R4,733 million (30 September 2003: £376 million, R4,743 million)


• Positive trends in South African unit trust sales (up 27% compared to
2003) and Individual Life sales (up 17% in the third quarter compared to the
average of the first half of 2004)


• Nedcor expectations for headline earnings and recovery programme both
on track


• Continued impressive underwriting performance at Mutual & Federal


• Life sales in the USA strong, with APE up 31% to $366 million for the
nine months to 30 September 2004


• US asset management net cash flow increased 70% to $8.5 billion for the
nine months to 30 September 2004 and retail initiative launched


• New highs for Selestia, with gross sales of £309 million for the nine
months to 30 September 2004, compared to £144 million for the nine months to 30
September 2003


*Annual Premium Equivalent


Commenting on trading, Jim Sutcliffe, Chief Executive, said:


'Positive performances across each of our businesses have contributed to Old
Mutual's improved results so far in 2004. The momentum seen in the first half
has been sustained as we have made progress with our declared strategy. Nedcor's
recovery is expected to be steady and our US businesses are well positioned to
continue to grow. We expect to maintain this positive momentum into 2005.'




Life and asset management business - South Africa


Client funds under management at 30 September 2004 totalled R297 billion, an
increase of 10% over the comparative position in 2003 (R270 billion). Strong
equity markets were the primary reason for this increase, supplemented by a
small net positive cashflow from clients.


In South Africa, overall sales improved in the third quarter, with strong sales
of unit trusts (which were 27% ahead of the equivalent period in 2003), an
improving trend in Individual Life business (up 17% compared to the average of
the first half of 2004), but lower levels of Group business (down 48% on the
equivalent period in 2003).


Lump sum unit trust sales for the nine months of R4,570 million, (R3,605 million
for the nine months to 30 September 2003) benefited from good investment
performance on top of general market buoyancy.


There was a welcome improvement in Individual Life recurring premium sales in
the third quarter of 2004, 23% higher than the average for the first half of
2004. Individual Life recurring premium sales for the nine months to 30
September 2004 at R1,371 million remained 2% lower than the equivalent period in
the prior year. Individual Life single premium sales at R4,619 million for the
nine months ended 30 September 2004 continued at a similar level to the first
half of the year, but were 10% higher in the nine months compared to the
equivalent period in 2003.


The low level of Group business sales seen in the first half of the year
continued, with no improvement in the third quarter. Group single premiums of
R1,496 million (2003: R3,737 million) for the nine months to 30 September 2004
were 60% lower than in the equivalent period last year.


The value of new life business was R458 million on total life APE sales of
R2,115 million for the nine months to 30 September 2004, 5% behind the
equivalent period in the prior year, but with slightly higher margins (22%
compared to 20%).


Continued focus on growing distribution has resulted in increases in our PFA
(Personal Financial Advisors) sales force by 9% to 2,512 during the nine months
to 30 September 2004. The launch of Masthead for the broker market is designed
to strengthen the position of independent brokers, who remain a key channel.
Over 2,000 brokers have already signed up, which is in excess of our target. Our
new investment product, Max Investments, has been launched.


Banking - South Africa


Nedcor issued a trading update on 11 November 2004, the full text of which can
be accessed on Nedcor's website, http://www.nedcor.com/economic_pdfs/
nedor_tradingupdate_november2004.pdf


Nedcor's trading performance for the nine months has continued to be in line
with management's expectations.


Net interest income (NII) has continued to benefit from the improved funding
profile and hedging strategies. NII also improved with the uplift created from
the rights offer cash received in May, reduced funding drag as a result of the
banking book being relatively interest rate-neutral following the hedging
strategy, the sale of non-core investments reported in August and the
repatriation of certain foreign capital. The result has been an increase in
margin to 3.13% for the nine months to 30 September 2004 (2003: 2.86%). NII for
the nine months to 30 September 2004 increased by 8% to R5.6 billion (2003: R5.2
billion).


Non-interest revenue (NIR), while still anticipated to be lower in 2004 than the
level achieved last year, has shown an improvement since June, with deal flow
having increased during the quarter. Exchange and securities dealing revenue,
however, remains muted. For the nine months to 30 September 2004 NIR declined by
2% to R5.5 billion (2003: R5.6 billion).


Nedcor has continued to make progress in the first year of its planned
three-year strategic recovery programme and remains on track to achieve its 2004
targets. Operating expenses have continued to be managed closely and remain in
line with expectations. Staff numbers have reduced by a further 1,395 since June
to 21,777.


In its trading statement, Nedcor has forecast that it expects headline earnings
on its own accounting basis (excluding translation gains or losses) for the year
to 31 December 2004 will be between 0% and 15% greater than the R1,471 million
reported in 2003.


Nedcor remains confident that its tier 1 capital will exceed the target of 7.5%
at year-end.


General Insurance - South Africa


Mutual & Federal issued a trading update on 15 November 2004, the full text of
which can be accessed on Mutual & Federal's website, http://www.mf.co.za/.


Mutual & Federal has continued to have an excellent year, benefiting from a
continued good underwriting cycle. It achieved growth in net premium income of
21% on its own accounting basis for the nine months ended 30 September 2004 over
the equivalent period in 2003. There has recently been some softening in
premiums as the insurance cycle comes off its high point.


Life business - United States


Funds under management at 30 September 2004 increased by 29% to $16.3 billion,
from $12.6 billion at 30 September 2003.


Total US life sales for the nine months were $366 million (2003: $279 million)
on an APE basis, an increase of 31% over the equivalent period in 2003. The
value of new business for the nine months was $84 million, (2003: $43 million)
at a significantly improved margin of 23% (2003: 15%), benefiting from changes
in product mix and the favourable trading environment.


Market share continued to grow in equity-indexed annuities, immediate annuity
sales and home mortgage term insurance.


As previously announced, the Group has injected £55 million into the US Life
business in 2004 to cover new business strain. We are planning to strengthen the
capital base of the business further by an additional one-off injection of £110
million before year-end. This will increase the risk-based capital to at least
300% RBC, strongly underpinning the company's financial strength ratings going
forward in 2005 and will maintain our competitive position as a leading writer
of new annuity business in the US market. This will be funded from existing
resources. The business is expected to begin releasing capital from 2007.


Asset Management - United States


Funds at our US asset management business increased by 18% to $168.4 billion at
30 September 2004 from $142.7 billion at 30 September 2003.


Positive net inflows of client assets for the quarter ended 30 September 2004
contributed $3.3 billion (including $0.4 billion of cash collateral assets),
while investment performance in the funds under management at member firms
accounted for the remaining increase of $1.6 billion. Overall in the first three
quarters of 2004, the Group's member firms have achieved aggregate net inflows
of client assets of $8.5 billion, including $2.4 billion in cash collateral
assets.


Investment performance has remained strong as at 30 September 2004 with 94% of
client funds under management outperforming benchmark on a five-year basis, as
we continue to focus on delivering our clients' needs.


As foreshadowed at the time of our interim results, additional strategic
investment in the retail platform and the cost of converting the Dwight Stable
Value Fund to a bond-only fund in line with industry, mandated changes are
together expected to have an impact of around $12 million on the business's
results for the second half. The cost of the retail initiative will continue to
impact next year.


UK and Rest of World


Selestia has achieved its best ever sales in 2004, attracting net assets of £301
million over the nine months to 30 September 2004, and bringing total assets
under management to £590 million (30 September 2003: £208 million). OMAM(UK) has
continued to attract client monies, including to its newly-launched Dynamic Bond
Fund. Funds under management at our UK and Rest of World operations rose to £4.8
billion at 30 September 2004, a 7% increase over the position at 30 September
2003.

Black Economic Empowerment (BEE)

During the quarter we have continued to develop our transformation strategy to
take account of the South African Financial Sector Charter. We are seeking
broad-based black economic empowerment ownership deals for Old Mutual (South
Africa), Mutual & Federal and Nedcor that will help to build each business, be
broad-based, include staff participation and create value for all stakeholders
over the long term. We are making progress in our discussions with a number of
potential BEE partners. The complexity of putting these deals together has
lengthened the process, and we now expect to make a detailed announcement on our
empowerment ownership plans next year.


Julian Roberts

Group Finance Director

17 November 2004





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.


Enquiries:


Old Mutual plc UK

James Poole                 [phone]

Miranda Bellord             [phone]


Old Mutual plc SA

Nad Pillay                  [phone]


College Hill (UK)
Tony Friend                 [phone]



Julian Roberts, Group Finance Director, will host a conference call for analysts
and investors at 08.30 am (UK time), 10.30 am (SA time) this morning, when he
will give a brief overview of trading and answer 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].


A replay facility will be available until 24 November 2004 on the following
numbers, access code 2159726#:

UK (Free phone)                         0800 953 1533
USA (toll-free):                        1866 247 4222
Std International                       + 44 1452 55 00 00








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