UK Life Company Business Sold

Old Mutual PLC
4 January 2000

                          OLD MUTUAL PLC

        Old Mutual plc disposes of UK Life Company business

Old  Mutual  plc  announces that it has entered  into  conditional
contracts, subject to regulatory, and other approvals, to  dispose
of the business of Old Mutual Life Assurance Company Ltd ('OMLA'),
its UK life insurance subsidiary.

The principal components of the transactions are as follows:

First,  the  existing  immediate annuity  book  of  OMLA  will  be
transferred  under  a  treaty  of  reassurance  to  XL  Mid  Ocean
Reinsurance   Ltd,   the   Bermuda-based  specialist   reinsurance
underwriters.

Second, the remaining non-linked and linked life business of  OMLA
will  be sold to Century Life plc and subsequently transferred  to
Century  Life under a proposed scheme of arrangement under Section
2c of the Insurance Companies' Act 1982.

Century  Life  is part of the Century Group, which specialises  in
administering  life insurance businesses. The transfer  of  OMLA's
life insurance business to Century, which has operated on a closed-
book  basis  since 1998, is subject to approval by  the  Financial
Services Authority, and the proposed scheme of arrangement must be
approved  by  the  UK High Court before it becomes  effective.  An
independent actuary will be appointed to report to the  Court  and
to policyholders on the proposed scheme.

The  combined  impact of these transactions,  once  completed,  is
expected  to  release  back to the Old Mutual  Group  during  2000
capital  to  the value of approximately £75 million, a surplus  to
book value of approximately £15 million.

At  the  time Old Mutual plc announced its Interim Results  to  30
June 1999 the Group made additional provisions of £52.5 million in
respect  of certain liabilities of OMLA for pensions which brought
total reserves to approximately £102 million. Old Mutual considers
that  these  provisions remain adequate in the  light  of  current
information  to  cover  future claims, and  an  indemnity  to  the
purchasers  has accordingly been provided by the Company  to  this
effect.

Commenting on the disposal, Eric Anstee, Group Finance Director of
Old Mutual plc said:

'We  commenced  these negotiations some time ago as  part  of  our
demutualisatin  and flotation of the Group. It is gratifying  that
we  have  now  been  able to conclude this  series  of  agreements
successfully,  subject to the necessary regulatory consents.  This
will  substantially bring to a close our UK insurance  activities,
which were not producing satisfactory returns. By releasing OMLA's
capital  back to the Group, shareholders will be able  to  benefit
from  the  redeployment  of  assets. Equally  the  annuitants  and
policyholders of OMLA will benefit from the established  servicing
capabilities  of  Century Life and Mid Ocean both  of  which  have
first class names and standing in the UK market place.'
                                                    4 January 2000


Enquiries:

Old Mutual plc
James Poole, Director IR                    44 (0) 171 569 0121
Philip Vosloo Media Relations               27 (0)  21 509  1727
Jane Bernsten, Communications Manager       44 (0) 1256 743 484

College Hill London                         44 (0) 171 457 2020
Mark Garraway
Nicholas Willimas


College Hill Johannesburg                    27 (0) 83 6002459
Graham Fiford

Century
Chris Little, CEO                            44 (0) 171 332 5010



Notes to editors

XL Mid Ocean
1.1   XL Mid Ocean Reinsurance is a wholly-owned subsidiary of  XL
  Capital Ltd, which provides insurance and reinsurance plus other
  financial   products  on  a  worldwide  basis.  The  Group   had
  approximately  US$14.1 billion of assets and US$5.4  billion  of
  consolidated shareholders equity as at 30th September 1999.

1.2   XL  Mid  Ocean Reinsurance is based in Bermuda, with  branch
  operations  in  London and Singapore and an  office  in  Munich,
  Germany.   The company is a leading reinsurer, writing  property
  catastrophe,  property risk excess of loss, property  pro  rata,
  marine,  energy,  aviation  and other  reinsurance  to  insurers
  worldwide.

Century
2.1   Founded  in 1983 Century Life has grown principally  through
  acquisition.  It has successfully integrated 14  life  assurance
  companies or blocks of business, including NEL Britannia  Group,
  Sentinel Life plc, and Prosperity Financial Services Ltd.

2.2   Century  Life's  acquisition  activity  has  required  major
  investment in flexible, integrated, customer-orientated computer
  systems. The consequent strength of the company's customer service
  and  administrative capabilities has formed  the  basis  of  its
  success in moving into the provision of outsourced administration
  to other life companies.

Old Mutual
3.1   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 and portfolio management  and
  stockbroking services), banking and general insurance.

3.2   On  12  July  1999,  Old Mutual plc listed  on  the  London,
  Johannesburg, Namibia, Malawi and Zimbabwe Stock Exchanges. On 20
  September, Old Mutual joined the FTSE 100 Share Index.