Old Mutual plc 2016 Interim Results - Part 2

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Old Mutual Limited NPV (DI) (OMU)

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Index to the financial information For the six months ended 30 June 2016

Statement of directors' responsibilities in respect of the interim financial statements for the six months ended 30 June 2016		64
Independent review report to Old Mutual plc for the six months ended 30 June 2016		65
Consolidated income statement		66
Consolidated statement of comprehensive income		67
Reconciliation of adjusted operating profit to profit after tax		68
Consolidated statement of financial position		70
Consolidated statement of cash flows		71
Consolidated statement of changes in equity		72
Notes to the consolidated financial statements
	A: Significant accounting policies	78
	B: Segment information	80
	C: Other key performance information	94
	D: Other income statement notes	101
	E: Financial assets and liabilities	103
	F: Analysis of financial assets and liabilities	115
	G: Non-financial assets and liabilities	126
	H: Other notes	127
	I: Discontinued operations and disposal groups held for sale	128

Consolidated income statement
For the six months ended 30 June 2016
								£m
		Notes		Six months ended 30 June 2016		Six months ended 30 June 2015		Year ended 31 December 2015
Revenue
Gross earned premiums		B2		1,703		1,589		3,589
Outward reinsurance				(178)		(151)		(335)
Net earned premiums				1,525		1,438		3,254
Investment return (non-banking)				2,947		3,186		3,795
Banking interest and similar income				1,609		1,691		3,320
Banking trading, investment and similar income				100		110		213
Fee and commission income, and income from service activities				1,395		1,537		3,027
Other income				72		70		86
Total revenue				7,648		8,032		13,695
Expenses
Claims and benefits (including change in insurance contract provisions)				(1,960)		(1,738)		(3,450)
Reinsurance recoveries				209		120		279
Net claims and benefits incurred				(1,751)		(1,618)		(3,171)
Change in investment contract liabilities				(1,837)		(2,035)		(2,203)
Credit impairment charges				(116)		(134)		(307)
Finance costs				(38)		(45)		(49)
Banking interest payable and similar expenses				(924)		(962)		(1,924)
Fee and commission expenses, and other acquisition costs				(330)		(459)		(786)
Change in third-party interest in consolidated funds				(244)		(207)		(208)
Other operating and administrative expenses				(1,813)		(1,928)		(3,759)
Total expenses				(7,053)		(7,388)		(12,407)
Share of associated undertakings' and joint ventures' (losses)/profit after tax				(11)		37		67
Profit/(loss) on disposal of subsidiaries, associated undertakings and strategic investments		C1(c)		24		2		(36)
Profit before tax				608		683		1,319
Income tax expense		D1		(183)		(243)		(374)
Profit from continuing operations after tax				425		440		945
Discontinued operations
Loss from discontinued operations after tax		I1		-		(21)		(21)
Profit after tax for the financial period				425		419		924

Attributable to
Equity holders of the parent				284		260		614
Non-controlling interests
Ordinary shares				133		149		291
Preferred securities				8		10		19
Profit after tax for the financial period				425		419		924

Earnings per ordinary share
Basic earnings per share based on profit from continuing operations (pence)				5.7		5.9		13.2
Basic earnings per share based on profit from discontinued operations (pence)				-		(0.5)		(0.5)
Basic earnings per ordinary share (pence)		C2(a)		5.7		5.4		12.7
Diluted basic earnings per share based on profit from continuing operations (pence)				5.6		5.4		12.6
Diluted basic earnings per share based on profit from discontinued operations (pence)				-		(0.4)		(0.4)
Diluted basic earnings per ordinary share (pence)		C2(b)		5.6		5.0		12.2

Weighted average number of ordinary shares (millions)		C2(a)		4,686		4,598		4,641
Consolidated statement of comprehensive income
For the six months ended 30 June 2016
								£m
			Six months ended 30 June 2016			Six months ended 30 June 2015		Year ended 31 December 2015
Profit after tax for the financial period			425			419		924
Other comprehensive income for the financial period
Items that will not be reclassified subsequently to profit or loss
Fair value movements
Property revaluation			(1)			(2)		18
Measurement movements on defined benefit plans			7			8		20
Income tax on items that will not be reclassified subsequently to profit or loss	D1(c)		6			-		(4)
			12			6		34
Items that may be reclassified subsequently to profit or loss
Fair value movements
Net investment hedge			(42)			6		13
Available-for-sale investments
Fair value gains/(losses)			7			(9)		(7)
Recycled to profit or loss			-			-		(5)
Exchange difference recycled to profit or loss on disposal of business			-			(30)		(71)
Shadow accounting			-			-		(10)
Currency translation differences on translating foreign operations			962			(442)		(1,106)
Other movements			(28)			(13)		(24)
			899			(488)		(1,210)
Total other comprehensive income for the financial period			911			(482)		(1,176)

Total comprehensive income for the financial period			1,336			(63)		(252)

Attributable to
Equity holders of the parent			933			(86)		(232)
Non-controlling interests
Ordinary shares			395			13		(39)
Preferred securities			8			10		19
Total comprehensive income for the financial period			1,336			(63)		(252)
Reconciliation of adjusted operating profit to profit after tax
For the six months ended 30 June 2016
							£m
	Notes		Six months ended 30 June 2016		Six months ended 30 June 2015		Year ended 31 December 2015
Core operations
Emerging Markets	B3		260		333		615
Nedbank	B3		345		404		754
Old Mutual Wealth	B3		104		151		307
Institutional Asset Management	B3		58		83		149
			767		971		1,825
Old Mutual plc finance costs			(45)		(42)		(83)
Long-term investment return on excess assets			10		11		21
Corporate costs			(30)		(24)		(57)
Other net shareholder income/(expenses)			6		(12)		(43)
Adjusted operating profit before tax	B3		708		904		1,663
Adjusting items	C1(a)		(117)		(260)		(344)
Non-core operations	B3		(9)		4		(31)
Profit before tax (net of policyholder tax)			582		648		1,288
Income tax attributable to policyholder returns			26		35		31
Profit before tax			608		683		1,319
Total tax expense	D1(a)		(183)		(243)		(374)
Profit from continuing operations after tax			425		440		945
Loss from discontinued operations after tax	I1		-		(21)		(21)
Profit after tax for the financial period			425		419		924

Adjusted operating profit after tax attributable to ordinary equity holders of the parent
							£m
	Notes		Six months ended 30 June 2016		Six months ended 30 June 2015		Year ended 31 December 2015
Adjusted operating profit before tax	B3		708		904		1,663
Tax on adjusted operating profit	D1(d)		(181)		(235)		(403)
Adjusted operating profit after tax			527		669		1,260
Non-controlling interests - ordinary shares			(137)		(157)		(310)
Non-controlling interests - preferred securities			(8)		(10)		(19)
Adjusted operating profit after tax attributable to ordinary equity holders of the parent	B3		382		502		931
Adjusted weighted average number of shares (millions)	C2(a)		4,773		4,855		4,813
Adjusted operating earnings per share (pence)	C2(c)		8.0		10.3		19.3

Consolidated statement of financial position
At 30 June 2016
							£m
	Notes		At 30 June 2016		At 30 June 2015		At 31 December 2015
Assets
Goodwill and other intangible assets	G1		3,342		3,344		3,276
Mandatory reserve deposits with central banks			866		808		716
Property, plant and equipment			794		726		700
Investment property			1,508		1,318		1,233
Deferred tax assets			311		247		284
Investments in associated undertakings and joint ventures			527		470		514
Deferred acquisition costs			729		804		784
Reinsurers' share of policyholder liabilities	F2		3,058		2,394		2,661
Loans and advances	F1		36,801		34,655		30,965
Investments and securities			88,996		87,033		82,601
Current tax receivable			136		95		88
Trade, other receivables and other assets			3,368		2,938		2,007
Derivative financial instruments			1,541		1,161		3,076
Cash and cash equivalents			3,978		5,034		4,520
Assets held for sale	I2		6,098		1,114		123
Total assets			152,053		142,141		133,548
Liabilities
Long-term business insurance policyholder liabilities	F2		9,183		9,851		7,714
Investment contract liabilities	F2		69,040		68,786		67,854
Property & casualty liabilities	F2		425		394		341
Third-party interests in consolidated funds			6,585		5,678		4,661
Borrowed funds	F3		4,231		3,566		3,524
Provisions and accruals			158		228		199
Deferred revenue			254		291		274
Deferred tax liabilities			408		476		417
Current tax payable			207		169		186
Trade, other payables and other liabilities			5,631		5,173		3,787
Amounts owed to bank depositors			38,607		36,000		32,328
Derivative financial instruments			1,584		1,161		3,317
Liabilities held for sale	I2		5,853		833		12
Total liabilities			142,166		132,606		124,614
Net assets			9,887		9,535		8,934
Shareholders' equity
Equity attributable to equity holders of the parent			7,258		7,188		6,680
Non-controlling interests
Ordinary shares			2,316		2,075		1,982
Preferred securities			313		272		272
Total non-controlling interests			2,629		2,347		2,254
Total equity			9,887		9,535		8,934


Bruce Hemphill Ingrid Johnson Group Chief Executive Group Finance Director 11 August 2016 11 August 2016
Consolidated statement of cash flows
For the six months ended 30 June 2016
						£m
		Six months ended 30 June 2016		Six months ended 30 June 2015		Year ended 31 December 2015
Cash flows from operating activities
Profit before tax		608		683		1,319
Non-cash movements in profit before tax		2,268		1,134		4,204
Net changes in working capital		(327)		866		566
Taxation paid		(234)		(252)		(399)
Net cash inflow from operating activities		2,315		2,431		5,690
Cash flows from investing activities
Net acquisitions of financial investments		(3,019)		(1,787)		(4,868)
Acquisition of investment properties		(40)		(37)		(146)
Dividends received from associated undertakings		9		3		7
Proceeds from disposal of investment properties		77		4		41
Acquisition of property, plant and equipment		(52)		(35)		(151)
Proceeds from disposal of property, plant and equipment		1		3		7
Acquisition of intangible assets		(47)		(40)		(102)
Acquisition of interests in subsidiaries, associated undertakings joint ventures and strategic investments		(23)		(625)		(796)
Disposal of a non-controlling interest in OM Asset Management plc		-		163		163
Proceeds from the disposal of interests in subsidiaries, associated undertakings joint ventures and strategic investments		22		9		88
Net cash outflow from investing activities		(3,072)		(2,342)		(5,757)
Cash flows from financing activities
Dividends paid to
Ordinary equity holders of the Company		(299)		(296)		(422)
Non-controlling interests and preferred security interests		(95)		(108)		(190)
Interest paid (excluding banking interest paid)		(35)		(24)		(51)
Proceeds from issue of ordinary shares (including by subsidiaries to non-controlling interests)		1		2		2
Net acquisition of treasury shares		(37)		(12)		(19)
Sale of shares held by BEE trusts		-		172		175
Proceeds from issue of subordinated and other debt		415		880		1,615
Subordinated and other debt repaid		(27)		(349)		(827)
Net cash (outflow)/inflow from financing activities		(77)		265		283
Net increase in cash and cash equivalents		(834)		354		216
Effects of exchange rate changes on cash and cash equivalents		439		(270)		(746)
Cash and cash equivalents at beginning of the period		5,256		5,786		5,786
Cash and cash equivalents at end of the period		4,861		5,870		5,256

Consisting of
Cash and cash equivalents		3,978		5,034		4,520
Mandatory reserve deposits with central banks		866		808		716
Cash and cash equivalents included in assets held for sale		17		28		20
Total		4,861		5,870		5,256

Consolidated statement of changes in equity
For the six months ended 30 June 2016
		Millions
Six months ended 30 June 2016	Notes	Number of shares issued and fully paid	Share capital	Share premium	Merger reserve	Available-for-sale reserve
Shareholders' equity at beginning of the period		4,929	563	1,040	1,252	40
Total comprehensive income for the financial period
Profit after tax for the financial period		-	-	-	-	-
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Fair value gains
Property revaluation		-	-	-	-	-
Measurement gains on defined benefit plans		-	-	-	-	-
Income tax on items that will not be reclassified subsequently to profit or loss	D1(c)	-	-	-	-	-
		-	-	-	-	-
Items that may be reclassified subsequently to profit or loss
Fair value gains/(losses)
Net investment hedge		-	-	-	-	-
Available-for-sale investments
Fair value (losses)/gains¹		-	-	-	-	(2)
Recycled to profit or loss		-	-	-	-	-
Currency translation differences on translating foreign operations¹		-	-	-	-	-
Other movements		-	-	-	-	-
Total comprehensive income for the financial period		-	-	-	-	(2)
Transactions with the owners of the Company
Contributions and distributions
Dividends for the period	C3	-	-	-	-	-
Tax relief on dividends paid		-	-	-	-	-
Equity share-based payment transactions		-	-	-	-	-
OM Asset Management plc shares buyback		-	-	-	-	-
Additional tier 1 capital instruments issued²		-	-	-	-	-
Preferred securities repurchased		-	-	-	-	-
Other movements in share capital		1	-	1	-	-
Total contributions and distributions		1	-	1	-	-
Changes in ownership
Change in participation in subsidiaries		-	-	-	-	-
Total changes in ownership		-	-	-	-	-
Total transactions with the owners of the Company		1	-	1	-	-
Shareholders' equity at end of the period		4,930	563	1,041	1,252	38



													£m
Property revaluation reserve	Share-based payments reserve	Other reserves¹	Foreign currency translation reserve¹		Retained earnings		Perpetual preferred callable securities		Attributable to equity holders of the parent		Total non-controlling interests		Total equity
184	367	30	(2,243)		5,174		273		6,680		2,254		8,934

-	-	-	-		268		16		284		141		425



(1)	-	-	-		-		-		(1)		-		(1)
-	-	-	-		6		-		6		1		7
-	4	-	-		-		-		4		2		6
(1)	4	-	-		6		-		9		3		12


-	-	-	(42)		-		-		(42)		-		(42)

-	-	10	-		(4)		-		4		3		7
-	-	-	-		-		-		-		-		-
-	-	-	694		-		-		694		268		962
(3)	-	(5)	-		(8)		-		(16)		(12)		(28)
(4)	4	5	652		262		16		933		403		1,336


-	-	-	-		(299)		(17)		(316)		(78)		(394)
-	-	-	-		-		1		1		-		1
-	(6)	-	-		7		-		1		(5)		(4)
-	-	-	-		(8)		-		(8)		(3)		(11)
-	-	-	-		-		-		-		67		67
-	-	-	-		-		-		-		(26)		(26)
-	-	-	-		(37)		-		(36)		-		(36)
-	(6)	-	-		(337)		(16)		(358)		(45)		(403)

-	-	-	-		3		-		3		17		20
-	-	-	-		3		-		3		17		20
-	(6)	-	-		(334)		(16)		(355)		(28)		(383)
180	365	35	(1,591)		5,102		273		7,258		2,629		9,887
Consolidated statement of changes in equity
For the six months ended 30 June 2016
						Millions
Six months ended 30 June 2015				Notes		Number of shares issued and fully paid		Share capital		Share premium		Merger reserve		Available-for-sale reserve
Shareholders' equity at beginning of the period						4,907		561		856		1,342		48
Total comprehensive income for the financial period
Profit after tax for the financial period						-		-		-		-		-
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Fair value gains
Property revaluation						-		-		-		-		-
Measurement gains on defined benefit plans						-		-		-		-		-
Income tax on items that will not be reclassified subsequently to profit or loss				D1(c)		-		-		-		-		-
						-		-		-		-		-
Items that may be reclassified subsequently to profit or loss
Fair value gains/(losses)
Net investment hedge						-		-		-		-		-
Available-for-sale investments
Fair value gains						-		-		-		-		-
Exchange differences recycled to profit or loss on disposal of business						-		-		-		-		-
Currency translation differences on translating foreign operations						-		-		-		-		-
Other movements						-		-		-		-		-
Total comprehensive income for the financial period						-		-		-		-		-
Transactions with the owners of the Company
Contributions and distributions
Dividends for the year				C3		-		-		-		-		-
Tax relief on dividends paid						-		-		-		-		-
Equity share-based payment transactions						-		-		-		-		-
Proceeds from BEE transactions						-		-		141		-		-
Merger reserve released						-		-		-		(68)		-
Other movements in share capital						2		-		2		-		-
Total contributions and distributions						2		-		143		(68)		-
Changes in ownership
Shares issued for the acquisition of Quilter Cheviott						19		2		40		-		-
Share in movement in associate reserve						-		-		-		-		-
Disposal of a non-controlling interest in OM Asset Management plc						-		-		-		-		-
Non-controlling interests in subsidiaries acquired						-		-		-		-		-
Change in participation in subsidiaries						-		-		-		-		-
Total changes in ownership						19		2		40		-		-
Total transactions with owners of the Company						21		2		183		(68)		-
Shareholders' equity at end of the period						4,928		563		1,039		1,274		48



													£m
Property revaluation reserve	Share-based payments reserve	Other reserves	Foreign currency translation reserve		Retained earnings		Perpetual preferred callable securities		Attributable to equity holders of the parent		Total non-controlling interests		Total equity
178	337	37	(1,370)		4,891		526		7,406		2,139		9,545

-	-	-	-		246		14		260		159		419



(2)	-	-	-		-		-		(2)		-		(2)
-	-	-	-		6		-		6		2		8
-	-	-	-		-		-		-		-		-
(2)	-	-	-		6		-		4		2		6


-	-	-	6		-		-		6		-		6

-	-	(9)	-		4		-		(5)		(4)		(9)
-	-	-	(65)		35		-		(30)		-		(30)
-	-	-	(306)		-		-		(306)		(136)		(442)
-	-	-	-		(15)		-		(15)		2		(13)
(2)	-	(9)	(365)		276		14		(86)		23		(63)


-	-	-	-		(296)		(17)		(313)		(91)		(404)
-	-	-	-		-		3		3		-		3
-	(15)	-	-		(3)		-		(18)		(4)		(22)
-	-	-	-		31		-		172		-		172
-	-	-	-		68		-		-		-		-
-	-	-	-		(14)		-		(12)		-		(12)
-	(15)	-	-		(214)		(14)		(168)		(95)		(263)

-	-	-	-		(42)		-		-		-		-
-	-	10	-		-		-		10		-		10
-	-	-	-		48		-		48		114		162
-	-	-	-		-		-		-		98		98
-	-	-	-		(22)		-		(22)		68		46
-	-	10	-		(16)		-		36		280		316
-	(15)	10	-		(230)		(14)		(132)		185		53
176	322	38	(1,735)		4,937		526		7,188		2,347		9,535
Consolidated statement of changes in equity
For the six months ended 30 June 2016
						Millions
Year ended 31 December 2015				Notes		Number of shares issued and fully paid		Share capital		Share premium		Merger reserve		Available-for-sale reserve
Shareholders' equity at beginning of the year						4,907		561		856		1,342		48
Total comprehensive income for the financial year
Profit after tax for the financial year						-		-		-		-		-
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Fair value gains
Property revaluation						-		-		-		-		-
Measurement gains on defined benefit plans						-		-		-		-		-
Income tax on items that will not be reclassified subsequently to profit or loss				D1(c)		-		-		-		-		-
						-		-		-		-		-
Items that may be reclassified subsequently to profit or loss
Fair value gains/(losses)
Net investment hedge						-		-		-		-		-
Available-for-sale investments
Fair value gains						-		-		-		-		-
Recycled to profit or loss						-		-		-		-		(5)
Exchange differences recycled to profit or loss on disposal of business						-		-		-		-		-
Shadow accounting						-		-		-		-		-
Currency translation differences on translating foreign operations						-		-		-		-		-
Other movements						-		-		-		-		(3)
Total comprehensive income for the financial year						-		-		-		-		(8)
Transactions with the owners of the Company
Contributions and distributions
Dividends for the year				C3		-		-		-		-		-
Tax relief on dividends paid						-		-		-		-		-
Equity share-based payment transactions						-		-		-		-		-
Proceeds from BEE transactions						-		-		141		-		-
Merger reserve released¹						-		-		-		(90)		-
Preferred securities repurchased						-		-		-		-		-
Other movements in share capital						3		-		3		-		-
Total contributions and distributions						3		-		144		(90)		-
Changes in ownership
Shares issued for the acquisition of Quilter Cheviott						19		2		40		-		-
Share in movement in associate reserve						-		-		-		-		-
Disposal of a non-controlling interest in OM Asset Management plc						-		-		-		-		-
Non-controlling interests in subsidiaries acquired						-		-		-		-		-
Change in participation in subsidiaries						-		-		-		-		-
Total changes in ownership						19		2		40		-		-
Total transactions with owners of the Company						22		2		184		(90)		-
Shareholders' equity at end of the year						4,929		563		1,040		1,252		40


													£m
Property revaluation reserve	Share-based payments reserve	Other reserves	Foreign currency translation reserve		Retained earnings		Perpetual preferred callable securities		Attributable to equity holders of the parent		Total non-controlling interests		Total equity
178	337	37	(1,370)		4,891		526		7,406		2,139		9,545

-	-	-	-		590		24		614		310		924



18	-	-	-		(5)		-		13		5		18
-	-	-	-		13		-		13		7		20
(3)	-	-	-		(1)		-		(4)		-		(4)
15	-	-	-		7		-		22		12		34


-	-	-	13		-		-		13		-		13

-	-	(7)	-		3		-		(4)		(3)		(7)
-	-	-	-		-		-		(5)		-		(5)
-	-	-	(71)		-		-		(71)		-		(71)
(10)	-	-	-		-		-		(10)		-		(10)
-	-	-	(780)		-		-		(780)		(326)		(1,106)
1	-	(3)	-		(6)		-		(11)		(13)		(24)
6	-	(10)	(838)		594		24		(232)		(20)		(252)


-	-	-	-		(422)		(30)		(452)		(160)		(612)
-	-	-	-		-		6		6		-		6
-	30	-	-		5		-		35		4		39
-	-	-	-		34		-		175		-		175
-	-	-	-		90		-		-		-		-
-	-	-	-		(11)		(253)		(264)		-		(264)
-	-	-	-		(19)		-		(16)		-		(16)
-	30	-	-		(323)		(277)		(516)		(156)		(672)

-	-	-	-		(42)		-		-		-		-
-	-	3	-		-		-		3		-		3
-	-	-	(35)		84		-		49		114		163
-	-	-	-		-		-		-		105		105
-	-	-	-		(30)		-		(30)		72		42
-	-	3	(35)		12		-		22		291		313
-	30	3	(35)		(311)		(277)		(494)		135		(359)
184	367	30	(2,243)		5,174		273		6,680		2,254		8,934

	Six months ended 30 June 2016		Six months ended 30 June 2015		Year ended 31 December 2015
	Income statement (average rate)	Statement of financial position (closing rate)	Income Statement (average rate)	Statement of financial position (closing rate)	Income statement (average rate)	Statement of financial position (closing rate)
Rand	22.0983	19.4900	18.1583	19.1081	19.5223	22.8183
US dollars	1.4339	1.3268	1.5240	1.5725	1.5285	1.4734
Euro	1.2845	1.1982	1.3640	1.4099	1.3765	1.3560

Area		Policy note	More detail
	Loans and advances	G1	G1
	Insurance and investment contracts	G6	G6
	Goodwill and other intangible assets	H1	H1
	Consolidation	I1	I3
	Tax	D1	D1/H7

							£m
Old Mutual Wealth	Institutional Asset Management	Other	Consolidation adjustments¹	Adjusted operating profit	Adjusting items (note C1)	Non-core operations³	IFRS Income statement

70	-	-	-	1,703	-	-	1,703
(42)	-	-	-	(178)	-	-	(178)
28	-	-	-	1,525	-	-	1,525
1,499	-	33	255	2,980	(28)	(5)	2,947
-	-	-	-	1,609	-	-	1,609
-	-	-	-	100	-	-	100
526	222	-	(15)	1,404	(9)	-	1,395
7	1	-	(1)	71	-	1	72
2,060	223	33	239	7,689	(37)	(4)	7,648

(141)	-	-	-	(1,960)	-	-	(1,960)
112	-	-	2	209	-	-	209
(29)	-	-	2	(1,751)	-	-	(1,751)
(1,451)	-	-	-	(1,837)	-	-	(1,837)
-	-	-	-	(116)	-	-	(116)
-	(1)	(44)	-	(61)	23	-	(38)
-	-	-	-	(924)	-	-	(924)
(185)	(4)	-	(13)	(342)	12	-	(330)
-	-	-	(244)	(244)	-	-	(244)
(284)	(165)	(48)	16	(1,669)	(139)	(5)	(1,813)
(7)	-	-	-	(26)	26	-	-
(1,956)	(170)	(92)	(239)	(6,970)	(78)	(5)	(7,053)
-	5	-	-	(11)	-	-	(11)
-	-	-	-	-	24	-	24
104	58	(59)	-	708	(91)	(9)	608
(16)	(17)	13	-	(181)	(2)	-	(183)
-	(16)	-	-	(145)	4	-	(141)
88	25	(46)	-	382	(89)	(9)	284
(111)	14	28	-	(89)	89	-	-
(23)	39	(18)	-	293	-	(9)	284
-	-	-	-	-	-	-	-
(23)	39	(18)	-	293	-	(9)	284


	Notes	Emerging Markets¹	Nedbank
Assets
Goodwill and other intangible assets	G1	468	466
Mandatory reserve deposits with central banks		6	860
Property, plant and equipment		292	457
Investment property		1,506	2
Deferred tax assets		38	17
Investments in associated undertakings and joint ventures		77	409
Deferred acquisition costs		101	-
Reinsurers' share of policyholder liabilities	F2	189	6
Loans and advances	F1	1,029	35,574
Investments and securities		29,870	7,557
Current tax receivable		34	64
Trade, other receivables and other assets		873	717
Derivative financial instruments		211	1,017
Cash and cash equivalents		1,275	1,141
Assets held for sale	I2	17	-
Inter-segment funding - assets		-	-
Total assets		35,986	48,287
Liabilities
Long-term business insurance policyholder liabilities	F2	8,610	182
Investment contract liabilities	F2	20,397	679
Property & casualty liabilities	F2	425	-
Third-party interests in consolidated funds		-	-
Borrowed funds	F3	505	2,658
Provisions and accruals		112	-
Deferred revenue		22	-
Deferred tax liabilities		174	77
Current tax payable		88	19
Trade, other payables and other liabilities		2,505	1,471
Amounts owed to bank depositors		550	38,057
Derivative financial instruments		263	1,005
Liabilities held for sale	I2	-	-
Inter-segment funding - liabilities		-	-
Total liabilities		33,651	44,148
Net assets¹		2,335	4,139
Equity
Equity attributable to equity holders of the parent		2,119	2,095
Non-controlling interests		216	2,044
Ordinary shares		216	1,731
Preferred securities		-	313

Total equity		2,335	4,139

					£m
Old Mutual Wealth	Institutional Asset Management	Other	Non-core operation	Consolidation adjustments²	Total

1,450	958	-	-	-	3,342
-	-	-	-	-	866
21	24	-	-	-	794
-	-	-	-	-	1,508
10	245	-	1	-	311
1	30	10	-	-	527
599	29	-	-	-	729
2,863	-	-	-	-	3,058
198	-	-	-	-	36,801
45,286	95	454	-	5,734	88,996
38	-	-	-	-	136
1,382	124	116	8	148	3,368
-	-	55	19	239	1,541
761	49	351	80	321	3,978
6,081	-	-	-	-	6,098
-	-	903	90	(993)	-
58,690	1,554	1,889	198	5,449	152,053

391	-	-	-	-	9,183
47,867	-	-	97	-	69,040
-	-	-	-	-	425
-	-	-	-	6,585	6,585
-	38	1,103	-	(73)	4,231
36	3	7	-	-	158
232	-	-	-	-	254
139	1	17	-	-	408
-	80	20	-	-	207
1,431	277	271	4	(328)	5,631
-	-	-	-	-	38,607
-	25	31	2	258	1,584
5,853	-	-	-	-	5,853
790	97	106	-	(993)	-
56,739	521	1,555	103	5,449	142,166
1,951	1,033	334	95	-	9,887

1,951	664	334	95	-	7,258
-	369	-	-	-	2,629
-	369	-	-	-	2,316
-	-	-	-	-	313

1,951	1,033	334	95	-	9,887


	Notes	Emerging Markets	Nedbank
Assets
Goodwill and other intangible assets		408	437
Mandatory reserve deposits with central banks		4	804
Property, plant and equipment		294	394
Investment property		1,302	16
Deferred tax assets		56	16
Investments in associated undertakings and joint ventures		64	373
Deferred acquisition costs		99	-
Reinsurers' share of policyholder liabilities	F2	163	5
Loans and advances	F1	909	33,572
Investments and securities		28,563	6,447
Current tax receivable		16	24
Trade, other receivables and other assets		754	676
Derivative financial instruments		264	771
Cash and cash equivalents		1,417	1,660
Assets held for sale		212	-
Inter-segment funding - assets		-	-
Total assets		34,525	45,195
Liabilities
Long-term business insurance policyholder liabilities	F2	8,746	211
Investment contract liabilities	F2	19,159	638
Property & casualty liabilities	F2	394	-
Third-party interests in consolidated funds		-	-
Borrowed funds	F3	489	2,368
Provisions and accruals		167	1
Deferred revenue		19	1
Deferred tax liabilities		204	33
Current tax payable		91	13
Trade, other payables and other liabilities		2,377	1,789
Amounts owed to bank depositors		429	35,571
Derivative financial instruments		375	786
Liabilities held for sale	I2	-	-
Inter-segment funding - liabilities		-	-
Total liabilities		32,450	41,411
Net assets		2,075	3,784
Equity
Equity attributable to equity holders of the parent		1,866	1,942
Non-controlling interests		209	1,842
Ordinary shares		209	1,570
Preferred securities		-	272

Total equity		2,075	3,784

					£m
Old Mutual Wealth	Institutional Asset Management	Other	Non-core operation	Consolidation adjustments	Total

1,668	831	-	-	-	3,344
-	-	-	-	-	808
20	18	-	-	-	726
-	-	-	-	-	1,318
7	167	-	1	-	247
-	23	10	-	-	470
686	19	-	-	-	804
2,226	-	-	-	-	2,394
174	-	-	-	-	34,655
47,176	45	397	293	4,112	87,033
55	-	-	-	-	95
710	117	107	442	132	2,938
-	-	67	18	41	1,161
751	129	401	21	655	5,034
902	-	-	-	-	1,114
64	-	865	-	(929)	-
54,439	1,349	1,847	775	4,011	142,141

258	-	-	636	-	9,851
48,953	-	-	36	-	68,786
-	-	-	-	-	394
-	-	-	-	5,678	5,678
-	92	680	-	(63)	3,566
35	2	23	-	-	228
271	-	-	-	-	291
221	-	18	-	-	476
23	12	30	-	-	169
1,154	370	148	10	(675)	5,173
-	-	-	-	-	36,000
-	-	-	-	-	1,161
833	-	-	-	-	833
763	-	166	-	(929)	-
52,511	476	1,065	682	4,011	132,606
1,928	873	782	93	-	9,535

1,928	577	782	93	-	7,188
-	296	-	-	-	2,347
-	296	-	-	-	2,075
-	-	-	-	-	272

1,928	873	782	93	-	9,535

		£m
	Notes	Six months ended 30 June 2016	Six months ended 30 June 2015	Year ended 31 December 2015
(Expense)/income
Goodwill impairment and impact of acquisition accounting	C1(b)	(90)	(171)	(167)
Net profit/(loss) on disposal of subsidiaries, associated undertakings and strategic investments	C1(c)	24	2	(36)
Short-term fluctuations in investment return	C1(d)	(23)	(15)	(42)
Investment return adjustment for Group equity and debt instruments held in life funds	C1(e)	(5)	(26)	(31)
Dividends declared to holders of perpetual preferred callable securities	C1(f)	9	15	31
Institutional Asset Management equity plans	C1(g)	2	(6)	(9)
Credit-related fair value gains/(losses) on Group debt instruments	C1(h)	14	(19)	7
Old Mutual Wealth business transformation costs	C1(i)	(48)	(40)	(97)
Total adjusting items		(117)	(260)	(344)
Tax on adjusting items	D1(d)	24	27	60
Non-controlling interest on adjusting items		4	8	19
Total adjusting items after tax and non-controlling interests		(89)	(225)	(265)

			%
Long-term investment rates	Six months ended 30 June 2016	Six months ended 30 June 2015	Year ended 31 December 2015
Emerging Markets
Mutual & Federal¹	7.4	7.4	7.4
Old Mutual South Africa	8.0	8.0	8.0
Rest of Africa	8.5	8.5	8.5
Old Mutual Wealth	1.0	1.0	1.0

					Pence
	Source of guidance	Notes	Six months ended 30 June 2016	Six months ended 30 June 2015	Year ended 31 December 2015
Basic earnings per share	IFRS	C2(a)	5.7	5.4	12.7
Diluted basic earnings per share	IFRS	C2(b)	5.6	5.0	12.2
Adjusted operating earnings per share	Group policy	C2(c)	8.0	10.3	19.3

Headline earnings per share (Gross of tax)	JSE Listing Requirements	C2(d)	6.1	7.4	13.9
Headline earnings per share (Net of tax)	JSE Listing Requirements	C2(d)	6.2	7.4	13.9

Diluted headline earnings per share (Gross of tax)	JSE Listing Requirements	C2(d)	6.0	6.9	13.3
Diluted headline earnings per share (Net of tax)	JSE Listing Requirements	C2(d)	6.0	6.9	13.3

		+
	Notes	Six months ended 30 June 2016	Six months ended 30 June 2015	Year ended 31 December 2015
Profit for the financial period attributable to equity holders of the parent		284	260	614
Adjusting items	C1(a)	117	260	344
Tax on adjusting items		(24)	(27)	(60)
Non-core operations	B3	9	(4)	31
Loss from discontinued operations	I1	-	21	21
Non-controlling interest on adjusting items		(4)	(8)	(19)
Adjusted operating profit after tax attributable to ordinary equity holders (£m)		382	502	931
Adjusted weighted average number of ordinary shares used to calculate adjusted operating earnings per share (millions)	C2(a)	4,773	4,855	4,813

Adjusted operating earnings per share (pence)		8.0	10.3	19.3

				£m
	Ordinary dividend payment date	Six months ended 30 June 2016	Six months ended 30 June 2015	Year ended 31 December 2015
2014 Final dividend paid - 6.25p per 11 3/7p ordinary share	29 May 2015	-	296	296
2015 Interim dividend paid - 2.65p per 11 3/7p ordinary share	30 October 2015	-	-	126
2015 Second interim dividend paid - 6.25p per 11 3/7p ordinary share	26 April 2016	299	-	-
Dividends to ordinary equity holders		299	296	422
Dividends paid to holders of perpetual preferred callable securities		17	17	30
Dividend payments for the period		316	313	452

At 30 June 2016								£m
Measurement basis		Fair value (note E3)			Amortised cost
	Total	Held-for-trading	Designated	Available-for-sale financial assets	Held-to-maturity investments	Loans and receivables	Financial liabilities amortised cost	Non-financial assets and liabilities
Assets
Mandatory reserve deposits with central banks	866	-	-	-	-	866	-	-
Investments in associated undertakings and joint ventures¹	527	-	74	-	-	-	-	453
Reinsurers' share of policyholder liabilities	3,058	-	2,596	-	-	6	-	456
Loans and advances	36,801	1,784	3,482	2	-	31,533	-	-
Investments and securities	88,996	1,241	84,085	791	2,879	-	-	-
Trade, other receivables and other assets	3,368	282	-	-	-	1,701	-	1,385
Derivative financial instruments	1,541	1,541	-	-	-	-	-	-
Cash and cash equivalents	3,978	-	-	-	-	3,978	-	-
Total assets that include financial instruments	139,135	4,848	90,237	793	2,879	38,084	-	2,294
Total other non-financial assets	12,918	-	-	-	-	-	-	12,918
Total assets	152,053	4,848	90,237	793	2,879	38,084	-	15,212

Liabilities
Long-term business insurance policyholder liabilities	9,183	-	-	-	-	-	-	9,183
Investment contract liabilities	69,040	-	60,364	-	-	-	-	8,676
Third-party interest in consolidation of funds	6,585	-	6,585	-	-	-	-	-
Borrowed funds	4,231	-	868	-	-	-	3,363	-
Trade, other payables and other liabilities	5,631	823	667	-	-	-	2,237	1,904
Amounts owed to bank depositors	38,607	5,385	3,300	-	-	-	29,922	-
Derivative financial instruments	1,584	1,584	-	-	-	-	-	-
Total liabilities that include financial instruments	134,861	7,792	71,784	-	-	-	35,522	19,763
Total other non-financial liabilities	7,305	-	-	-	-	-	-	7,305
Total liabilities	142,166	7,792	71,784	-	-	-	35,522	27,068

At 30 June 2015								£m
Measurement basis		Fair value (note E3)			Amortised cost
	Total	Held-for-trading	Designated	Available-for-sale financial assets	Held-to-maturity investments	Loans and receivables	Financial liabilities amortised cost	Non-financial assets and liabilities
Assets
Mandatory reserve deposits with central banks	808	-	-	-	-	808	-	-
Investments in associated undertakings and joint ventures¹	470	-	54	-	-	-	-	416
Reinsurers' share of policyholder liabilities	2,394	-	2,082	-	-	5	-	307
Loans and advances	34,655	2,017	3,425	2	-	29,211	-	-
Investments and securities	87,033	953	82,866	647	2,512	55	-	-
Trade, other receivables and other assets	2,938	71	288	-	-	1,565	-	1,014
Derivative financial instruments	1,161	1,161	-	-	-	-	-	-
Cash and cash equivalents	5,034	-	-	-	-	5,034	-	-
Total assets that include financial instruments	134,493	4,202	88,715	649	2,512	36,678	-	1,737
Total other non-financial assets	7,648	-	-	-	-	-	-	7,648
Total assets	142,141	4,202	88,715	649	2,512	36,678	-	9,385
Liabilities
Long-term business insurance policyholder liabilities	9,851	-	-	-	-	-	-	9,851
Investment contract liabilities	68,786	-	60,905	-	-	-	-	7,881
Third-party interest in consolidation of funds	5,678	-	5,678	-	-	-	-	-
Borrowed funds	3,566	-	802	-	-	-	2,764	-
Trade, other payables and other liabilities	5,173	704	430	-	-	-	2,395	1,644
Amounts owed to bank depositors	36,000	4,565	2,585	-	-	-	28,850	-
Derivative financial instruments	1,161	1,161	-	-	-	-	-	-
Total liabilities that include financial instruments	130,215	6,430	70,400	-	-	-	34,009	19,376
Total other non-financial liabilities	2,391	-	-	-	-	-	-	2,391
Total liabilities	132,606	6,430	70,400	-	-	-	34,009	21,767

At 31 December 2015								£m
Measurement basis		Fair value (note E3)			Amortised cost
	Total	Held-for-trading	Designated	Available-for-sale financial assets	Held-to-maturity investments	Loans and receivables	Financial liabilities amortised cost	Non-financial assets and liabilities
Assets
Mandatory reserve deposits with central banks	716	-	-	-	-	716	-	-
Investments in associated undertakings and joint ventures¹	514	-	51	-	-	-	-	463
Reinsurers' share of policyholder liabilities	2,661	-	2,328	-	-	4	-	329
Loans and advances	30,965	1,491	3,035	2	-	26,437	-	-
Investments and securities	82,601	883	78,723	731	2,264	-	-	-
Trade, other receivables and other assets	2,007	182	-	-	-	1,179	-	646
Derivative financial instruments	3,076	3,076	-	-	-	-	-	-
Cash and cash equivalents	4,520	-	-	-	-	4,520	-	-
Total assets that include financial instruments	127,060	5,632	84,137	733	2,264	32,856	-	1,438
Total other non-financial assets	6,488	-	-	-	-	-	-	6,488
Total assets	133,548	5,632	84,137	733	2,264	32,856	-	7,926
Liabilities
Long-term business policyholder liabilities	7,714	-	-	-	-	-	-	7,714
Investment contract liabilities	67,854	-	60,769	-	-	-	-	7,085
Third-party interest in consolidation of funds	4,661	-	4,661	-	-	-	-	-
Borrowed funds	3,524	-	804	-	-	-	2,720	-
Trade, other payables and other liabilities	3,787	547	383	-	-	-	1,547	1,310
Amounts owed to bank depositors	32,328	4,580	2,885	-	-	-	24,863	-
Derivative financial instruments	3,317	3,317	-	-	-	-	-	-
Total liabilities that include financial instruments	123,185	8,444	69,502	-	-	-	29,130	16,109
Total other non-financial liabilities	1,429	-	-	-	-	-	-	1,429
Total liabilities	124,614	8,444	69,502	-	-	-	29,130	17,538

Description of hierarchy	Types of instruments classified in the respective levels
Level 1 - quoted market prices: financial assets and liabilities with quoted prices for identical instruments in active markets.	Listed equity securities, government securities and other listed debt securities and similar instruments, actively traded pooled investments, certain quoted derivative assets and liabilities, listed borrowed funds and investment contract liabilities directly linked to other Level 1 financial assets.
Level 2 - valuation techniques using observable inputs: financial assets and liabilities with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial assets and liabilities valued using models where all significant inputs are observable.	Unlisted equity and debt securities where the valuation is based on models involving no significant unobservable data. Certain loans and advances, certain privately placed debt instruments, third-party interests in consolidated funds and amounts owed to bank depositors.
Level 3 - valuation techniques using significant unobservable inputs: financial assets and liabilities valued using valuation techniques where one or more significant inputs are unobservable.	Unlisted equity and securities with significant unobservable inputs, securities where the market is not considered sufficiently active, including certain inactive pooled investments, and derivatives embedded in certain portfolios of insurance contracts where the derivative is not closely related to the host contract and the valuation contains significant unobservable inputs.

				£m
At 30 June 2016	Total	Level 1	Level 2	Level 3
Financial assets measured at fair value
Held-for-trading (fair value through profit or loss)	4,848	843	3,985	20
Loans and advances	1,784	-	1,784	-
Investments and securities	1,241	561	680	-
Other financial assets	282	282	-	-
Derivative financial instruments - assets	1,541	-	1,521	20

Designated (fair value through profit or loss)	90,237	78,527	10,154	1,556
Investments in associated undertakings and joint ventures	74	-	-	74
Reinsurers' share of policyholder liabilities	2,596	2,596	-	-
Loans and advances	3,482	189	3,291	2
Investments and securities	84,085	75,742	6,863	1,480

Available-for-sale financial assets (fair value through equity)	793	3	790	-
Loans and advances	2	2	-	-
Investments and securities	791	1	790	-

Total assets measured at fair value	95,878	79,373	14,929	1,576
Financial liabilities measured at fair value
Held-for-trading (fair value through profit or loss)	7,792	824	6,961	7
Other liabilities	823	812	11	-
Amounts owed to bank depositors	5,385	-	5,385	-
Derivative financial instruments - liabilities	1,584	12	1,565	7

Designated (fair value through profit or loss)	71,784	47,272	23,958	554
Investment contract liabilities¹	60,364	46,277	13,533	554
Third-party interests in consolidated funds	6,585	-	6,585	-
Borrowed funds	868	854	14	-
Other liabilities	667	141	526	-
Amounts owed to bank depositors	3,300	-	3,300	-

Total liabilities measured at fair value	79,576	48,096	30,919	561

					£m
	Held-for-trading	Designated fair value through profit or loss			Total
Six months ended 30 June 2016	Derivatives	Investments in associated undertakings and joint ventures	Loans and advances	Investments and securities
Level 3 financial assets
At beginning of the period	18	51	1	1,322	1,392
Total net fair value gains recognised in:
- profit or loss	-	8	-	48	56
- other comprehensive income	-	7	-	1	8
Purchases and issues	-	-	-	73	73
Sales and settlements	-	(2)	-	(122)	(124)
Transfers in	-	-	-	62	62
Transfers out	-	-	-	(46)	(46)
Foreign exchange and other	2	10	1	142	155
Total level 3 financial assets	20	74	2	1,480	1,576

Fair value gains relating to assets held at 30 June 2016 recognised in:
- profit or loss	-	8	-	41	49
- other comprehensive income	-	7	-	1	8


			£m
Six months ended 30 June 2016	Held-for-trading - Derivatives	Designated fair value through profit or loss - Investment contract liabilities	Total
Level 3 financial liabilities
At beginning of the period	4	594	598
Total net fair value losses recognised in profit or loss for the period	2	10	12
Purchases and issues	-	13	13
Sales and settlements	-	(101)	(101)
Transfers in	-	62	62
Transfers out	-	(36)	(36)
Foreign exchange and other	1	12	13
Total level 3 financial liabilities	7	554	561

Fair value losses relating to liabilities held at 30 June 2016 recognised in profit or loss	2	10	12

Old Mutual plc 2016 Interim Results - Part 2

For the six months ended 30 June 2016

Statement of directors' responsibilities in respect of the interim financial statements

Independent review report to Old Mutual plc

For the six months ended 30 June 2016

Introduction

Directors' responsibilities

Our responsibility

Scope of review

Conclusion

Basis of preparation of adjusted operating profit

A: Significant accounting policies

A1: Basis of preparation

Translation of foreign operations

A2: Significant corporate activity and business changes during the year

B1: Basis of segmentation

(e) Investment return adjustment for Group equity and debt instruments held in policyholder funds

(f) Dividends declared to holders of perpetual preferred callable securities

(g) Institutional Asset Management equity plans

(h) Credit-related fair value losses on Group debt instruments

(i) Old Mutual Wealth restructuring expenditure

C2: Earnings and earnings per share

(b) Diluted basic earnings per share

(c) Adjusted operating earnings per share

(d) Headline earnings per share

E1: Categories of financial instruments continued

(a) Financial assets and liabilities measured at fair value, classified according to fair value hierarchy

Summary

Detail analysis

(a) Financial assets and liabilities measured at fair value, classified according to fair value hierarchy continued

(b) Level 3 fair value hierarchy disclosure

F1: Loans and advances

F1: Loans and advances continued

Interest rate profile

Analysis of security types

Segmental analysis of goodwill and other intangibles

Contingent liabilities - tax

Contingent liabilities - implications of the Managed Separation strategy

Nedbank litigation

Consumer protection

H: Other notes continued

H2: Events after the reporting date

I2: Assets and liabilities held for sale

Companies

UK 100

Latest directors dealings

									£m
	Held-for-trading	Designated at fair value through profit or loss					Available- for-sale		Total
Six months ended 30 June 2015	Derivatives	Investments in associated undertakings and joint ventures	Loans and advances		Investments and securities		Investments and securities
Level 3 financial assets
At beginning of the period	8	50	2		1,552		1		1,613
Total net fair value gains recognised in the profit or loss for the period	-	2	-		2		-		4
Purchases and issues	11	5	-		143		-		159
Sales and settlements	-	-	-		(309)		(1)		(310)
Transfers in	-	-	-		48		-		48
Transfers out	-	-	-		(59)		-		(59)
Foreign exchange and other	(1)	(3)	-		(48)		-		(52)
Total level 3 financial assets	18	54	2		1,329		-		1,403

Fair value gains/(losses) relating to assets held at 30 June 2015 recognised in profit or loss	-	2	-		(14)		-		(12)
								£m
Six months ended 30 June 2015				Held-for-trading - Derivatives		Designated fair value through profit or loss - Investment contract liabilities		Total
Level 3 financial liabilities (Designated fair value through profit or loss)
At beginning of the period				-		754		754
Total net fair value gains recognised in profit or loss for the period				-		(38)		(38)
Purchases and issues				-		65		65
Sales and settlements				-		(228)		(228)
Transfers in				1		48		49
Total level 3 financial liabilities				1		601		602

Fair value gains relating to assets held at 30 June 2015 recognised in profit or loss				-		(38)		(38)

Types of financial instruments	Fair values		Significant unobservable input	Range of estimates for unobservable inputs	Fair value measurement sensitivity to unobservable inputs
	At 30 June 2016 £m	At 31 December 2015 £m			At 30 June 2016 £m	At 31 December 2015 £m
Assets
Investments in associated undertakings and joint ventures	74	51	Valuation multiples	-7% to +8%	Favourable: 6 Unfavourable: 7	Favourable: 4 Unfavourable: 5
Investments and securities	1,480	1,322	Valuation multiples Correlations Volatilities Credit spreads Dividend growth rates Internal rates of return, Cost of capital Inflation rates Market adjusted price (Price of infrequently traded shares)	Nedbank: -12% to +10% Emerging Markets: -10% to +10% Old Mutual Wealth: -10% to +10%	Favourable: 188 Unfavourable: 182	Favourable: 149 Unfavourable: 141
Loans and advances	2	1	Correlations Volatilities Credit spreads	-12% to +10%	Favourable: £nil Unfavourable: £nil	Favourable: £nil Unfavourable: £nil
Derivatives	20	18	Interest rates Volatilities	-10% to +10%	Favourable: 7 Unfavourable: 7	Favourable: 7 Unfavourable: 7
Liabilities
Investment contract liabilities	554	594	Interest rates Volatilities	-10% to 10%	Favourable: 47 Unfavourable: 50	Favourable: 54 Unfavourable: 58
Derivatives	7	4	Growth rates Cost of equity and price-to-book	-10% to 10%	Favourable: 1 Unfavourable: 1	Favourable: 2 Unfavourable: 1

					£m
	Nedbank	Old Mutual Finance (Pty) Limited	Central Africa Building Society	Faulu Microfinance Bank Limited	At 30 June 2016
Performing	828	352	92	84	1,356
Non-performing	114	366	5	4	489
Defaulted loans	114	143	5	4	266
Long outstanding loans	-	223	-	-	223

Gross amount of unsecured retail lending	942	718	97	88	1,845

							£m
	Nedbank			Emerging Markets			Group
Six months ended 30 June 2016	Specific impairment	Portfolio impairment	Total impairment	Specific impairment	Portfolio impairment	Total impairment	Total impairment
Balance at beginning of the period	292	208	500	237	22	259	759
Credit impairment charge	95	5	100	3	13	16	116
Profit or loss charge	120	5	125	3	13	16	141
Recoveries of amounts previously written off	(25)	-	(25)	-	-	-	(25)
Amounts written off against the provision	(115)	(3)	(118)	(1)	(4)	(5)	(123)
Foreign exchange and other movements	71	39	110	60	(1)	59	169
Balance at end of the period	343	249	592	299	30	329	921


							£m
	Nedbank			Emerging Markets			Group
Year ended 31 December 2015	Specific impairment	Portfolio impairment	Total impairment	Specific impairment	Portfolio impairment	Total impairment	Total impairment
Balance at beginning of the year	379	237	616	217	24	241	857
Credit impairment charge	223	22	245	59	3	62	307
Profit or loss charge	281	22	303	59	3	62	365
Recoveries of amounts previously written off	(58)	-	(58)	-	-	-	(58)
Amounts written off against the provision	(231)	1	(230)	-	-	-	(230)
Foreign exchange and other movements	(79)	(52)	(131)	(39)	(5)	(44)	(175)
Balance at end of the year	292	208	500	237	22	259	759

						£m
	At 30 June 2016			At 30 June 2015
	Gross	Reinsurance	Net	Gross	Reinsurance	Net
Life assurance policyholder liabilities
Long-term business insurance policyholder liabilities	9,183	(312)	8,871	9,851	(201)	9,650
Life assurance policyholder liabilities	9,061	(302)	8,759	9,730	(191)	9,539
Outstanding claims	122	(10)	112	121	(10)	111

Investment contract liabilities	69,040	(2,597)	66,443	68,786	(2,079)	66,707
Unit-linked investment contracts and similar contracts	59,537	(2,597)	56,940	60,186	(2,079)	58,107
Other investment contracts	827	-	827	719	-	719
Discretionary participating investment contracts	8,676	-	8,676	7,881	-	7,881

Total life assurance policyholder liabilities	78,223	(2,909)	75,314	78,637	(2,280)	76,357
Property & casualty liabilities
Claims incurred but not reported	59	(8)	51	62	(12)	50
Unearned premiums	142	(61)	81	120	(40)	80
Outstanding claims	224	(80)	144	212	(62)	150
Total property & casualty liabilities	425	(149)	276	394	(114)	280
Total policyholder liabilities	78,648	(3,058)	75,590	79,031	(2,394)	76,637


						£m
				At 31 December 2015
				Gross	Reinsurance	Net
Life assurance policyholder liabilities
Long-term business insurance policyholder liabilities				7,714	(214)	7,500
Life assurance policyholder liabilities				7,617	(206)	7,411
Outstanding claims				97	(8)	89

Investment contract liabilities				67,854	(2,328)	65,526
Unit-linked investment contracts and similar contracts				60,169	(2,328)	57,841
Other investment contracts				600	-	600
Discretionary participating investment contracts				7,085	-	7,085

Total life assurance policyholder liabilities				75,568	(2,542)	73,026
Property & casualty liabilities
Claims incurred but not reported				38	(10)	28
Unearned premiums				120	(58)	62
Outstanding claims				183	(51)	132
Total property & casualty liabilities				341	(119)	222
Total policyholder liabilities				75,909	(2,661)	73,248

Summary of Borrowed Funds						£m
Type of securities	Notes	Old Mutual plc	Emerging Markets	Nedbank	Institutional Asset Management	At 30 June 2016
Senior debt securities and term loans		112	203	1,941	-	2,256
Floating rate notes	F3(a)(i)	-	-	1,053	-	1,053
Fixed rate notes	F3(a(ii)	112	-	888	-	1,000
Term loans	F3(a)(iii)	-	203	-	-	203
Revolving credit facilities	F3(b)	-	-	-	38	38
Mortgage-backed securities	F3(c)	-	-	104	-	104
Subordinated debt securities	F3(d)	991	302	540	-	1,833
Total Borrowed funds		1,103	505	2,585	38	4,231
Other instruments treated as equity for accounting purposes
£273 million perpetual preferred callable securities at 6.38%¹		273	-	-	-	273
Total book value of Group debt²		1,376	505	2,585	38	4,504

						£m
	Notes	Old Mutual plc	Emerging Markets	Nedbank	Institutional Asset Management	At 30 June 2015
Senior debt securities and term loans	F3(a)	112	123	1,560	-	1,795
Floating rate notes	F3(a)(i)	-	-	722	-	722
Fixed rate notes	F3(a(ii)	112	-	838	-	950
Term loans	F3(a)(iii)	-	123	-	-	123
Revolving credit facilities	F3(b)	-	51	-	92	143
Mortgage-backed securities	F3(c)	-	-	119	-	119
Subordinated debt securities	F3(d)	568	315	626	-	1,509
Total Borrowed funds		680	489	2,305	92	3,566
Other instruments treated as equity for accounting purposes
£273 million perpetual preferred callable securities at 6.38%		273	-	-	-	273
€374 million perpetual preferred callable securities at 5.00%¹		253	-	-	-	253
Total book value of Group debt		1,206	489	2,305	92	4,092

						£m
	At 30 June 2016			At 30 June 2015
Type of security	Non- banking	Banking¹	Total	Non- banking	Banking¹	Total
Senior debt securities and term loans	147	2,109	2,256	112	1,683	1,795
Revolving credit facilities	38	-	38	92	51	143
Mortgage-backed securities	-	104	104	-	119	119
Subordinated debt securities	1,293	540	1,833	883	626	1,509
Total Borrowed funds	1,478	2,753	4,231	1,087	2,479	3,566

						£m
				At 31 December 2015
Type of security				Non- banking	Banking¹	Total
Senior debt securities and term loans				160	1,481	1,641
Revolving credit facilities				61	-	61
Mortgage-backed securities				-	97	97
Subordinated debt securities				1,237	488	1,725
Total Borrowed funds				1,458	2,066	3,524

				£m
	Maturity date	At 30 June 2016	At 30 June 2015	At 31 December 2015
Banking - Nedbank Floating rate unsecured senior debt
R250 million at JIBAR + 1.00%	Repaid	-	13	-
R1,044 million at JIBAR + 2.20%	Repaid	-	55	-
R677 million at JIBAR + 1.25%	Repaid	-	35	30
R3,056 million at JIBAR + 0.80%	July 2016	158	161	135
R694 million at JIBAR + 0.75%	November 2016	36	37	31
R405 million at JIBAR + 1.30%	February 2017	21	21	18
R1,035 million at JIBAR + 0.85%	March 2017	53	54	45
R806 million at JIBAR + 0.90%	June 2017	41	42	35
R786 million at JIBAR + 1.30%	August 2017	37	37	31
R241 million at JIBAR + 1.12%	November 2017	13	13	11
R472 million at JIBAR + 1.25%	February 2018	24	25	21
R1,427 million at JIBAR + 1.30%	June 2018	74	75	63
R927 million at JIBAR + 1.45%	February 2019	48	-	-
R500 million at JIBAR + 1.45%	February 2019	26	-	-
R2,484 million at JIBAR + 1.45%	May 2019	129	-	-
R90 million at JIBAR + 1.45%	February 2020	5	5	4
R80 million at JIBAR + 2.15%	April 2020	4	4	4
R476 million at JIBAR + 1.55%	November 2020	25	-	21
R830 million at JIBAR + 1.80%	February 2021	43	-	-
R1,468 million at JIBAR + 1.80%	May 2021	76	-	-
R650 million at JIBAR + 1.30%	June 2021	33	34	29
R12 million at JIBAR + 1.55%	February 2022	1	1	1
R270 million at JIBAR + 2.00%	February 2023	14	-	-
R528 million at JIBAR + 2.00%	May 2023	27	-	-
R1,980 million at JIBAR + 2.00%	February 2025	103	105	88
R500 million at JIBAR + 2.10%	April 2026	26	27	22
R750 million at JIBAR + 2.25%	May 2026	39	-	-
		1,056	744	589
Less: floating rate notes held by other Group companies		(3)	(22)	(18)
Total floating rate notes		1,053	722	571

					£m
	Tier	Maturity date	At 30 June 2016	At 30 June 2015	At 31 December 2015
Banking - Nedbank
R161 million (class A2) at JIBAR + 1.25%	Tier 2	October 2039	3	14	7
R900 million (class A3) at JIBAR + 1.54%	Tier 2	October 2039	47	48	40
R110 million (class B) at JIBAR + 1.90%	Tier 2	October 2039	6	6	5
R558 million at JIBAR + 1.20%	Tier 2	February 2042	23	27	24
R100 million at JIBAR + 1.45%	Tier 2	February 2042	5	5	4
R680 million at JIBAR + 1.55%	Tier 2	February 2042	35	36	30
R80 million at JIBAR + 2.20%	Tier 2	February 2042	4	4	4
R65 million at JIBAR + 3.00%	Tier 2	February 2042	3	3	3
			126	143	117
Less: Mortgage backed securities held by other Group companies			(22)	(24)	(20)
Total mortgage-backed securities			104	119	97