1st Quarter Results

Old Mutual PLC
24 May 2007

                                 Old Mutual plc


24 May 2007

Results for the quarter ended 31 March 2007

Good operating performance and positioning for further sustainable growth

• Excellent investment performance driving continued strong net inflows
  of £4.5 billion

• Funds under management increased 5% to £249 billion and are on track
  to reach £300 billion by the end of 2008

• APE sales up 9% with contributions from investment in retail and offshore 
  distribution channels in life businesses, strong bancassurance results,
  as well as the continued success of Skandia's open architecture platform

• On a local currency basis, all geographic segments achieved increases
  in adjusted operating profits: Africa up 33%; US up 11%; Europe up 38%

• Group adjusted operating profit increased 5% and adjusted earnings
  reached 4.2p per share


Jim Sutcliffe, Chief Executive, commented:

'The overall start to 2007 has been positive, with good increases in life sales
in South Africa, continued growth in our US asset management business and strong
performance by Nedbank.  The Skandia results continue to exceed our acquisition
plans and will be accretive this year as forecast.  We are on track to achieve
our target of £300 billion of funds under management by the end of 2008 with a
satisfying 5% growth during the first quarter.

While we still expect exchange rates and synergy and infrastructural costs to
hold back earnings growth this year, the operating delivery from the Group is
good and we are well positioned to grow strongly in 2008.'


Financial highlights

• Adjusted operating profit* (IFRS basis) up 5% to £398 million (Q1
2006: £380 million)

• Profit for the quarter attributable to equity holders of the
  parent (IFRS basis) £248 million (Q1 2006: £170 million)

• Adjusted operating earnings per share* (IFRS basis) unchanged at
  4.2p (Q1 2006: 4.2p)

• Basic earnings per share (IFRS basis) 4.9p (Q1 2006: 3.8p)

• Net cash flow in relation to funds under management of £4.5 billion (Q1 2006: 
  £4.2 billion) representing 1.9% of opening funds under management

• Funds under management of £249 billion at 31 March 2007 (31
  December 2006: £237** billion), an increase of 5.1%

• Total life assurance sales, on an Annual Premium Equivalent (APE)
  basis, of £421 million, an increase of 8.8% (Q1 2006: £387 million)

• PVNBP of £3,325 million, an increase of 9.3% (Q1 2006: £3,041
  million)

• Adjusted embedded value per share (EEV basis) 159.0p at 31 March
  2007 (31 December 2006: 157.2p)


Enquiries

Investor Relations
Malcolm Bell                   UK        [phone]
Deward Serfontein              SA        [phone]

Media
James Crampton                 UK        [phone]
Nad Pillay                     SA        [phone]

College Hill (UK)                        [phone]
Tony Friend                    UK        
Gareth David                   UK


Notes

Wherever the terms asterisked in the Financial highlights are used, whether in
the Financial highlights, the Chief Executive's Statement, the Group Finance
Director's Review or the Business Review, the following definitions apply:

 *  For long-term and general insurance business, adjusted operating profit is
based on a long-term investment return, includes investment returns on life
funds' investments in Group equity and debt instruments and is stated net of
income tax attributable to policyholder returns. For all businesses, adjusted
operating profit excludes goodwill impairment, the impact of acquisition
accounting, initial costs of Black Economic Empowerment schemes, the impact of
closure of unclaimed shares trusts, profit / (loss) on disposal of subsidiaries,
associated undertakings and strategic investments and dividends declared to
holders of perpetual preferred callable securities.

Adjusted operating earnings per ordinary share is calculated on the same
basis as adjusted operating profit. It is stated after tax attributable to
adjusted operating profit and minority interests. It excludes income
attributable to Black Economic Empowerment trusts of listed subsidiaries. The
calculation of the adjusted weighted average number of shares includes own
shares held in policyholders' funds and Black Economic Empowerment trusts.

** 2006 restated due to sale of Spanish business

Forward-looking statements

This announcement contains forward-looking statements with respect to certain of
Old Mutual plc's plans and its current goals and expectations relating to its
future financial condition, performance and results. By their nature, all
forward-looking statements involve risk and uncertainty because they relate to
future events and circumstances that are beyond Old Mutual plc's control,
including, among other things, UK domestic and global economic and business
conditions, market-related risks such as fluctuations in interest rates and
exchange rates, policies and actions of regulatory authorities, the impact of
competition, inflation, deflation, the timing and impact of other uncertainties
or of future acquisitions or combinations within relevant industries, as well as
the impact of tax and other legislation and other regulations in territories
where Old Mutual plc or its affiliates operate.

As a result, Old Mutual plc's actual future financial condition, performance and
results may differ materially from the plans, goals and expectations set forth
in Old Mutual plc's forward-looking statements. Old Mutual plc undertakes no
obligation to update any forward-looking statements contained in this
announcement or any other forward-looking statements that it may make.


Notes to Editors:

A conference call for analysts and investors will take place at 9.00 a.m. (UK
time) and 10.00 a.m. (Swedish and South African time) today.  Analysts and
investors who wish to participate in the call should dial the following toll
free numbers:

UK                  0800 953 1444

Sweden              0200 895 350

South Africa        0800 994 090


Copies of these results together with high-resolution images (at http://
oldmutual.com/vpage.jsp?page_id=2220) and biographical details of the executive
directors of Old Mutual plc, are available in electronic format to download from
the Company's website.

A Financial Disclosure Supplement relating to the Company's Q1 results can be
found on the website.  This contains a summary of key financial data for the
first quarters of 2007 and 2006.

For further information on Old Mutual plc, please visit our website at
www.oldmutual.com.


Chief Executive's Statement

A positive start to the year

Old Mutual's open architecture model and good investment performance from our
investment managers have continued to win strong net inflows in the first
quarter, with net client cash flow of £4.5 billion. Overall funds under
management by the Group increased 5.1% to £249 billion from the 2006 year-end
position of £237 billion, benefiting from positive equity markets in the main
countries in which we operate. Earnings on an IFRS basis were flat in Sterling
terms, at 4.2p, but the strength of Sterling against the Rand and the US dollar
for the first quarter of 2007 compared to the first quarter of 2006 disguises
some underlying good performances by our businesses in local currency terms.


Europe

Skandia's open architecture offerings have continued to propel strong new
business growth in the UK and offshore UK, with total Europe net inflows of £1.5
billion for the first quarter. Pension sales have continued to benefit from
post-A Day demand, increasing by 24% compared to the first quarter of 2006. Unit
trust sales were down by 3%. Offshore sales have also recovered markedly from
the weakness experienced at the beginning of 2006.  IFRS profit for the UK &
Offshore increased by 16% for the period.

Profits at Skandia Nordic were unusually high, benefiting from higher levels of
funds under management, which increased by SEK 4 billion and some exceptional
profits in smaller lines of business. However, sales were depressed by the
removal of the tax privileges of a key product, Kapitalpension, and by our early
adoption of a level commission structure. Margins on new business fell with
lower volumes affecting experience ratios and the costs of the new Skandia Liv
arrangements which have now been put in place. Good progress is being made in
putting this division on to a sounder footing for the future, and investing in a
solid IT base. We are looking forward to welcoming our new CEO for the Nordic
business, Bertil Hult, who is expected to join us in September 2007.

Within Skandia's European and Latin American businesses, Poland again performed
well but Italian sales disappointed. Funds under management grew by 20% and the
value of new business grew by 15%. Margins remained above target at 19%.

Our plans for significant spending on achieving the previously announced
synergies at Skandia during 2007 remain in place, with the bulk of the
expenditure coming through during the rest of the year. We remain on track to
meet our stated targets.


South Africa

Our South African life business achieved good sales growth during the quarter
benefiting from the investment we have made in our distribution network over the
past few years. Retail life sales grew strongly up 27% partially offsetting
lower Institutional sales. Bancassurance sales achieved through the Nedbank
channel have also continued to grow strongly. Lumpy Institutional life sales
were down for the quarter and funds under management were adversely affected by
the loss of two large investment mandates. Investment performance by our South
African asset management business, which went through an adverse patch in 2006,
has recovered strongly. We have now completed the transformation of our asset
management business to a boutique model and we remain confident that it will
benefit our clients. Profits benefited from the strong JSE and some one-off
items, and are up 34% in Rand terms.

Nedbank has continued its return to health, with a 24% increase in headline
earnings in Rand terms. Nedbank exceeded its 2007 target of 20% RoE for the
first time in the first quarter. Its cost to income ratio for the quarter was
below its target of 55% for the year, although this will be affected during the
rest of 2007 by Nedbank's continuing high levels of investment in its retail
programme. Nedbank's market share statistics improved during the quarter, but
loan impairments deteriorated as a result of the tighter credit environment.

The combined ratio at our general insurance business, Mutual & Federal, was
affected by some adverse weather-related and motor claims that led to its result
being slightly higher in local currency terms for the period, even though the
premium cycle does now appear to have turned, with a recent hardening of rates.
Contribution from its long-term investment return was lower than in the
equivalent period of 2006 as a result of the significant amount of capital
returned to its shareholders under the special dividend paid last year.


USA

Our asset management business attracted $6.2 billion of net cash inflow from
clients during the first quarter, which, together with powerful market and
investment performance, raised its total funds under management by $16 billion
to $290 billion. IFRS adjusted operating profit was up by 27% in local currency
terms for the period.  Sales by Old Mutual Capital Partners rose by 17%, with
mutual funds up by 40%, underlining the potential of our retail strategy
initiatives. We completed the acquisition of Ashfield, our new large cap
manager, during February.  Old Mutual Asset Managers (UK), which is now reported
as part of the US asset management division, had an excellent three months, with
unit trust sales up by 50%.

Sales at our US life business were strong, at $1.1 billion gross (Annual Premium
Equivalent of $132 million), an increase of 25% (APE basis) on the equivalent
period in 2006 when there was a slow start to the year. Margins were a healthy
18%, helped by strong sales by the Bermudan business and strong demand for
equity indexed annuities. IFRS adjusted operating profit was lower than the
equivalent period in 2006, but in line with the 2006 full year run rate, as a
result of some adverse annuitant mortality experience and increases in the
prevailing interest rate environment.  The business remains on track to return
cash to the Group by the end of 2007.

Our previously-announced review of the historic book of the US life business
continues and we aim to complete this by August 2007. Two of the key items under
review are hedging and longevity modelling; the latter produced an experience
loss of $9 million in the quarter, while the former broke even.


Asia Pacific

Our businesses in the Asia Pacific region have continued to make good progress,
with strong growth in life sales in India and China.

Outlook

The overall start to 2007 has been positive, with good increases in life sales
in South Africa, continued growth in our US asset management business and strong
performance by Nedbank. The Skandia results continue to exceed our acquisition
plans and will be accretive this year as forecast. We are on track to achieve
our target of £300 billion of funds under management by the end of 2008 with a
satisfying 5% growth during the first quarter. While we still expect exchange
rates and synergy and infrastructural costs to have an effect this year, the
operating delivery from the Group is good and we are well positioned to grow
strongly in 2008.


Jim Sutcliffe
Chief Executive


Group Finance Director's Review

GROUP RESULTS

Group Highlights (£m)                             Q1 2007    Q1 2006    Change

Adjusted operating profit (IFRS basis) (pre-tax)  398        380        5%
Profit before tax (IFRS)                          478        401        19%
Adjusted operating earnings per share (IFRS       4.2p       4.2p        -
basis)
Basic earnings per share (IFRS basis)             4.9p       3.8p       29%
Value of new business                             58         59*        (2%)
PVNBP                                             3,325      3,041*      9%
Life assurance sales (APE)                        421        387*        9%
Unit trust / mutual funds sales                   1,935      2,165*     (11%)
Net fund inflows (£bn)                            4.5        4.2         7%

Group Highlights                                  Q1 2007    FY 2006    Change
Embedded Value (£bn)                              8.7        8.6         1%
Adjusted Embedded Value per share (EEV basis)     159.0p     157.2p      1%
Funds under management (£bn)                      249        237**       5%
Return on equity (annualised basis) (%) ***       13.7%      12.0%

*Pro forma three months
** 2006 restated due to sale of Spanish business
*** Return on equity is calculated using adjusted operating profit after tax and
minority on an IFRS basis with allowance for accrued coupon payments on the Group's
hybrid capital. The average shareholders' equity used in the calculation excludes
hybrid capital

Strong sales and net fund inflows continued in the first quarter of 2007 driving
funds under management (FUM) to £249 billion, well on the way to our target of
£300 billion by the end of 2008. Adjusted operating profit rose 5% in the period
with higher FUM and operational leverage driving strong cash generation and a
corresponding increase in return on shareholders equity.

Skandia continues to exceed expectations delivering £1.5 billion net fund
inflows and £66 million in adjusted operating profits during the quarter and our
US business powered ahead to $291 billion FUM. Elsewhere Nedbank and OMSA
delivered very strong growth in profits offsetting the 31% decline in the Rand
compared to the first quarter of 2006.

The first quarter of 2007 although good for unit trust sales was not as strong
as the equivalent period last year due to the market correction in February and
a period of poor investment performance at OMSA in 2006.

Adjusted Embedded Value per share up by 1.1%

Adjusted Group Embedded Value (EV) increased to £8.7 billion at 31 March 2007
(31 December 2006: £8.6 billion). The adjusted Group EV per share has increased
to 159.0p at 31 March 2007 from 155.9p (restated from 157.2p after a fair value
adjustment to the prior period balance sheet). This was driven by excellent
investment performance, solid operating profits and the market value increase of
our subsidiaries offset by adverse movement in foreign exchange rates.

Skandia synergies on track

The Skandia acquisition provides significant opportunities for growth throughout
Europe. In addition the integration and synergy benefits of £70 million per
annum (announced in June 2006) are on track to be delivered by the end of 2008.
2007 is the key year for investment in synergy initiatives with £10 million
incurred in the first quarter and it is expected that £46 million will be
incurred in 2007 as a whole.

Value of new business flat

The value of new business in the first quarter of 2007 was £58 million driven by
growth in the US and Europe offset by lower value of institutional business in
South Africa coupled with the impact of foreign exchange movements.

Capital position

The Group's gearing level remains comfortably within our target range, with
senior debt gearing at 31 March of 1.9% (6.0% at 31 December 2006) and total
gearing, including hybrid capital, of 21.5% (21.8% at 31 December 2006).

In January 2007, the Group issued €750 million of Lower Tier 2 Preferred
Callable Securities, the proceeds of which were used in part to finance the
maturity of a €400 million senior Eurobond that matured in April 2007.

Old Mutual discloses strong Economic Capital position

Old Mutual plc today announces for the first time results from its Economic
Capital (EC) Programme.  These results show that, as at 31 December 2006, the
Group had available financial resources (AFR) significantly in excess of the
amount of economic capital the Group believes would be required to support its
target rating.

Old Mutual plc's Economic Capital requirement as at 31 December 2006 stood at
£4.1 billion. The corresponding AFR of the Group was £7.1 billion, giving an
economic surplus of 73%.  A comfortable surplus also exists within each of our
South African, US and European regions, meaning that the Group is not reliant
for its economic solvency on the need to transfer capital between geographies.


Jonathan Nicholls
Group Finance Director

24 May 2007


COMPARATIVE INFORMATION

Following the acquisition of Skandia by Old Mutual plc, and the resultant
listing of Old Mutual plc shares on the Stockholm Stock Exchange, Old Mutual plc
has adopted quarterly reporting from the period ended 30 September 2006. The
reporting format for the first quarter 2007 reporting period is as follows:

• All group comparative quarterly reporting information on earnings
  include Skandia from the date of acquisition of 1 February 2006.

• Within the financial statements the Europe division comparative
  information is from the date of acquisition of 1 February 2006

• Where Europe information is shown within the business review this has
  been adjusted on a pro forma basis to reflect ownership from 1 January 2006.


For the full first quarter announcement, please visit Old Mutual's website
www.oldmutual.com






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