AGM Statement

Old Mutual PLC
18 May 2001

                                OLD MUTUAL PLC


                                AGM Statement


At the Annual General Meeting of Old Mutual plc ('Old Mutual'), held in London
today, Mike Levett, Chairman & Chief Executive, made the following comments:


'The past year saw Old Mutual take two substantial steps toward our strategic
goal of becoming a truly international financial services business. In April
2000 we completed the acquisition of Gerrard Group for £525 million. Since
then, Greig Middleton, the largest business in the Gerrard Group, has been
combined with our Capel Cure Sharp business to form the largest private client
stockbroking business in the UK. The combined business was relaunched under
the Gerrard brand in January this year and the integration of these businesses
is currently moving ahead according to plan.


In September we bought United Asset Management Corporation ('UAM') in the US
for $2.2 billion. We have already taken major steps to re-organise UAM.
Pilgrim Baxter, one of the key UAM affiliates, has been established as our
principal mutual fund operation in the USA. Seven of the other UAM firms have
been combined into a new US multi-style fund management firm, which we are
calling OMAM US. We are also working with UAM's existing management to review
and refocus the remaining UAM businesses. This process has entailed a number
of sales of non-core affiliates, the main two so far being Murray Johnstone,
which we sold to Aberdeen Asset Management in October, and Pell Rudman which
we have recently agreed to sell to Amvescap for approximately $200 million.


We have recently taken major steps to realise our plans to create a
significant life assurance business in the USA with the proposed acquisition
of Fidelity and Guaranty Life and the launch of Americom, both of which were
announced towards the end of April. We launched a $650 million convertible
bond in April, which was heavily over-subscribed. Total borrowings are
carefully matched to assets and the key gearing ratio is being tightly
controlled. Our pro forma gearing is at a comfortable level of 26%.


We now have a solid platform for future development and can concentrate on
delivering value from these acquisitions.


In our Annual Report, I commented that economic conditions affecting our
business were important to future performance and that conditions in 2001
might prove challenging. During the first quarter, the Group's performance has
been affected by the trends in global currency and investment markets. The
South African equity market was at approximately the same level at the end of
last year and March of this year as at the start of 2000. On the other hand,
the UK and US markets have seen declining equity values in the first quarter.
Charges levied on assets are key drivers of the Group's life assurance and
asset management operating profits. During the first quarter of 2001, the
average Rand/Sterling exchange rate was 11.42, a decline of 8.5% compared to
the average for 2000. Both market levels and exchange rates will have an
important influence on the Group's results for the year.


In South Africa, during the first quarter, life assurance new business premium
levels have continued to be affected by market uncertainty. Agent recruitment,
however, remains on target and expense levels continue to be aggressively
managed.


In Asset Management, the level of total funds under management held by the
Group has been affected by market falls, although the diversified nature of
the portfolios of UAM's affiliates has partly offset this. Net cash flows into
US retail funds were satisfactory in light of market conditions in the three
months to March, although trading volumes in the Group's UK financial services
businesses were low.


Average asset levels at Nedcor, our banking business, have increased in early
2001, and deposit levels remain positive, leading to increase in market share.
Non-interest revenues are strong and cost efficiencies continue to be realised
in Nedcor's main businesses, but interest margins remain under pressure.


We are working hard to drive through our strategy and have achieved
substantial growth in our first two years as a plc. The economic environment
affecting our businesses (including equity market levels and exchange rates)
continues to be important to our future performance. We remain confident,
however, that the foundations we have laid provide a sound platform for
building value for the future.'


                                                                   18 May 2001

ENQUIRIES:

Old Mutual plc                                   Tel: [phone]
James Poole, Director, Investor Relations

College Hill, London                             Tel: [phone]
Gareth David

College Hill, South Africa                       Tel: [phone]
Linda Baker













NOTES TO EDITORS:


Old Mutual plc is an international financial services company based in London,
with expanding operations in life assurance, asset management, banking and
general insurance. As the former South African Mutual Life Assurance Society
the company has operated in Africa for over 155 years. Following
demutualisation, the renamed Old Mutual plc listed on the London Stock
Exchange in July 1999, and also listed on the Johannesburg, Namibian, Malawi
and Zimbabwe stock exchanges. Market capitalisation is approximately £5.6
billion as at 17 May 2001.


Life Assurance


In Southern Africa, Old Mutual provides life, disability, health, retirement
savings and investment products to individuals and groups. With over 3.2
million policyholders, a majority of whom it is estimated come from formerly
disadvantaged groups, Old Mutual has approximately 30% of the life assurance
market in South Africa.


The Group recently reorgnised its individual life operations into three
segments to improve service and the quality of products offered. Old Mutual
also offers leading eCommerce services. There are partnerships in networks and
systems, working with Nedcor and Dimension Data, including joint investments
in Internet Solutions, a leading South African corporate internet service
provider, and Miraculum, a business-to-business electronic marketplace.


Old Mutual International is the offshore and international investment
subsidiary, providing individually tailored offshore investments, life
assurance and unit trusts from product companies based in Guernsey.


The group has also made two significant moves into the US life market this
year. In March it acquired Unified Life Insurance Company, which was
subsequently re-branded as Americom and will provide a platform to sell a
suite of annuity and term products in the US through brokers. In April, Old
Mutual announced the proposed $635 million acquisition of Fidelity and
Guaranty Life.


During 2001, Old Mutual in a joint venture with Kotak Mahindra Finance Ltd,
one of India's largest financial services companies, has launched its first
life assurance products in India.


Asset Management


Old Mutual is a world top 30 asset manager, with funds under management of
about £169bn at 31.12.00. Old Mutual Asset Managers (OMAM) provides a
multi-country asset management capability with global investment and asset
management expertise, and has operations in three key financial centres:
Johannesburg, London, and the USA. In retail investments Old Mutual Unit
Trusts is the leading unit trust provider in South Africa.


Following the completion of the acquisition of Gerrard Group plc, parent
company of Greig Middleton in March 2000, Old Mutual's subsidiary, Albert E
Sharp Securities, and Greig Middleton's institutional and stockbroking
businesses, merged in May 2000 to form Old Mutual Securities, which focuses on
the growth sector of corporate and advisory services for smaller and medium
sized UK and European companies.


Old Mutual's merged private client businesses, Greig Middleton and Capel Cure
Sharp, have been rebranded under the Gerrard name and are now under one
management. The Gerrard Group is the leading provider of portfolio management
and stockbroking services to high net-worth individuals in the UK. GNI is Old
Mutual's specialised broking and derivatives market subsidiary.


At the end of September 2000, Old Mutual plc completed the $2.2bn acquisition
of United Asset Management Corporation, one of the largest investment
management organisations in the world. UAM's operations are being reorganised:
Seven member firms or 'affiliates' have come together to form Old Mutual Asset
Managers (US); Pilgrim Baxter, its largest affiliate, committed to a new
long-term arrangement with Old Mutual designed to optimise future growth
opportunities; new arrangements are being entered into with the remaining UAM
affiliates on a case by case basis, including sale or MBO, where this
maximises shareholder value to Old Mutual.


Banking


Old Mutual's banking business is conducted principally by Nedcor, in which the
company has a 53.4% controlling interest. Nedcor is the highest rated bank
listed on the Johannesburg Stock Exchange. Its activities include retail,
commercial, corporate and investment banking and asset management, with more
than 2.4 million banking customers. Old Mutual and Nedcor's partnership with
Dimension Data Holdings plc, a global network services company listed in
London, has been restructured leaving the bank with an 8% interest in the
listed company. In July 2000 it also acquired FBC Fidelity Bank, which will
merge with Peoples Bank to create the biggest empowerment bank in South
Africa.


General Insurance


Old Mutual holds a 51% controlling interest in Mutual & Federal, which writes
motor, fire, accident, engineering and marine business. Mutual & Federal is
one of the largest general insurers in South Africa. It is listed on the
Johannesburg Stock Exchange, with operations in South Africa, Namibia,
Botswana and Zimbabwe. During October 2000, it completed the acquisition of
CGU Holdings Ltd which lifted its market share from 12% to 20%.


Old Mutual Plc - Financials Results for the year ended 31 December 2000


  * Operating profits based on a long term investment return increased 38%
    to £911m, in Rand terms up 47% to R9,585m.

  * Operating earnings per share based on a long term investment return also
    rose 38% to 17 pence, in Rand terms up 48% to 179.4 cents.

  * Asset Management operating profit rose 158% to £124m.

  * Continuing life assurance operating profits rose 12% to £478m, in Rand
    terms up 24% to R5,029m.

  * Embedded Value of £5,553m, up 3% in Sterling terms and 17% in Rand
    terms.

  * Banking operating profits increased 56% to £327m.


Summary

Key events 1999


                May         Policyholders in the South African Mutual Life
                Assurance Society approve demutualisation


July            Listing of Old Mutual plc on LSE, JSE, ZSE, MSE, and NSE
             

Key events 2000


March          £525m acquisition of Gerrard Group


               May     Greig Middleton and Albert E Sharp Securities merged
               to form Old Mutual Securities


September     $2.2bn acquisition of United Asset Management Corporation


October     Mutual & Federal acquisition of CGU Holdings for £115m


October     Sale of Murray Johnstone by UAM for £150m



December     Restructuring of UAM and formation of OMAM US


December     Re-branding of Capel Cure Sharp and launch of Gerrard brand


Key events 2001


March          Acquisition of Unified Life Insurance Company for $25m


               April          Nedcor and Old Mutual join forces in offshore
               private banking venture in the acquisition of Fleming Offshore
               Banking


April          Proposed acquisition of Fidelity and Guaranty Life for $635
               million


April          Launch of Americom Life


April          Launch of $650m convertible bond issue


                April      Sale of UAM affiliate Pell Rudman for $200m