Cautionary Announcement

Old Mutual PLC
16 June 2000

                                  
              Mutual & Federal Cautionary Announcement
                                  
                                  
Mutual   &   Federal Insurance Co. Limited ('Mutual & Federal'),  the
South African short term insurer, in which Old Mutual plc has   a  51
percent  holding  has  today  issued the following  joint  cautionary
announcement,  together with the major shareholders of  CGU  Holdings
Limited of South Africa ('CGUH'):

'Shareholders   are  advised  that  negotiations  are   in   progress
between  Mutual & Federal and the major shareholders of  CGUH,  being
CGNU plc and Metropolitan Life Limited ('Metropolitan') who  together
hold  approximately 79%  of  the  issued  share capital of CGUH.

'In  the  event that these negotiations are successful, it  would  be
the   intention  of Mutual & Federal to acquire  the   entire  issued
share    capital   of  CGUH.   Such  negotiations,   if  successfully
concluded,  may  have a  material  effect  on  the  share  prices  of
CGUH, Metropolitan and Mutual & Federal.

'Shareholders are accordingly advised to exercise caution when dealing 
in their Mutual & Federal, CGUH and Metropolitan shares until a further
announcement is made.'


Enquiries:

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

College Hill
Nicholas Williams, London                       Tel: [phone]