CGU Holdings Ltd

Old Mutual PLC
15 August 2000


                        OLD MUTUAL PLC
                               
            Mutual & Federal Insurance Company Ltd.
          Offer for CGU Holdings Ltd. (South Africa)


Mutual   &   Federal  Insurance  Company  Limited  ('Mutual   &
Federal'), the South African general insurance group, in  which
Old Mutual plc ('Old Mutual') has an interest of 51%, has today
announced an offer valued at R1 026.5 million ( £98.2  million)
for  the issued share capital of CGU Holdings Ltd, a subsidiary
of CGNU plc of the UK.

Undertakings to accept the offer have been received  from  CGNU
plc  in respect of approximately 51% of the shares of CGUH, and
by  Metropolitan  Life  Ltd  of  South  Africa  in  respect  of
approximately 28% of the shares.  In commenting  on  the  offer
Mutual  and  Federal state that substantial areas of  synergies
are   expected  between  the  two  businesses  and   that   the
acquisition   also  offers  efficiencies  in   operations   and
technology  to  facilitate future expansion into  the  Southern
African Region.


                                                 15 August 2000
ENQUIRIES:

Old Mutual London                       Tel: + 44 20 75690100
James Poole, Director Investor Relations

College Hill London                     Tel: + 44 20 74572020
Nicholas Williams

Old Mutual Cape Town                    Tel: + 27 21 5092732
Bruce Allen, Manager, Group Media Communications

College Hill Johannesburg               Tel: + 27 11 4473030
Kim Milnes