CGU's operations in Pakistan

Old Mutual PLC
16 July 2001

                                OLD MUTUAL PLC

        Agreement to acquire Commercial Union's operations in Pakistan



Old Mutual plc, ('OML'), has entered into an agreement with CGU International
Insurance plc ('CGU'), a subsidiary of CGNU plc to acquire all its existing
business in Pakistan. The acquisition is conditional upon the receipt of
regulatory approvals and completion.

The transaction will be effected by the transfer of CGU's 51% stake in
Commercial Union Life Assurance Company (Pakistan) Limited (CULAP), a company
listed on the Karachi Stock Exchange, to OML. Separately, another public
company will be incorporated in Pakistan, with OML as a principal shareholder,
to take over the assets and liabilities of CGU's general branch operations.
OML expects to maintain current management structures. The combined net assets
being acquired are approximately £3million as at 31 December 2000.

Mr. Jim Sutcliffe, Chief Executive designate, commenting on the transaction
said:

'Our acquisition in Pakistan is part of a continuing effort by Old Mutual to
build a substantial business in emerging markets world-wide.'



                                                                  16 July 2001






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