Credit Rating by Moody's

Old Mutual PLC
6 November 2000

                            
   Old Mutual plc and OMLAC(SA) Limited awarded credit
                    rating by Moody's

Moody's has issued the following announcements to the
London Stock Exchange this morning:

Julian Roberts, Group Finance Director, commented:

'We are clearly delighted that following Moody's thorough
analysis  of  the Old Mutual, the Group has been  awarded
with  these very satisfactory credit ratings for our debt
as  an  international group and also an insurance  rating
for  our  principal operation Old Mutual  Life  Assurance
Company of South Africa.'

                                                         
ENQUIRIES:

Old Mutual London                 Tel: + 44 20 7569 0100
James Poole, Director Investor Relations

College Hill London               Tel: + 44 20 7457 2020
Gareth David

Old Mutual Cape Town              Tel: + 27 21 509 2732
Bruce Allen, Manager, Group Media Communications

College Hill Johannesburg         Tel: + 27 11 447 3030
Kim Milnes

                            
  Moody's press release - For publication on 6 November
                          2000
                            
 MOODY'S ASSIGNS AN A2 SENIOR UNSECURED ISSUER RATING TO
                     OLD MUTUAL PLC

First-time rating

London,  6  November  2000  - Moody's  Investors  Service
assigned  today an A2 senior unsecured issuer  rating  to
Old  Mutual plc. The rating outlook is stable. The issuer
rating  covers senior financial obligations of Old Mutual
plc.  Specific debt securities are considered unrated  as
the  issuer  rating does not take account of  differences
between  indentures.  The rating is a  first-time  rating
assigned to the company by Moody's.

In a press release published simultaneously, Moody's also
announced  the  assignment of  a  Aa3  domestic  currency
insurance  financial strength rating to Old  Mutual  Life
Assurance  Company  (South  Africa)  Ltd.  ('OMLAC   (SA)
Ltd.'),   the   group's  South  African  life   assurance
subsidiary. The Aa3 rating is applicable to the company's
domestic  Rand-denominated policyholder liabilities,  and
is  assigned  on a global scale. It is the  first  rating
assigned by Moody's to a South African insurance company.
     
Moody's  said  that its rating assignment,  four  notches
above the Baa3 South African foreign currency ceiling, is
based  on  two  conclusions. The first one  is  that  Old
Mutual's joint UK and US operations should, on their own,
be  able to generate sufficient cash-flows to service the
debt  issued by Old Mutual plc with an adequate  interest
coverage  ratio.  In  that respect,  any  potential  non-
convertibility of the Rand would not by itself lead to  a
default of Old Mutual plc.

The  second conclusion is that the currency risk on South
Africa  and the business risks on the group's US  and  UK
operations  are unrelated. To the extent that both  South
African and UK/US operations are able to service the debt
on  their  own, Moody's believes that the A2 debt  rating
adequately  reflects the likelihood of a default  of  Old
Mutual plc.
     
Ultimately, the rating takes account of: (i) the risk  of
a joint inability of Old Mutual's South African and US/UK
operations  to  service the debt; (ii) the macro-economic
and,  more  generally, the operating environment  in  the
countries  in which Old Mutual does business;  (iii)  the
fact that most of the group's net asset value is in South
Africa;  (iv)  the possibility of a further weakening  of
the  Rand;  and (v) the potential constraints  the  group
faces  in  upstreaming to the UK the  proceeds  of  asset
disposals within South Africa.

The  stable outlook reflects Moody's expectation that  an
upgrade   of  South  Africa's  current  foreign  currency
ceiling  to Baa2 from its current level of Baa3 (positive
outlook)  may  not - with everything else being  equal  -
have  a  sufficient impact to justify an upgrade  of  Old
Mutual plc.
     
RATING METHODOLOGY

Moody's  rating methodology for Old Mutual plc  involved:
(1)  an  analysis  of  the group's overall  strategy  and
financial  fundamentals; (2) a  detailed  review  of  the
group's operations in southern Africa, the UK and the US;
and  (3)  a  review of foreign currency  issues,  as  the
group's  earnings originate from several  countries  with
different currencies.
     
The  rating agency recognised the fairly unique structure
of the group and tailored its approach to ensure that its
analysis would reflect the risk borne effectively by  Old
Mutual  plc's debtholders. As a result, both the A2  debt
rating  on  Old Mutual plc and the Aa3 domestic  currency
insurance  financial strength rating on OMLAC  (SA)  Ltd.
are comparable to Moody's ratings assigned world-wide.
     
Moody's noted that Old Mutual plc, as a UK-based company,
was  not  directly  constrained by the  foreign  currency
ceiling of South Africa. This foreign currency ceiling is
an  opinion on the risk associated with exchange controls
which   could  disrupt  the  timely  repayment  of   debt
securities.  For  Old Mutual, it is  the  risk  that  the
group's  South  African subsidiaries will  be  unable  to
upstream  cash-flows to their parent company in  the  UK.
Judging  by  the  experience of other countries,  Moody's
believes that this may typically be a two-year event.
     
GROUP OVERVIEW

Based  in  the  United Kingdom, Old  Mutual  plc  is  the
ultimate holding company of a diversified group operating
mainly in the fields of life assurance, asset management,
banking,  non-life  ('short-term')  insurance  and  other
financial  services. The group operates with subsidiaries
based  principally in the UK, US and South Africa, .  The
company was created in 1999 following the demutualisation
of  The South African Mutual Life Assurance Society,  the
former  mutual whose business was assumed by  OMLAC  (SA)
Ltd. The company has a primary listing in London.
     
Old  Mutual's overall strategy is to develop a world-wide
platform  in  the  area  of  life  assurance  and   asset
management  whilst strengthening its existing  operations
in  Southern  Africa.  The overall risk  profile  of  the
group's  operations is fairly low as life  assurance  and
asset management operations should typically deliver good
sustainable returns with limited volatility.
     
Moody's  also believes that the group's other  operations
in banking and non-life ('short-term') insurance are well
managed and have an overall low risk profile in the South
African  context. The group's self-assigned hurdle  rates
are   high,  which  should  help  create  value  out   of
acquisitions, but may also make it more difficult to find
the right acquisition opportunities.
     
Starting  from an un-leveraged balance sheet in  December
1999,  Old  Mutual  plc raised debt in  2000  to  finance
acquisitions in the UK and in the US. Moody's notes  that
interest   coverage  is  comfortable  on  the  basis   of
sustainable earnings. In particular, each of Old Mutual's
core  operations  is expected to deliver good  cash-flows
going  forward. Moody's understands that it  is  not  the
company's  strategy to raise debt at  the  level  of  Old
Mutual plc to pay for acquisitions in Southern Africa.
     
REVIEW OF INDIVIDUAL OPERATIONS

Looking  at  the  group's individual operations,  Moody's
commented that OMLAC (SA) Ltd. is, in the rating agency's
opinion, one of Old Mutual's strongest operations.  OMLAC
(SA)  Ltd.  benefits  from a very  strong  and  resilient
franchise  in  South  Africa;  a  diversified,   low-risk
product mix; a genuine multi-distribution capability; and
the   strong  expertise  of  its  management  teams,  for
instance in the areas of product development, information
technology  and  for the actuarial and  asset  management
functions. The company has maintained its leading  market
position  for a number of years, and enjoys  one  of  the
strongest  brands  in  the South African  market.  A  key
credit  factor  has  also  been the  excellent  financial
flexibility  enjoyed by the company, as policies  do  not
include  guaranteed surrender values  and  a  portion  of
policyholder bonuses are typically not guaranteed.
     
Other  main  South African operations include Nedcor  and
Mutual  &  Federal,  in  which Old  Mutual  has  majority
ownership.  Nedcor  is the fourth largest  South  African
banking  group  (Nedcor Bank, C bank financial  strength;
Ba1  bank  deposits  rating constrained  by  the  country
ceiling).  It  enjoys  high efficiency  levels,  a  solid
information  technology platform,  and  demanding  return
objectives  set  by management. Mutual &  Federal  has  a
market leading position in the field of non-life ('short-
term')  insurance,  and benefits  from  a  high  solvency
level. It has made an underwriting profit over the recent
years,   although  the  recent  deterioration  of  market
conditions  made  it more difficult to attain  this  high
objective in 1999.
     
In the UK, Old Mutual expanded in the last few years with
various  acquisitions which culminated with the take-over
bid  made  for the Gerrard Group in March 2000. According
to  Moody's,  Old  Mutual does not have  in  the  UK  the
franchise  strength it enjoys in South Africa. Its  niche
operations,  in  the  fields  mainly  of  private   asset
management  and derivative/equity brokerage, are  subject
to  intense  competition. Moody's notes,  in  particular,
that a lot of work is required to build the Gerrard brand
and grow the business further. However, the rating agency
said  that  Old Mutual should receive recurring  earnings
from  its UK operations with limited downside risk, which
has  been  seen as a positive in the context of the  debt
rating.
     
Finally,   Old   Mutual  announced  in  June   2000   the
acquisition  of  United Asset Management  ('UAM'),  a  US
asset  management  firm  with around  US$200  billion  of
assets   under   management.  With  a  unique   structure
consisting  of  some  41  independent  affiliated   asset
managers, UAM is one of the largest US asset managers. It
suffered in the recent past from disappointing investment
performance and negative net client cash flows due mainly
to the focus of the company on the slower growing defined-
benefit  products  in the U.S. and out  of  favour  value
oriented  funds, a lack of brand identity, and inadequate
management incentive plans.
     
Going  forward, UAM plans to focus its efforts  around  a
selected, high profile, group of affiliated firms, and to
re-incentivise management. Moody's notices  that  turning
the business around may prove challenging, and that there
is  execution  risk  in  the process.  Nevertheless,  the
company's strong client base, the comparatively low price
paid  for  UAM  by  Old Mutual and the  strong  cash-flow
generation capability of the asset manager should make it
possible  the  improve the operating performance  of  Old
Mutual.
     
Based in London, United Kingdom, Old Mutual plc had total
consolidated  assets  of 58 billion British  Pounds  (600
billion  Rand  )  as of June 2000, excluding  UAM.  On  a
proforma  basis and inclusive of UAM, total assets  under
management amounted to US$275 billion as of June 2000.

London
Mark Hewlett
Managing Director
Financial Institutions Group
Moody's Investors Service Ltd.
44 20 7772 5454

London
Damien Regent
Assistant Vice President - Analyst
Financial Institutions Group
Moody's Investors Service Ltd.
44 20 7772 5454

  Moody's press release - For publication on 6 November
                          2000
                            
    MOODY'S ASSIGNS A Aa3 DOMESTIC CURRENCY INSURANCE
 FINANCIAL STRENGTH RATING TO OLD MUTUAL LIFE ASSURANCE
               COMPANY (SOUTH AFRICA) LTD.

First  rating  assigned  to  a  South  African  insurance
company

London,  6  November  2000  - Moody's  Investors  Service
assigned   today   a  Aa3  domestic  currency   insurance
financial  strength rating to Old Mutual  Life  Assurance
Company  (South  Africa) Ltd. ('OMLAC  (SA)  Ltd.').  The
rating  outlook  is stable. The rating expresses  Moody's
opinion  on  the  company's ability to  repay  punctually
senior  policyholder  claims  and  obligations.   It   is
applicable   only   to  the  company's   domestic   Rand-
denominated policyholder liabilities.

The  Aa3 rating is assigned on a global rating scale, and
as  a result is comparable to Moody's ratings world-wide.
This  is the first time Moody's has rated a South African
insurance  company.  Life  insurance  financial  strength
ratings   have  already  been  assigned  by  Moody's   to
companies in 10 countries globally.

In  a  press release published simultaneously, the rating
agency  also  announced the assignment of  an  A2  senior
unsecured  issuer rating to Old Mutual  plc,  OMLAC  (SA)
Ltd.'s  ultimate  parent  company  based  in  the  United
Kingdom.

Commenting on its rating methodology, Moody's  said  that
its  analysis involved: (i) a review of the company's own
strategy,  franchise and financial fundamentals;  (ii)  a
detailed  analysis of Old Mutual's overall  strategy  and
financial profile at the group level; and (iii) a  review
of the operating environment and country-specific risks.
     
Based in Cape Town, South Africa, OMLAC (SA) Ltd. is  Old
Mutual's   fully-owned  South  African   life   assurance
subsidiary  and  the  group's largest  operation  in  the
country  by  asset  size.  The company  incorporated  the
business  of  The  South  African Mutual  Life  Assurance
Society, the former mutual which demutualised in 1999.
     
Moody's  commented that, on its own, OMLAC (SA) Ltd.  has
considerable  strengths  in  its  domestic  market.   The
company  has  a  very strong and resilient franchise,  as
illustrated by its market share maintained over the years
above  25%.  It has a very-well known brand  in  Southern
Africa  which  has  been built over a number  years.  The
expertise  of  its management teams, whether  in  product
development,       information       technology       and
actuarial/financial  functions,  among  others,  is  very
strong  by  international  standards.  The  company  also
benefits from the group's leading market position in  the
South  African asset management industry. Going  forward,
however,  the company will need to capture a client  base
of  low  to middle-income earners as and when this market
grows,  and  confirm  that it can  maintain  its  leading
position.
     
The  rating agency further said that the company has very
solid   financial  fundamentals,  among  which   are:   a
liability  profile  with  few  guarantees  and   options,
meaning  that the company is very resilient to  potential
shocks  in  capital  markets; strong  earnings  and  good
expense management; and solid capitalisation. The company
has  most  of its investments in equities, which  can  be
volatile.  However, investment risk  is  often  borne  by
policyholders,  although indirectly, as surrender  values
are not guaranteed and unvested bonuses can typically  be
clawed back.
     
HIV  risks are well-understood and managed, and are  seen
by the rating agency as unlikely to pose a serious threat
to  the  company's financial fundamentals. The  company's
ability  to  re-price  products, in particular,  and  its
strong  understanding of the prevalence  of  the  disease
considerably  reduce the risk of any impact on  financial
strength.
     
Commenting  on  its  analysis of the  Old  Mutual  group,
Moody's  said  that the assignment of a  Aa3  rating  was
adequate with respect to the overall risk profile of  the
Old Mutual group. In particular, the debt raised at group
level remains moderate compared with the group's earnings
capacity.  The risk profile of the group's operations  is
fairly  low,  as  Old Mutual is focused on low-volatility
life  insurance and fund management operations.  Further,
the group's acquisition strategy is seen as cautious,  as
illustrated  by the demanding profitability  targets  Old
Mutual  assigns  to  itself when looking  at  acquisition
opportunities.
     
Moody's  said that the assignment of the Aa3 rating  also
took  into  account  the rating agency's  local  currency
guidelines  for  domestic liabilities.  Such  guidelines,
currently at the level of Aa3 for South Africa,  indicate
the  highest rating level that might be assigned  to  the
financially strongest companies in the country. The South
African  guideline  assesses  the  general  country-level
risks  that  need to be incorporated into the ratings  of
companies for their liabilities in Rand.
     
Moody's  believes  that, as for any other  South  African
company,  OMLAC  (SA) Ltd. is exposed to  some  long-term
risks,  among which are the risk of low economic  growth,
potential  social instability, the implications  of  high
unemployment  for  the country as well as  the  long-term
social implications of HIV.
     
The rating agency said that the very strong franchise  of
OMLAC  (SA)  Ltd.; its very solid financial fundamentals;
and  its  soft  liability profile have been  critical  to
attain  the  level of the guideline, and rate OMLAC  (SA)
Ltd.  at the Aa3 level. Moody's said, in particular, that
the ability for the company to adjust its liabilities  to
market  conditions  was a considerable strength  compared
with typical debt issuers.
     
Based  in  Cape  Town,  South  Africa,  Old  Mutual  Life
Assurance  Company  (South Africa) Ltd.  had  1999  total
assets  of  227  billion Rand, equivalent  to  around  20
billion British Pounds at current exchange rates. It  had
1999 net premium income of 30 billion Rand.

London
Mark Hewlett
Managing Director
Financial Institutions Group
Moody's Investors Service Ltd.
44 20 7772 5454

London
Damien Regent
Assistant Vice President - Analyst
Financial Institutions Group
Moody's Investors Service Ltd.
44 20 7772 5454