Insurance for UK Pensions Mis-selling Liabilities

Old Mutual PLC
7 April 2000

                       Old Mutual plc
                              
Cover arranged to insure UK pensions mis-selling liabilities
                        up to £200m.


Old  Mutual plc ('Old Mutual') announces that it has entered
into  an insurance contract to eliminate exposure in respect
of  certain  liabilities  for pensions  mis-selling  by  Old
Mutual   Life  Assurance  Company  Ltd  ('OMLA')  under   an
indemnity provided to the purchasers, Century Life plc, when
the company was sold in December 1999.

The  contract  of  insurance, arranged by broker  Aon  Group
Ltd.,   was  placed  with  a  member  company  of   American
International Group, who receives the highest  ratings  from
the  principal ratings agencies. The contract provides cover
for   up   to  £200  million  when  combined  with  existing
provisions already held by Old Mutual. Old Mutual  therefore
is  now  covered for liabilities up to £200 million.  It  is
considered  unlikely  that circumstances  will  arise  where
claims will exceed this level of cover.

The  cost of this insurance contract is from within existing
provisions made by Old Mutual for such liabilities.

Eric   Anstee,  Group  Finance  Director,  Old  Mutual  plc,
commented:

'This   brings   to  a  very  satisfactory  conclusion   the
uncertainty  regarding our provisions  for  future  pensions
claims in the UK business. We are extremely pleased with the
outcome,  and,  in particular, being able  to  deliver  this
insurance arrangement.'

Roland   Avery,   Managing  Director,  Aon   Group   Limited
commented:

'We  are  pleased to have worked closely with Old Mutual  in
creating   a  solution  for  their  UK  pension  mis-selling
liabilities.'


ENQUIRIES:

Old Mutual plc
James Poole (London)                      Tel. +  4420 7569 0121

College Hill
Nicholas Williams (London)                Tel. +  4420 7457 2020
Graham Fiford   (Johannesburg)            Tel. +  2711 447 3030