Interim Management Statement

Old Mutual PLC
08 May 2008

Ref: 108/08
08 May 2008


Old Mutual plc Interim Management Statement 
for the three months to 31 March 2008

Strength in diversity

• Net client cash inflows of £2.1 billion, 3% of opening funds under
  management (FUM) on an annualised basis despite volatile market conditions

• Funds under management down 6.5% to £260.8 billion

• Growth in Life APE sales of 2%* to £426 million
    o UK down 18%*: single premiums affected by market
    o Nordic up 36%*: positive sales momentum continues
    o SA up 12%*: management focus on sales force growth and productivity
    o US up 37%*: variable annuity sales levels sustained

• Mutual fund sales of £1,699 million: strong Nordic (up 103%*) and SA
  growth offset by market declines in UK and US

• Value of new business solid at £55 million

• Capital position remains strong; £1.5 billion pro-forma FGD surplus


Jim Sutcliffe, Chief Executive, commented:

'Old Mutual's diversified business model and international portfolio enabled us
to achieve a resilient performance in the first quarter against a background of
challenging market conditions.  Achieving net client cash flows of £2.1 billion
in this context is very pleasing although falling markets impacted our level of
funds under management.

Looking forward, we are tightening our grip on expenses as markets reduce our
revenue, and optimising our capital allocation.  Retirement savings remains a
growth industry for those with good investment performance and we are well
placed to outpace our competitors.'


* For the three months to 31 March 2008, with comparisons to the three months to
31 March 2007


Enquiries

Investor Relations
Aleida White                         UK       [phone]
Deward Serfontein                    SA       [phone]

Media
Matthew Gregorowski                  UK       [phone]
Nad Pillay                           SA       [phone]
Tony Friend (College Hill)           UK       [phone]



Notes to Editors:

A conference call for analysts and investors will take place at 9.00 a.m. (UK
time), 10.00 a.m. (Central European and South African time) today.  Analysts and
investors who wish to participate in the call should dial the following
toll-free numbers quoting conference ID 45908827:

UK                                 0800 694 0257
UK (local)                         0844 493 3800
Sweden                             0200 890 171
South Africa                       0800 980 759
North America                      [phone]
International participants         [phone]

Playback (available until midnight on 16 May 2008), access code: 45908827#:

UK toll-free                       0800 953 1533
North America toll-free            [phone]
Standard international             [phone]

Copies of this update together with high-resolution images (at http://
www.oldmutual.com) and biographical details of the Executive Directors of Old
Mutual plc, are available in electronic format to download from the Company's
website.

This Interim Management Statement has been prepared in accordance with section
4.3 of the Disclosure and Transparency Rules (DTR) and covers the period 1
January 2008 to 7 May 2008.  The first quarter business update is included in
this Interim Management Statement.

A Financial Disclosure Supplement relating to the Company's three month business
update can be found on the website.  This contains a summary of sales and other
financial data for the first three months of 2008 and 2007.

Photographs of management are available at the Visual Media website
www.vismedia.co.uk


Forward-looking statements

This announcement contains forward-looking statements with respect to certain of
Old Mutual plc's plans and its current goals and expectations relating to its
future financial condition, performance and results.  By their nature, all
forward-looking statements involve risk and uncertainty because they relate to
future events and circumstances that are beyond Old Mutual plc's control,
including, among other things, UK domestic and global economic and business
conditions, market-related risks such as fluctuations in interest rates and
exchange rates, policies and actions of regulatory authorities, the impact of
competition, inflation, deflation, the timing and impact of other uncertainties
or of future acquisitions or combinations within relevant industries, as well as
the impact of tax and other legislation and other regulations in territories
where Old Mutual plc or its affiliates operate.

As a result, Old Mutual plc's actual future financial condition, performance and
results may differ materially from the plans, goals and expectations set forth
in Old Mutual plc's forward-looking statements.  Old Mutual plc undertakes no
obligation to update any forward-looking statements contained in this
announcement or any other forward-looking statements that it may make.



GROUP RESULTS

Group Highlights (£m)            Q1 2008    Q1 2007            % Change
-----------------------------------------------------------------------
Life assurance sales (APE)           426        418                  2%
  Europe                             259        278                (7%)
  South Africa                        80         75                  7%
  US                                  87         65                 34%
Unit trust / mutual fund sales     1,699      1,935               (12%)
  Europe                           1,017      1,009                  1%
  South Africa                       324        272                 19%
  US                                 289        540               (46%)
  Asia Pacific                        69        114               (39%)
Value of new business                 55         58                (5%)
  Europe                              27         36               (25%)
  South Africa                         9         10               (10%)
  US                                  19         12                 58%
                                 --------------------------------------
Group Highlights (£bn)           Q1 2008    FY 2007            % Change
-----------------------------------------------------------------------
Funds under management             260.8      278.9                (7%)
  Europe                            58.0       60.6                (4%)
  South Africa                      34.9       41.7               (16%)
  US                               161.6      170.1                (5%)
  Asia Pacific                       6.3        6.5                (3%)
                                 --------------------------------------
                                                             Annualised
                                                           % of opening
                                 Q1 2008    Q1 2007                 FUM
                                 --------------------------------------
Net Client Cash Flows                2.1        4.5                  3%
  Europe                             0.8        1.5                  5%
  South Africa                      (0.3)      (0.1)               (3%)
  US                                 1.6        3.0                  4%
  Asia Pacific                         -        0.1                   -



Net client cash flows delivered during period of market volatility

During the three months to 31 March 2008 ('the period'), Old Mutual delivered
solid investment performance compared with the three months to 31 March 2007
('the comparative period') in challenging market conditions.  Continued momentum
in net client cash flows of £2.1 billion represented 3.0% of opening funds under
management on an annualised basis.  Delivering on absolute investment
performance proves challenging in such volatile markets, however our US
businesses produced inflows of £1.6 billion, while the Skandia businesses
achieved £0.8 billion of net inflows.  Net client cash flows remained a
challenge for OMSA as we go through the transition to establish our boutique
managers.


Breadth of sales product offering in diverse geographic markets

Life sales on an APE basis were solid overall.  In Nordic, we continued to see
the benefits of our investment in the sales channel with strong life APE sales.
In the US we delivered excellent sales (up 37% in US dollar terms) driven
particularly by Bermuda variable annuities.  South African life sales were up
12% in Rand terms.  However UK single premium sales for the period suffered as a
result of market conditions and tax changes and therefore were below the level
of the comparative period.

Whilst unit trust sales in Europe, especially Nordic, and South Africa were
pleasing, lower sales in the US and UK more than offset this result, with weaker
Old Mutual Capital mutual fund sales and OMAM UK unit trust sales directly
impacted by the more difficult selling environment.


Value of new business

The value of new business (VNB) remained steady at £55 million, driven by
excellent volumes in US Life and strong sales in Nordic.  The APE profit margin
decreased slightly overall from 14% to 13%.  This was 21% for the US Life
business, compared with 19% in 2007.  The UK APE margin of 9% was down slightly
during the period due to the change in business mix.  In Nordic, the APE margin
was sustained at the 2007 year end level of 13%, while in ELAM after exceeding
the margin target in 2007, it fell to 11% due to lower new business volumes.  In
OMSA, the margin declined to 10% largely due to lower volumes being written in a
period which included the earlier Easter holiday period and we invested in
distribution.


Nedbank and Mutual & Federal

Nedbank delivered a solid result overall with strong net interest income and an
improved cost to income ratio, despite an increasingly challenging environment
while gross written premiums were up 6% over the comparative period at Mutual &
Federal.


Other

The Group is in compliance with the Financial Groups Directive capital
requirements, which apply to all EU-based financial conglomerates.  Our
pro-forma FGD surplus was £1.5 billion at 31 March 2008, including current year
profits.

Our £350 million share buyback programme was announced at the beginning of
October 2007 and we have so far repurchased approximately 235 million shares
through the London and Johannesburg markets at a total sterling equivalent cost
of £343 million.


Outlook

Looking forward, we are tightening our grip on expenses as markets reduce our
revenue, and optimising our capital allocation.  Retirement savings remains a
growth industry for those with good investment performance and we are well
placed to outpace our competitors.



UNITED KINGDOM AND OFFSHORE

A resilient quarter from Skandia UK

Skandia UK attracted positive net client cash flows of £546 million for the
period, representing 5% of opening funds under management on an annualised
basis.  Despite the positive net client cash flows, adverse market movements
during the period resulted in a 6% decrease in funds under management since the
beginning of the year to £39.5 billion.

Life sales on an APE basis for the quarter were £158 million, down 18% over the
comparative period, when the business benefited from strong offshore portfolio
bond sales through UK institutions.  These were not repeated in 2008 following a
tax change implemented in the 2007 budget.  In addition the 2008 budget has
confirmed the new flat-rate of CGT of 18% without any corresponding change to
the treatment of onshore life bonds (which are subject to income tax).  For some
clients, advisors are therefore more hesitant to recommend a bond when a direct
investment in funds may be more tax-efficient.  With its platform approach and a
full set of product wrappers, Skandia is better-placed than many competitors to
benefit from this change.  However, the shift away from life bonds gave rise to
a lower value of new business of £14.5 million, the new business margin was
9.1%.  Persistency experience remains in line with expectations as customers
wishing to switch to more defensive investments are taking advantage of the
broad choice available through Skandia's 'open-architecture' approach.
Skandia's platform market share has remained stable in a declining market.

Unit trust sales (excluding institutional investment business) of £415 million
were down 27% against the comparative period as the volatile markets led to a
weak ISA season for the whole industry.  Offsetting this, institutional mutual
fund business of £107 million was significantly up in the period.

Skandia Investment Management Limited's (SIML) range had a good quarter during a
very difficult period for markets.  The level of volatility has resulted in good
relative performance from the risk controlled range of funds as the more
defensive oriented managers have had the opportunity to deliver after such a
long bull market.  75% of the SIML Blend funds are now delivering risk adjusted
returns ahead of sector since launch.  UK Strategic Best Ideas has continued to
prosper despite the current market volatility, as it is designed to do.  This
has resulted in excellent relative performance, with funds demonstrating
significantly lower volatility than the market.

In most aspects, Skandia UK supports the FSA's revised proposals on the Retail
Distribution Review, to have a clear separation between advice and sales, ensure
alignment with the potential Money Guidance service and to pursue the aim of
raising professional standards.  The proposal for 'guided advice' within the
sales channel is still being considered.  Skandia UK believes this will confuse
the consumer and hence will be lobbying against this proposal.


NORDIC

Strong start to the year with very positive sales performance and strengthened
relations with distributors

Net client cash flows for the first quarter were a pleasing SEK1.5 billion, up
114% on the SEK0.7 billion achieved in the comparative period.  The positive
performance was driven by strong net inflows in the life business, benefiting
from a very good sales performance and reduced outflows.  However, a volatile
equity market during the beginning of 2008 impacted negatively on asset growth
during the period, with funds under management at the end of the quarter down
11% on 31 December 2007 to SEK103.7 billion.  Continued market leading
investment performance characterised the first quarter in our Nordic business.
Skandia's Swedish unit-linked business also achieved the best investment return
of all unit-linked companies in Sweden in a three-year timeframe (according to a
Risk & Forsakring survey).

Nordic delivered excellent growth in sales during the period.  Life sales on an
APE basis of SEK652 million were up 36% on the comparative period continuing the
positive trend from the last quarter of 2007.  The internal sales force
continues to perform very well with a focus on unit-linked products.  We have
particularly benefited from a more positive attitude towards Skandia among
brokers in Sweden mainly driven by expanding the fund range and new product
launches.  Skandia returned to the number one position among distributors
according to a distributor satisfaction survey in Sweden (2007: third).  Being
ranked number one in 15 out of 18 areas, Skandia scored highly in areas such as
attractive fund platform, best commission model and most interesting insurance
company for a customer to place their savings.  Excellent growth was experienced
in mutual fund sales of SEK1,004 million, up 103% on the comparative period.
The increase was mainly due to deposits in Skandia's interest based funds and a
newly launched hedge fund, both of which are popular in times of volatile equity
markets.

The value of new business of SEK85 million for the period was down 2% on the
comparative period, improved life sales on an APE basis having been offset by a
change in business mix and the assumption changes made in 2007.  We would expect
margins to improve during the year.  New lending at SkandiaBanken developed
positively, up 3% since 31 December 2007, mainly as a result of growth in the
Norwegian mortgage loans and in the middle of March a campaign launching a one
month interest free offering saw the start of an increase of mortgage loans in
Sweden.  The deposit book at SkandiaBanken closed at approximately the same
level at 31 March 2008 as it was at 31 December 2007.

On 24 April 2008 Old Mutual announced that Skandia and Skandia Liv, its Swedish
life assurance company which is run on a mutual basis, are reviewing the
potential benefits to both Old Mutual and to Skandia Liv policyholders of
demutualising the Skandia Liv business.  The review is at a very preliminary
stage and a conclusion is not likely before late 2009.  Demutualisation would
also require approval from the Swedish Financial Supervisory Authority.


EUROPE AND LATIN AMERICA (ELAM)

Difficult start to the year, regular premium business holding up

In ELAM, the challenging market environment placed pressure on business
development particularly with regard to the single premium business lines, while
regular premium business was less affected.  Net client cash flows of €287
million were a healthy 9% of opening funds under management on an annualised
basis.  Funds under management of €12.2 billion were 6% lower than at 31
December 2007 impacted by lower net inflows and by negative equity market
movements.

Life sales on an APE basis of €64 million were 15% lower than the comparative
period.  Product developments in the latter parts of 2007 continued to create
strong demand for our regular premium business in Austria and Switzerland, while
an overhang effect of year-end sales provided support in Germany, where the
market has been occupied with the implementation of the Insurance Contract Law.
Our single premium businesses in Italy and France were most impacted by weakened
demand as a result of the negative market conditions.  The lower sales volume
and change in geographic mix impacted on the post-tax new business margin of 11%
for the quarter.

The value of new business of €7 million was 53% lower than the comparative
period as a result of changes to business mix arising largely from lower single
premium sales.  Also, in the comparative period we benefited from exceptional
sales in Poland as a result of a strong market.  These sales were at
comparatively higher profit margins, booked prior to us reducing tariffs in
favour of clients.  We are expecting that the implementation of the Insurance
Contract Law in Germany will have a dampening effect on profit margins
throughout the German market as the year progresses.

Mutual fund sales were virtually unchanged on the comparative period at €546
million, a solid result in the current market environment.  Long-term business
showed a solid performance while institutional business was more volatile.


LONG-TERM BUSINESS & ASSET MANAGEMENT - OLD MUTUAL SOUTH AFRICA (OMSA)

Solid sales growth despite tightening economic conditions

Funds under management were R433 billion, down 3% on 31 December 2007, as a
result of volatile markets and net client outflows of R3.6 billion.  Net client
cash flows continue to be a challenge for OMSA, particularly in the current
economic environment, with higher outflows affected by higher bonus declarations
during 2007 and early 2008 which increased the level of normal benefit payments
and termination values.  For OMIGSA, the negative outcome in net client cash
flows was due to restructuring in some client funds, heavy exposure to
traditional mandates in two of our boutiques, weak short-term performance and
market conditions proving unfavourable for our Property and Income Specialist
boutiques.  We are addressing this through strong sales force growth, innovative
and competitive product offerings and an intense focus on investment performance
after completing the move to asset management boutiques last year.

Sales have continued to show moderate growth supported by our extensive retail
distribution channels and niche boutique offerings.  Significant focus has been
given to driving sales force growth and productivity in both our Retail Affluent
and Mass Market businesses.  This resulted in total life sales of R1,121 million
growing at 10% on an APE basis over the comparative period.  We continue to
successfully penetrate the mass market where we see further opportunity and
where the sales run rate improved through the quarter and is expected to
continue through the year.  This was pleasing considering the current economic
climate where the effect of higher oil and food prices and increasing interest
rates has had a negative effect on available consumer spend.

Life recurring premium sales growth of 5% was moderate.  Retail Affluent sales
were driven by continued good sales of investment business, as well as good
credit life sales due to the acquisition of a book of credit life business and
the extension of a savings offering into a new market, which countered the
negative impact of the introduction of the National Credit Act (NCA) and the
higher interest rate environment.  The shift from life wrapped business to other
wrappers continues.  This is evident from the performance of the combined
recurring premium Max Investment savings business (both life and non-life
wrappers), which performed well with significant growth of the non-life
recurring option but off a lower base.  New business growth in the recurring
premium area is under increasing pressure as the tougher economic environment
impacts on our customers.  Volumes on our credit life business will remain under
pressure due to the impact on new credit by the NCA and higher interest rates.
However, unit trust sales of R4,372 million were 19% higher than the comparative
period and there was strong growth in life single premiums, which were 22% up on
the comparative period.

The value of new business of R110 million was 10% down on the comparative
period.  The new business margin declined from 11% to 10%.  The first quarter of
2008 had an abnormally high number of public holidays (Easter falling earlier
than normal) and additional training of the retail sales forces resulting in
lost production during this period.  We also invested heavily in growing the
salaried sales force in this quarter, which increased initial expenses in the
period.  We anticipate that the investments in new advisors and training will
bear fruit later in the year, with the effect on margin of higher investment in
distribution likely to be offset by higher sales volumes.



BANKING - NEDBANK GROUP (NEDBANK)

Delivering earnings growth in tough macro-economic environment

The full text of Nedbank's business update for the three months ended 31 March
2008, released on 7 May 2008, can be accessed on Nedbank's website http//
www.nedbankgroup.co.za

The results for the first quarter were broadly in line with expectations for
headline earnings.  Underlying growth in assets and net interest income (NII)
remained solid, but impairment levels have now risen above Nedbank's
through-the-cycle expectations.

Nedbank Corporate recorded good earnings growth.  Earnings growth in both
Nedbank Retail and Imperial Bank slowed as impairment charges continued to
increase.  Nedbank Capital experienced a slowdown in certain business lines and,
as expected, lower private-equity earnings.

Net interest income (NII) grew by 21.9% to R3,871 million, although the net
interest margin reduced as expected to 3.85% for the period from 3.89% for the
comparative period.  Average interest-earning banking assets grew by 22.5% over
the comparative period.  Advances grew by 24.7% on an annualised basis to R396.9
billion since 31 December 2007.  Total assets at 31 March 2008 amounted to
R534.5 billion, an annualised increase of 37.5% in the quarter.  The higher
growth in total assets was largely due to higher derivatives balances and
increased holdings of government stock as Nedbank increased its liquidity
buffers.

Increased consumer credit stress and the higher cyclical retail impairments
always experienced in the first quarter, resulted in the credit loss ratio
continuing to increase.  Retail credit loss ratios are now above those expected
for through-the-cycle levels, while wholesale credit loss ratios remain below
expected through-the-cycle levels, aided by further recoveries.  Following the
50 basis point increase in interest rates in April 2008, we currently anticipate
that Nedbank's credit loss ratio for the year is likely to move above our
medium- to long- term target range of between 0.55% and 0.85%.

Non-interest revenue (NIR) for the period increased by 0.7% over the comparative
period to R2,289 million.  Within NIR, commission and fee income continued to
grow and trading income improved from the low level reported in the first
quarter in 2007, remaining, however, below original expectations.  In total no
material fair-value gains were recorded on the private equity books as property
valuations in Nedbank Corporate reduced in line with market benchmarks,
offsetting small gains in the Nedbank Capital portfolio.  No commission income
was recorded in NIR from Bond Choice as the company ceased to be a subsidiary of
the Nedbank Group from 1 January 2008.  Excluding Bond Choice's commission and
sundry income, NIR grew by 6.1% on a like-for-like basis.

Expenses continue to be well-managed and were contained below budgeted levels in
response to the more challenging macro environment.  Nedbank's efficiency ratio
improved further on that reported at 31 December 2007 as expenses grew more
slowly than income.

During the period Nedbank recorded a profit from non-trading and capital items,
mostly attributable to the profit on sale of Visa shares from the Visa initial
public offering (IPO).  The profit from non-trading and capital items, together
with headline earnings, increased Nedbank's Tier 1 capital ratios.  Although
earnings growth has slowed in 2008, this was not unexpected.  Nedbank still
expects to show positive earnings growth for the first half of 2008, but growth
is expected to be at lower levels than originally anticipated.



GENERAL INSURANCE - MUTUAL & FEDERAL

Challenging trading conditions

The full text of Mutual & Federal's business update for the three months ended
31 March 2008, released on 8 May 2008, can be accessed on Mutual & Federal's
website http//www.mf.co.za

Gross premiums of R2.6 billion were up 6% over the comparative period reflecting
increases in rates and sums insured in most portfolios, partly offset by the
cancellation of certain uneconomical blocks of business where there was no
prospect of a return to profitability.

The underwriting account was negatively impacted during the quarter by a
significant increase in the frequency and severity of fire losses on the
commercial property account and substantial weather-related claims in the
personal portfolio.  The annualised investment return for the quarter was 8.1%
which was satisfactory in light of the highly volatile investment environment
and the solvency margin at 31 March 2008 was 42% which was unchanged from the
figure at 31 December 2007.

Old Mutual's discussions with community-based investment group, Royal Bafokeng
Holdings, regarding a potential sale of its controlling interest in Mutual &
Federal were terminated during the quarter, as the parties were unable to agree
mutually acceptable terms in the current economic environment.  Old Mutual is
therefore continuing to evaluate various options with regard to its investment
in Mutual & Federal.

As the payment of a final dividend in respect of 2007 was deferred in view of
the above discussions, a 'late' 2007 final capitalisation award with a cash
dividend alternative of R1.35 (2006: R1.35) has now been declared.



US LIFE

Excellent sales in international variable annuity business continues

Net client cash flows were $0.4 billion for the period and were primarily driven
by OM Bermuda variable annuity sales.  Funds under management of $23.5 billion
at 31 March 2008, were down from the beginning of the year due to a decline in
fair value of invested assets mainly as a result of unfavourable fixed income
and equity market conditions.

Total life sales were $1.6 billion on a gross basis, up 40% over the comparative
period.  Total life sales on an APE basis were $172 million, a 37% increase over
the comparative period.  Sales by Old Mutual Bermuda were the largest
contributor to the increase.  Old Mutual Bermuda increased sales on an APE basis
by 127% to $109 million over the comparative period, representing 63% of APE
sales in the US Life business.  Universal Life sales represent 48% of total life
sales as we shifted from term-life focused distribution to a more balanced life
portfolio.  The launch of a variable annuity in the first quarter for Registered
Investment Advisor (RIA) distribution is expected to create traction in US
onshore variable annuity sales.  We have an attractive and diverse mix of
product offerings including variable annuities, fixed indexed annuities, term
life and universal life.

The value of new business of $37 million was up 54% over the comparative period
due to the higher volume of Bermuda variable annuity business.  The new business
margin of 21% was above our expectations.  Overall, the business continues to
benefit from good investment performance and enhanced distribution.  Our
coordinated retail distribution strategy continues to make good progress.

The investment portfolio's aggregate credit experience is slightly under
expectations but still in line with long-term assumptions.  3.7% of US Life's
general account portfolio of $20 billion has direct exposure to sub-prime debt.
Approximately 2.8% of US Life's general account portfolio has exposure to
monoline insurers.  The business was not fully immune to the unfavourable credit
conditions and recorded impairment provisions during the first quarter with two
securities written down by $21 million.  These write-downs reflect market value
deterioration and fundamental business changes linked to sub-prime.  As market
conditions develop, there may be additional write-downs during the second
quarter including sub-prime and mortgage related securities in common with other
US financial institutions.

Old Mutual's US brand advertising awareness campaign continued to deliver to
expectations.  With the first round of consumer research tracking complete just
10 weeks into the consumer campaign, significant progress was made toward Old
Mutual US's awareness goals.  24.2% of consumers now recognise the Old Mutual
name among a list of financial services competitors, an impressive 70% increase
since the campaign was launched.



US ASSET MANAGEMENT

Investment performance continues to be strong, positive net client cash flows
despite depressed conditions

Our member firms continue to deliver strong long-term investment performance.
At 31 March 2008, 63% of assets had outperformed their benchmarks and 58% of
assets were ranked above the median of their peer group over the trailing three
year period.

Net client cash flows for the first quarter of $2.6 billion were 3.1% of opening
funds under management during a very turbulent period for global equity markets.
Given these conditions the year to date result was encouraging, driven by
positive flows at Heitman, Dwight, Acadian, Analytic and Rogge, partially offset
by outflows at OMAM UK.  Our track record of superior investment performance
positioned us well to continue to attract net inflows despite the current
climate.

Funds under management decreased $16 billion (5%) during the first quarter of
2008, $18 billion of which was due to negative market returns.  Our diversified
asset mix helped to lessen the impact with fixed income products, which comprise
34% of total funds under management at the end of the quarter, being more
attractive in periods of market instability.

Old Mutual Capital mutual fund sales and OMAM UK unit trust sales for the
quarter were $193 million and $380 million respectively, down a combined $482
million (46%) on the comparative period as a result of the dampened selling
environment.  However, Old Mutual Capital's underlying sales proposition
continues to strengthen, with 15 funds carrying 4 or 5 star Morningstar ratings
at the end of the period.

The first quarter of 2008 saw the launch of the Old Mutual Target Date Plus
Portfolios.  The products are the first Target Date funds to combine retirement
date horizons with individual risk tolerance.  Three risk-specific glide paths
are offered for each Target Date range - aggressive, moderate and conservative -
allowing plan sponsors and investors to select the Target Date fund most
suitable for their plan and individual risk tolerance.

We continue to encourage new product development in the institutional space via
an extensive seeding program.  With pension plans becoming increasingly under
funded or frozen, an area of growing interest for US defined benefit plan
sponsors is Liability Driven Investing (LDI).  Recognising this, we have
recently seeded fixed income products targeted at the LDI space with two of our
larger bond managers - Dwight and Barrow Hanley.

On 18 April 2008, Rogge announced that it has agreed to purchase high-yield
manager ING Ghent from ING Investment Management Americas, a unit of ING Group.



ASIA PACIFIC

We continue to focus on growing our businesses in the Asia Pacific region.
Steffen Gilbert is now in place as Regional Head of Asia Pacific operating out
of our recently opened regional office in Hong Kong.

Throughout the region, cash flows have been impacted by recent market
turbulence.  This has particularly been the case in China's immature investment
market where stock markets have fallen by between 20% and 30%.


Australia

At 31 March 2008 funds under management were AUD12.8 billion (£5.9 billion), 12%
down from AUD14.5 billion (£6.4 billion) at 31 December 2007.  This was made up
of institutional funds of AUD7.7 billion and retail funds of AUD5.1 billion.
The downturn reflects sales reductions in line with the rest of the industry and
lower market levels.


China

In China we are experiencing increasing competition in the unit-linked market.
The impact of reduced market sentiment, reduced funds under management from
RMB2.9 billion (£200.4 million) at 31 December 2007 to RMB2.4 billion (£172.3
million) at 31 March 2008.  We continue to look to expand geographically and
build our distribution capability by widening our base of distributors and
intermediaries.


India

Kotak Mahindra Old Mutual Life Insurance Ltd (KMOM), our joint venture with the
Kotak Mahindra Group, in which we have a 26% stake, continues to show steady
progress.  The business now operates in 109 cities and has reached its target of
150 branches across India.  Gross premiums for the quarter at INR8.1 billion
(£102.9 million) were approximately 73% higher than the comparative period.









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