Life Insurance Licence

Old Mutual PLC
10 January 2001


                              
           LIFE INSURANCE LICENCE AWARDED IN INDIA
                              
Old  Mutual  plc  ('Old  Mutual') announces  that  OM  Kotak
Mahindra  Life  Insurance ('OMKM'), its joint  venture  with
Kotak  Mahindra Finance Ltd ('KMFL'), has received a licence
from  the  Insurance  Regulatory and  Development  Authority
('IRDA') to commence life insurance business in India.

Old  Mutual  will initially own 26% of the share capital  of
the  company  and  KMFL and its affiliates  74%.  The  total
capitalisation  of  the  company  will  be  R1,500   million
(£22.25million,  R232  million).  Old  Mutual  is  a  London
listed  financial  services group with  a  substantial  life
assurance  business  in South Africa  and  an  international
portfolio  of  activities in asset management,  banking  and
general  insurance.   Old  Mutual has  approximately  £190bn
assets under management.

KMFL is one of India's leading financial services companies,
with   operations  covering  asset  management,   investment
banking,  securities  trading  and  research  and  auto  and
consumer finance.

The new venture brings together the complementary skills  of
Old Mutual in developing and introducing innovative products
and  the strong distribution capability of KMFL.  The  first
product  launch is targeted for April 2001. OMKM anticipates
being  able  to  develop rapidly in the  deregulated  Indian
market  for  life  assurance,  which  is  expected  to  grow
substantially over the next decade.

OMKM  will  be  headquartered in Mumbai and operate  nation-
wide.  The  Chairman is Uday Kotak of KMFL  and  the  Deputy
Chairman  is  Hasan  Askari  of  Old  Mutual.   A  dedicated
management  team  has  been  appointed  -  including  Andrew
Cartwright, previously with Old Mutual in South  Africa,  as
the  appointed  Actuary and managers of Finance,  Technology
and Marketing.

Old Mutual CEO Life, Jim Sutcliffe said:

'This  is  an excellent start to 2001.  We and our  partners
are  already  well advanced in planning the  launch  of  our
first  products  into the Indian market -  one  of  our  key
international  emerging  markets  growth  opportunities  for
insurance  and  financial services. Our team is  already  in
place and excited by the opportunity and challenges.'

Kotak Mahindra Chairman, Uday Kotak, said:

'We  are delighted to have been awarded the licence.  We are
committed  to playing a key role in the development  of  the
life  insurance  business in India and look forward  to  the
opportunities ahead.'


For further information please contact:

Old Mutual plc
Hasan Askari, Director Developing Markets         
[phone]
[phone]
[e-mail]

James Poole / Anna Quenby, Investor Relations     
[phone]
Bruce Allen, Media Relations South Africa         
[phone]

Kotak Mahindra Finance Ltd
Shivaji Dam                               
[phone]
[e-mail]

College Hill Associates
Nicholas Williams / Gareth David          
[phone]



NOTES TO EDITORS


OLD MUTUAL PLC

Old  Mutual  plc  is  an  international  financial  services
company  based in London, with expanding operations in  life
assurance,  asset management, banking and general insurance.
Following demutualisation in May 1999, it is listed  on  the
London  Stock  Exchange with a market  capitalisation  at  8
January  2001  of  approximately £5.9 billion.  It  is  also
listed  in  South Africa, Namibia, Malawi and Zimbabwe.   In
addition  to  the  joint  venture  with  Kotak  Mahindra  to
establish a new life assurance operation on the Indian  sub-
continent,   Old   Mutual  also   has   plans   to   develop
international   life  assurance  and   long   term   savings
operations in Europe and North America, as well  as  in  the
UK.

Financials for the six months ended 30 June 2000

*Operating  profits based on a long-term  investment  return
increased 61% to £457m.

*Operating   earnings  per  share  based  on   a   long-term
investment return rose 50% to 9 pence.

*Total funds under management increased 23% to £55.1 billion
from £44.9 billion at December 1999.

*Continuing life assurance operating profits based on a long-
term investment return rose 26% to £249 million.

*Banking operating profits increased 59% to £156 million.

Key Businesses:

Life Assurance

In  southern  Africa, Old Mutual provides life,  disability,
health,  retirement  savings  and  investment  products   to
individuals and groups. With over 3.2 million policyholders,
Old  Mutual  has  approximately 30% of  the  life  assurance
market in South Africa.

The  development of a fully integrated eCommerce  capability
is  a  strategic priority. During the past six  months,  Old
Mutual  has  extended  its  partnerships  in  networks   and
systems,  working with Nedcor and Dimension Data,  including
joint  investments in Internet Solutions,  a  leading  South
African  corporate internet service provider, and Miraculum,
a business-to-business electronic marketplace.

Old  Mutual  International is the offshore and international
investment   subsidiary   providing  individually   tailored
offshore  investments, life assurance and unit  trusts  from
product companies based in Guernsey.

On  2  August 2000 Old Mutual announced a joint venture with
Kotak Mahindra Finance Ltd, one of India's largest financial
services  companies, to establish a life assurance  business
in India.

Asset Management

Old  Mutual  Asset  Managers provides a multi-country  asset
management  capability  with  global  investment  and  asset
management expertise. Old Mutual Unit Trusts is the  leading
unit trust provider in South Africa.

On  31  March 2000, Old Mutual completed the acquisition  of
Gerrard Group plc, parent company of Greig Middleton. On  10
May   2000,   Old  Mutual's  subsidiary,  Albert   E   Sharp
Securities,   and   Greig  Middleton's   institutional   and
stockbroking   businesses,  merged  to   form   Old   Mutual
Securities, which focuses on the growth sector of  corporate
and  advisory services for smaller and medium sized  UK  and
European companies.

Old    Mutual's    private    client    businesses,    Greig
Middleton/Capel Cure Sharp, is one of the leading  providers
of  portfolio management and stockbroking services  to  high
net-worth individuals in the UK.

GNI, the leading derivatives house in London and Europe,  is
Old  Mutual's  specialised broking  and  derivatives  market
subsidiary.

On  26  September 2000, Old Mutual plc acquired United Asset
Management   Corporation,  one  of  the  largest  investment
management  organisations  in  the  world,  increasing   the
group's  total  assets  under  management  to  approximately
$275bn (£190bn).

On  20  November 2000, Old Mutual announced it was embarking
on  a  phased  restructuring  of  the  UAM  Group  with  the
acquisition  of  additional  revenue  streams  from  Pilgrim
Baxter, the major US mutual funds franchise.

Banking

Old  Mutual's  banking business is conducted principally  by
Nedcor,  in  which  the  company  has  a  53.5%  controlling
interest. Nedcor is the highest rated bank listed on the JSE
Securities  Exchange  South Africa. Its  activities  include
retail,  commercial,  corporate and investment  banking  and
asset   management,  with  more  than  2.4  million  banking
customers.  On  20  September 2000, Old  Mutual  and  Nedcor
strengthened their partnership with Dimension Data  Holdings
plc, a global network services company listed in London.  In
July 2000, Nedcor acquired FBC Fidelity Bank, which is being
merged  with  Peoples Bank to create the biggest empowerment
bank in South Africa.

General Insurance

Old  Mutual  holds a 51% controlling interest  in  Mutual  &
Federal   Insurance  Company,  which  writes  motor,   fire,
accident,  engineering and marine business.  M&F is  one  of
the  largest general insurers in South Africa. It is  listed
on the JSE Securities Exchange South Africa, with operations
in  South  Africa,  Namibia, Botswana and  Zimbabwe.  On  17
October  2000, it completed its acquisition of CGU  Holdings
Ltd for £115 million.

Website address:         www.oldmutual.com


KOTAK MAHINDRA FINANCE LTD

Key Points
Amongst the top three in all its businesses.
Consistent Credit Rating of AA+ or higher.
Caters to over a million investors.
Provides financial solutions to over 800 large and mid sized
corporates.
Over  60,000  shareholders  and half  a  million  depositors
across 32 Indian cities.
Ranked  the  most trusted securities house in India  for  FY
1996 by 'Euromoney'.
Ranked  as No 2 investment banker in 1998 and 1999 by  Prime
database (based on amount raised).

Companies
Each  of  the  companies  within the  Kotak  Mahindra  Group
specialises in particular sectors of the financial  services
market.  The main companies include:
Kotak  Mahindra  Finance  Limited:  corporate  and  consumer
finance.
Kotak Mahindra Capital Company: investment banking.
Kotak Securities: brokerage and distribution.
Kotak Mahindra Primus Limited: auto-finance.
Matrix  Information  Services  Limited:  online  information
services.
Kotak Mahindra Mutual Fund: mutual funds.

KMFL Financials
Kotak Mahindra Finance Ltd's networth increased to about  Rs
4750  million  (£68.3 million) as on 31  March  2000.   KMFL
posted  for  the year 1999-2000 a record Profit  Before  Tax
(PBT) of Rs 906 million (£13 million) (P.Y. Rs 345.8 million
/ £5 million) and a Profit After Tax (PAT) of Rs 611 million
(£8.8 million) (P.Y. Rs 121.8 million / £1.75 million).

History
1985 Kotak   Mahindra  Group  began  as  Kotak   Capital
     Management Finance Limited
1986 KMFL enters the lease and hire purchase market
1990 Auto-finance division started
1991 Investment banking division started
1992 Enters the fund syndication sector
1995 Brokerage and distribution businesses incorporated into
     a   separate  company,  Kotak  Securities.   Investment
     banking  division incorporated into a separate company,
     Kotak Mahindra Capital Company.
1996 Auto   finance  business  hived  off  into  a  separate
     company,  Kotak Mahindra Primus Limited.  They  take  a
     significant stake in Ford Credit Kotak Mahindra Limited
     for financing Ford vehicles.
1997 Launch of Matrix Information Services Limited marks the
     group's entry into information distribution.
1998 Enters  the mutual fund market with the launch  of  the
     Kotak Mahindra Asset Management Company.

Website address:         www.kotakmahindra.com