Moody's Rating Actions

Old Mutual PLC
18 May 2004

                                 Old Mutual Plc

                       Comments on Moody's rating actions


Old Mutual expressed 'disappointment but no surprise' with the decision by
Moody's, the international Financial Ratings Agency, to downgrade the ratings of
Old Mutual today by one notch to A3 and P-2 for commercial paper. Julian
Roberts, Group Finance Director, responded to the downgrading by pointing out
that Old Mutual has recently taken steps as a result of which the capital
strength of its principal South African businesses, individually and together,
is stronger than a year ago.



  • Nedcor has been strongly recapitalised with a successful R 5.1 billion
    Rights Issue of new equity capital.
  • In South Africa Old Mutual Life Assurance strengthened capital from 2.3
    times the (minimum) statutory capital adequacy requirement (SCAR) at
    December 2002 to 2.4 times at the end of December 2003, a healthy balance
    between good capital cover and the most efficient use of capital.
  • Old Mutual's US businesses are developing in line with business plans.
    Prudent capital planning has provided higher Risk-based capital cover for
    sales of new policies whilst growing both Assets under Management and sales.
  • In the UK the sale of Gerrard with its volatile equity-market earnings was
    widely seen as strengthening the capital of the Group.



'Old Mutual was put on the Moody's 'Negative Watch List' on 27 January 2004,
following the announced recapitalisation of our 53%-owned banking subsidiary,
Nedcor. It was therefore not unexpected that they would follow through by
reducing the rating,' said Roberts. 'But we're disappointed, because the group
is looking stronger.'



Old Mutual had held the previous rating since December 2000, since which time
the average ratings of its International peer group of Life assurance companies
based in Europe has dropped by 2 full notches



In South Africa, Old Mutual Life Assurance Company, following the recent
transactions involving Mutual and Federal Ltd, now owned 88.2% by Old Mutual
South Africa, and Nedcor Rights Issues to which the group subscribed in full,
remains strongly capitalised.



In Old Mutual's US Life Assurance business, Fidelity and Guaranty, Moodys
recognises the fact that Old Mutual continues to expand the business and expand
its market position seizing opportunities through capital injection from the
cash earnings generated from its other businesses.  This approach of optimising
capital management throughout Old Mutual Group companies is a critical strategy
for the Group.



Roberts said that 'Old Mutual remains firmly committed to maintaining the
capital strength of the Group as a whole, exploiting to the full the
opportunities to optimise capital synergies between Group companies in each of
its principal territories. This support is one of the principal reasons for the
successful performance of the Group since listing in 1999.'



                                                                  18 May 2004



Further information

Old Mutual plc UK
James Poole           [phone]


Old Mutual plc SA
Nad Pillay            [phone]






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