Offer Update

Old Mutual PLC
17 October 2000


                        OLD MUTUAL PLC
                               
            Mutual & Federal Insurance Company Ltd
  Offer for CGU Holdings Ltd (South Africa) now unconditional

Mutual   &   Federal  Insurance  Company  Limited  ('Mutual   &
Federal'), the South African general insurance group, in  which
Old Mutual plc ('Old Mutual') has an interest of 51%, has today
announced that the offer for CGU Holdings Limited ('CGUH')  has
gone unconditional.

A copy of the announcement by Mutual & Federal follows.


ENQUIRIES:

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

College Hill London                        Tel: + 44 20 7457 2020
Nicholas Williams

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


          Mutual & Federal Insurance Company Limited
                               
   Fulfilment of the last outstanding resolutive conditions
 relating to the offer by Mutual & Federal to the shareholders
                      of CGU Holdings Ltd
                               
                    ('CGUH')  ('The Offer')
                               
1.   Fulfilment of resolutive condition
  Further  to  the  announcement dated 6 October  2000  and  to
  paragraph  9 of the offer circular dated 18 August 2000  from
  Mutual  &  Federal to CGUH shareholders regarding the  offer,
  shareholders  are  advised  that  the  resolutive   condition
  relating  to  the  approval of the  Registrar  of  Short-term
  Insurance  has  been fulfilled.  As a result,  the  offer  is
  hereby declared unconditional.

2.   Payment to CGUH shareholders
  Mutual  &  Federal  will issue cheques, to CGUH  shareholders
  who  have accepted same, by no later than tomorrow or  within
  7  (seven) days of receipt of the properly completed form  of
  acceptance  and  surrender, together with relevant  documents
  of title, whichever is the later.

3.   Closing date of the offer
  The  offer will remain open for a further two weeks from  the
  date  of this announcement and will therefore close at  14.30
  on Tuesday, 31 October 2000.
  
                                                17 October 2000