Subsids Special Dividend

OLD MUTUAL PLC
20 September 1999

                                
       Special Dividend Announced by Mutual & Federal Ltd
                                
The Board of Mutual & Federal made the following announcement to
shareholders today (20th September 1999):

           MUTUAL & FEDERAL INSURANCE COMPANY LIMITED
                     (Reg. No. 70/06619/06)
                                
                                
                  SPECIAL DIVIDEND ANNOUNCEMENT


For  a number of years the solvency of Mutual & Federal has  been
at  a  high  level  largely as a result  of  strong  underwriting
performance and positive investment returns.  As at 30 June  1999
the  solvency  margin  (being the ratio  of  net  assets  to  net
premiums) was in excess of 200%.

Following  a  review of the capital requirements of the  company,
the Board has concluded that the level of capital is in excess of
that  required.   The  Board has accordingly proposed  a  special
dividend  of  600 cents per share which will have the  effect  of
returning  R1,4bn  of the accumulated reserves  to  shareholders.
The  Board is satisfied that the capital remaining after  payment
of  this  dividend  will  be sufficient to  support  the  current
operations and facilitate future developments of the business.

The  special  dividend of 600 cents per share has  been  declared
payable to shareholders registered in the books of the company at
the  close of business on 22 October 1999.  Dividend cheques will
be posted to shareholders on or about 8 November 1999.


20 September 1999

Additional information from Old Mutual:

Mutual  & Federal is the largest general insurer in South  Africa
measured by net premium income. The company is separately  listed
on the Johannesburg Stock Exchange.

Old  Mutual plc has voting control of Mutual and Federal. It owns
51%  of  Mutual and Federal Investments Ltd., which in turn  owns
77%  of  Mutual & Federal.  In addition Old Mutual  owns  12%  of
Mutual  &  Federal  directly, giving  it  an  aggregate  economic
interest  of 51%.  Royal & Sun Alliance Insurance Group owns  the
remaining 49% of Mutual & Federal Investments Ltd.

Speaking after the Mutual & Federal board meeting Mr Eric  Anstee
Group  finance  Director Old Mutual plc  and  Director  Mutual  &
Federal said:

'We are delighted to have released value to shareholders from our
separately  quoted  general  insurance  subsidiary,  Mutual   and
Federal, which remains strongly capitalised - after this  special
dividend has been paid - to achieve its corporate plans  for  the
South African market, where it remains market leader.'

Enquiries:

Investor Relations Old Mutual  (44) 171 569 0100
James Poole