3rd Quarter Results

Old Mutual PLC
28 November 2006


Old Mutual plc

Results for the nine months ended 30 September 2006

Highlights

Adjusted operating profit* (IFRS** basis):    £1,058 million, R12,676 million
                                                     

Profit for the period attributable to equity  
holders:                                      £506 million, R6,062 million        

Adjusted operating earnings per share* (IFRS         
basis):                                       11.5p, 137.8c

Basic earnings per share:                     10.4p, 124.6c

Adjusted embedded value per share (EV basis): 140.7p, R20.44 at 30 September
2006 (30 June 2006: 143.2p, R18.95)

Total life assurance sales, on an Annual Premium Equivalent (APE) basis: £1,152
million, an increase of 7% (30 September 2005: £1,075 million)

Total unit trust sales: £5,215 million, an increase of 60% (30 September 2005:
£3,258 million)

Net client cash flow: £14.7 billion

Funds under management: £222 billion (30 June 2006: £218 billion), an
increase of 1.8%, R3,218 billion (30 June 2006: R2,891 billion)


Commenting on the results, Jim Sutcliffe, Chief Executive, said:

'We made steady progress in the third quarter, driven by strong sales and net
cash flows from an increasingly international spread of businesses. Skandia is
on track to deliver its targets for 2008. We are confident that we will continue
to increase our client base and assets under management, the foundations for our
future growth.'


Wherever the items asterisked in the Highlights are used, whether in the
Highlights, the Chief Executive's Statement or the Group Finance Director's
Review, the following definitions apply:

* For long-term assurance and general insurance business, adjusted operating
profit is based on a long-term investment return, includes investment returns on
life funds' investments in Group equity and debt instruments and is stated net
of income tax attributable to policyholder returns. For all businesses, adjusted
operating profit excludes goodwill impairment, the impact of acquisition
accounting, initial costs of Black Economic Empowerment schemes, profit / (loss)
on disposal of subsidiaries, associated undertakings and strategic investments
and dividends declared to holders of perpetual preferred callable securities.
Adjusted operating earnings per ordinary share are calculated on the same basis
as adjusted operating profit, but are stated after tax and minority interests
and exclude income attributable to Black Economic Empowerment Trusts. The
calculation of the adjusted weighted average number of shares includes own
shares held in policyholders' funds and Black Economic Empowerment Trusts.

** The financial information has been prepared on the basis of the recognition
and measurement requirements of International Financial Reporting Standards as
set out in the basis of preparation note on page 36 of this document
.


Enquiries:

Old Mutual plc UK

                               
Media:                                     
Katie Bell (UK)                       Tel: [phone]
Nad Pillay (SA)                       Tel: [phone]

Investors:                            
Malcolm Bell (UK)                     Tel: [phone]
Deward Serfontein (SA)                Tel: [phone]

College Hill (UK):                    
Tony Friend                           Tel: [phone]
Gareth David

Notes to Editors:

Jim Sutcliffe, Chief Executive, will host a conference call for analysts and
investors at 9.00 a.m. (UK time), 10.00 a.m. (CET) and 11.00 a.m. (SA time)
today. The call will include a brief overview of the results and an opportunity
to ask questions. Analysts and investors who wish to participate in the
conference call should dial the following toll-free numbers:

UK participants:      0800 953 1444
Swedish participants: 0200 895 350
SA participants:      0800 994 090
International dial-in (not toll-free): + 44 (0) 1452 542 300

The full 2006 third-quarter results release, together with the Financial
Disclosure Supplement, can be found on the Company's website at
www.oldmutual.com.

Forward-looking statements

This announcement contains certain forward-looking statements with respect to
the financial condition and results of operations of Old Mutual plc and its
group companies, which by their nature involve risk and uncertainty because they
relate to events and depend on circumstances that may occur in the future.
Factors that could cause actual results to differ materially from those in the
forward-looking statements include, but are not limited to, global, national and
regional economic conditions, levels of securities markets, interest rates,
credit or other risks of lending and investment activities, and competitive and
regulatory factors.
                                                                28 November 2006

Chief Executive's Statement

Old Mutual's sales (life up 7%, unit trusts up 60%) and net client cash flows
(£14.7 billion) have been strong in the first 9 months of 2006 and our Skandia
acquisition continues to run ahead of our expectations.

Funds under management grew strongly and reached £222 billion, which reflects
growth of 5% for the year to date for our continuing businesses.

Embedded value per share (140.7p, R20.44 at 30 September 2006) and the value of
new business (£167 million for the nine months) are consistent with the results
shown at the half-year stage.

The positive impact on IFRS earnings of the underlying growth has been offset by
some historical adjustments and currency movements as well as reserve
strengthening in the US and margin reductions in our core South African life
business. Adjusted IFRS earnings per share (EPS) of 11.5p, 137.8c for the nine
months ended 30 September 2006 compared with 8.5p, 96c for the first half of
2006.

South Africa

Old Mutual South Africa (OMSA) has continued to put a great deal of effort into
building its retail distribution systems, and was successful in regaining the
top spot in the market, although group products and particularly healthcare
sales continued to disappoint. Under the new management of Paul Hanratty, we are
steadily shifting our business away from the traditional capital-intensive life
assurance model to a lower-charge, lower-capital model based on unit trust
products, and we are planning to migrate our healthcare business on to a single
platform so that it can build economies of scale to compete in the market.

Retail life sales grew by 17% and continued to produce margins within our target
range. Despite lower sales of the high-margin group products and distribution
costs continuing to exceed our goals, the value of new business for the three
quarters increased to R425 million, compared to R252 million for the first two
quarters combined. Unit trust sales have grown by 26% year-on-year at R11,453
million for the nine months as this product line benefits from its greater
transparency and tax advantages.

Third-quarter net cash flow was lower as investment performance was not as
strong, and we lost some large multi-manager mandates. We are introducing a
multi-boutique style structure, along the lines of our US operation, to ensure
that we are well placed to benefit from industry trends and that our investment
performance returns to its long-term strength.

Client funds under management have risen by 13% to R440 billion since the start
of the year, benefitting from an expanding South African economy.

Overall earnings were affected by a number of historical adjustments totalling
R276 million, together with the cumulative effect of lower margins, lower
mortality profits in Group Schemes, the IFRS2 costs of share-based incentives
and lower asset management earnings offsetting the strong performance of the
JSE.

Nedbank continued on its recovery path. Pleasing growth was shown across all our
operating divisions and we have maintained our expense discipline, with Return
On Equity (ROE) of 18.6% for the three quarters to 30 September 2006, as shown
in its recent results announcement. Nedbank is continuing to invest in its
retail banking franchise and has stabilised its market share position in key
sectors of the South African banking market. Our confidence in and support of
this important subsidiary has now been rewarded with ROE well in excess of the
cost of capital, and Nedbank is on track to meet its 2007 commitment of 20% ROE.

Our South African general insurer, Mutual & Federal, has experienced a return to
more normal levels of weather-related claims after the unusually benign
conditions of 2005, but has maintained its underwriting disciplines against the
softer market background, raising gross premiums by 7% and achieving an
underwriting ratio of 4.4%.

United States

In the US, our asset management affiliates have continued to attract new client
mandates, and we have benefitted from the recovery in the local equity market
during the third-quarter. As previously reported, funds under management (FUM)
rose to $237 billion at 30 September 2006, compared to $231 billion at 30 June
2006, which represents a 7% growth in continuing businesses after the sale of
FPA. We were successful in acquiring Ashfield, a San Francisco-based growth
manager with an excellent performance record. Mutual fund sales totalled $944
million, showing the benefits of our investment in distribution and expansion of
our product offering in the retail space. Earnings remain at the same level as
in previous quarters, with revenue from the higher asset base being offset by
the removal of eSecLending earnings following its sale and lower performance
fees being accrued. The timing of performance fee receipts is difficult to
predict, however our investment performance remains excellent, with a new high
of 91% of assets outperforming their benchmarks over a three-year period.

Earnings at our US Life business rose to $169 million and are on target to
exceed the 2005 full-year earnings comfortably, and our sales will not be far
short of our $4 billion target, with net client cash flow on track. Margins
continued to be higher than our long-term expectations, as interest rates
remained higher than in recent years. However, these conditions have also led us
to expect higher surrenders of Multi-Year Guaranteed Annuities (MYGA) than
originally assumed. We have strengthened our assumptions and this has reduced
earnings by some $20 million pre-tax in the quarter. Mortality experience on
Single Premium Immediate Annuities (SPIA) was poorer than expected.

Europe

In the UK, life sales have increased 27% and mutual fund sales by 67% as
Selestia and Skandia Multifund have benefitted from the industry shift to open
architecture platforms, and the positive impact of A-Day has continued. Skandia
Investment Management Ltd (SIML) products, particularly the 'Best Ideas' funds,
were particularly well received. As a result, FUM grew further to £33 billion,
up from £31 billion at 30 June 2006. Margins were a little lower as a result of
changes in product mix, but have been similar to the first half at a product
level. Earnings have continued to grow as a result of the growth in assets,
although we did not benefit from the favourable tax movements in the third
quarter as we had in the second quarter, and our planned spending on the back
office outsourcing projects has started to increase. We were very pleased that
Skandia UK was voted 'Company of the Year' at the recent IFA awards ceremony.

In the Nordic region, net client cash flow continued to be positive, with lower
sales being offset by lower surrenders. Single premium sales were down 29%
compared to the equivalent period in 2005 as the cycle of Kapitalpension sales
came to an end and the market awaited the arrival of the new ITP (collective
agreement for corporate pension savings for white-collar workers) agreement. We
adjusted our Long-term Investment Return (LTIR) methodology in the third quarter
to reflect more accurately the amount and constitution of the Nordic shareholder
assets. First half results were SEK135 million lower under the revised
methodology and this has been recognised in the third quarter. We have some
considerable work to do in Nordic to improve systems over the next 18 months,
and to put the company on sound footing for the future.

Our 'ELAM' (European and Latin American) business continued to make excellent
progress, with net cash flow of €1.4 billion driven by sales of both life and
unit trust business well ahead of last year, at steady margins. The
third-quarter saw particularly strong growth in Poland, as in the first half,
and in Colombia, where Skandia has a long-standing and successful business.

Asia Pacific

Our businesses in India and China continued their rapid rates of growth and are
well set to contribute in the future. We acquired Intech in Australia to
complement our existing fund platform business, and expect a good contribution
from this business in the coming years.

Outlook

With strong sales and net client cash flow for the nine months to date, Old
Mutual continues to make progress. We aim to create value for our shareholders
by improving the businesses that form the Group and we have a full agenda under
way, most notably the synergy and IT programmes in Skandia, but also changing
the shape of our South African life business.

Our business has proved resilient in the face of changing economic environments
and, although the market and exchange rate factors that have affected our
third-quarter IFRS results are likely to continue into the fourth quarter, we
expect to be able to continue to grow our client base and assets under
management as the foundation of our future success.

Jim Sutcliffe
Chief Executive

28 November 2006


Group Finance Director's Review

Highlights (£m)                                  Q3 2006      Q3 2005   % change
                                                     YTD          YTD
Life assurance sales (APE)                         1,152        1,075         7%
Unit trust sales                                   5,215        3,258        60%
Net client cash flows (bn)                          14.7
Funds under management (bn)                          222          214         4%


Highlights (£m)                         H1 2006  Q3 2006
                                                     YTD
IFRS adjusted operating profit, pre tax     771    1,058
                                                

GROUP RESULTS

Old Mutual continued to make sound progress during the third quarter of 2006,
building on the strong growth experienced in the first half of the year. Strong
net cash flow from clients, underlying growth in funds under management, and
positive life and mutual fund sales growth overall across our major businesses
contributed to a solid underlying performance for the nine months to 30
September 2006.

Underlying performance strong but affected by one-off items

The Group's adjusted operating profit on an IFRS basis increased to £1,058
million for the first nine months of 2006. We continued to benefit from a more
internationally diversified earnings base, with growth in earnings from Europe,
steady progress in the US and continued positive momentum at Nedbank. Year to
date earnings were affected by the depreciation in the Rand and the US dollar,
reducing operating earnings per share by 0.5p. In addition, earnings were
affected by a number of adjustments at our South African life assurance and
asset management company (OMSA) and at our US Life business. In total, these
adjustments reduced earnings per share by 0.4p.

Adjusted operating earnings per share for the nine months to 30 September 2006
was 11.5p, compared to 8.5p at 30 June 2006.

Embedded value per share

The Group's embedded value per share was 140.7p at 30 September 2006. This is a
decrease of 1.7% from 143.2p at 30 June 2006, caused primarily by foreign
exchange impacts.

The value of new business increased by 50% from £111 million at the half year to
£167 million for the nine months, and up 1% on the equivalent period of last
year (30 September 2005: £166 million) (including Skandia on a pro forma basis).

Unit trust sales up 60%

The strong momentum in unit trust sales continued, increasing by 60% to £5,215
million (30 September 2005: £3,258 million) (including Skandia on a pro-forma
basis). We experienced growth across all our geographic segments, with increases
of 278% in the USA, 26% in South Africa, and 39% in Europe, where our businesses
continued to benefit from the industry switch to open architecture platforms.


Life sales up 7%

Life sales for the combined Group on an APE basis increased by 7% overall to
£1,152 million compared to the prior year (30 September 2005: £1,075 million)
(including Skandia on a pro-forma basis). Despite the industry switch in
preference away from traditional life products, modest growth was achieved
across a number of our products and countries, particularly within savings,
pensions and fixed annuity products.

Strong net client cash flows and growth in funds under management

Funds under management increased by 21% to £222 billion from the year-end
position (31 December 2005: £183 billion) (excluding Skandia). Overall strong
net cash inflows, particularly within our US and Europe businesses, and a
general improvement in equity market conditions across all our diversified
geographies contributed to this result. The benefit was partially diluted by
currency impacts, caused by the weakening of the US dollar and Rand.

Capital Position

Our capital position remains strong, with FGD surplus of £1 billion.

Jonathan Nicholls
Group Finance Director

28 November 2006





COMPARATIVE INFORMATION
Following the acquisition of Skandia by Old Mutual plc, and the resultant
listing of Old Mutual plc shares on the Stockholm Stock Exchange, Old Mutual plc
has adopted quarterly reporting from the period ended 30 September 2006. The
Stockholm Stock Exchange has exempted Old Mutual plc from disclosing comparative
information for this quarter. Therefore, the reporting format for the first
quarterly reporting period is as follows:

• All sales and trading information (such as life sales, unit trust /
  mutual fund sales, and funds under management) is compared against prior year 
  to date performance with Skandia included on a pro-forma basis

• Profit is compared against current half year results with Skandia
  included from the date of acquisition

• From first quarter 2007, we will provide comparative quarterly reporting 
  information on earnings including Skandia from date of acquisition



                      This information is provided by RNS
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