Interim Results - Part 1

Old Mutual PLC
5 September 2000


Part 1                                  
                           OLD MUTUAL PLC
                                  
        Interim Results for the six months ended 30 June 2000
                                  
                             HIGHLIGHTS
                                  
*    Operating profits based on a long term investment return advance
     strongly by 61% to £457 million

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

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

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

*    Banking operating profits increase 59% to £156 million

*    Greater international presence through proposed $1.46 billion
     acquisition of United Asset Management Corporation

*    Interim dividend of 1.6 pence per share up 20% from pro forma
     interim 1999

Mike Levett, Chairman and Chief Executive, comments:

'The  past six months have seen Old Mutual make considerable progress
in  the development of its core businesses. Completion of the Gerrard
take-over  and  the launch of our offer for United  Asset  Management
demonstrate   our  determination  to  become  a  truly  international
financial services business.'


ENQUIRIES:

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

College Hill                       Tel: + 44 20 7457 2020
Alex Sandberg
Gareth David
Nicholas Williams

College Hill South Africa          Tel: + 27 11 447 3030
Tony Friend
Kim Milnes

NOTE TO EDITORS

Photographs of the Old Mutual management team are available at
www.newscast.co.uk
                           OLD MUTUAL PLC
        Interim Results for the six months ended 30 June 2000

                        CHAIRMAN'S STATEMENT
                                  
I  am  pleased to report a continued improvement in the key financial
results  of  the  Group.  Operating profits  based  on  a  long  term
investment  return ('smoothed profits') grew by 61% to  £457  million
from £283 million.

Operating earnings per share grew by 50% to 9 pence.  After adjusting
last  year's  figure for one-off UK life assurance  write  downs  and
special provisions made by Nedcor, growth was 28%.

The  Board  has declared an interim dividend per share of 1.6  pence,
which  represents  a  20%  increase on the  pro  forma  1999  interim
dividend.  This dividend will be paid on 30 November to  shareholders
on the register at close of stockmarkets on 20 October.

In this half year we have moved rapidly to expand our presence on the
world  stage, while finding new ways to deliver growth from our  core
financial services businesses.
                                  
In  life  assurance, we continued our initiatives to grow our leading
life  assurance and financial services operations. New life assurance
premiums  were  up  9%  from last year, while  operating  profits  on
continuing  businesses  were  up 26%. Our  range  of  single  premium
investment  products continued to penetrate well in  the  marketplace
and we expanded through new offerings during the period. In line with
our  strategy to seek international expansion, our recently announced
joint venture with Kotak Mahindra Finance Ltd, one of India's largest
financial services companies, aims to build a substantial longer term
presence in this untapped market.

In  asset management, we have moved swiftly towards building a world-
class multinational fund management business. The completion in March
of  our acquisition of the Gerrard Group has brought within the Group
the largest UK private client stockbroker and a leading player in the
high  net  worth  market. In June we launched a $1.46 billion  tender
offer  for  United Asset Management Corporation ('UAM')  in  the  US.
Successful   completion  of  this  transaction   will   significantly
diversify  our  earnings  and will triple  our  global  assets  under
management  to approximately $275 billion, ranking Old  Mutual  among
the top 30 fund managers in the world.

Nedcor,  our 53% owned banking subsidiary, maintained its outstanding
track record. It reported a 27% rise in attributable income to R1,230
million (£119 million), while return on equity rose from 21% to  24%,
reflecting   substantially  higher  levels  of  capital   and   asset
productivity.  The  cost  to income ratio  decreased  to  52%.  While
Nedcor's  proposed merger with Stanbic was not permitted,  Nedcor  is
well  positioned  for future growth on a stand  alone  basis  and  is
engaged   in  various  major  strategic  initiatives.  These  include
investments  in  technology through alliances and  its  intention  to
leverage  its  empowerment position through the  acquisition  of  FBC
Fidelity Bank.

Mutual  &  Federal,  our  51%  owned  general  insurance  subsidiary,
incurred  a moderate underwriting deficit in a very difficult  period
for  the industry. It is in the process of completing its acquisition
of  CGU Holdings for R1,206 million (£115 million), which will extend
its market reach and improve its cost structures in future.

Whilst smoothed profits advanced satisfactorily as shown above, asset
values  were impacted by both the adverse performance of stockmarkets
(with  the  JSE down some 10%) and a decline of the average  exchange
rate  of  the  Rand to Sterling (by about 5%) during the  period.  In
consequence, the Group's embedded value declined marginally from £5.4
billion to £5.2 billion over the six months to 30 June 2000. The  JSE
had  recovered  by approximately 9% by the end of August.  Profit  on
ordinary activities after tax and minorities was £39 million compared
to £601 million last year.

We  have moved both to strengthen our executive team and to focus  it
with  specific  responsibilities for managing our key businesses.  In
January, Jim Sutcliffe took up the position of Chief Executive, Life,
covering  our  life assurance and related businesses worldwide.  Eric
Anstee has more recently been appointed as Chief Executive, Financial
Services,  covering our asset management, private  client  and  other
financial  services businesses. It is intended that  Eric  will  also
assume  responsibility for the UAM group of companies upon completion
of  that  acquisition. I am pleased to welcome  Julian  Roberts,  who
joined  us  last  month  as Group Finance Director.  In  addition  to
strengthening  executive management, we have taken  steps  throughout
the  Group  to  ensure  that  we  attract  and  retain  appropriately
incentivised senior management.

The past six months have seen Old Mutual make considerable progress
in transforming itself into an international financial services group
with exciting scope for further growth. I believe our major financial
services businesses are geared to deliver, and we have the right
people focusing on customer and shareholder value. The outlook for
the rest of the year is positive.
                                                                     
                                                          MIKE LEVETT
                                           Chairman & Chief Executive
                                                                     
                           OLD MUTUAL PLC
        Interim Results for the six months ended 30 June 2000

                          OPERATING REVIEW

Life assurance
Operating profits from our continuing life businesses, including  the
long  term  investment  return  of  £114  million,  were  principally
generated by our South African business and at £249 million  are  26%
higher than in the equivalent period last year. Equivalent annual new
business premiums rose 9% in Sterling terms.

South Africa
The  key measures of performance for our life assurance operations  -
margins on managed assets and return on capital - continue to compare
well against world-class benchmarks. Life operating profit after tax,
including a 14% longer term return on capital allocated, amounted  to
an annualised 2.1% of life assets and 23% of allocated capital. South
African  equivalent annual new business premiums rose  14%  in  Rand,
compared with the first six months of 1999.

Operating  profits  from  our  group business  -  Employee  Benefits,
increased  by  37%  to  £48  million as  a  result  of  improved  fee
collection, tight expense management, capital charges on higher asset
balances  and  positive underwriting results. New recurring  business
premiums of £22 million were comparable with the full 1999 figure  of
£22 million. Single premiums of £169 million (excluding market-linked
business where profits are reported under Asset Management), were 34%
higher  than  in  the same period last year and,  setting  aside  the
effect of demutualisation proceeds reinvestment, were comparable with
the 1999 figure.

Our  Platinum, Core Growth and Genesis products contributed  strongly
to  this growth, with the Guaranteed Fund recently declaring a highly
competitive  16%  bonus rate in respect of the  year  to  June  2000.
Employee Benefits continued to strengthen its position in the  market
through  the launch of Symmetry, the multi-manager investment  range,
and Synergy, a new short term disability product. A new flexible risk
product range will be introduced shortly.

Important  advances  have been made in the area of  group  retirement
fund  administration,  most  recently  through  the  introduction  of
SplitFunder,  a computer application that ensures efficient  transfer
of member-level investment choices to the appropriate asset managers.
We  have also strengthened the Employee Benefits management team with
the  recruitment of high calibre individuals in important   areas  of
the business.

Individual business profits at £87 million were 21% up on  the  first
half  of 1999, resulting largely from capital charges on higher asset
balances,   repricing   due  to  tax  changes,  continuing   positive
underwriting  profits  and tight expense management.  Single  premium
sales  were  19% above the equivalent period of 1999, reflecting  the
continued success of our Investment Frontiers product range.
                                  

Individual recurring premium new business volumes were 9% below  1999
levels.  While our affinity group business, Group Schemes,  displayed
good  growth, this was offset by lower recurring premium new business
in   Individual  Life.  Following  last  year's  agency  sales  force
restructuring   we   introduced  tighter  entry   requirements.   The
recruitment  of new advisors on this basis is proceeding more  slowly
than  expected  and  this has had a direct impact on  sales  volumes.
Later this year we will introduce a salaried advisory service to  the
high-income   market,  offering  professional  advice,   personalised
service and the choice of a flexible range of best-of-breed products.

As part of our continuing programme to develop value adding products,
the Essential Savings Plan was launched in June. This easy-to-deliver
product  range offers an affordable recurring premium investment  for
individuals,  and  is  part  of  the value  proposition  for  further
building our presence in the emerging middle income market.

Building on our relationship with Nedcor, our Group Schemes operation
has  started a joint distribution venture with Peoples Bank, in which
life  and  savings products are distributed via Peoples Bank branches
nationwide.  We  continue to discuss with government their  plans  to
phase   out  non-statutory  deductions  from  payroll  of  government
employees,  and  together  with Nedcor and Peoples  Bank  to  develop
alternative payment mechanisms.

Embedded  value  new business profits were double  the  corresponding
figure  for  the first six months of 1999, due mainly to conservatism
in the basis used to calculate the 30 June 1999 figure.

Compared  to the full year 1999 figure in South Africa, new  business
profits  are 7% down (3% down in Rand) after adjusting for  1999  new
business  that arose from demutualisation and the new tax basis.  New
business margins reduced from 18% to 16%.

The  development  of  a fully integrated eCommerce  capability  is  a
strategic priority. Our current website is continually enhancing  the
service  provided  to  registered users  and  we  expect  to  deliver
specific eCommerce-based value propositions within the next year.

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.

We  have  put in place some key strategic initiatives to develop  the
life  business. We recognise that, to deliver shareholder  value,  we
must  deliver  improving  value to our customers.  We  are  therefore
investing significantly in improved systems in Employee Benefits  and
Individual  Life.  We  are  intent on developing  a  customer-focused
business that delivers crafted value propositions to clearly  defined
market  segments.  Brand-building has also received close  attention,
most  visibly though the successful 'green' advertising campaign.  We
are focusing on delivering world class products at lower cost, and on
further  developing  value-creating  initiatives  between  our   life
assurance and banking interests.


Rest of the world
While   South   Africa   presents  in   itself   significant   growth
opportunities, we also have the ambition to develop our business in a
number  of  other  markets. To this end, we  are  investigating  life
assurance  opportunities in developed markets, currently focusing  on
the United States and the UK.

We  are starting to see the benefit of pollination across borders, in
which  ideas  and  technology in one region can be  applied  to  meet
opportunities  in another. For example, internet technology  will  be
used  to provide back ofFIce servicing from South Africa for products
(such   as  Investment  Frontiers)  launched  in  the  UK  and  other
countries.

In the developing world, we have recently formed a joint venture with
the  Indian  Financial  services company  Kotak  Mahindra,  with  the
intention  of  setting  up a life assurance  business  following  the
approaching deregulation of that fast growing market.

Elsewhere in southern Africa, our businesses in Zimbabwe, Namibia and
Malawi continue to have leading positions in their financial services
sectors. Economic conditions in Zimbabwe have, however, recently been
particularly difficult.

Subsequent  to the sale of our UK life assurance business  which  was
completed last year, we successfully arranged the reinsurance of  our
liabilities for pensions mis-selling exposures.

ASSET MANAGEMENT
Operating profits from our asset management businesses grew  strongly
during  the half year to £36 million, up 50% including a contribution
of  £10 million from Gerrard businesses and after restructuring costs
of £10 million. Total assets managed by our wholly-owned subsidiaries
increased by 25% since December 1999 to £52 billion, principally  due
to the addition of the Gerrard Group funds of some £13 billion.

In  order  to  report the underlying developments  within  our  asset
management  businesses  more  clearly  and  best  reflect  our  newly
acquired businesses, we are for the first time presenting the results
of these businesses as three reportable segments:

* Asset Management Worldwide, which contains the existing South
  African and international Old Mutual Asset Managers (OMAM) businesses
  and Unit Trusts in South Africa; and will include United Asset
  Management Corporation (UAM);

* Private Client, which contains the existing UK private client
  business Capel Cure Sharp (CCS) and the acquired Greig Middleton
  business; and

* Other Financial Services, which primarily consists of the
  existing Old Mutual Securities, the acquired Gerrard broking
  businesses and the South African Specialised Finance and Trust
  businesses.

Asset Management Worldwide
Operating profits grew strongly by 56%, on the back of strong
performance from both OMAM businesses and Old Mutual Unit Trusts.

OMAM's  fees in the period benefited from a high asset base following
the  growth  in  stock markets in 1999. OMAM retained  margin  levels
benefiting  from  the relaxation of exchange control  regulations  in
South  Africa and kept third party funds under management  comparable
with 1999 levels.

The  South African unit trust business made excellent progress during
the  period, also benefiting from the relaxation of exchange  control
regulations. Inflows totalled a record £435 million and  the  Company
enjoyed  a  leading market share. Nevertheless, repurchases  were  up
33%, resulting in a net sales increase of 12%.

On  19  June, we announced an agreed tender offer for the  equity  of
UAM,  a  US-listed fund management group. Total cost  at  the  tender
price  would be $1.46 billion plus $769 million in acquired net debt.
On conclusion of this acquisition, which is expected to take place in
the final quarter of the current year, the enlarged Group is expected
to have total assets under management of approximately $275 billion.

The acquisition of UAM will not only give existing clients access  to
a  broader range of investment capabilities, but will also be a  very
significant step in the evolution of OMAM into a fully-fledged multi-
national, multi-style asset manager.

We  are  working  closely with the management of  UAM  and  with  the
management  of a number of key affiliates to progress plans  for  the
future of the combined businesses.

Private client
Our  UK private client business benefited from strong revenues in the
period,  particularly in the first quarter, consistent with the  high
level  of  stockmarket activity. Operating profits for the period  at
£12  million,  before  restructuring  costs,  were  up  100%  on  the
corresponding period in the prior year. The period includes a  strong
initial  contribution  for three months from Greig  Middleton,  while
Capel   Cure  Sharp  achieved  success  in  selling  its  excellently
performing unit trust range.

The  acquisition  of Gerrard Group plc, with effect  from  31  March,
represents  a  major step forward in the development of Old  Mutual's
asset management activities in the United Kingdom. Our private client
businesses, Greig Middleton and Capel Cure Sharp, are currently being
put  together  and  later this year the merged companies,  comprising
approximately  1,800  staff in total, will move  into  a  single  new
headquarters in the City of London.

The  enlarged  firm  will  be  the largest  provider  of  specialised
broking,  investment  management and asset  management  products  and
services to individuals in the UK. Priority is currently being  given
to  uniting  the businesses where the major task is to integrate  the
back  office systems. At the same time, the front office is  planning
for  increasing  penetration of discretionary advice and  unit  trust
products through the expanded client base.


This  integration  process  is  proceeding  well  in  line  with  our
expectations at the time of announcing the Gerrard acquisition. As we
indicated  at that time, the integration will take longer  than  that
following  our  acquisition of Albert E Sharp Securities,  given  the
relative  sizes  of  the  businesses being  merged  and  the  greater
complexity of the systems issues arising.

We  expect  restructuring  costs  for  the  integration  of  the  two
businesses  to  total  £25 million, of which  £10  million  has  been
incurred  in this half year. Anticipated synergies from cost  savings
and  revenue  enhancements are expected to be £25 million  per  annum
from 2002 onwards.

The   integration  of  these  businesses  will  continue  during  the
remainder  of  the year under the leadership of Clive  Boothman,  the
newly  appointed  CEO. Clive joins us from Schroders,  where  he  was
previously Managing Director of its global Private Client Group.

Other financial services
GNI,  our  specialised  broking  and derivatives  market  subsidiary,
performed well in its first three months in the Group which led to an
improved  contribution at £6 million from Other  Financial  Services,
which  also benefited from profits from our South African specialised
financial services businesses.

In  May  this  year  we  merged Albert E Sharp Securities  and  Greig
Middleton's  institutional and corporate stockbroking  businesses  to
form Old Mutual Securities. With a staff of 120 in London, Birmingham
and  elsewhere in the UK, Old Mutual Securities focuses on the growth
sector  of  corporate and advisory services for  smaller  and  medium
sized  UK  and  European companies. Since launch  it  has  built  its
corporate  client  list  to  more than 100 companies,  with  research
coverage  spanning more than 300 stocks in 15 sectors and  as  market
makers dealing in the shares of more than 200 companies.

We  have also transferred the European business of Greig Middleton to
GNI.  GNI continues to grow revenues and has expanded its client base
for  Contracts for Differences.  GNI Touch is now used as  a  trading
platform. GNI's screen trading in exchange futures, and its bond  and
equity  stock  lending  and Financing enjoyed  a  strong  performance
during  the  period. We continue to be excited by  the  potential  of
leveraging this leading technology across the Group.

BANKING
Nedcor  has  contributed another set of outstanding  results  to  the
Group and in consequence has further strengthened its position as the
leading  corporate,  technology, and retail  bank  in  South  Africa.
Reported  attributable income from Nedcor's banking  operations  grew
27%  to R1,230 million, (£119 million). The five-year compound growth
rate  in  EPS of 25% has provided an excellent return for Old  Mutual
over the years.

In  the  period under review, Nedcor increased its return  on  equity
from 21% to 24%, and dropped its cost to income ratio by a further 2%
to  52%.  The  charge  for  bad  and  doubtful  debts  decreased  and
provisioning remains conservative.

Nedcor is rapidly building a framework for the future convergence  of
banking   with   electronic  delivery  channels.  It   has   recently
strengthened its innovative partnership with Dimension Data  Holdings
plc,  a  global  network services company, which recently  listed  in
London.  Additionally,  through other partnerships  in  smart  cards,
transaction processing ventures with leading technology companies and
a  new software services joint venture in India, Nedcor continues  to
be at the forefront of banking information technology.

In  July Nedcor acquired FBC Fidelity Bank, which will be merged with
Peoples  Bank to create the biggest empowerment bank in South Africa.
Joint  ventures  with  Capital One and Old Mutual  Group  Schemes  in
Peoples  Bank  will  broaden the products  offered  to  the  hitherto
underserved segment of the market.

Old  Mutual Banking Services will be launched in South Africa  during
the fourth quarter to offer banking products to Old Mutual clients.

GENERAL INSURANCE
At  the  beginning of the year all general insurers in  South  Africa
were  hit by severe floods, which caused extensive damage to property
and  disruption of business, and resulted in the worst claims  period
for many years.

Under  the circumstances, our 51%-owned subsidiary, Mutual & Federal,
managed the conditions well, mitigating losses through effective  use
of  reinsurance and enforcing the higher premiums levels set  at  the
end of the previous year. Net premium income increased 2% (8% in Rand
terms)  to  £134  million. By the close of the first six  months  the
underwriting deficit, as reported by Mutual & Federal, was halved  in
comparison  to  the  same period of 1999. If  maintained,  the  trend
should  be sufficient to produce a small underwriting profit by  year
end. Mutual & Federal's capital position remains very sound. It is in
the  process of completing its acquisition of CGU Holdings for R1,206
million  (£115  million), which is expected to produce synergies  and
place it in a position to take advantage of further opportunities  in
a consolidating market.

                           OLD MUTUAL PLC
        Interim Results for the six months ended 30 June 2000

    Independent review report by KPMG Audit Plc to Old Mutual plc



Introduction
We  have  been  instructed  by the company to  review  the  financial
information  set  out  on pages 8 to 25 and we have  read  the  other
information contained in the interim report and considered whether it
contains any apparent misstatements or material inconsistencies  with
the financial information.

Directors' responsibilities
The  interim  report,  including the financial information  contained
therein,  is  the  responsibility of, and has been approved  by,  the
directors.  The  Listing  Rules of the Financial  Services  Authority
require that the accounting policies and presentation applied to  the
interim  figures should be consistent with those applied in preparing
the preceding annual accounts except where they are to be changed  in
the  next annual accounts in which case any changes, and the  reasons
for them, are to be disclosed.

Review work performed
We  conducted  our  review in accordance with guidance  contained  in
Bulletin  1999/4: Review of interim financial information  issued  by
the Auditing Practices Board. A review consists principally of making
enquiries  of group management and applying analytical procedures  to
the  financial information and underlying financial data  and,  based
thereon,  assessing whether the accounting policies and  presentation
have  been consistently applied unless otherwise disclosed. A  review
is  substantially less in scope than an audit performed in accordance
with  Auditing  Standards and therefore provides  a  lower  level  of
assurance  than  an  audit. Accordingly we do not  express  an  audit
opinion on the financial information.

Review conclusion
On  the  basis  of  our  review we are  not  aware  of  any  material
modifications  that  should be made to the financial  information  as
presented for the six months ended 30 June 2000.

KPMG Audit Plc
Chartered Accountants
London
5 September 2000
                           OLD MUTUAL PLC
Consolidated profit and loss account for the six months ended 30 June
                                2000


                                            £m                      Rm
                           6       6      Year       6       6     Year
                       months  months    to 31    months   months  to 31
                           to      to  December       to       to  December  
                      30 June 30 June            30 June  30 June           
                 Notes   2000    1999      1999    2000    1999    1999
Operating profit                                               
Life assurance   5a,                                           
                  5e
Continuing              249    198     426        2,573    1,944  4,200
operations
Discontinued            -      (54)    (50)       -        (526)  (493)
operations
Banking           5b    156    98      210        1,610     968    2,072
Asset Management  5c     36    24      48           372     234    473
General           5d,    23    27      59           238     265    582
insurance         5e
business
Other                                                          
shareholders'     5e  (7)    (10)    (32)        (72)     (100)  (316)
income/
(expenses)
Operating profit                                               
based on a long                                                
term investment       457    283     661        4,721    2,785  6,518
return
Goodwill          10  (10)   (3)     (5)        (103)    (25)   (49)
amortisation
Short term                                                     
fluctuations in   5e  (282)  477     778       (2,911)  4,688  7,670
investment
return                                                 
Non-operating     7   -      16      54        -         154    532
items
Profit on                                                      
ordinary              165    773     1,488     1,707    7,602  14,671
activities
before tax
Tax on profit on                                               
ordinary          8   (84)   (51)    (165)     (868)    (499)  (1,627)
activities
Profit on                                                      
ordinary              81     722     1,323     839      7,103  13,044
activities after
tax
Minority              (42)   (121)   (257)     (434)   (1,187) (2,534)
interests                                          
Profit on                                                      
ordinary                                                       
activities after      39     601     1,066     405      5,916  10,510
tax and minority
interests
Dividend          4   (55)   -       (69)      (569)    -      (680)
proposed
Retained (loss)                                                
/ profit for the      (16)   601     997       (164)    5,916  9,830
period
Earnings and                                                   
dividend per                                                   
share                                                          
attributable to                      p                         c
equity
shareholders
Basic earnings    3   1.2    20.0    34.1      12.0     199.0  336.2
per share
Diluted earnings  3   1.2    20.0    33.9      11.9     197.0  334.2
per share
Operating         3   9.0    6.0     12.3      92.4     60.0   121.4
earnings per
share
Dividend per      4   1.6            2.0       16.9            19.7
share                           -                         -

                           OLD MUTUAL PLC
     Consolidated statement of total recognised gains and losses
                for the six months ended 30 June 2000

                                    £m                         Rm
                    6      6      Year        6       6      Year
                months  months             months  months
                   to     to        to       to      to        To
                   30      30       31       30      30        31
                 June    June   December     June    June  December
                 2000    1999      1999      2000    1999      1999

Profit on         39      601     1,066      405     5,916   10,510
ordinary
activities
Foreign exchange  (136)   123     (35)       (203)   408     241
movements
Total recognised                                             
gains and losses  (97)    724     1,031      202     6,324   10,751
for the period


Reconciliation of movement in equity shareholders' funds for the six months
ended 30 June 2000



                                        £m                         Rm
                        6      6      Year        6       6      Year
                   months months             months  months
                       to     to        to       to      to        to
                       30     30        31       30      30        31
                     June   June   December     June    June  December
                     2000   1999      1999     2000    1999      1999
Total recognised                                             
gains and losses  (97)    724     1,031      202     6,324   10,751
for the period
Dividend proposed (55)    -       (69)       (569)   -       (680)
                  (152)   724     962        (367)   6,324   10,071
Issue of new                                                 
capital on        -       404     404        -       3,954   3,954
policyholder self-
investment
Issue of new      -       -       559        -       -       5,355
capital on
listing
Net (reduction                                               
in) / addition to (152)   1,128   1,925      (367)   10,278  19,380
equity
shareholders'
funds
Equity                                                       
shareholders'     3,513   1,588   1,588      34,907  15,527  15,527
funds at the
beginning of the
period
Equity                                                       
shareholders'     3,361   2,716   3,513      34,540  25,805  34,907
funds at the end
of the period


                           OLD MUTUAL PLC
             Consolidated balance sheet at 30 June 2000

                                           £m                        Rm
                          At       At      At       At        At     At
                          30               30       30        31     30
                        June  31December  June     June  December   June
                 Notes  2000      1999    1999     2000      1999   1999

Intangible        10    634     164       98       6,515   1,629    931
assets
                                                                 
Insurance and                                                    
other assets
Investments           16,585  18,081   16,602    170,440  179,658  157,848
Assets held to                                                   
cover linked          5,779   5,916    5,771     59,385   58,784   54,872
liabilities
Reinsurers'                                                      
share of              146    161       183        1,497    1,600    1,736
technical
provisions
Debtors               3,967  524      375        40,767  5,207    3,564
Other assets          972    133      377        9,992   1,322    3,589
Cash at bank and      440    443      325        4,524   4,402    3,092
in hand
Prepayments and                                                  
accrued income        225    317      269        2,316   3,150    2,560
Total insurance       28,114 25,575   23,902    288,921 254,123  227,261
assets       
Banking assets                                                   
Cash and                                                         
balances at           398    760      312        4,094   7,552    2,963
central banks
Treasury bills                                                   
and other             7,385  744      1,338     75,894   7,393    12,717
eligible bills
Loans and             3,131  613      63        32,180   6,091    598
advances to
banks
Loans and                                                        
advances to           16,997  9,704    10,138   174,676 96,423   96,386
customers         
Debt securities       748    629      640       7,691   6,250    6,087
Equity                174    145      155       1,792   1,441    1,470
securities
Interest in                                                      
associated            219    179      63        2,249   1,779    623
undertakings
Other assets          313    275      220       3,217   2,732    2,055
Prepayments and                                                  
accrued income        189    168      258       1,941   1,669    2,452
Total banking         29,554 13,217  13,187   303,734  131,330  125,351
assets               
Total assets          58,302 38,956  37,187   599,170  387,082  353,543


                           OLD MUTUAL PLC
             Consolidated balance sheet at 30 June 2000

                                            £m                          Rm
                        At    At 31         At        At   At 31        At
                        30  December    30 June       30  December  30 June
                      June                          June        
Liabilities           2000     1999       1999      2000    1999      1999
Capital and                                                       
reserves
Called up share     344     344     297           3,418   3,418   2,964
capital
Share premium       868     868     357           8,625   8,625   3,563
account
Profit and loss     2,149   2,301   2,062         22,497  22,864  19,278
account
Equity              3,361   3,513   2,716         34,540  34,907  25,805
shareholders' funds
Minority interests  874     857     829           8,984   8,515   7,883
Fund for future     -       -       6             -       -       57
appropriations
Insurance and other                                               
liabilities
Technical                                                         
provisions
Technical           14,120  15,129  14,474        145,104 150,328 137,607
provisions            
Technical                                                         
provisions for      5,779   5,916   5,694         59,385  58,784  54,138
linked liabilities
Provisions for                                                    
other risks and     343     317     221           3,522   3,150   2,101
charges
Creditors           5,626   1,093   915           57,853  10,860  8,698
Accruals and                                                      
deferred income     89      43      120           909     427     1,144
Total insurance     25,959  22,498  21,424        266,773 223,549 203,688
liabilities                                
Banking liabilities                                               
Deposits by banks   9,271   798     651           95,276  7,929   6,191
Customer accounts   16,487  9,343   9,405         169,420 92,836  89,422
Debt securities in  1,189   1,194   1,493         12,218  11,864  14,190
issue
Other liabilities   1,046   609     57            10,750  6,048   546
Provision for                                                     
liabilities and     47      76      546           487     755     5,189
charges
Subordinated        70      68      60            722     679     572
liabilities
                    28,110  12,088  12,212        288,873 120,111  116,110
Total liabilities   58,302  38,956  37,187        599,170 387,082  353,543

                           OLD MUTUAL PLC
Consolidated cash flow statement for the six months ended 30 June 2000


                                           £m                        Rm
                    Notes      6   6    Year to     6      6       Year to
                         months months  31 December months months  31 December
                             to    to     1999      to 30  to 30    1999
                             30    30               June   June
                           June   June              2000   1999        
                           2000   1999          
                                                       
Operating                                                              
activities
Net cash flow        12   205   (4)    752        2,113   (42)   7,414
from operating
activities
Net cash                 8      2      (124)      84      20     (1,223)
inflow/(outflow)
from
returns on
investments and
servicing of
finance
Total taxation           (42)   (37)   (70)       (436)   (360)  (690)
paid
Net cash outflow         (65)   (32)   (84)       (674)   (313)  (828)
from capital
expenditure and
financial
investment
Net cash                 (555)  16     66         (5,727)  154    650
(outflow)/inflow                                
from acquisitions
and disposals
Equity dividends         (67)   -      -          (694)     -     -
paid                                                        
Net cash                 (516)  (55)   540      (5,334)   (541)  5,323
(outflow)/inflow                                         
before financing
activities
Net cash inflow          83     56     547        856     550    5,391
from financing
activities
Net cash                 (433)  1      1,087    (4,478)  9      10,714
(outflow)/inflow                               
of the Group
excluding long
term business
Shareholder cash                                               
flows relating to
insurance and
other activities
were invested as
follows:
Increase in cash         64     44     122      660     428    1,202
holdings
(Decrease)/increa        (162)  171    732      (1,674) 1,687  7,215
se in net                                             
portfolio
investments
                         (98)   215    854      (1,014) 2,115  8,417
                                               
Shareholders cash                                              
flows relating to
banking and other
activities were
invested as
follows:
(Decrease)/increa        (335)  (214)  233     (3,464) (2,106) 2,297
se in cash and                                 
balances at
central banks
Net cash                 (433)  1      1,087   (4,478)  9      10,714
(outflow)/inflow                               
of the Group
excluding long
term business

The cash flows presented in this statement exclude cash flows arising
within life assurance policyholder funds.


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