New business update

Old Mutual PLC
10 August 2006


                                  Old Mutual plc

            New business update for the six months to 30 June 2006(1)
          Strong performance in open architecture and unit trust sales
                                        
                                        
• Sales: Worldwide life APE sales +8% to £802m. Unit Trust / Mutual Fund
  sales +72% to £4,124m

Europe2: Life APE sales +16% to £491m (30 June 2005: £422m) with the UK onshore
business contributing + 39%, Mutual fund sales + 59% to £2,116m (30 June 2005:
£1,331m), with + 74% sales growth in the UK as the industry shift to open
architecture solutions continues.

South Africa3: Life APE sales +4% to R2,062m (30 June 2005: R1,992m). Our core
Retail and Group single premium businesses showed good growth but were offset by
a decline in the Healthcare and group protection businesses. Unit trust sales
+51% to R8,985m4 (30 June 2005: R5,948m) as the business continues to benefit
from focused product marketing initiatives, open architecture and a positive
investment environment.

United States: The US Life business, with FUM of $21bn, is on track to achieve
its full year gross sales target of $4 billion. As planned, Life APE sales were
reduced by 17% to $230m (30 June 2005: $276m), compared with record half-year
2005 sales, to actively manage new business strain and thus ensure the business
meets its target of releasing cash from 2007. FUM at US Asset Management were
+2% to $230.8bn despite a $25.4bn decrease as a result of the sale of
eSecLending during the second quarter. Mutual fund gross sales increased to
$687m (30 June 2005: $120m) demonstrating the momentum of our retail initiative.

Asia Pacific/ Other5: Unit trust sales + 68% to £829m (30 June 2005: £492m)

• Nedbank: NII +25% to R5,039m (30 June 2005: R4,025m); NIR +18% to R4,591m
  (30 June 2005: R3,881m)

• Mutual & Federal: gross premiums +8% to R4,260m (30 June 2005: R3,962m)

Jim Sutcliffe, Chief Executive, commented:

'We have made good progress in all our markets in the first half. We are on
track in the US and our retail savings business in South Africa is growing sales
volumes again. With over 60% of our sales now in Europe, Skandia's progress has
been ahead of our original expectations.'

                                                                  10 August 2006

Enquiries:

Media:                                
Miranda Bellord (UK)                  Tel: [phone]
Nad Pillay (SA)                       Tel: [phone]
                                    
Investors:                            
Malcolm Bell (UK)                     Tel: [phone]
Deward Serfontein (SA)                Tel: [phone]

College Hill (UK)                     Tel: [phone]
Alex Sandberg
Gareth David

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.

The New Business Financial Disclosure Supplement for the six months to 30 June
2006, can be found on our website at www.oldmutual.com.

Note: Old Mutual plc's full interim results will be published on 14 September
2006.

1The New Business Update for the six months to 30 June 2006 is a one-off
release, issued due to the postponement of our interim announcement to 14
September 2006. Going forward, new business results will be included in the
quarterly and year-end results announcements.

2Includes Selestia and Skandia's trading results, including Latin America, for
the six-month periods to 30 June 2006 and 30 June 2005

3Includes trading results for Old Mutual South Africa, Namibia and Old Mutual
International.

4Includes unit trust sales into multi-managed funds and restricted single
manager funds, in addition to unit trust sales into single manager funds as
previously reported at Q1 2006

5Includes trading results for Old Mutual Asset Managers (UK) and Skandia
Australia

EUROPE


Skandia UK

Skandia UK continued to deliver strong growth, with Life APE sales up 22% to
£311m for the first half (30 June 2005: £255m). UK onshore unit-linked sales
grew by 39% to £190m, benefiting from increased transfer activity and higher
regular premium investments following the implementation of Pensions 'A' Day
regulations, with an 86% growth in pensions sales to £122m offset by lower sales
of protection products and bonds. Offshore sales grew by 2% to £121m as strong
international growth was offset by lower sales into the UK, where growth was
impacted by tax changes.

Mutual fund sales increased by 74% to £1,237m (30 June 2005: £712m), benefiting
from the continuing industry shift to wrap products and open architecture
solutions, in addition to the successful launch of several new funds in both
2005 and 2006.

Skandia Europe and Latin America (ELAM)
In 2005, ELAM first half Life APE sales were positively impacted by the EUR 29
million of one-off tax-driven sales in Germany, with sales for the equivalent
period this year only increasing by 13% as a result. However, the underlying
sales trends are strong, with unit-linked sales, excluding the impact of this
one-off, increasing by 46%.

ELAM achieved growth of 52% in mutual fund sales to £762m (30 June 2005: £502m),
primarily driven by excellent sales in Spain and Colombia in the first quarter.

Skandia Nordic

Unit-linked APE sales in the Nordic region increased by 2% to £79m with 9%
growth in recurring premiums partly offset by a 18% decrease in single premiums,
reflecting a downturn in 'Kapital-pension' product sales over the second
quarter. Mutual fund sales were flat.

SOUTH AFRICA

Life Assurance and Asset Management

Life APE sales were up 4% to R2,062m (30 June 2005: R1,992m). Individual
business was up 13% in South Africa, with our funeral insurance business
continuing to expand and both our sales forces producing good increases.
Healthcare continued to be disappointing and we are seeking to change the
structure of this business. Group protection business was lower as incumbents
won most tenders, but our single premium business improved as a result of some
big annuity wins.

OMSA unit trust sales increased by 52% to R8,506m (30 June 2005: R5,614m),
driven by more focused product level marketing and the positive investment
environment.


Banking - Nedbank Group (Nedbank)
The full text of Nedbank's interim results for the six months to 30 June 2006,
released on 7 August 2006, can be accessed on Nedbank's website, http://
www.nedbankgroup.co.za.

Nedbank has continued to deliver improved financial results with performance for
the half-year reflecting the benefits of operating efficiencies achieved over
the last two years, combined with an increased focus on revenue growth. Net
interest income increased by 25% to R5,039m (30 June 2005: R4,025m), with growth
in non-interest revenue of 18% to R4,591m (30 June 2005: R3,881m) reflecting
favourable growth in core banking income as well as a number of non-recurring
transactions concluded in the first quarter of 2006.

General Insurance - Mutual & Federal

The full text of Mutual & Federal's interim results for the six months to 30
June 2006, released on 2 August 2006, can be accessed on Mutual & Federal's
website, www.mf.co.za.

Total gross premiums increased by 8% for the first half to R4,260m (30 June
2005: R3,962m) despite the continued softening of the short-term insurance
market.

Mutual & Federal announced the payment of a special dividend following a
detailed review of its capital requirements. The dividend of 800 cents per share
payable on 11 September 2006 represents a return of capital to shareholders of
R2.3bn or 40% of the net asset value of the company.


UNITED STATES


US Life

Our goal of progressing this business towards capital self-sufficiency from 2007
is progressing well with funds under management at 30 June 2006 of $21bn and the
business on track to deliver roughly the same sales for the full year as it did
in 2005. Life APE sales for the first half were 17% lower at $230m (30 June
2005: $276m), compared with record half-year 2005 sales, as planned. Second
quarter sales were 17% up on the first quarter. Offshore annuity APE sales
through Old Mutual Bermuda continued to show particularly high growth of 54%,
increasing to $54m (30 June 2005: $35m).


US Asset Management

Funds under management at our US asset management business increased by 2% to
$230.8 billion at 30 June 2006 from $226.3 billion at 31 December 2005 despite
the decrease in client assets of $25.4 billion as a result of the sale of
eSecLending during the second quarter. Excluding eSecLending, funds under
management increased by 9 per cent from $211.3 billion at 31 December 2005. Net
fund inflows for the half-year 2006 were $9.7 billion.

Strong investment performance and net positive market movements contributed a
further $9.4bn towards the total increase in funds under management for the half
year.

We experienced increased momentum from the retail initiative investment, which
generated mutual fund gross sales of $687m for the first half of 2006 (30 June
2005: $120m).



ASIA PACIFIC/ OTHER

Unit trust sales increased by 68% to £829m for the first half (30 June 2005:
£492m), driven by strong sales at Old Mutual Asset Managers (UK) as the business
continued to benefit from the ongoing expansion of its product portfolio and the
further strengthening of its distribution capabilities.

Our joint venture in India, Kotak Mahindra Old Mutual, continues to make good
progress. Total premium income on an APE basis reached £55m for the first six
months of the year, an increase of 92% over the first half of 2005. The business
now has more than 2,000 employees, a tied-agency force of 14,000 and operates
from 51 branches in 39 cities across India. The business is on track to achieve
its APE target of £130m for the year.

Skandia-BSAM, our joint venture with the Beijing state-owned Asset Management
Company, now in its second year of operation, has made a very good start to the
year, achieving 87% of its annual sales target at the half-year. Gross written
premiums as at 30 June 2006 were £19m.



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