Trading Update

Old Mutual PLC
10 May 2006


                                 Old Mutual plc

              Trading update for the three months to 31 March 2006

                            Strong start to the year


The Group continues to deliver strong growth across a substantially expanded
international footprint following the acquisition of Skandia, with particularly
strong sales of unit trust/ mutual fund and asset management products, and good
net cash inflows from clients.

Positive equity markets across all of our geographies and the increase in sales
have both contributed to the 8% growth in funds under management in the quarter
to £248 billion.

• Sales

• Skandia: Continuing strong growth, with total mutual fund sales up 77% to
  SEK 13.3 billion and unit-linked sales on an Annual Premium Equivalent (APE)
  basis up 22% to SEK3.3 billion.

• South Africa: Life sales up 5% to R940 million on an APE basis, with most
  segments showing good growth, offset by disappointing Healthcare sales.
  Exceptional growth in unit trust sales of 66% to R2.8 billion (31 March 2005:
  R1.7 billion).

• USA: Life sales were $106 million on an APE basis, a decrease of 16%,
  reflecting the impact of the initiative to rationalise distribution and 
  maintain sales at around the planned $4 billion level. Mutual fund sales 
  through our retail initiative increased to $339 million from $48 million for 
  the first quarter of 2005.

• Total sales: Life sales for the combined Group on an APE basis increased by 
  11% to £395 million. Unit trust/ mutual fund sales increased by 99% to £1.9
  billion.

• Funds Under Management

• Skandia: 8% increase in funds under management since 31 December to
  SEK691 billion.

• South Africa: up 4% to R501 billion as our businesses continue to benefit
  from the powerful growth in the South African economy.

• USA: funds under management up 9% to $248 billion, driven by excellent
  net fund inflows of $11.2 billion (31 March 2005: $9.4 billion). This includes
  $22 billion of funds and $7 billion of net cash flows for eSecLending, the 
  sale of which has been announced.

• UK & ROW: up 14% to £8 billion, as organic growth continues, with retail
  fund inflows and favourable market movements driving an increase of 9% in 
  funds at OMAM (UK). Selestia sales were very strong, increasing by 84% to 
  £254 million.

• Nedbank: Strong trading results driven by revenue growth, with net interest 
  income increasing by 29% to R2.4 billion (31 March 2005: R1.9 billion) and 
  non-interest revenue increasing by 16% to R2.3 billion (31 March 2005: R2
  billion).

• Mutual & Federal: total gross premiums for the first quarter increased by 
  4% to R2.2 billion (31 March 2005: R2.1 billion) despite the ongoing
  softening of the insurance market.

• Embedded value per share, excluding the impact of the Skandia acquisition 
  was up 13% to 197.8p (2,117c) at 31 March 2006, (31 December 2005: 175.6p 
  (1,912c)).

Jim Sutcliffe, Chief Executive, commented: 'We have achieved a strong start to
the year with powerful growth in both sales and funds under management. Our
ambition remains to be an international financial services group of world-class
stature, delivering our shareholders more growth with less risk. The acquisition
of Skandia was an important step in fulfilling that ambition.


                                                                     10 May 2006

Enquiries:

Old Mutual plc

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]
Tony Friend
Gareth David

Jim Sutcliffe, Chief Executive, will host a conference call for analysts and
investors at 08.30 UK time and 09.30 CET/ South African time this morning. The
call will include a brief overview of the trading update and an opportunity for
questions. Analysts and investors who wish to participate in the conference call
should dial the following toll-free numbers:


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

The First Quarter 2006 Trading Statement Financial Disclosure Supplement, can be
found on our website at www.oldmutual.com.

Our acquisition of Skandia is now complete, with an effective date of 1 February
2006. All references, however, to Skandia are to trading results for the
three-month period to 31 March 2006, with comparatives also quoted for the
equivalent three months to 31 March 2005. To ensure transparency of data, the
Skandia business has been shown both in this document and the first quarter 2006
Financial Disclosure Supplement, as a single geographical segment.

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.


SKANDIA

The full text of Skandia's trading update for the first quarter of 2006,
released today, can be accessed on Skandia's website, www.skandia.com.

A strong combination

The combined Group is now well positioned to become a leading force in the
European savings market through the establishment of efficient distribution
networks, leading products and optimal service and systems. Skandia's strong
position in Europe adds to Old Mutual's existing strengths in the United States
and Africa, giving the enlarged Group a more diversified and sustainable
earnings pattern.

We are currently working towards finalising our vision for each of the Skandia
businesses with a view to securing future growth and delivering on the targeted
synergies, with an Old Mutual- Skandia market update to be provided on 20 June
2006.

Continued strong growth in sales, up 22%

Skandia delivered continued growth in sales during the first quarter of 2006,
with total mutual fund deposits increasing by 77% to SEK 13.3 billion, driven by
good performance across the UK and Europe & Latin America markets. Strong growth
was also experienced in total unit-linked sales on an Annual Premium Equivalent
basis, increasing by 22% to SEK3.3 billion compared with SEK2.7 billion for the
equivalent period last year.

Increased sales, coupled with buoyant equity markets contributed to the 8%
increase in funds under management to SEK 691 billion at the end of March 2006,
compared with SEK 640 billion at the end of December 2005.


UK & Offshore - unit-linked sales up 31%

Excellent growth was experienced across unit-linked UK based products during the
quarter, driven by the momentum created by the tax year-end and the strong
equity markets. Unit-linked sales increased by 31% to £152 million for the three
months to 31 March 2006, compared with the same period in 2005.

Sales of Skandia UK's pension products contributed £59 million to total
unit-linked sales, an increase of 99% on the equivalent period last year, as
advisers continue to consolidate their clients' pension portfolios in response
to the release of the Pensions 'A' Day regulations.

Unit-linked bond sales in the first quarter were stable following price
refinements made during 2005 in order to secure margin improvements and increase
capital efficiency. The sales growth of 13% to £52 million in Skandia UK's
offshore arm, Royal Skandia, was largely driven by solid growth in the UK and
Middle East. The market uncertainty surrounding the tax treatment of trusts
following the release of the UK Budget in March 2006 may, however, result in a
decrease in new business volumes in the second quarter of 2006.

Mutual fund deposits of £286 million also showed growth of 59%, benefiting from
the continued industry shift towards fund platforms and the significant increase
in sales towards the end of the tax year.

The strong growth in the UK segment in the first quarter benefited from new fund
launches, continued service innovation and Skandia's well recognised reputation
in the IFA channel, further supported by the naming of the business as 'Company
of the Year' at the recent Money Marketing awards.


Europe & Latin America -underlying unit linked sales growth of 50%

2005 first quarter life sales were affected by the EUR 29 million overhang of
tax-driven sales in Germany, and sales were 8% lower in the equivalent period
this year as a result. However, the underlying trends are very strong with
underlying unit-linked sales increasing by 50% for the first quarter, due
primarily to growth in Italy, France and Poland. These countries benefited from
strong momentum in their local unit-linked markets.

Mutual fund deposits experienced excellent growth, increasing to EUR 690
million, compared with EUR 276 million for the equivalent period last year,
driven by the success in delivering high sales volumes in Spain and Columbia.

Nordic - sales up 15%

Unit-linked sales during the first quarter increased by 15% to SEK559 million
compared with the first quarter of 2005, with sales in Sweden contributing 10%
towards this increase. In the key corporate client segment, sales increased by
5%, whilst sales in the private client segment increased by 30%, mainly driven
by the success of the 'Kapital-pension' products introduced in the first quarter
of 2005 in response to changes in local tax regulations.


SOUTH AFRICA

Our South African businesses continued to benefit from the powerful growth in
the South African economy, marked by Rand stability and a low inflationary and
interest rate environment. These conditions contributed to a 4% increase in
funds under management to R501 billion at 31 March 2006 compared with R480
billion at 31 December 2005.


Life Assurance & Asset Management - Old Mutual South Africa (OMSA)

First quarter powerful growth

OMSA continues to focus on improving customer value for money, strengthening its
independent broker and tied agent sales forces and building links with Nedbank.
This has produced solid life sales of R945 million (including South African
sales into Old Mutual International) (OMI) on an APE basis for the three months
to 31 March 2006, an increase of 6% compared to the equivalent period last year.
Unit trust sales benefited significantly from the switch in customer preference
towards unit trust savings products, increasing by 66% to R2.8 billion.

Individual life sales up 17%

Individual Business life sales of R702 million for the first quarter to 31 March
2006 (including South African sales into OMI) were 17% higher than the R601
million achieved in the equivalent period last year.

Within this, recurring premiums for the first quarter increased by 13% to R475
million from R420 million in the prior period, with strong growth in protection
sales of 31% to R180 million and Group Schemes sales of 33% to R155 million.

Individual Life single premiums on an APE basis, increased by 26% to R227
million, reflecting annuity and OMI sales growth.

Sales through our banking channel continue to benefit from the ongoing focus on
delivering cross-sales growth, with the gains in the second half of 2005
continuing into 2006.

Group Business sales impacted by poor Healthcare performance

Group Business life sales decreased by 17% to R243 million compared with R294
million for the first quarter in 2005. Strong single premium growth of 68% to
R149 million (31 March 2005: R89 million), primarily in annuities, was more than
offset by significantly lower Healthcare sales of R72 million compared with R180
million for the equivalent period last year. A range of initiatives has been
implemented to generate sales growth, including increased marketing promotion of
the Oxygen brand and a detailed membership retention strategy.

Margin of 16% in line with expectations

The new business margin of 16% reflects the impact of more competitive product
pricing, improved customer value for money and action taken to accelerate new
business growth. The Individual Business margin of 10% is in line with
management expectations for the quarter and reflects the impact of these
initiatives. The Group Business margin was 31%, reflecting sales growth in
higher margin products.

Positive net client cashflows

Net client cashflows for the first quarter were a pleasing R2.4 billion compared
with negative cash flows of R12.5 billion for the equivalent period last year,
benefiting from significant management effort undertaken in the last year
through specific distribution initiatives.

Excellent investment performance

Old Mutual Asset Managers (South Africa) (OMAM (SA)) continued to deliver
excellent investment performance, ranked second out of the nine institutional
asset managers in the Alexander Forbes South African Global Manager Watch
(Large), Survey over the three years to 31 March 2006. 74% of funds managed by
OMAM (SA) weighted by value over three years to 31 March 2006, outperformed
their benchmarks.

Unit trust investment performance also remained strong, with 63% of funds
positioned in the top quartile of their respective peer groups over the
three-year period to 31 March 2006.

Business developments

Following the Pension Fund Adjudicator's rulings in 2005, the five major South
African life assurers, including Old Mutual, signed a Statement of Intent with
the National Treasury in late 2005 committing them to the improvement of early
termination values for retirement annuities and endowments. The National
Treasury recently issued a discussion paper on 'Contractual Savings in the Life
Insurance Industry', dealing with the specific issues arising from the Statement
of Intent in addition to including more far-reaching comments and
recommendations. OMSA expects to be actively involved in the related industry
discussions.

Competition Commission approval has now been received for the acquisition of
Marriott Properties and Marriott Asset Management announced in October 2005,
with the results of these businesses expected to be included in OMSA's results
from the second half of 2006.

Banking - Nedbank Group (Nedbank)

The full text of Nedbank's trading update for the first quarter of 2006,
released on 4 May 2006, can be accessed on Nedbank's website, http://
www.nedbankgroup.co.za.

Strong trading results as positive momentum continues

Nedbank continued to deliver with strong trading results for the first quarter
of 2006 driven by revenue growth, including favourable listed property private
equity revaluations, strong deal flow, robust equity-trading revenue and ongoing
tight expense control. All three key operating divisions were successful in
driving revenue growth, with headline earnings increasing by 83% to R1 billion
compared with R561 million for the first quarter of 2005. Around R150 million of
pre-taxation revenue for the quarter could be considered to be of a
non-recurring nature and therefore not expected to repeat over the full year.
The underlying trends, however are positive.

On track to deliver 2007 targets

The return on equity (ROE) and efficiency ratios benefited from the first
quarter revenue growth, improving to 18% and 57% respectively. The business is
planning expenditure increases over the remainder of the year to enhance Nedbank
Retail's distribution network and marketing efforts. Nedbank remains committed
to achieving the 2007 20% ROE and 55% cost-to-income targets despite the impact
of this planned expenditure and potential non-sustainability of the first
quarter revenue growth.

Growth of 29.1% in net interest income (NII)

NII grew strongly to R2.4 billion (31 March 2005: R1.9 billion), with advances
increasing by 19.6% (annualised from December 2005) and the net interest margin
showing good growth for the first quarter to 3.82% from 3.24% for the
comparative period in 2005. The margin benefited from the uplift from settlement
of the expensive empowerment funding for Peoples Bank in April 2005, growth in
higher margin retail and business banking advances and higher endowment levels
during the first quarter. Whilst the business has succeeded in significantly
growing the margin over the first quarter, some reduction is anticipated over
the remainder of the year as a result of continued strong retail, and business
banking asset growth being funded largely by wholesale deposits.

Non-interest revenue (NIR) shows solid growth

NIR increased by 15.8% to R2.3 billion reflecting the continued positive deal
flow and equity-trading revenue at Nedbank Capital and favourable listed
property private equity revaluations at Nedbank Corporate. Bancassurance sales
also contributed to this growth, with new business premiums increasing by 40%
over the first quarter compared with the equivalent period last year.

Assets up 10.6% (annualised)

Total assets at 31 March 2006 increased by 10.6% (annualised) to R361 billion
from R352 billion at 31 December 2005, driven by the 19.6% (annualised) growth
in advances. Average interest-earning banking assets also increased by R16.5
billion.

General Insurance - Mutual & Federal

The full text of Mutual & Federal's trading update for the first quarter of
2006, released today, can be accessed on Mutual & Federal's website,
www.mf.co.za.

Premiums maintained in a softening cycle

Mutual & Federal succeeded in maintaining premium levels in the first quarter
despite the ongoing softening of the short-term insurance market. Total gross
premiums for the first quarter increased by 4% to R2.2 billion compared with
R2.1 billion for the comparative period in 2005.

Underwriting ratio impacted by increasing claims

The underwriting ratio of 3.7%, whilst benefiting from the increase in premium
levels, has been impacted by increased weather-related claims in the first
quarter of 2006. It should be noted that short-term insurance results and
investment levels fluctuate and those for the first three months of the year are
not necessarily indicative of the outturn for the remainder of the half-year.


UNITED STATES

Funds under management up 9% reflect strong organic growth

Funds under management for the combined US businesses increased by 9% to $248
billion from $226 billion at 31 December 2005 driven by strong investment
performance and excellent net fund inflows in our asset management business.


US Asset Management

Excellent net fund flows

Funds under management at our US asset management business increased by 9% to
$247.6 billion at 31 March 2006 from $226.3 billion at 31 December 2005, driven
by excellent net fund inflows of $11.2 billion (31 March 2005: $9.4 billion),
achieved in international and core equity and global fixed income. Net fund
inflows for the quarter include $7 billion relating to eSecLending, arising
primarily in cash collateral assets. Strong investment performance and net
positive market movements contributed $9.7 billion or 4% towards the total
increase in funds under management.

The business experienced continued positive momentum from the retail initiative
investment, with gross sales of $0.6 billion for the first quarter, representing
a solid start to the year.

Managing our portfolio

The US asset management business acquired a majority interest in Copper Rock
Capital Partners in February 2006, a small-cap growth equity manager
headquartered in Boston, with funds under management of $0.4 billion. This marks
the completion of an option purchased in February 2005.

The business of Pacific Financial Research (PFR) has now been successfully
migrated to Barrow Hanley Mewhinney & Strauss, another affiliate in the US Asset
Management business, with the closure of PFR substantially complete.

An announcement was made in late March regarding the planned sale of the
securities lending manager, eSecLending, to TA Associates, a leading private
equity and buyout firm based in Boston. Whilst eSecLending had grown
substantially under our ownership, as a securities lender, there were few
remaining synergies to be realised within the Group, thus prompting the decision
to divest of this non-core operation. Funds under management for eSecLending of
$22 billion have been included in US Asset Management's first quarter results,
with the sale expected to close by the end of the second quarter.


US Life

On track for full year sales target

Our goal for this business is to maintain sales around the $4 billion range and
in doing so, develop the operation towards maturity and capital self-sufficiency
from 2007. In line with this objective, the business took steps to rationalise
distribution and products towards the end of last year following a period of
record sales, resulting in a decrease in sales for the first quarter of 2006 as
planned. The business is on track to achieve the full year sales target of $4
billion.

Offshore annuity sales (on an APE basis) through Old Mutual Bermuda showed
particularly high growth, increasing by 65% to $23 million (31 March 2005: $14
million), reflecting a further strengthening of relationships in the existing
bank distribution network and an overall expansion in the network during the
first quarter.

Pricing disciplines maintained

The 18% margin for the first quarter is at the upper end of our long-term
expectations under EEV methodology and reflects our focus on achieving
profitability through the maintenance of pricing disciplines, whilst also
benefiting from positive investment yields in the first quarter.

On track to release cash

The business remains on track to release cash from 2007, with funds under
management of $21 billion at 31 March 2006 now firmly in the $20 to $25 billion
dollar range required to achieve capital self-sufficiency.


UK & Rest of World

Organic growth continues

The success of the UK organic growth strategy continues, with funds under
management increasing for the UK and ROW segment by 14% to £8 billion at 31
March from £6.9 billion at 31 December 2005.

OMAM (UK) funds under management at £5.1 billion increased by 9% compared with
£4.7 billion at 31 December 2005, driven by strong retail fund inflows and
favourable market movements. The business continues to benefit from the ongoing
expansion of its product portfolio, with the launch of the Spectrum Plus product
in early April and the strengthening of its distribution capability.

Selestia continues to build critical mass with sales of £254 million, an
increase of 84% over sales of £138 million for the equivalent period last year,
taking funds under management to £1.9 billion. Going forward, Selestia will
become part of our Skandia UK business.

Our joint venture in India, Kotak Mahindra Old Mutual, continues to grow
exponentially. Total premium income on an APE basis was £42 million for the
first quarter of 2006, up from £22 million for the equivalent period last year.
The business is now well established in the Indian market, with 46 branches in
34 cities and an agency force of nearly 12,000.


INTERIM RESULTS

The Group will announce the 2006 interim results for the combined Old Mutual and
Skandia Group on 14 September 2006. The Interim announcement has been postponed
from the usual August reporting date to accommodate the first time consolidation
of Skandia. Going forward, the Group anticipates that the interim and year end
reporting dates will occur in August and February respectively.


NAMIBIA BLACK ECONOMIC EMPOWERMENT (BEE) TRANSACTION

The Group's businesses in Namibia are planning a BEE transaction to enhance
their competitive position in that country, involving staff, Black Business
Partners and trusts. If implemented, the transaction is likely to include an
issue of shares by Old Mutual plc to the proposed Black Business Partners and
trusts in Namibia on a basis similar to the Group's BEE transactions in South
Africa in 2005, and to employees in Namibia under the Group's existing BEE
employee share schemes. We anticipate the cost of the transaction would be
similar to the 2005 South African transactions on a pro-rata basis. Any Old
Mutual plc shares to be issued as part of the transaction would be issued under
the existing share authorities, which we are asking shareholders to renew at
today's Annual General Meeting, and the Company does not therefore intend to
seek specific approval from its shareholders for the transaction. The
transaction may also involve an issue of shares by the Company's South African
subsidiaries.

The number of shares to be issued by Old Mutual plc in respect of the
transaction is approximately 0.2% of the total number of Old Mutual plc shares
currently in issue. Should all the elements of the transaction proceed, the
resulting effective economic dilution of the existing issued share capital of
the Company, by reference to its current market capitalisation, is anticipated
to be less than 0.1%. The Board believes that the commercial benefits of the
transaction are likely to exceed the related initial and ongoing costs. A
further announcement will be made should the contemplated transaction proceed.



Jim Sutcliffe
Chief Executive

10 May 2006



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