Old Mutual plc Preliminary Results

For the year ended 31 December 2008

Solid performance in SA and Europe with challenges in US Life

• OMSA and Nordic: excellent growth in sales; adjusted operating profits up 14% and 23% (in local currency) respectively
• UK: sales impacted by equity market decline although strong unit-linked market position maintained
• US Asset Management: diversified asset mix provided resilience
• US Life: disappointing result although management actions to de-risk and return to profitability

The Group and its businesses remain well capitalised

• Group pro-forma FGD surplus at 31 December in excess of £0.7 billion, 1.2 times coverage ratio
• Available cash and facilities of over £600 million
• Strong capital surpluses in individual business units 
  • UK: 2.6 times required capital
  • Nordic: 9.9 times required capital
  • OMLACSA: 3.8 times required capital
  • Nedbank: Tier 1 capital at 9.6%
  • US Life: RBC ratio of 305% in onshore and significant excess capital in offshore
• Board decision not to pay dividends in 2009 to give further buffer on cash and capital position

Improved business structure, risk management and governance

• New Long-Term Savings division
• Risk appetite agreed for major subsidiary companies
• Enhanced governance and operational oversight from the centre
• Simplification of business will take place as global financial climate allows

Julian Roberts, Group Chief Executive, commented:

"2008 presented major challenges for the Group. The rapid deterioration combined with volatility in global financial markets, most notably in the fourth quarter, gave rise to an extremely difficult operating environment, while we faced a number of specific issues in our US Life business. Nevertheless, many parts of the Group delivered strong performances, especially in the markets where we have scale and strong market positions."

"As a Group we remain well capitalised with strong surpluses over required capital levels in each of our business units, but due to the very uncertain market conditions, we have decided to conserve capital and cash levels despite our ability to withstand significant further deterioration in market conditions."

"Going forward, I am determined to rigorously drive performance improvement and strengthen governance, while at the same time reshaping the Group."

Enquiries

Notes

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

* For long-term business and general insurance businesses, 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 the US Asset Management business, it includes compensation costs in respect of certain long-term incentive schemes defined as minority interests in accordance with IFRS. For all businesses, adjusted operating profit excludes goodwill impairment, the impact of acquisition accounting, put revaluations related to long-term incentive schemes, the impact of closure of unclaimed shares trusts, profit/(loss) on disposal of subsidiaries, associated undertakings and strategic investments, dividends declared to holders of perpetual preferred callable securities, and fair value (profits)/losses on certain Group debt movements.

** Adjusted operating earnings per ordinary share is calculated on the same basis as adjusted operating profit. It is stated after tax attributable to adjusted operating profit and minority interests. It excludes income attributable to Black Economic Empowerment (BEE) trusts of listed subsidiaries. The calculation of the adjusted weighted average number of shares includes own shares held in policyholders' funds and BEE trusts.

Cautionary statement

This announcement has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. It should not be relied on by any other party or for any other purpose.

This announcement contains forward-looking statements with respect to certain of Old Mutual plc's plans and its current goals and expectations relating to its future financial condition, performance and results. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that are beyond Old Mutual plc's control, including, among other things, UK domestic and global economic and business conditions, market-related risks such as fluctuations in interest rates and exchange rates, policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing and impact of other uncertainties or of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in territories where Old Mutual plc or its affiliates operate.

As a result, Old Mutual plc's actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in Old Mutual plc's forward-looking statements. Old Mutual plc undertakes no obligation to update any forward-looking statements contained in this announcement or any other forward-looking statements that it may make.

Notes to Editors:

A webcast of the presentation and Q&A will be broadcast live at 9:00am (GMT), 10:00am (CET), 11:00am (South African time) today on the Company's website www.oldmutual.com. Analysts and investors who wish to participate in the call should dial the following numbers:

Playback (available for 14 days from 4 March), using passcode 824733:

There will also be a separate conference call at 1:30pm GMT (2:30pm CET / 3:30pm South African time) today on Old Mutual's supplementary life reporting under Market Consistent Embedded Value (MCEV). Analysts and investors who wish to participate in the call should dial the following numbers, quoting confirmation code 9824696:

This conference call will use VisionCast web meeting facility and slides can be viewed at http://www.livemeeting.com/cc/premconfeurope/join?id=9824696&role=attend&pw=pw7894 or by entering the VisionCast website http://www.euvisioncast.com using Meeting ID 9824696 and password pw7894. The presentation slides will also be available for download on the Company's website, www.oldmutual.com from 8:00am GMT.

Playback (available for 14 days from 4 March), using passcode 9824696#:

Copies of these Preliminary Results, together with high-resolution images and biographical details of the Executive Directors of Old Mutual plc, are available in electronic format to download from the Company's website at www.oldmutual.com.

A Financial Disclosure Supplement relating to the Company's Preliminary Results can be found on the website. This contains key financial data for 2008 and 2007.