Interim Results

For the six months ended 30 June 2009

05 August 2009

Financial Highlights - A creditable performance in difficult markets

• Positive Group net client cash flows of £0.2 billion despite lower sales
• OMSA long-term business adjusted operating profit of R1.82 billion (2008: R1.84 billion) demonstrates strength of diverse product offering
• Nordic Life sales up 22% to £134 million (2008: £110 million) due to improved product range and stronger distribution
• UK net client inflows of £0.4 billion driven by growth in platform sales
• US Asset Management net client inflows of $0.6 billion demonstrates strength of boutique model
• Group pro-forma FGD surplus at 30 June of £1 billion (31 December 2008: £0.7 billion).

Operational and Strategic Highlights - Good progress in delivering on priorities

• Closed Hong Kong office, sold Australian businesses, withdrew from ABN-Amro TEDA Chinese asset management acquisition
• Withdrawal from markets where scale not achievable: Portugal, Hungary, Czech Republic
• Major restructuring of US Life and OMCAP, creating greater focus and lower cost base
• New Group operating model to strengthen central governance
• Long-Term Savings structure introduced to leverage competitive advantages and capabilities.

New Chairman Appointed

• As announced separately today, on Chris Collins' retirement at the end of the year, Patrick O'Sullivan will join the Group as Chairman, bringing strong financial services and corporate restructuring experience to the Board.

Julian Roberts, Group Chief Executive, commented:

"We have delivered a creditable performance despite continued volatility in equity markets, and have taken a number of decisive actions in line with the strategic priorities we set out in March. 

"Our capital position was reinforced during the second quarter and our Group pro-forma FGD position is now above £1 billion. We have substantially de-risked our US businesses and our new operating model represents a fundamental shift to stronger governance from the centre.

For the past 12 months, our primary focus has been on fixing our problems and protecting ourselves against the downside. With the actions to do that largely complete, we can start to look past the immediate market challenges and begin to position ourselves for the upside which will come as markets recover."

Enquiries

Notes

Unless otherwise stated, 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 non-controlling 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, 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 non-controlling 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 (BST), 10:00am (CET and 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:

UK (toll-free): 0500 1016 30
US (toll-free): +1 877 491 0064
Sweden (toll-free): 0200 8876 51
South Africa (toll-free): 0800 9914 68
International: +44 20 7162 0025

Playback (available for 14 days from 5 August), using pass-code 840789:

UK (toll-free): 0800 358 1860
US (toll-free): +1 888 365 0240
Sweden (toll-free): +46 (0) 46 8 5052 0333
International: +44 20 7031 4064

Copies of these Interim 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 Interim Results can be found on the website. This contains key financial data for 2009 and 2008.