Old Mutual plc Interim Management Statement

05 November 2009

Third quarter sales momentum in improved investment market

• Long-Term Savings (Q3 2009 against Q3 2008) life APE sales down 4% to £326m and unit trust sales up 47% to £1.7bn
  • UK life APE sales up 6% to £72m and unit trust sales up 53% to £536m
  • Europe life APE sales down 3% to £208m and unit trust sales up 63% to £945m
  • Emerging Markets life APE sales up 6% to £104m and unit trust sales up 30% to £754m
• US Asset Management funds under management at 30 September 2009 up 8% to $260bn (31 December 2008: $240bn)
• Nedbank third quarter net interest income flat at R4.1bn and like-for-like non-interest revenue up 38% to R3.0bn in tough market conditions, with impairments tightly managed
• Group funds under management up 6% to £281bn (31 December 2008: £265bn)

Further progress in delivering on strategic priorities

• FGD surplus increased to £1.4bn (30 June 2009: £1.0bn)
• £500m bond issued in October
• Improvement in US Life net unrealised investment loss position to $614m (31 December 2008: $2.3bn)
• Sale of Skandia Chile and Bankhall, and acquisition of ACSIS completed
• Proposed acquisition of remaining minority shareholding in Mutual & Federal

Julian Roberts, Group Chief Executive, commented:

"The Group has delivered a good sales performance during the third quarter, a marked improvement on the first half of the year, as the pick-up in the investment market has led to increased equity allocation by our clients. This trend has continued into the fourth quarter, although consumers and asset allocators remain cautious. We expect market conditions to remain volatile.

"We have made further strategic progress. We have resolved our capital and liquidity issues, we are successfully managing the risks in US Life, and we continue to simplify the portfolio. As recently announced, we have made an offer to acquire the remaining ordinary shares in Mutual & Federal, which we expect to complete before the end of the year.

"We remain focused on managing risk and capital tightly and on driving further underlying operating efficiencies in order to capitalise on further recovery in our markets."

View the full press release

Enquiries

Notes to Editors

A conference call for analysts and investors will take place at 09.30am (UK time), 10.30am (Central European) and 11.30am (South African time) today. Analysts and investors who wish to participate in the call should dial the following toll-free numbers quoting conference ID 6042876:

UK (free call): 0800 028 1243
South Africa (free call): 0800 982 479
Sweden (free call): 020 795 893
US (free call): 1888 935 4575
International: +44 (0)20 7806 1953 

Playback (available until midnight on 18 November 2009), access code: 6042876#:

UK / Standard International: +44 (0)20 7111 1244
US: +1 347 366 9565

Copies of this update, 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 http://www.oldmutual.com.

This Interim Management Statement has been prepared in accordance with section 4.3 of the Disclosure and Transparency Rules (DTR) and covers the period 1 January to 4 November 2009. The business update is included in this Interim Management Statement.

A Disclosure Supplement relating to the Company's business update can be found on our website. This contains key financial data for the first nine months of 2009 and 2008.

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 and its subsidiaries' 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 subsidiaries 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.

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