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Results on track, with increasingly diversified earnings

14 Sep  2006

"Skandia's results are ahead of our expectations and the integration is progressing well. Currency movements always affect our results, but Old Mutual is now a significantly bigger and more diverse organisation than in the past and we are well placed in some very attractive markets."

Adjusted operating profit* (IFRS** basis):
Up 36% to £771 million (30 June 2005: £566 million****) and
Up 32% to R8,714 million (30 June 2005: R6,584 million)
Adjusted operating profit - European embedded value (EEV) basis:
Up 39% to £885 million (30 June 2005: £638 million) and
Up 35% to R10,001 million (30 June 2005: R7,420 million)
Profit for the period attributable to equity holders:
£380 million (30 June 2005: £387 million)
R4,295 million (30 June 2005: R4,509 million)
Adjusted operating earnings per share* (IFRS basis): 
Down 2% to 8.5p (30 June 2005: 8.7p) and
Down 5% to 96.0c (30 June 2005: 100.7c)
Adjusted operating earnings per share (EEV basis):
Down 3% to 9.8p (30 June 2005: 10.1p) and
Down 5% to 111.4c (30 June 2005: 117.7c)
Basic earnings per share:
8.0p (30 June 2005: 11.2p),
90.2c (30 June 2005: 130.2c)
Total life assurance sales: Total life assurance sales, on an Annual Premium Equivalent (APE) basis, of £732 million, an increase of 130%.
Funds under management: Funds under management £218 billion (30 June 2005: £158 billion), an increase of 38%, R2,891 billion (30 June 2005: R1,896 billion).
Adjusted embedded value per share: 143.2p, R18.95 at 30 June 2006 (30 June 2005: 135.9p, R16.25) (EEV basis).
Return on equity: 14.1% (30 June 2005: 19.0%)
Interim dividend: increased by 13.5% to 2.1p (27.8 cents***)
Full 2006 Interim Results here.

*  For long-term assurance and general insurance business, 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 all businesses, adjusted operating profit excludes goodwill impairment, the impact of acquisition accounting, initial costs of Black Economic Empowerment schemes, profit / (loss) on disposal of subsidiaries, associated undertakings and strategic investments and dividends declared to holders of perpetual preferred callable securities. Adjusted operating earnings per ordinary share is calculated on the same basis as adjusted operating profit, but is stated after tax and minority interests and excludes income attributable to Black Economic Empowerment Trusts. The calculation of the adjusted weighted average number of shares includes own shares held in policyholders' funds and Black Economic Empowerment Trusts.

** The financial information has been prepared on the basis of the recognition and measurement requirements of International Financial Reporting Standards (IFRS) as set out in the basis of preparation note on page 39 of this document.

*** Indicative only, being the Rand equivalent of 2.1p converted at the exchange rate prevailing on 30 June 2006. The actual amount to be paid by way of interim dividend to holders of shares on the South African branch register will be calculated by reference to the exchange rate prevailing at the close of business on 5 October 2006, as determined by the Company, and will be announced on 6 October 2006.

**** The 2005 comparative financial information does not include Skandia, 2006 includes 5 months from 1 February 2006.
A webcast of the analysts presentation and Q&A will be broadcast live at 9.30 a.m. (UK time), 10.30 a.m. (South African and Swedish time), today on our website, High-resolution images of Jim Sutcliffe are available at
Copies of these results and the associated analysts presentation, together with photographs and biographical details of the executive directors of Old Mutual plc, are available in electronic format to download from the Company's website. (An interview with Jim Sutcliffe, Chief Executive, Old Mutual in video/audio and text is now available on the Company's website and on
The full 2006 interim results release, together with the Financial Disclosure Supplement, can be found on the website at
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.

Old Mutual plc UK
Miranda Bellord (UK) - Tel: +44 (0) 20 7002 7133
Nad Pillay (SA) - Tel: +27 (0) 21 504 8026

Malcolm Bell (UK) - Tel: +44 (0) 20 7002 7166
Deward Serfontein (SA) - Tel: +27 (0) 21 509 8709
College Hill (UK)
Tony Friend
Gareth David
Tel: +44 (0) 20 7457 2020

Old Mutual Life Assurance Company (South Africa) Limited is a Licensed Financial Services Provider
Physical Address: Mutualpark, Jan Smuts Drive, Pinelands, 7405, South Africa
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