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OLD MUTUAL PLC - Old Mutual plc Interim Results for the half year ended 30 June 2013

Release Date: 07/08/2013 08:01
Code(s): OML     PDF:  
Wrap Text
Old Mutual plc Interim Results for the half year ended 30 June 2013

Old Mutual  
ISIN CODE: GB00B77J0862  
JSE SHARE CODE: OML  
NSX SHARE CODE: OLM  
ISSURE CODE: OLOML  

Statement of directors' responsibilities in respect of the interim financial
statements
For the six months ended 30 June 2013

We confirm that to the best of our knowledge:

-    The Group interim financial statements contained herein are presented in accordance with the requirements of IAS 34 'Interim Financial
     Reporting' and are in compliance with International Financial Reporting Standards (IFRS) as adopted by the EU.

-    The MCEV supplementary information has been prepared in accordance with the Market Consistent Embedded Value Principles (Copyright ©
     Stichting CFO Forum Foundation 2008) issued in June 2008 and updated in October 2009 by the CFO Forum ('the Principles') and the basis
     of preparation as set out on page 98.

-    The interim management report includes a fair review of the information required by:

     (a)   DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six
           months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and
           uncertainties for the remaining six months of the year; and

     (b)   DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of
           the financial year and that have materially affected the financial position or performance of the entity during that period; and any
           changes in the related party transactions described in the last annual report that could do so.

Julian Roberts                                                Philip Broadley
Group Chief Executive                                         Group Finance Director
7 August 2013                                                 7 August 2013

Interim review report to the members of Old Mutual plc
For the six months ended 30 June 2013

Introduction
We have been engaged by the Company to review the condensed set of financial statements in the interim financial report for the six months ended
30 June 2013 which comprise the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated
Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Consolidated Statement of Cash Flows and the related
notes, set out on pages 58 to 91, which include the Reconciliation of Adjusted Operating Profit to Profit after Tax.

We have also been engaged by the Company to review the Market Consistent Embedded Value (MCEV) basis supplementary information (the
supplementary information), set out on pages 92 to 116, for the six months ended 30 June 2013.

We have read the other information contained in the interim financial report and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set of financial statements or the supplementary information.

This report is made solely to the Company in accordance with the terms of our engagement to assist the Company in meeting the requirements of
the Disclosure and Transparency Rules (the DTR) of the UK's Financial Conduct Authority (the UK FCA) and also to provide a review conclusion to
the Company on the supplementary information. Our review of the condensed set of financial statements has been undertaken so that we might
state to the Company those matters we are required to state to it in this report and for no other purpose. Our review of the supplementary
information has been undertaken so that we might state to the Company those matters we have been engaged to state in this report and for no
other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review
work, for this report, or for the conclusions we have reached.

Directors' responsibilities
The interim financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-
yearly financial report in accordance with the DTR of the UK FCA. The directors have accepted responsibility for preparing the supplementary
information contained in the interim financial report on an MCEV basis in accordance with the CFO Forum MCEV Principles as issued in June 2008
and updated in October 2009 (the MCEV Principles).

As disclosed in note A, the Group interim financial statements contained herein are presented in accordance with the requirements of IAS 34
'Interim Financial Reporting' and are in compliance with IFRS as adopted by the EU.

The supplementary information has been prepared in accordance with the MCEV principles, using the methodology and assumptions as detailed in
the basis of preparation of the supplementary information. The supplementary information should be read in conjunction with the Group's
condensed set of financial statements.
Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements and the supplementary information in the
interim financial report, based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial
Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK. A review of interim
financial information and supplementary information consists of making enquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with
International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim
financial report for the six months ended 30 June 2013 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU
and the DTR of the UK FCA.

Based on our review, nothing has come to our attention that causes us to believe that the supplementary information for the six months ended 30
June 2013 is not prepared, in all material respects, in accordance with the MCEV principles, using the methodology and assumptions as detailed in
the basis of preparation of the supplementary information.

Philip Smart (Senior Statutory Auditor)
for and on behalf of KPMG Audit Plc, Statutory Auditor
Chartered Accountants
15 Canada Square
London E14 5GL
7 August 2013

Consolidated income statement 
For the six months ended 30 June 2013
                                                                                                                         GBPm   
                                                                                                     Six months          Year   
                                                                                        Six months        ended         ended   
                                                                                             ended      30 June   31 December   
                                                                                           30 June         2012          2012   
                                                                                Notes         2013  Restated(1)   Restated(1)   
Revenue                                                                                                                         
Gross earned premiums                                                              B2        1,995        1,774         3,725   
Outward reinsurance                                                                          (162)        (155)         (322)   
Net earned premiums                                                                          1,833        1,619         3,403   
Investment return (non-banking)                                                              4,489        3,479         9,880   
Banking interest and similar income                                                          1,573        1,780         3,431   
Banking trading, investment and similar income                                                 110          107           214   
Fee and commission income, and income from service activities                                1,576        1,482         3,039   
Other income                                                                                    60           70           125   
Total revenue                                                                                9,641        8,537        20,092   
Expenses                                                                                                                        
Claims and benefits (including change in insurance contract provisions)                    (2,295)      (2,326)       (5,612)   
Reinsurance recoveries                                                                         118          125           221   
Net claims and benefits incurred                                                           (2,177)      (2,201)       (5,391)   
Change in investment contract liabilities                                                  (3,000)      (1,840)       (5,361)   
Losses on loans and advances                                                                 (234)        (216)         (400)   
Finance costs                                                                                 (23)         (90)         (214)   
Banking interest payable and similar expenses                                                (832)        (997)       (1,887)   
Fee and commission expenses, and other acquisition costs                                     (538)        (509)       (1,064)   
Change in third-party interest in consolidated funds                                         (271)        (171)         (651)   
Other operating and administrative expenses                                                (1,770)      (1,819)       (3,715)   
Total expenses                                                                             (8,845)      (7,843)      (18,683)   
Share of associated undertakings' and joint ventures' profit after tax                          10           14            32   
(Loss)/profit on disposal of subsidiaries, associated undertakings                                                              
and strategic investments                                                       C1(c)          (1)           20          (56)   
Profit before tax                                                                              805          728         1,385   
Income tax expense                                                                 D1        (250)        (241)         (471)   
Profit from continuing operations after tax                                                    555          487           914   
Discontinued operations                                                                                                         
(Loss)/profit from discontinued operations after tax                               G1          (8)          595           564   
Profit after tax for the financial period                                                      547        1,082         1,478   
Attributable to                                                                                                                 
Equity holders of the parent                                                                   414          930         1,172   
Non-controlling interests                                                                                                       
Ordinary shares                                                                                124          122           256   
Preferred securities                                                                             9           30            50   
Profit after tax for the financial period                                                      547        1,082         1,478   
Earnings per share                                                                                                              
Basic earnings per share based on profit from continuing operations (pence)                    9.1          6.7          12.6   
Basic earnings per share based on (loss)/profit from discontinued                                                               
operations (pence)                                                                           (0.2)         12.5          12.3   
Basic earnings per ordinary share (pence)                                       C2(a)          8.9         19.2          24.9   
Diluted earnings per share based on profit from continuing operations (pence)                  8.5          6.2          11.6   
Diluted earnings per share based on (loss)/profit from discontinued                                                             
operations (pence)                                                                           (0.2)         11.5          11.5   
Diluted earnings per ordinary share (pence)                                     C2(a)          8.3         17.7          23.1   
Weighted average number of ordinary shares (millions)                           C2(a)        4,436        4,759         4,587   

(1) Prior periods have been restated for the impact of changes in accounting policies. Refer to note A1 for further details.

Consolidated statement of comprehensive income
For the six months ended 30 June 2013       
                                                                                                                        GBPm   
                                                                                                    Six months          Year   
                                                                                       Six months        ended         ended   
                                                                                            ended      30 June   31 December   
                                                                                          30 June         2012          2012   
                                                                               Notes         2013  Restated(1)   Restated(1)   
Profit after tax for the financial period                                                     547        1,082         1,478   
Other comprehensive income for the financial period                                                                  
Items that will not be reclassified subsequently to profit or loss                                                   
Fair value gains/(losses)                                                                                            
Property revaluation                                                                          (3)          (1)            20   
Actuarial gains on defined benefit plans                                                        2            4             8   
Income tax on items that will not be reclassified subsequently                                                       
to profit or loss                                                              D1(c)            4            3             6   
                                                                                                3            6            34   
Items that may be reclassified subsequently to profit and loss                                                       
Fair value gains                                                                                                     
Net investment hedge                                                                            9          123           160   
Available-for-sale investments                                                                                       
Fair value (losses)/gains                                                                     (7)           10            30   
Recycled to the income statement                                                              (8)          (6)          (21)   
Shadow accounting                                                                               -            1             6   
Currency translation differences on translating foreign operations                          (346)        (203)         (641)   
Other movements                                                                               (8)          (1)          (46)   
Income tax on items that may be reclassified subsequently                                                            
to profit and loss                                                             D1(c)            1            -           (5)   
                                                                                            (359)         (76)         (517)   
Total other comprehensive income for the financial period from                                                       
continuing operations                                                                       (356)         (70)         (483)   
Total other comprehensive income for the financial period from                                                       
discontinued operations²                                                                        -        (348)         (348)   
Total other comprehensive income for the financial period                                   (356)        (418)         (831)   
Total comprehensive income for the financial period                                           191          664           647   
Attributable to                                                                                                      
Equity holders of the parent                                                                  192          543           471   
Non-controlling interests                                                                                            
Ordinary shares                                                                              (10)           91           126   
Preferred securities                                                                            9           30            50   
Total comprehensive income for the financial period                                           191          664           647   

(1) Prior periods have been restated for the impact of changes in accounting policies. Refer to note A1 for further details.
(2) Total other comprehensive income for the financial period from discontinued operations for the six months ended 30 June 2012 and the year ended 31 December
    2012 includes GBP350 million cumulative foreign exchange translation gains, previously included in foreign currency translation reserves, that were realised on the
    disposal of Nordic.

Reconciliation of adjusted operating profit to profit after tax
For the six months ended 30 June 2013
                                                                                                                      GBPm   
                                                                                                  Six months          Year   
                                                                                     Six months        ended         ended   
                                                                                          ended      30 June   31 December   
                                                                                        30 June         2012          2012   
                                                                             Notes         2013  Restated(1)   Restated(1)   
Core operations                                                                                        
Emerging Markets                                                                B3          290          292           611   
Old Mutual Wealth                                                               B3          108           95           195   
Property & Casualty                                                             B3           10           31            37   
Nedbank                                                                         B3          387          405           825   
USAM                                                                            B3           54           42            91   
                                                                                            849          865         1,759   
Finance costs                                                                               (46)         (75)         (130)   
Long-term investment return on excess assets                                                 25           25            54   
Net interest payable to non-core operations                                                  (6)         (13)          (18)   
Corporate costs                                                                             (21)         (25)          (53)   
Other net expenses                                                                            -           13             -   
Adjusted operating profit before tax                                                        801          790         1,612   
Adjusting items                                                               C1(a)         (69)        (149)         (467)   
Non-core operations                                                             B3            2           53           165   
Profit before tax (net of policyholder tax)                                                 734          694         1,310   
Income tax attributable to policyholder returns                                 B3           71           34            75   
Profit before tax                                                                           805          728         1,385   
Total tax expense                                                             D1(a)        (250)        (241)         (471)   
Profit from continuing operations after tax                                                 555          487           914   
(Loss)/profit from discontinued operations after tax                          G1(a)          (8)         595           564   
Profit after tax for the financial period                                                    547       1,082         1,478   

Adjusted operating profit after tax attributable to ordinary equity holders of the parent
                                                                                                               GBPm   
                                                                                           Six months          Year   
                                                                              Six months        ended         ended   
                                                                                   ended      30 June   31 December   
                                                                                 30 June         2012          2012   
                                                                      Notes         2013  Restated(1)   Restated(1)   
Adjusted operating profit before tax                                                 801          790         1,612   
Tax on adjusted operating profit                                      D1(d)        (207)        (210)         (440)   
Adjusted operating profit after tax                                                  594          580         1,172   
Non-controlling interests  ordinary shares                                         (137)        (135)         (281)   
Non-controlling interests  preferred securities                                      (9)         (30)          (50)   
Adjusted operating profit after tax attributable to ordinary equity                                                   
holders of the parent                                                                448          415           841   
Adjusted weighted average number of shares (millions)                 C2(b)        4,835        4,806         4,818   
Adjusted operating earnings per share (pence)                         C2(b)          9.3          8.6          17.5   

(1) Prior periods have been restated for the impact of changes in accounting policies. Refer to note A1 for further details.

Basis of preparation of adjusted operating profit
Adjusted operating profit (AOP) reflects the directors' view of the underlying long-term performance of the Group. AOP is a measure of profitability
which adjusts the standard IFRS profit measures for the specific items detailed in note C1 and, as such, it is a non-GAAP measure. This
reconciliation explains the differences between adjusted operating profit and profit after tax as reported under IFRS.

For core life assurance and general insurance businesses, AOP is based on a long-term investment return, including 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 core
businesses, AOP excludes goodwill impairment, the impact of acquisition accounting, revaluations of put options related to long-term incentive
schemes, profit/(loss) on acquisition/disposal of subsidiaries, associated undertakings and strategic investments and fair value profits/(losses) on
certain Group debt movements but includes dividends declared to holders of perpetual preferred callable securities. Old Mutual Bermuda and
Nordic are treated as non-core operations in the AOP disclosure. Non-core operations are not included in AOP. Nordic is also disclosed as
discontinued operations for IFRS reporting. Refer to note B1 for further information on the basis of segmentation.

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

For the six months ended 30 June 2012 and the year ended 31 December 2012, the weighted average number of shares used in the calculation of
basic and diluted earnings per share was adjusted for the seven-for-eight share consolidation that was affected on 23 April 2012. For adjusted
operating earnings per share, the adjustment of the weighted average number of shares has been made effective from 1 January 2012. This
adjustment had the effect of presenting adjusted earnings per share on a more consistent basis, but resulted in a difference between the adjusted
weighted average number of shares for IFRS and AOP for the comparative periods.

Consolidated statement of financial position 
At 30 June 2013
                                                                                                 GBPm   
                                                                                     At            At   
                                                                         At     30 June   31 December   
                                                                    30 June        2012          2012   
                                                            Notes      2013  Restated(1)  Restated(1)   
Assets                                                                                                  
Goodwill and other intangible assets                                  3,056       3,252         3,056   
Mandatory reserve deposits with central banks                           760         964           921   
Property, plant and equipment                                           794         924           847   
Investment property                                                   1,911       2,049         1,947   
Deferred tax assets                                                     334         317           345   
Investments in associated undertakings and joint ventures               130         142           152   
Deferred acquisition costs                                            1,264       1,324         1,288   
Reinsurers' share of policyholder liabilities                         1,629       1,204         1,406   
Loans and advances                                                   37,240      40,624        38,495   
Investments and securities                                           89,093      84,833        88,513   
Current tax receivable                                                  109         183           103   
Trade, other receivables and other assets                             2,955       3,552         2,930   
Derivative financial instruments                                      1,417       2,210         1,780   
Cash and cash equivalents                                             5,035       5,282         5,061   
Non-current assets held for sale                                          5       1,178            42   
Total assets                                                        145,732     148,038       146,886   
Liabilities                                                                                             
Long-term business policyholder liabilities                          81,443      77,583        80,188   
General insurance liabilities                                           350         343           346   
Third-party interests in consolidated funds                           5,479       5,390         6,116   
Borrowed funds                                                 E2     2,563       3,536         3,050   
Provisions                                                              252         294           281   
Deferred revenue                                                        664         694           689   
Deferred tax liabilities                                                435         457           404   
Current tax payable                                                     250         226           287   
Trade, other payables and other liabilities                           5,031       4,496         4,848   
Amounts owed to bank depositors                                      38,009      41,671        39,499   
Derivative financial instruments                                      1,623       1,863         1,402   
Non-current liabilities held for sale                                     -       1,132             3   
Total liabilities                                                   136,099     137,685       137,113   
Net assets                                                            9,633      10,353         9,773   
Shareholders' equity                                                                                    
Equity attributable to equity holders of the parent                   7,729       7,947         7,816   
Non-controlling interests                                                                               
Ordinary shares                                                       1,632       1,688         1,684   
Preferred securities                                                    272         718           273   
Total non-controlling interests                                       1,904       2,406         1,957   
Total equity                                                          9,633      10,353         9,773   

(1) Prior periods have been restated for the impact of changes in accounting policies. Refer to note A1 for further details.

Consolidated statement of cash flows
For the six months ended 30 June 2013
                                                                                                                   GBPm   
                                                                                               Six months          Year   
                                                                                  Six months        ended         ended   
                                                                                       ended      30 June   31 December   
                                                                                     30 June         2012          2012   
                                                                                        2013  Restated(1)   Restated(1)   
Cash flows from operating activities                                                                                      
Profit before tax                                                                        805          728         1,385   
Non-cash movements in profit before tax                                                  620        (271)           249   
Changes in working capital                                                               228          254         1,046   
Taxation paid                                                                          (225)        (269)         (295)   
Net cash inflow from operating activities                                              1,428          442         2,385   
Cash flows from investing activities                                                                                      
Net acquisitions of financial investments                                              (590)        (574)       (1,449)   
Acquisition of investment properties                                                     (7)         (21)          (55)   
Proceeds from disposal of investment properties                                            9           17            67   
Acquisition of property, plant and equipment                                            (50)         (56)         (120)   
Proceeds from disposal of property, plant and equipment                                    6            1             7   
Acquisition of intangible assets                                                        (31)         (27)          (72)   
Acquisition of interests in subsidiaries, associated undertakings and strategic                                           
investments                                                                             (31)          (4)          (23)   
Disposal of interests in subsidiaries, associated undertakings and strategic                                              
investments                                                                               12        1,772         1,883   
Net cash (outflow)/inflow from investing activities                                    (682)        1,108           238   
Cash flows from financing activities                                                                                      
Dividends paid to                                                                                                         
Ordinary equity holders of the Company                                                 (238)      (1,093)       (1,172)   
Non-controlling interests and preferred security interests                              (95)        (118)         (211)   
Dividends received from associated undertakings                                           12            -             -   
Interest paid (excluding banking interest paid)                                         (26)         (52)          (85)   
Proceeds from issue of ordinary shares (including by subsidiaries to                                                      
non-controlling interests)                                                                 9            -            35   
Net (acquisition)/disposal of treasury shares                                           (29)          (2)            19   
Issue of subordinated and other debt                                                       -          137           290   
Subordinated and other debt repaid                                                     (262)        (245)       (1,293)   
Net cash outflow from financing activities                                             (629)      (1,373)       (2,417)   
Net increase in cash and cash equivalents                                                117          177           206   
Net decrease in cash and cash equivalents - discontinued operations                        -        (129)         (129)   
Effects of exchange rate changes on cash and cash equivalents                          (304)         (86)         (380)   
Cash and cash equivalents at beginning of the year                                     5,982        6,285         6,285   
Cash and cash equivalents at end of the year                                           5,795        6,247         5,982   
Consisting of                                                                                                             
Cash and cash equivalents in the statement of financial position                       5,035        5,282         5,061   
Mandatory reserve deposits with central banks                                            760          964           921   
Cash and cash equivalents included in assets held for sale                                 -            1             -   
Total                                                                                  5,795        6,247         5,982   

(1) Prior periods have been restated for the impact of changes in accounting policies. Refer to note A1 for further details.
 
Cash flows presented in this statement include all cash flows relating to policyholders' funds for life assurance.

Except for mandatory reserve deposits with central banks of GBP760 million (30 June 2012: GBP964 million; 31 December 2012: GBP921 million)
and cash and cash equivalents subject to consolidation of funds of GBP1,757 million (30 June 2012: GBP1,778 million; 31 December 2012:
GBP1,893 million), management do not consider that there are any material amounts of cash and cash equivalents which are not available for use
in the Group's day-to-day operations. Mandatory reserve deposits are, however, included in cash and cash equivalents for the purposes of the cash
flow statement in line with market practice in South Africa.

Consolidated statement of changes in equity 
For the six months ended 30 June 2013
                                                                  Millions                                              
                                                                 Number of                                              
                                                                    shares                                 Available-   
                                                                issued and     Share     Share    Merger     for-sale   
Six months ended 30 June 2013                           Notes   fully paid   capital   premium   reserve      reserve   
Shareholders' equity at beginning of the period                      4,892       559       835     1,717           65   
Impact of changes in accounting policies (note A1)                       -         -         -         -            -   
Restated shareholders' equity at beginning of the                                                                       
period                                                               4,892       559       835     1,717           65   
Profit after tax for the financial period                                -         -         -         -            -   
Other comprehensive income                                                                                              
Items that will not be reclassified subsequently to                                                                     
profit or loss                                                                                                          
Property revaluation                                                     -         -         -         -            -   
Actuarial gains on defined benefit plans                                 -         -         -         -            -   
subsequently to profit or loss                                           -         -         -         -            -   
                                                                         -         -         -         -            -   
Items that may be reclassified subsequently to profit                                                                   
or loss                                                                                                                 
Net investment hedge                                                     -         -         -         -            -   
Fair value losses                                                        -         -         -         -          (7)   
Recycled to the income statement                                         -         -         -         -          (8)   
operations                                                               -         -         -         -            -   
Other movements                                                          -         -         -         -            -   
subsequently to profit or loss                          D1(c)            -         -         -         -            1   
Total comprehensive income for the financial period                      -         -         -         -         (14)   
Dividends for the year                                     C3            -         -         -         -            -   
payment reserve                                                          4         -         8         -            -   
Change in participation in subsidiaries                                  -         -         -         -            -   
Transactions with shareholders                                           4         -         8         -            -   
Shareholders' equity at end of the period                            4,896       559       843     1,717           51   

                                                                                                               GBPm   
                                           Foreign               Perpetual                           Total            
   Property   Share-based                 currency               preferred   Attributable to          non-            
revaluation      payments      Other   translation   Retained     callable    equity holders   controlling    Total   
    reserve       reserve   reserves       reserve   earnings   securities     of the parent     interests   equity   
        144           268         33         (378)      3,908          682             7,833         1,965    9,798   
          -             -          -             -       (17)            -              (17)           (8)     (25)   
        144           268         33         (378)      3,891          682             7,816         1,957    9,773   
          -             -          -             -        397           17               414           133      547   
        (3)             -          -             -          -            -               (3)             -      (3)   
          -             -          -             -          2            -                 2             -        2   
          -             -          -             -        (1)            5                 4             -        4   
        (3)             -          -             -          1            5                 3             -        3   
          -             -          -             9          -            -                 9             -        9   
          -             -          -             -          -            -               (7)             -      (7)   
          -             -          -             -          -            -               (8)             -      (8)   
          -             -          -         (221)          -            -             (221)         (125)    (346)   
          -          (10)          1             -         10            -                 1           (9)      (8)   
          -             -          -             -          -            -                 1             -        1   
        (3)          (10)          1         (212)        408           22               192           (1)      191   
          -             -          -             -      (238)         (22)             (260)          (73)    (333)   
          -             2          -             -       (29)            -              (19)           (3)     (22)   
          -             -          -             -          -            -                 -            24       24   
          -             2          -             -      (267)         (22)             (279)          (52)    (331)   
        141           260         34         (590)      4,032          682             7,729         1,904    9,633   

Consolidated statement of changes in equity 
For the six months ended 30 June 2013
                                                                    Millions                                                  
                                                                   Number of                                                  
                                                                      shares                                                  
                                                                  issued and     Share     Share    Merger   Available-for-   
Six months ended 30 June 2012 Restated(1)                 Notes   fully paid   capital   premium   reserve     sale reserve   
Shareholders' equity at beginning of the period                        5,801       580       805     2,532               53   
Impact of changes in accounting policies (note A1)                         -         -         -         -                -   
Restated shareholders' equity at beginning of the                                                                             
period                                                                 5,801       580       805     2,532               53   
Profit after tax for the financial period                                  -         -         -         -                -   
Other comprehensive income                                                                                                    
Items that will not be reclassified subsequently                                                                              
to profit or loss                                                                                                             
Fair value gains/(losses)                                                                                                     
Property revaluation                                                       -         -         -         -                -   
Actuarial gains on defined benefit plans                                   -         -         -         -                -   
Income tax on items that will not be reclassified                                                                             
subsequently to profit or loss                                             -         -         -         -                -   
                                                                           -         -         -         -                -   
Items that may be reclassified subsequently                                                                                   
to profit or loss                                                                                                             
Fair value gains/(losses)                                                                                                     
Net investment hedge                                                       -         -         -         -                -   
Available-for-sale investments                                                                                                
Fair value gains                                                           -         -         -         -               14   
Recycled to the income statement                                           -         -         -         -              (6)   
Exchange differences recycled to the income statement                      -         -         -         -                -   
Shadow accounting                                                          -         -         -         -                1   
Currency translation differences on translating foreign                                                                       
operations                                                                 -         -         -         -                -   
Other movements                                                            -         -         -         -                -   
Income tax on items that may be reclassified                                                                                  
subsequently to profit or loss                            D1(c)            -         -         -         -              (1)   
Total comprehensive income for the financial period                        -         -         -         -                8   
Dividends                                                    C3            -         -         -         -                -   
Other movements in share capital and payment reserve                      22         2        23         -                -   
Cancellation of treasury shares                                        (239)      (24)         -         -                -   
Share consolidation                                                    (697)         -         -         -                -   
Merger reserve realised in the period                                      -         -         -     (815)                -   
Change in participation in subsidiaries                                    -         -         -         -                -   
Transactions with shareholders                                         (914)      (22)        23     (815)                -   
Shareholders' equity at end of the period                              4,887       558       828     1,717               61   

(1) Prior periods have been restated for the impact of changes in accounting policies. Refer to note A1 for further details.

                                                                                                                GBPm   
                                           Foreign               Perpetual                           Total             
   Property   Share-based                 currency               preferred   Attributable to          non-             
revaluation      payments      Other   translation   Retained     callable    equity holders   controlling     Total   
    reserve       reserve   reserves       reserve   earnings   securities     of the parent     interests    equity   
        124           230          5           301      3,170          688             8,488         2,370    10,858   
          -             -          -             -       (20)            -              (20)             -      (20)   
        124           230          5           301      3,150          688             8,468         2,370    10,838   
          -             -          -             -        913           17               930           152     1,082   
        (1)             -          -             -          -            -               (1)             -       (1)   
          -             -          -             -          4            -                 4             -         4   
          -             -          -             -        (2)            5                 3             -         3   
        (1)             -          -             -          2            5                 6             -         6   
          -             -          -           123          -            -               123             -       123   
          -             -          -             -          -            -                14             -        14   
          -             -          -             -          -            -               (6)             -       (6)   
          -             -          -         (350)          -            -             (350)             -     (350)   
          -             -          -             -          -            -                 1             -         1   
          -             -          -         (165)          1            -             (164)          (36)     (200)   
          1            15          -           (8)       (13)            -               (5)             1       (4)   
          -             -          -             -          -            -               (1)             -       (1)   
          -            15          -         (400)        903           22               548           117       665   
          -             -          -             -    (1,093)         (22)           (1,115)          (96)   (1,211)   
          -            23          -             -        (2)            -                46             8        54   
          -             -          -             -         24            -                 -             -         -   
          -             -          -             -          -            -                 -             -         -   
          -             -          -             -        815            -                 -             -         -   
          -             -          -             -          -            -                 -             7         7   
          -            23          -             -      (256)         (22)           (1,069)          (81)   (1,150)   
        124           268          5          (99)      3,797          688             7,947         2,406    10,353   

Consolidated statement of changes in equity
For the six months ended 30 June 2013
                                                                    Millions                                                  
                                                                   Number of                                                  
                                                                      shares                                                  
                                                                  issued and     Share     Share    Merger   Available-for-   
Year ended 31 December 2012 Restated(1)                   Notes   fully paid   capital   premium   reserve     sale reserve   
Shareholders' equity at beginning of the period                        5,801       580       805     2,532               53   
Impact of changes in accounting policies (note A1)                         -         -         -         -                -   
Restated shareholders' equity at beginning of the                                                                             
period                                                                 5,801       580       805     2,532               53   
Profit after tax for the financial year                                    -         -         -         -                -   
Other comprehensive income                                                                                                    
Items that will not be reclassified subsequently                                                                              
to profit and loss                                                                                                            
Fair value gains                                                                                                              
Property revaluation                                                       -         -         -         -                -   
Actuarial gain on defined benefit plans                                    -         -         -         -                -   
Income tax on items that will not be reclassified                                                                             
subsequently to profit or loss                                             -         -         -         -                -   
                                                                           -         -         -         -                -   
Items that may be reclassified subsequently                                                                                   
to profit or loss                                                                                                             
Fair value gains/(losses)                                                                                                     
Net investment hedge                                                       -         -         -         -                -   
Available-for-sale investments                                                                                                
Fair value gains                                                           -         -         -         -               33   
Recycled to the income statement                                           -         -         -         -             (21)   
Exchange differences recycled to the income statement                      -         -         -         -                -   
Shadow accounting                                                          -         -         -         -                6   
Currency translation differences on translating foreign                                                                       
operations                                                                 -         -         -         -                -   
Other movements                                                            -         -         -         -                -   
Income tax on items that may be reclassified                                                                                  
subsequently to profit or loss                            D1(c)            -         -         -         -              (6)   
Total comprehensive income for the financial year                          -         -         -         -               12   
Dividends for the year                                       C3            -         -         -         -                -   
Other movements in share capital and share-based                                                                              
payment reserve                                                           27         3        30         -                -   
Cancellation of treasury shares                                        (239)      (24)         -         -                -   
Share consolidation                                                    (697)         -         -         -                -   
Preferred securities purchased                                             -         -         -         -                -   
Merger reserve realised in the year                                        -         -         -     (815)                -   
Change in participation in subsidiaries                                    -         -         -         -                -   
Transactions with shareholders                                         (909)      (21)        30     (815)                -   
Shareholders' equity at end of the year                                4,892       559       835     1,717               65   

(1) Prior periods have been restated for the impact of changes in accounting policies. Refer to note A1 for further details.

                                                                                                                GBPm   
                                           Foreign               Perpetual                           Total             
   Property   Share-based                 currency               preferred   Attributable to          non-             
revaluation      payments      Other   translation   Retained     callable    equity holders   controlling     Total   
    reserve       reserve   reserves       reserve   earnings   securities     of the parent     interests    equity   
        124           230          5           301      3,170          688             8,488         2,370    10,858   
          -             -          -             -       (20)            -              (20)             -      (20)   
        124           230          5           301      3,150          688             8,468         2,370    10,838   
          -             -          -             -      1,140           32             1,172           306     1,478   
         19             -          -             -          -            -                19             1        20   
          -             -          -             -          8            -                 8             -         8   
          -             -          -             -        (4)           10                 6             -         6   
         19             -          -             -          4           10                33             1        34   
          -             -          -           160          -            -               160             -       160   
          -             -          -             -          -            -                33             1        34   
          -             -          -             -          -            -              (21)             -      (21)   
          -             -          -         (350)          -            -             (350)             -     (350)   
          -             -          -             -          -            -                 6             -         6   
          -             -          -         (489)          -            -             (489)         (150)     (639)   
          1          (24)          4             -       (40)            -              (59)            10      (49)   
          -             -          -             -          -            -               (6)             -       (6)   
         20          (24)          4         (679)      1,104           42               479           168       647   
          -             -          -             -    (1,172)         (42)           (1,214)         (169)   (1,383)   
          -            62          -             -          7            -               102            13       115   
          -             -         24             -          -            -                 -             -         -   
          -             -          -             -          -            -                 -             -         -   
          -             -          -             -       (13)          (6)              (19)         (445)     (464)   
          -             -          -             -        815            -                 -             -         -   
          -             -          -             -          -            -                 -            20        20   
          -            62         24             -      (363)         (48)           (1,131)         (581)   (1,712)   
        144           268         33         (378)      3,891          682             7,816         1,957     9,773   

Notes to the consolidated financial statements
For the six months ended 30 June 2013

A: Significant accounting policies
A1: Basis of preparation

The Group interim financial statements contained herein are presented in accordance with the requirements of IAS 34 'Interim Financial Reporting'
and are in compliance with International Financial Reporting Standards (IFRS) adopted by the EU. The Group's results for the six months ended 30
June 2013 and the financial position at that date have been prepared using accounting policies consistent with those applied in the preparation of
the Group's 2012 Annual Report and Accounts, except for the adoption of new standards and interpretations effective for the period commencing 1
January 2013. The financial information has been restated where required.

The Group interim financial statements have been prepared on the going concern basis, which the directors believe appropriate. Part 2 of the
Interim Review document includes more details on the financial performance of the business. It also sets out further details about risks and
uncertainties and discloses how the Group actively manages these risks, the impact to the Group of regulatory changes and an overview of the
Group's capital and liquidity position.

The comparative figures for the financial year ended 31 December 2012 represent the consolidated performance of the Group. They are not the
Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditor and delivered to the
Registrar of Companies. The report of the auditor was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew
attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act
2006.

Translation of foreign operations
The assets and liabilities of foreign operations are translated from their respective functional currencies into the Group's presentation currency using
the period end exchange rates, and their income and expenses using the average exchange rates. Other than in respect of cumulative translation
gains and losses up to 1 January 2004, cumulative unrealised gains or losses resulting from translation of functional currencies to the presentation
currency are included as a separate component of shareholders' equity. To the extent that these gains and losses are effectively hedged, the
cumulative effect of such gains and losses arising on the hedging instruments are also included in that component of shareholders' equity. Upon the
disposal of subsidiaries the cumulative amount of exchange differences deferred in shareholders' equity, net of attributable amounts in relation to
net investments, is recognised in the income statement.

The principal exchange rates used to translate the operating results, assets and liabilities of key foreign business segments to pounds sterling are: 

                            Six months ended                  Six months ended                        Year ended   
                                30 June 2013                      30 June 2012                  31 December 2012   
                                Statement of                      Statement of                      Statement of   
                     Income        financial           Income        financial           Income        financial   
                  Statement         position        Statement         position        statement         position   
             (average rate)   (closing rate)   (average rate)   (closing rate)   (average rate)   (closing rate)   
Rand                14.2269          15.0827          12.5247          12.8401          13.0123          13.7696   
US dollars           1.5448           1.5185           1.5769           1.5682           1.5850           1.6242   
Euro                 1.1763           1.1676           1.2154           1.2396           1.2326           1.2307   

New standards, interpretations and amendments adopted by the Group affecting the financial statements for the period ended 30 June
2013

Several new accounting standards are applicable to the Group for the year ending 31 December 2013, and where required those standards have
been applied in preparing the financial statements for the six months ended 30 June 2013, with restatement of the comparative information for the
six months ended 30 June 2012 and the year ended 31 December 2012 as required. The standards that were relevant in the six months ended 30
June 2013 and have required restatement include amendments to IAS 1 'Presentation of Financial Statements', IAS 19 (Revised 2011) 'Employee
Benefits', IFRS 10 'Consolidated Financial Statements' and IFRS 11 'Joint Arrangements'.

Several other new standards and amendments apply for the first time in 2013. However, they do not impact the interim consolidated financial
statements of the Group and they are also not expected to have a material impact on future reporting periods as they are disclosure standards.
These include IFRS 7 'Financial Instruments: Disclosures (Amended 2011), IFRS 12 'Disclosure of Interest in Other Entities' and IFRS 13 'Fair
Value Measurement'.

The following standards were adopted by the Group and had an impact on the interim financial statements:

Amendments to IAS 1 'Presentation of Items of Other Comprehensive Income'
The amendments to IAS 1 require that an entity present separately the items of other comprehensive income (OCI) that may be reclassified to profit
or loss in the future, from those that will never be reclassified to profit or loss. The amendment affected presentation only and had no impact on the
shareholders' equity or profit.

IAS 19 'Employee Benefits' (Revised 2011)
The Group has adopted IAS 19 'Employee Benefits' (Revised 2011) with a date of initial application of 1 January 2013.

The key amendments are:

-     The corridor method has been removed and all actuarial gains and losses are required to be recognised in OCI rather than in profit or loss
      Expected returns on plan assets are no longer recognised in profit or loss. Instead, interest is recognised on the net defined benefit liability or
      asset in profit or loss, calculated using the discount rate used to measure the defined benefit obligation.
-     Past service costs arising from plan amendments or curtailment are now recognised in profit or loss at the earlier of when the amendment
      occurs or when the related restructuring or termination cost are recognised. The option to amortise such cost over future years has also been
      eliminated.
-     Administration costs, other than costs of managing plan assets, are recognised in the profit and loss when the service is provided.

The change in accounting policy has been applied retrospectively and as a result, the comparative information for the six months ended 30 June
2012 and the year ended 31 December 2012 have been restated accordingly.

The major impact of the adoption of the standard was an increase in operating and administrative expenses and a net increase in other
comprehensive income. The overall impact on the Group was a decrease in equity, an increase in the assets and an increase in the liabilities of the
Group. The standard affects the accounting for certain defined pension schemes in Emerging Markets, Nedbank and Old Mutual plc.

The transitional adjustment, applied to the opening statement of financial position, as at 1 January 2013, had an effect of decreasing equity by
GBP17 million, increasing total assets by GBP5 million and increasing total liabilities by GBP22 million.

IFRS 10 'Consolidated Financial Statements' and IAS 27 'Separate Financial Statements'
The Group has early adopted IFRS 10 'Consolidated Financial Statements' with a date of initial application of 1 January 2013.

IFRS 10 introduces a single control model that applies to all entities, including special purpose entities. IFRS 10 replaces the parts of IAS 27
'Consolidated and Separate Financial Statements' that dealt with consolidated financial statements and SIC-12 'Consolidation  Special Purpose
Entities'. IFRS 10 changes the definition of control such that an investor controls an investee when it has power over the investee, when it is
exposed, or has rights, to variable returns from its involvement with the investee and when it has the ability to use its power over the investee to
affect those returns. To meet the definition of control in IFRS 10, all three of these criteria must be met.

The implementation of this standard did not have a significant financial impact on the Group's assessment of its interests in investment funds, but it
did increase the number of investment funds consolidated. The principal effect was a gross up of the consolidated statement of financial position for
the difference between the value of the newly consolidated assets and liabilities and the carrying value of the Group's interest, and the equal and
opposite liability for the interests of external parties in these investment funds.

The transitional adjustment, applied to the opening statement of financial position, as at 1 January 2013 had an effect of decreasing non-controlling
interest attributable to ordinary shareholders by GBP8 million, increasing total assets by GBP3,384 million and increasing total liabilities by
GBP3,392 million.

The Group has only considered the consolidation suite of standards for interests that existed at 1 January 2013. The change in accounting policy
has been applied retrospectively and as a result, the comparative information for the six months ended 30 June 2012 and the year ended 31
December 2012 have been restated accordingly.

The following standard was adopted by the Group but had no material impact on the interim financial statements:

IFRS 11 'Joint Arrangements' and IAS 28 'Investment in Associates and Joint Ventures'
The Group has early adopted IFRS 11 'Joint Arrangements' with a date of initial application of 1 January 2013.

IFRS 11 replaces IAS 31 'Interests in Joint Ventures' and SIC-13 'Jointly-controlled entities' and removes the option to account for joint
arrangements using proportionate consolidation. Jointly-controlled entities that meet the definition of a joint arrangement under IFRS 11 must now
be accounted for using the equity method. 

Effect of the adoption of IAS 19 (Revised) and IFRS 10
The following tables summarise the impact of the restatements in the financial statements and the line items affected:

                                                                                                                             GBPm   
                                                                                         Adjustments    Adjustments                 
                                                                        As previously   for adoption   for adoption                 
Six months ended 30 June 2012                                                reported      of IAS 19     of IFRS 10   As restated   
Consolidated income statement                                                                                                       
Profit after tax from continuing operations                                       492            (1)            (4)           487   
Profit after tax for the financial period                                       1,087            (1)            (4)         1,082   
Non-controlling interests - ordinary shares                                       156              -            (4)           152   
Consolidated statement of comprehensive income                                                                                      
Total other comprehensive income for the financial period                       (420)              2              -         (418)   
Total comprehensive income for the financial period                               667              1            (4)           664   
Reconciliation of adjusted operating profit to profit after tax                                                                     
Adjusting items                                                                 (145)              -            (4)         (149)   
Adjusted operating profit after tax attributable to equity holders of                                                               
the parent                                                                        416            (1)              -           415   
Consolidated statement of financial position                                                                                        
Total Assets                                                                  145,156              4          2,878       148,038   
Total Liabilities                                                             134,781             22          2,882       137,685   
Equity attributable to ordinary shareholders of the parent                      7,965           (18)              -         7,947   
Non-controlling interests - ordinary shares                                     2,410              -            (4)         2,406   
Consolidated statement of cash flows                                                                                                
Cash and cash equivalents at beginning of the year                              5,055              -          1,230         6,285   
Cash and cash equivalents at end of the year                                    5,053              -          1,194         6,247   
Cash and cash equivalents in the statement of financial position                4,088              -          1,194         5,282   

                                                                                                                                GBPm   
                                                                                            Adjustments    Adjustments                 
                                                                        As previously   for adoption of   for adoption                 
Year ended 31 December 2012                                                  reported            IAS 19        IFRS 10   As restated   
Consolidated income statement                                                                                                          
Profit after tax from continuing operations                                       923               (1)            (8)           914   
Profit after tax for the financial year                                         1,487               (1)            (8)         1,478   
Non-controlling interests - ordinary shares                                       314                 -            (8)           306   
Consolidated statement of comprehensive income                                                                                         
Total other comprehensive income for the financial period                       (835)                 4              -         (831)   
Total comprehensive income for the financial period                               652                 3            (8)           647   
Reconciliation of adjusted operating profit to profit after tax                                                                        
Adjusting items                                                                 (459)                 -            (8)         (467)   
Adjusted operating profit after tax attributable to equity holders of                                                                  
the parent                                                                        842               (1)              -           841   
Consolidated statement of financial position                                                                                           
Total Assets                                                                  143,497                 5          3,384       146,886   
Total Liabilities                                                             133,699                22          3,392       137,113   
Equity attributable to ordinary shareholders of the parent                      7,833              (17)              -         7,816   
Non-controlling interests - ordinary shares                                     1,965                 -            (8)         1,957   
Consolidated statement of cash flows                                                                                                   
Cash and cash equivalents at beginning of the year                              5,055                 -          1,230         6,285   
Cash and cash equivalents at end of the year                                    4,784                 -          1,198         5,982   
Cash and cash equivalents in the statement of financial position                3,863                 -          1,198         5,061   

Refer to note C2 for the effect on basic and diluted earnings per share

New standards, interpretations and amendments adopted by the Group not affecting the financial statements for the period ended 30 June
2013

The following standards had no financial impact on the interim result of the Group due to the nature of the standards, and will be disclosed
in the year end financial statements:

IFRS 7 'Financial Instruments: Disclosures' (effective 1 January 2013)
The amendment to IFRS 7 requires that an entity disclose additional information for financial instruments that are subject to master netting or other
similar agreements.

IFRS 12 'Disclosure of Interests in Other Entities'
IFRS 12 sets out the requirements for disclosures relating to an entity's interests in subsidiaries, joint arrangements, associates and structured
entities. The standard disclosures include all of the disclosures that were previously part of IAS 27 'Consolidated and Separate Financial
Statements', IAS 28 'Investment in Associates and Joint Ventures' and IAS 31 'Interests in Joint Ventures'.

IFRS 13 'Fair Value Measurement'

IFRS 13 replaces existing guidance on fair value measurement in different IFRS with a single definition of fair value, a framework for measuring
fair values and disclosures about fair value measurements. The Group has applied fair value measurements on a consistent basis across all
reporting periods and, as a result, the implementation of IFRS 13 did not materially impact the fair value measurements carried out by the
Group.

All of the disclosure requirements will be included in the year end financial statements. Only the disclosures required by IAS 34 'Interim
Financial Reporting' have been included in the interim financial statements.

The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

A detailed list of the Group's accounting policies can be found at www.oldmutual.com. The contents of the website are not subject to external
audit.

A2: Significant corporate activity and business changes during the period

Acquisition of Oceanic's Nigerian general insurance business
On 22 February 2012, the Group announced that it has made an offer to acquire the majority stake in Oceanic Life, the life assurance operations of
the former Oceanic Bank in Nigeria which was acquired by Ecobank Transitional Incorporated. The Group consolidated the financial results of
Oceanic for the six months ended 30 June 2013 from 1 January 2013.

Acquisition of AIVA Business Platforms (AIVA)
On 19 November 2012, the Group announced that it has acquired the majority stake in AIVA, a business platform and distribution business based in
Uruguay and spanning the Latin American region. All the relevant regulatory approvals where received and the Group consolidated the financial
results of AIVA for the six months ended 30 June 2013 from 2 January 2013.

Acquisition of Provident Life Assurance Company Limited (Provident)
On 3 June 2013, the Group announced that it will expand its African presence through the acquisition of a majority stake in Provident, the fifth
largest life company in Ghana. The transaction is conditional on relevant regulatory approvals and is expected to complete by the end of 2013.

Acquisition of Banco Unico
On 3 May 2013, the Group announced that Nedbank has entered into an agreement for a stepped acquisition of Banco Unico, located in
Mozambique. The transaction is not yet effective as all the conditions precedent has not been met. It is expected to be complete by the end of 2013
and will be accounted for on completion.

A3: Critical accounting estimates and judgements

In the preparation of these interim financial statements, the Group is required to make estimates and judgements that affect items reported in the
consolidated income statement, statement of financial position, and other primary statements and related supporting notes.

Critical accounting estimates and judgements are those which involve the most complex or subjective judgements or assessments. Where
applicable, the Group applies estimation and assumption setting techniques that are aligned with relevant actuarial and accounting guidance based
on knowledge of the current situation and require assumptions and predictions of future events and actions.

The only change to the critical accounting estimates and judgements that the Group applied during the six months ended 30 June 2013 has been in
respect of consolidation of certain entities in accordance with the requirements of IFRS 10.

The Group acts as a fund manager to a number of investment funds. In determining whether the Group controls such a fund, it will focus on an
assessment of the aggregate economic interests of the Group (comprising any carried interests and expected management fees) and the investor's
rights to remove the fund manager. The Group assesses, on an annual basis, such interests to determine if the fund will be consolidated.

B: Segment information
B1: Basis of segmentation
The Group's segmental results are analysed and reported on a basis consistent with the way that management and the Board of directors assesses
performance and allocates resources. Information is presented to the Board on a consolidated basis in pounds sterling (the presentational currency) and
in the functional currency of each business.

Adjusted operating profit is one of the key measures reported to the Group's management and Board of directors for their consideration in the
allocation of resources to and the review of performance of the segments. The Group utilises additional measures to assess the performance of
each of the segments, in particular the level of net client cash flows and funds under management.

A reconciliation between the segment revenues and expenses and the Group's revenues and expenses is shown in note B3. Consistent with internal
reporting, assets, liabilities, revenues and expenses that are not directly attributable to a particular segment are allocated between segments where
appropriate and where there is a reasonable basis for doing so. The Group accounts for inter-segment revenues and transfers as if the transactions
were with third parties at current market prices. Given the nature of the operations, there are no major customers within any of the segments.

The revenues generated in each reported segment can be seen in the analysis of profits and losses in note B3. The segmental information in notes
B3 and B4, reflects the adjusted and IFRS measures of profit and loss and the assets and liabilities for each operating segment as provided to
management and the Board of directors. There are no differences between the measurement of the assets and liabilities reflected in the primary
statements and that reported for the segments.

There are four principal business activities from which the Group generates revenues. These are life assurance (premium income), asset
management business (fee and commission income), banking (banking interest receivable) and general insurance (premium income). The lines of
business from which each operating segment derives its revenues are as follows:

Core operations
Emerging Markets  life assurance and asset management
Old Mutual Wealth  life assurance and asset management
Property & Casualty  general insurance
Nedbank  banking and asset management
US Asset Management  asset management

Non-core operations
Old Mutual Bermuda  life assurance

Segment presentation
In the short-term insurance review section of the 2012 Annual Report and Accounts, it was announced that, in future, all of the Group's Property
and Casualty activities would be reported as a single segment. Consequently, the M&F segment has been renamed as Property & Casualty. This
will now include M&F, 100% of iWyze, previously reported as a 50% joint venture between Emerging Markets and M&F, and the general insurance
businesses in Namibia and Botswana. The name change has been applied to all reporting periods. Comparative information for the six months
ended 30 June 2012 and the year ended 31 December 2012 have been restated accordingly.

In addition to the above, the Long-term Savings segment has been removed from the adjusted operating profit statement  segment information
and the statement of financial position - segment information as previously reflected in notes B3 and B4. This segment was merely a sub total of the
Emerging Markets and Old Mutual Wealth Segments. This presentational change has been applied to all reporting periods.

The reported segments are now Emerging Markets, Old Mutual Wealth, Property & Casualty, Nedbank and US Asset Management. The Other
segment includes Group head office. Old Mutual Bermuda is the principal component of the non-core operations. For all reporting periods, Old
Mutual Bermuda has been classified as a continuing operation in the IFRS income statement, but as non-core in determining the Group's adjusted
operating profit.

The Group continues to incur costs related to the sale of its Nordic business in 2012. These costs relate to the transition of IT and other support
services that were previously provided by the disposed business to the wider Group, back to the Group. These costs are included in the expenses
related to the discontinued operations in the interim financial statements for the six months ended 30 June 2013. Further information on the results
of discontinued operations is provided in note G1.

In the comparative periods, Nordic has been classified as a discontinued operation in the IFRS consolidated income statement and its results as
non-core in determining the Group's adjusted operating profit.

All other businesses have been classified as continuing operations for all reporting periods.

B2: Gross earned premiums and deposits to investment contracts                                                
                                                                                                       GBPm   
                                                                 Emerging   Old Mutual   Property &           
Six months ended 30 June 2013                                     Markets       Wealth     Casualty   Total   
Life assurance  insurance contracts                                  967          175            -   1,142   
with discretionary participation features                             476            -            -     476   
General insurance                                                       -            -          377     377   
Gross earned premiums                                               1,443          175          377   1,995
   
                                                                                                       GBPm   
                                                                 Emerging   Old Mutual   Property &           
Six months ended 30 June 2012                                     Markets       Wealth     Casualty   Total   
Life assurance  insurance contracts                                  768          177            -     945   
Life assurance  investment contracts                                                                         
with discretionary participation features                             470            -            -     470   
General insurance                                                       -            -          359     359   
Gross earned premiums                                               1,238          177          359   1,774
   
                                                                                                       GBPm   
                                                                 Emerging   Old Mutual   Property &           
Year ended 31 December 2012                                       Markets       Wealth     Casualty   Total   
Life assurance  insurance contracts                                1,673          362            -   2,035   
Life assurance  investment contracts                                                                         
with discretionary participation features                             970            -            -     970   
General insurance                                                       -            -          720     720   
Gross earned premiums                                               2,643          362          720   3,725   

B3: Adjusted operating profit statement - segment information for the six months ended 30 June 2013

                                                                                  Emerging   Old Mutual   Property &   
                                                                                   Markets       Wealth     Casualty   
Revenue                                                                                                                
Gross earned premiums                                                        B2      1,443          175          377   
Outward reinsurance                                                                   (41)         (43)         (78)   
Net earned premiums                                                                  1,402          132          299   
Investment return (non-banking)                                                      1,974        2,195           17   
Banking interest and similar income                                                      -            -            -   
Banking trading, investment and similar income                                           -            -            -   
Fee and commission income, and income from service activities                          262          608           14   
Other income                                                                            23           13            -   
Inter-segment revenues                                                                  30            -            8   
Total revenues                                                                       3,691        2,948          338   
Expenses                                                                                                               
Claims and benefits (including change in insurance contract provisions)            (1,886)        (148)        (282)   
Reinsurance recoveries                                                                  32           25           61   
Net claims and benefits incurred                                                   (1,854)        (123)        (221)   
Change in investment contract liabilities                                            (888)      (2,112)            -   
Losses on loans and advances                                                             -            -            -   
Finance costs (including interest and similar expenses)                                  -            -            -   
Banking interest payable and similar expenses                                            -            -            -   
Fee and commission expenses, and other acquisition costs                             (117)        (340)         (59)   
Other expenses                                                                       (524)        (205)         (39)   
Change in third-party interest in consolidated funds                                     -            -            -   
Income tax attributable to policyholder returns                                       (22)         (49)            -   
Inter-segment expenses                                                                 (1)         (11)         (11)   
Total expenses                                                                     (3,406)      (2,840)        (330)   
Share of associated undertakings' and joint ventures' profit after tax                   5            -            2   
and strategic investments                                                 C1(c)          -            -            -   
Adjusted operating profit/(loss) before tax and non-controlling                                                        
interests                                                                              290          108           10   
Income tax expense                                                           D1       (76)         (20)          (2)   
Non-controlling interests                                                              (9)            -          (3)   
Adjusted operating profit/(loss) after tax and non-controlling                                                         
interests                                                                              205           88            5   
Adjusting items net of tax and non-controlling interests                  C1(a)          -         (54)          (4)   
Profit/(loss) after tax from continuing operations                                     205           34            1   
Loss from discontinued operations after tax                                  G1          -            -            -   
Profit/(loss) after tax attributable to equity holders of the parent                   205           34            1   

(1) Non-core operations relates to Old Mutual Bermuda. Old Mutual Bermuda profit after tax for the six months ended 30 June 2013 was GBP2 million. Non-core
    operations also includes GBP8 million of divestment cost which relates to the Nordic business sold in 2012. Further information on discontinued operations is provided
    in note G1.  
                                                                                             GBPm   
                                                             Adjusting   Discontinued        IFRS   
                          Consolidation           Adjusted       items   and non-core      Income   
Nedbank    USAM   Other     adjustments   operating profit   (note C1)  operations(1)   statement   
      -       -       -               -              1,995           -              -       1,995   
      -       -       -               -              (162)           -              -       (162)   
      -       -       -               -              1,833           -              -       1,833   
      -       -      34             304              4,524        (17)           (18)       4,489   
  1,573       -       -               -              1,573           -              -       1,573   
    110       -       -               -                110           -              -         110   
    537     185       -               4              1,610        (34)              -       1,576   
     18       2       -               -                 56           -              4          60   
      7       -       5            (56)                (6)           -              6           -   
  2,245     187      39             252              9,700        (51)            (8)       9,641   
      -       -       -               -            (2,316)           -             21     (2,295)   
      -       -       -               -                118           -              -         118   
      -       -       -               -            (2,198)           -             21     (2,177)   
      -       -       -               -            (3,000)           -              -     (3,000)   
  (234)       -       -               -              (234)           -              -       (234)   
      -       -    (46)               -               (46)          23              -        (23)   
  (832)       -       -               -              (832)           -              -       (832)   
   (25)     (2)       -            (32)              (575)          40            (3)       (538)   
  (740)   (134)    (35)             (5)            (1,682)        (80)            (8)     (1,770)   
      -       -       -           (271)              (271)           -              -       (271)   
      -       -       -               -               (71)          71              -           -   
   (27)       -     (6)              56                  -           -              -           -   
(1,858)   (136)    (87)           (252)            (8,909)          54             10     (8,845)   
      -       3       -               -                 10           -              -          10   
      -       -       -               -                  -         (1)              -         (1)   
    387      54    (48)               -                801           2              2         805   
  (100)    (13)       4               -              (207)        (43)              -       (250)   
  (134)       -       -               -              (146)          13              -       (133)   
    153      41    (44)               -                448        (28)              2         422   
      4     (9)      35               -               (28)          28              -           -   
    157      32     (9)               -                420           -              2         422   
      -       -       -               -                  -           -            (8)         (8)   
    157      32     (9)               -                420           -            (6)         414   

B3: Adjusted operating profit statement - segment information for the six months ended 30 June 2012 Restated(1)

                                                                                    Emerging   Old Mutual   Property &   
                                                                                     Markets       Wealth     Casualty   
Revenue                                                                                                                  
Gross earned premiums                                                          B2      1,238          177          359   
Outward reinsurance                                                                     (41)         (43)         (71)   
Net earned premiums                                                                    1,197          134          288   
Investment return (non-banking)                                                        2,017        1,246           23   
Banking interest and similar income                                                        -            -            -   
Banking trading, investment and similar income                                             -            -            -   
Fee and commission income, and income from service activities                            201          597           12   
Other income                                                                              35           14            -   
Inter-segment revenues                                                                    33            2            8   
Total revenues                                                                         3,483        1,993          331   
Expenses                                                                                                                 
Claims and benefits (including change in insurance contract provisions)              (1,958)        (174)        (235)   
Reinsurance recoveries                                                                    49           34           42   
Net claims and benefits incurred                                                     (1,909)        (140)        (193)   
Change in investment contract liabilities                                              (663)      (1,177)            -   
Losses on loans and advances                                                               -            -            -   
Finance costs (including interest and similar expenses)                                    -            -            -   
Banking interest payable and similar expenses                                              -            -            -   
Fee and commission expenses, and other acquisition costs                               (111)        (335)         (53)   
Other expenses                                                                         (494)        (216)         (44)   
Change in third-party interest in consolidated funds                                       -            -            -   
Income tax attributable to policyholder returns                                         (23)         (11)            -   
Inter-segment expenses                                                                     -         (19)         (10)   
Total expenses                                                                       (3,200)      (1,898)        (300)   
Share of associated undertakings' and joint ventures' profit after tax                     9            -            -   
Profit on disposal of subsidiaries, associated undertakings                                                              
and strategic investments                                                   C1(c)          -            -            -   
Adjusted operating profit/(loss) before tax and non-controlling interests                292           95           31   
Income tax expense                                                             D1       (70)         (13)          (9)   
Non-controlling interests                                                                (3)            -          (4)   
Adjusted operating profit/(loss) after tax and non-controlling interests                 219           82           18   
Adjusting items net of tax and non-controlling interests                    C1(a)       (72)         (54)          (6)   
Profit/(loss) after tax from continuing operations                                       147           28           12   
Profit from discontinued operations after tax                                  G1          -            -            -   
Profit/(loss) after tax attributable to equity holders of the parent                     147           28           12   

(1) Prior periods have been restated for the impact of changes in accounting policies. Refer to note A1 for further details.
(2) Non-core operations principally relates to Old Mutual Bermuda. Old Mutual Bermuda profit after tax for the year ended 31 December 2012 was GBP49 million. It also
    includes GBP4 million of inter-segment revenue, and the after tax results of the Group's discontinued operations. Further information on discontinued operations is
    provided in note G1.  
                                                                                      GBPm   
                                           Adjusted   Adjusting   Discontinued        IFRS   
                          Consolidation   operating       items   and non-core      Income   
Nedbank    USAM   Other     adjustments      profit   (note C1)  operations(2)   statement   
      -       -       -               -       1,774           -              -       1,774   
      -       -       -               -       (155)           -              -       (155)   
      -       -       -               -       1,619           -              -       1,619   
      -       1      53             206       3,546        (86)             19       3,479   
  1,780       -       -               -       1,780           -              -       1,780   
    107       -       -               -         107           -              -         107   
    533     178       -               -       1,521        (39)              -       1,482   
     13       -       -               -          62           -              8          70   
     14       -       7            (81)        (17)           -             17           -   
  2,447     179      60             125       8,618       (125)             44       8,537   
      -       -       -               -     (2,367)           -             41     (2,326)   
      -       -       -               -         125           -              -         125   
      -       -       -               -     (2,242)           -             41     (2,201)   
      -       -       -               -     (1,840)           -              -     (1,840)   
  (216)       -       -               -       (216)           -              -       (216)   
      -       -    (75)               -        (75)        (15)              -        (90)   
  (997)       -       -               -       (997)           -              -       (997)   
      -     (2)       -            (30)       (531)          45           (23)       (509)   
  (801)   (140)    (36)             (5)     (1,736)        (74)            (9)     (1,819)   
      -       -       -           (171)       (171)           -              -       (171)   
      -       -       -               -        (34)          34              -           -   
   (28)       -    (24)              81           -           -              -           -   
(2,042)   (142)   (135)           (125)     (7,842)        (10)              9     (7,843)   
      -       5       -               -          14           -              -          14   
      -       -       -               -           -          20              -          20   
    405      42    (75)               -         790       (115)             53         728   
  (113)     (6)       1               -       (210)        (31)              -       (241)   
  (139)       -    (19)               -       (165)          13              -       (152)   
    153      36    (93)               -         415       (133)             53         335   
      8       5    (14)               -       (133)         133              -           -   
    161      41   (107)               -         282           -             53         335   
      -       -       -               -           -           -            595         595   
    161      41   (107)               -         282           -            648         930   

B3: Adjusted operating profit statement - segment information for the year ended 31 December 2012 Restated(1)

                                                                                    Emerging   Old Mutual   Property &   
                                                                                     Markets       Wealth     Casualty   
Revenue                                                                                                                  
Gross earned premiums                                                          B2      2,643          362          720   
Outward reinsurance                                                                     (82)         (87)        (153)   
Net earned premiums                                                                    2,561          275          567   
Investment return (non-banking)                                                        5,288        3,806           44   
Banking interest and similar income                                                        -            -            -   
Banking trading, investment and similar income                                             -            -            -   
Fee and commission income, and income from service activities                            440        1,199           26   
Other income                                                                              61           26            1   
Inter-segment revenues                                                                    83            3           18   
Total revenues                                                                         8,433        5,309          656   
Expenses                                                                                                                 
Claims and benefits (including change in insurance contract provisions)              (4,813)        (387)        (485)   
Reinsurance recoveries                                                                    89           59           73   
Net claims and benefits incurred                                                     (4,724)        (328)        (412)   
Change in investment contract liabilities                                            (1,756)      (3,605)            -   
Losses on loans and advances                                                               -            -            -   
Finance costs (including interest and similar expenses)                                    -            -            -   
Banking interest payable and similar expenses                                              -            -            -   
Fee and commission expenses, and other acquisition costs                               (227)        (677)        (113)   
Other expenses                                                                       (1,066)        (446)         (82)   
Change in third-party interest in consolidated funds                                       -            -            -   
Income tax attributable to policyholder returns                                         (49)         (26)            -   
Inter-segment expenses                                                                  (20)         (32)         (14)   
Total expenses                                                                       (7,842)      (5,114)        (621)   
Share of associated undertakings' and joint ventures' profit after tax                    20            -            2   
Loss on disposal of subsidiaries, associated undertakings                                                                
and strategic investments                                                   C1(c)          -            -            -   
Adjusted operating profit/(loss) before tax and non-controlling interests                611          195           37   
Income tax expense                                                             D1      (164)         (43)          (9)   
Non-controlling interests                                                                (9)            -          (8)   
Adjusted operating profit/(loss) after tax and non-controlling interests                 438          152           20   
Adjusting items net of tax and non-controlling interests                    C1(a)      (153)        (134)         (15)   
Profit/(loss) after tax from continuing operations                                       285           18            5   
Profit from discontinued operations after tax                                  G1          -            -            -   
Profit/(loss) after tax attributable to equity holders of the parent                     285           18            5   

(1) Prior periods have been restated for the impact of changes in accounting policies. Refer to note A1 for further details.
(2) Non-core operations principally relates to Old Mutual Bermuda. Old Mutual Bermuda profit after tax for the year ended 31 December 2012 was GBP161 million. It also
    includes GBP4 million of inter-segment revenue, and the after tax results of the Group's discontinued operations. Further information on discontinued operations is
    provided in note G1.  
                                                                                      GBPm   
                                           Adjusted   Adjusting   Discontinued        IFRS   
                          Consolidation   operating       items   and non-core      Income   
Nedbank    USAM   Other     adjustments      profit   (note C1)  operations(2)   statement   
      -       -       -               -       3,725           -              -       3,725   
      -       -       -               -       (322)           -              -       (322)   
      -       -       -               -       3,403           -              -       3,403   
      -       1      75             722       9,936       (191)            135       9,880   
  3,431       -       -               -       3,431           -              -       3,431   
    214       -       -               -         214           -              -         214   
  1,084     360       -               6       3,115        (76)              -       3,039   
     23       1       -             (1)         111           -             14         125   
     21       -       7           (156)        (24)           -             24           -   
  4,773     362      82             571      20,186       (267)            173      20,092   
      -       -       -               -     (5,685)           -             73     (5,612)   
      -       -       -               -         221           -              -         221   
      -       -       -               -     (5,464)           -             73     (5,391)   
      -       -       -               -     (5,361)           -              -     (5,361)   
  (400)       -       -               -       (400)           -              -       (400)   
      -       -   (130)               -       (130)        (84)              -       (214)   
(1,886)       -       -               -     (1,886)         (1)              -     (1,887)   
      -     (5)       -            (67)     (1,089)          88           (63)     (1,064)   
(1,604)   (276)    (67)             (9)     (3,550)       (147)           (18)     (3,715)   
      -       -       -           (651)       (651)           -              -       (651)   
      -       -       -               -        (75)          75              -           -   
   (58)       -    (32)             156           -           -              -           -   
(3,948)   (281)   (229)           (571)    (18,606)        (69)            (8)    (18,683)   
      -      10       -               -          32           -              -          32   
      -       -       -               -           -        (56)              -        (56)   
    825      91   (147)               -       1,612       (392)            165       1,385   
  (221)    (15)      12               -       (440)        (31)              -       (471)   
  (287)       -    (27)               -       (331)          25              -       (306)   
    317      76   (162)               -         841       (398)            165         608   
     16    (10)   (102)               -       (398)         398              -           -   
    333      66   (264)               -         443           -            165         608   
      -       -       -               -           -           -            564         564   
    333      66   (264)               -         443           -            729       1,172   

B4: Statement of financial position  segment information at 30 June 2013

                                                                    Emerging   Old Mutual   Property &   
                                                            Notes    Markets       Wealth     Casualty   
Assets                                                                                                   
Goodwill and other intangible assets                                     121        1,556           13   
Mandatory reserve deposits with central banks                              -            -            -   
Property, plant and equipment                                            323           13           21   
Investment property                                                    1,555            -            -   
Deferred tax assets                                                       83           32           13   
Investments in associated undertakings and joint ventures                 63            -            2   
Deferred acquisition costs                                                94        1,145           16   
Reinsurers' share of policyholder liabilities                             53        1,459          105   
Loans and advances                                                       240          188            -   
Investments and securities                                            30,260       48,306          330   
Current tax receivable                                                    10           64            5   
Trade, other receivables and other assets                                687          480          107   
Derivative financial instruments                                         358            -            -   
Cash and cash equivalents                                                915          633          123   
Non-current assets held for sale                                           -            4            -   
Inter-segment assets                                                     456           75           23   
Total assets                                                          35,218       53,955          758   
Liabilities                                                                                              
Life assurance policyholder liabilities                               29,826       49,520            -   
General insurance liabilities                                              -            -          350   
Third-party interests in consolidated funds                                -            -            -   
Borrowed funds                                                 E2        199            -            -   
Provisions                                                                99           51           26   
Deferred revenue                                                           9          646            8   
Deferred tax liabilities                                                 135          234           22   
Current tax payable                                                      161           40            -   
Trade, other payables and other liabilities                            2,348          764          121   
Amounts owed to bank depositors                                           83            -            -   
Derivative financial instruments                                         401            -            -   
Non-current liabilities held for sale                                      -            -            -   
Inter-segment liabilities                                                244          631            -   
Total liabilities                                                     33,505       51,886          527   
Net assets                                                             1,713        2,069          231   
Equity                                                                                                   
Equity attributable to equity holders of the parent                    1,683        2,069          209   
Non-controlling interests                                                 30            -           22   
Ordinary shares                                                           30            -           22   
Preferred securities                                                       -            -            -   
Total equity                                                           1,713        2,069          231
   
                                                          GBPm   
                          Consolidation     Non-core             
Nedbank    USAM   Other     adjustments   operations     Total   
    494     872       -               -            -     3,056   
    760       -       -               -            -       760   
    424      12       1               -            -       794   
     14       -       -             342            -     1,911   
     21     181       2               -            2       334   
     35      13      17               -            -       130   
      -       9       -               -            -     1,264   
     12       -       -               -            -     1,629   
 36,812       -       -               -            -    37,240   
  5,839      36     426           3,323          573    89,093   
     30       -       -               -            -       109   
    623     103      37             501          417     2,955   
    862       -      56             133            8     1,417   
  1,113     104     259           1,757          131     5,035   
      1       -       -               -            -         5   
    142      22   1,390         (2,772)          664         -   
 47,182   1,352   2,188           3,284        1,795   145,732   
    906       -       -               -        1,191    81,443   
      -       -       -               -            -       350   
      -       -       -           5,479            -     5,479   
  1,726      11     627               -            -     2,563   
     39       3      34               -            -       252   
      1       -       -               -            -       664   
     28       -      16               -            -       435   
      8       2      39               -            -       250   
  1,016     203      71             472           36     5,031   
 37,926       -       -               -            -    38,009   
  1,112       -       4             105            1     1,623   
      -       -       -               -            -         -   
    451     548     898         (2,772)            -         -   
 43,213     767   1,689           3,284        1,228   136,099   
  3,969     585     499               -          567     9,633   
  2,140     562     499               -          567     7,729   
  1,829      23       -               -            -     1,904   
  1,557      23       -               -            -     1,632   
    272       -       -               -            -       272   
  3,969     585     499               -          567     9,633   

B4: Statement of financial position  segment information at 30 June 2012 Restated(1)

                                                                    Emerging   Old Mutual   Property &   
                                                            Notes    Markets       Wealth     Casualty   
Assets                                                                                                   
Goodwill and other intangible assets                                     105        1,673           21   
Mandatory reserve deposits with central banks                              -            -            -   
Property, plant and equipment                                            390           14           22   
Investment property                                                    1,599            -            -   
Deferred tax assets                                                       74           63           13   
Investments in associated undertakings and joint ventures                 48            -            1   
Deferred acquisition costs                                               111        1,160           15   
Reinsurers' share of policyholder liabilities                             52        1,028          108   
Loans and advances                                                       401          194            1   
Investments and securities                                            30,412       42,427          429   
Current tax receivable                                                    21           84            2   
Trade, other receivables and other assets                                751          332           82   
Derivative financial instruments                                         443            -            -   
Cash and cash equivalents                                                516          553          109   
Non-current assets held for sale                                           -        1,176            -   
Inter-segment assets                                                     432          116           21   
Total assets                                                          35,355       48,820          824   
Liabilities                                                                                              
Life assurance policyholder liabilities                               30,747       43,310            -   
General insurance liabilities                                              -            -          343   
Third-party interests in consolidated funds                                -            -            -   
Borrowed funds                                                 E2        234            -            -   
Provisions                                                               125           45           28   
Deferred revenue                                                          13          672            8   
Deferred tax liabilities                                                 163          195           15   
Current tax payable                                                      144           35            -   
Trade, other payables and other liabilities                            1,757          643          113   
Amounts owed to bank depositors                                           93            -            -   
Derivative financial instruments                                         306          (4)            -   
Non-current liabilities held for sale                                      -        1,132            -   
Inter-segment liabilities                                                 73          460            2   
Total liabilities                                                     33,655       46,488          509   
Net assets                                                             1,700        2,332          315   
Equity                                                                                                   
Equity attributable to equity holders of the parent                    1,700        2,332          294   
Non-controlling interests                                                  -            -           21   
Ordinary shares                                                            -            -           21   
Preferred securities                                                       -            -            -   
Total equity                                                           1,700        2,332          315   

(1) Prior periods have been restated for the impact of changes in accounting policies. Refer to note A1 for further details.

                          Consolidation     Non-core             
Nedbank    USAM   Other     adjustments   operations     Total   
    548     891      14               -            -     3,252   
    964       -       -               -            -       964   
    487      10       1               -            -       924   
     48       -       -             402            -     2,049   
     25     139       2               -            1       317   
     51      15      27               -            -       142   
      -       7       -               -           31     1,324   
     16       -       -               -            -     1,204   
 40,028       -       -               -            -    40,624   
  6,589      42     430           3,091        1,413    84,833   
     76       -       -               -            -       183   
    902     101      45             564          775     3,552   
  1,137       -      96             404          130     2,210   
    922      98   1,208           1,778           98     5,282   
      2       -       -               -            -     1,178   
    166      21   1,093         (2,379)          530         -   
 51,961   1,324   2,916           3,860        2,978   148,038   
    887       -       -               -        2,639    77,583   
      -       -       -               -            -       343   
      -       -       -           5,390            -     5,390   
  2,281      11   1,010               -            -     3,536   
     33       2      61               -            -       294   
      1       -       -               -            -       694   
     61       -      23               -            -       457   
      4       1      42               -            -       226   
  1,213     157      77             477           59     4,496   
 41,578       -       -               -            -    41,671   
  1,189       -       -             372            -     1,863   
      -       -       -               -            -     1,132   
    441     566     836         (2,379)            1         -   
 47,688     737   2,049           3,860        2,699   137,685   
  4,273     587     867               -          279    10,353   
  2,358     563     421               -          279     7,947   
  1,915      24     446               -            -     2,406   
  1,643      24       -               -            -     1,688   
    272       -     446               -            -       718   
  4,273     587     867               -          279    10,353   

B4: Statement of financial position  segment information at 31 December 2012 Restated(1)

                                                                    Emerging   Old Mutual   Property &   
                                                            Notes    Markets       Wealth     Casualty   
Assets                                                                                                   
Goodwill and other intangible assets                                      98        1,594           14   
Mandatory reserve deposits with central banks                              -            -            -   
Property, plant and equipment                                            336           13           20   
Investment property                                                    1,588            -            -   
Deferred tax assets                                                       82           44           20   
Investments in associated undertakings and joint ventures                 57            -            2   
Deferred acquisition costs                                               103        1,159           18   
Reinsurers' share of policyholder liabilities                             55        1,236          100   
Loans and advances                                                       142          180            -   
Investments and securities                                            31,157       45,402          397   
Current tax receivable                                                    16           64            5   
Trade, other receivables and other assets                                697          333           92   
Derivative financial instruments                                         612            -            -   
Cash and cash equivalents                                                816          576          109   
Non-current assets held for sale                                           -            5            -   
Inter-segment assets                                                     562          101           43   
Total assets                                                          36,321       50,707          820   
Liabilities                                                                                              
Life assurance policyholder liabilities                               31,124       46,455            -   
General insurance liabilities                                              -            -          346   
Third-party interests in consolidated funds                                -            -            -   
Borrowed funds                                                 E2        218            -            -   
Provisions                                                               120           54           30   
Deferred revenue                                                          11          667           10   
Deferred tax liabilities                                                 130          189           21   
Current tax payable                                                      198           39            -   
Trade, other payables and other liabilities                            2,221          669          127   
Amounts owed to bank depositors                                           86            -            -   
Derivative financial instruments                                         377            -            -   
Non-current liabilities held for sale                                      -            -            -   
Inter-segment liabilities                                                216          587            2   
Total liabilities                                                     34,701       48,660          536   
Net assets                                                             1,620        2,047          284   
Equity                                                                                                   
Equity attributable to equity holders of the parent                    1,606        2,047          261   
Non-controlling interests                                                 14            -           23   
Ordinary shares                                                           14            -           23   
Preferred securities                                                       -            -            -   
Total equity                                                           1,620        2,047          284   

(1) Prior periods have been restated for the impact of changes in accounting policies. Refer to note A1 for further details.

                          Consolidation     Non-core             
Nedbank    USAM   Other     adjustments   operations     Total   
    534     816       -               -            -     3,056   
    921       -       -               -            -       921   
    465      12       1               -            -       847   
     15       -       -             344            -     1,947   
     34     162       2               -            1       345   
     49      18      26               -            -       152   
      -       8       -               -            -     1,288   
     15       -       -               -            -     1,406   
 38,173       -       -               -            -    38,495   
  6,303      37     368           3,897          952    88,513   
     18       -       -               -            -       103   
    674     105      62             372          595     2,930   
  1,003       -      97              50           18     1,780   
  1,049     115     379           1,892          125     5,061   
     37       -       -               -            -        42   
    111      21   1,366         (2,877)          673         -   
 49,401   1,294   2,301           3,678        2,364   146,886   
    907       -       -               -        1,702    80,188   
      -       -       -               -            -       346   
      -       -       -           6,116            -     6,116   
  2,163      10     659               -            -     3,050   
     36       1      40               -            -       281   
      1       -       -               -            -       689   
     40       -      24               -            -       404   
      9       6      34               -            1       287   
  1,076     193      70             400           92     4,848   
 39,413       -       -               -            -    39,499   
    977       -       8              39            1     1,402   
      3       -       -               -            -         3   
    596     554     922         (2,877)            -         -   
 45,221     764   1,757           3,678        1,796   137,113   
  4,180     530     544               -          568     9,773   
  2,283     507     544               -          568     7,816   
  1,897      23       -               -            -     1,957   
  1,624      23       -               -            -     1,684   
    273       -       -               -            -       273   
  4,180     530     544               -          568     9,773   

C: Other key performance information
C1: Operating profit adjusting items

(a) Summary of adjusting items for determination of AOP
In determining the adjusted operating profit of the Group for core operations, certain adjustments are made to profit before tax to reflect the
directors' view of the underlying long-term performance of the Group. The following table shows an analysis of those adjustments from adjusted
operating profit to profit before and after tax.
                                                                                                                    GBPm   
                                                                                   Six months   Six months          Year   
                                                                                        ended        ended         ended   
                                                                                      30 June      30 June   31 December   
                                                                           Notes         2013         2012          2012   
Income/(expense)                                                                                                           
Goodwill impairment and impact of acquisition accounting                   C1(b)         (57)         (64)         (123)   
(Loss)/profit on disposal of subsidiaries, associated undertakings                                                         
and strategic investments                                                  C1(c)          (1)           20          (56)   
Short-term fluctuations in investment return                               C1(d)           16         (49)          (78)   
Investment return adjustment for Group equity and debt instruments                                                         
held in life funds                                                         C1(e)         (33)         (37)         (113)   
Dividends declared to holders of perpetual preferred callable securities   C1(f)           22           22            42   
US Asset Management equity plans                                           C1(g)         (17)          (4)          (13)   
Credit-related fair value losses on Group debt instruments                 C1(h)            1         (37)         (126)   
Total adjusting items                                                                    (69)        (149)         (467)   
Tax on adjusting items                                                                     28            3            44   
Non-controlling interest in adjusting items                                                13           13            25   
Total adjusting items after tax and non-controlling interests                            (28)        (133)         (398)   

(b) Goodwill impairment and impact of acquisition accounting
When applying acquisition accounting, deferred acquisition costs and deferred revenues existing at the point of acquisition are not recognised under
IFRS. These are reversed in the acquisition statement of financial position and replaced by goodwill, other intangible assets and the value of the
acquired present value of in-force business (acquired PVIF). In determining adjusted operating profit, the Group recognises deferred revenue and
acquisition costs in relation to policies sold by acquired businesses pre-acquisition and excludes the impairment of goodwill and the amortisation of
acquired other intangibles and acquired PVIF and the movements in certain acquisition date provisions. The effect of these adjustments to
determine adjusted operating profit are summarised below:
                                                                                     GBPm   
                                                      Emerging   Old Mutual                  
Six months ended 30 June 2013                          Markets       Wealth   USAM   Total   
Amortisation of acquired PVIF                                -         (38)      -    (38)   
Amortisation of acquired deferred costs and revenue          -            6      -       6   
Amortisation of other acquired intangible assets           (1)         (23)      -    (24)   
Goodwill impairment                                        (1)            -      -     (1)   
                                                           (2)         (55)      -    (57)
   
                                                                                      GBPm   
                                                      Emerging   Old Mutual                  
Six months ended 30 June 2012                          Markets       Wealth   USAM   Total   
Amortisation of acquired PVIF                                -         (43)      -    (43)   
Amortisation of acquired deferred costs and revenue          -            6      -       6   
Amortisation of other acquired intangible assets           (1)         (25)    (1)    (27)   
                                                           (1)         (62)    (1)    (64)
   
                                                                                      GBPm   
                                                      Emerging   Old Mutual                  
Year ended 31 December 2012                            Markets       Wealth   USAM   Total   
Amortisation of acquired PVIF                                -         (84)      -    (84)   
Amortisation of acquired deferred costs and revenue          -           12      -      12   
Amortisation of other acquired intangible assets           (2)         (48)    (1)    (51)   
                                                           (2)        (120)    (1)   (123)   

(c) (Loss)/profit on disposal of subsidiaries, associated undertakings and strategic investments
(Loss)/profit on disposal of subsidiaries, associated undertakings and strategic investments is analysed below:

                                                                                                         GBPm   
                                                                         Six months   Six months          Year   
                                                                              ended        ended         ended   
                                                                            30 June      30 June   31 December   
                                                                               2013         2012          2012   
USAM                                                                            (1)           20          (16)   
Emerging Markets                                                                  -            -          (15)   
Old Mutual Wealth                                                                 -            -          (25)   
(Loss)/profit on disposal of subsidiaries, associated undertakings and                                           
strategic investments                                                           (1)           20          (56)   

On 2 January 2013, USAM completed the previously announced transactions to sell five of its affiliates. For the six months ended 30 June 2013, a
loss of GBP1 million was recognised in relation to these transactions.

On 13 April 2012, USAM disposed of Old Mutual Capital, Inc, a subsidiary, at a profit of GBP12 million. On 15 May 2012, USAM disposed of Dwight
Asset Management Company LLC, a fixed income affiliate, at a profit of GBP7 million. On 11 October 2012, the Group announced that it had
finalised agreements to sell five USAM affiliates at a loss of GBP32 million. A GBP3 million loss was also recognised during the year ended 31
December 2012 in relation to disposals of other USAM subsidiaries in previous periods.

On 20 November 2012, the Emerging Markets segment recognised a profit of GBP3 million on the acquisition of a strategic investment Curo Fund
Services (Pty) Ltd.

During the year ended 31 December 2012, the Group incurred expenses of GBP18 million as initial costs regarding Zimbabwean Indigenisation and
Economic Empowerment Schemes. These costs are directly related to the acquisition of the Zimbabwean business.

On 31 August 2012, Old Mutual Wealth completed the sale of its Finnish branch at a loss of GBP27 million. A profit of GBP2 million was recognised
on the sale of Skandia Services AG (Switzerland) on 30 June 2012.

(d) Short-term fluctuations in investment return
Profit before tax, as disclosed in the consolidated IFRS income statement, includes actual investment returns earned on the shareholder assets of
the Group's life assurance and general insurance businesses. Adjusted operating profit is stated after recalculating shareholder asset investment
returns based on a long-term investment return rate. The difference between the actual and the long-term investment returns is referred to as the
short-term fluctuation in investment return.

Long-term rates of return are based on achieved rates of return appropriate to the underlying asset base, adjusted for current inflation expectations,
default assumptions, costs of investment management and consensus economic investment forecasts. The underlying rates are principally derived
with reference to 10-year government bond rates, cash and money market rates and an explicit equity risk premium for South African businesses.
The rates set out below reflect the proposed weighting of investments in underlying cash, money market and equity assets. Long-term rates of
return are reviewed frequently by the Board, usually annually, for appropriateness. The review of the long-term rates of return seeks to ensure that
the returns credited to adjusted operating profit are consistent with the actual returns expected to be earned over the long-term.

For Emerging Markets, the return is applied to an average value of investible shareholders' assets, adjusted for net fund flows. For Old Mutual
Wealth, the return is applied to average investible assets. For Property & Casualty, the return is an average value of investible assets supporting
shareholders' funds and insurance liabilities, adjusted for net fund flows.

                                                                 %   
                             Six months   Six months          Year   
                                  ended        ended         ended   
                                30 June      30 June   31 December   
Long-term investment rates         2013         2012          2012   
Emerging Markets                    8.0          9.0           9.0   
Old Mutual Wealth                   1.0          1.5           1.5   
Property & Casualty                 7.4          8.6           8.6   

Analysis of short-term fluctuations in investment return

                                                                                                GBPm
                                              Emerging   Old Mutual    Property &                                                                   
Six months ended 30 June 2013                  Markets    Wealth(1)      Casualty    Other     Total
Actual shareholder investment return                88           24            12       18       142
Less: Long-term investment return                   55           29            17       25       126
Short-term fluctuations in investment return        33          (5)           (5)      (7)        16

                                                                                                GBPm
                                              Emerging   Old Mutual    Property &                                                                    
Six months ended 30 June 2012                  Markets    Wealth(1)      Casualty    Other     Total
Actual shareholder investment return                19           19            18       25        81
Less: Long-term investment return                   63           18            24       25       130
Short-term fluctuations in investment return      (44)            1           (6)        -       (49)
 
                                                                                                GBPm
                                              Emerging   Old Mutual    Property &                                                                    
Year ended 31 December 2012                    Markets    Wealth(1)      Casualty    Other     Total
Actual shareholder investment return                81           65            34       34       214
Less: Long-term investment return                  124           67            47       54       292
Short-term fluctuations in investment return      (43)          (2)          (13)     (20)      (78)

(1) Old Mutual Wealth long-term investment return includes GBP26 million (six months ended 30 June 2012: GBP14 million; year ended 31 December 2012: GBP59
    million) in respect of income tax attributable to policyholder returns.

(e) Investment return adjustment for Group equity and debt instruments held in policyholder funds
Adjusted operating profit includes investment returns on policyholder investments in Group equity and debt instruments held by the Group's life
funds. These include investments in the Company's ordinary shares and the subordinated liabilities and ordinary securities issued by Nedbank.
These investment returns are eliminated within the consolidated income statement in arriving at profit before tax in the IFRS income statement, but
are included in adjusted operating profit. During the six months ended 30 June 2013, the investment return adjustment increased adjusted operating
profit by GBP33 million (six months ended 30 June 2012: increase of GBP37 million; year ended 31 December 2012: increase of GBP113 million).

(f) Dividends declared to holders of perpetual preferred callable securities
Dividends declared to the holders of the Group's perpetual preferred callable securities were GBP22 million for the six months ended 30 June 2013
(six months ended 30 June 2012: GBP22 million; year ended 31 December 2012: GBP42 million). These are recognised in finance costs on an
accruals basis for the purpose of determining adjusted operating profit. In the IFRS financial statements this distribution is recognised directly in
equity.

(g) US Asset Management equity plans
US Asset Management has a number of long-term incentive arrangements with senior employees in its asset management affiliates.

The Group has issued put options in equities in the affiliates to senior employees as part of its US affiliate incentive schemes. The impact of
revaluing these instruments is recognised in accordance with IFRS, but excluded from adjusted operating profit. At 30 June 2013, these instruments were
revalued, the impact of which was a profit of GBP17 million (six months ended 30 June 2012: profit of GBP4 million; year ended 31 December 2012:
profit of GBP13 million).

(h) Credit-related fair value gains and losses on Group debt instruments
The widening of credit spread for the Group debt instruments causes the market value of debt to decrease. This results in gains being recognised in
the Group consolidated income statement, compared with losses if the credit spread narrows and the market value of debt instruments rises. This
resulted in net gains of GBP1 million for the six months ended 30 June 2013 (GBP37 million loss for the six months ended 30 June 2012; GBP55
million loss for the year ended 31 December 2012).

In the directors' view, such movements are not reflective of the underlying performance of the Group and will reverse over time. They have
therefore been excluded from adjusted operating profit.

On 1 August 2012, the Group redeemed GBP388 million of the GBP500 million senior bond due in 2016 at a cash consideration of GBP459 million.
The GBP71 million excess over the nominal value reflected the market value of the instrument prior to expiration.

C2: Earnings and earnings per share
(a) Basic and diluted earnings per share
Basic earnings per share is calculated by dividing the profit for the financial period attributable to ordinary equity shareholders by the weighted
average number of ordinary shares in issue during the year excluding own shares held in policyholder funds, ESOP trusts, Black Economic Empowerment
trusts and other related undertakings.
                                                                                                                           GBPm   
                                                                                                        Six months          Year   
                                                                                           Six months        ended         ended   
                                                                                                ended      30 June   31 December   
                                                                                              30 June         2012          2012   
                                                                                                 2013  Restated(1)   Restated(1)   
Profit for the financial period attributable to equity holders of the parent from                                                  
continuing operations                                                                             422          335           608   
(Loss)/profit for the financial period attributable to equity holders of the parent from                                           
discontinued operations                                                                           (8)          595           564   
Profit for the financial period attributable to equity holders of the parent                      414          930         1,172   
Dividends paid to holders of perpetual preferred callable securities                             (17)         (17)          (32)   
Profit attributable to ordinary equity holders                                                    397          913         1,140   

(1) Prior periods have been restated for the impact of changes in accounting policies. Refer to note A1 for further details.
 
Total dividends paid to holders of perpetual preferred callable securities of GBP17 million for the six months ended 30 June 2013 (six months ended
30 June 2012: GBP17 million; year ended 31 December 2012: GBP32 million) are stated net of tax credits of GBP5 million (six months ended 30
June 2012: GBP5 million; year ended 31 December 2012: GBP10 million).
                                                                                   Millions   
                                                      Six months   Six months          Year   
                                                           ended        ended         ended   
                                                         30 June      30 June   31 December   
                                                            2013         2012          2012   
Weighted average number of ordinary shares in issue        4,894        5,303         5,096   
Shares held in charitable foundations                        (6)          (6)           (6)   
Shares held in ESOP trusts                                  (53)         (66)          (61)   
Adjusted weighted average number of ordinary shares        4,835        5,231         5,029   
Shares held in life funds                                  (160)        (193)         (181)   
Shares held in Black Economic Empowerment trusts           (239)        (279)         (261)   
Weighted average number of ordinary shares                 4,436        4,759         4,587   
Basic earnings per ordinary share (pence)(1)                 8.9         19.2          24.9   

(1) Restatement for the impact of changes in policies did not result in changes to basic earnings per share for the six months ended 30 June 2012 and the year ended 31
    December 2012.

Diluted earnings per share recognises the dilutive impact of share options held in ESOP trusts and Black Economic Empowerment trusts which are
currently in the money in the calculation of the weighted average number of shares, as if the relevant shares were in issue for the full period.

                                                                                                 Six months          Year   
                                                                                    Six months        ended         ended   
                                                                                         ended      30 June   31 December   
                                                                                       30 June         2012          2012   
                                                                                          2013  Restated(1)   Restated(1)   
Profit attributable to ordinary equity holders (GBPm)                                      397          913         1,140   
Dilution effect on profit relating to share options issued by subsidiaries (GBPm)          (4)          (4)          (10)   
Diluted profit attributable to ordinary equity holders (GBPm)                              393          909         1,130   
Weighted average number of ordinary shares (millions)                                    4,436        4,759         4,587   
Adjustments for share options held by ESOP trusts (millions)                                46          106            53   
Adjustments for shares held in Black Economic Empowerment trusts (millions)                239          279           261   
                                                                                         4,721        5,144         4,901   
Diluted earnings per ordinary share (pence)(2)                                             8.3         17.7          23.1   

(1) Prior periods have been restated for the impact of changes in accounting policies. Refer to note A1 for further details.
(2) Restatement for the impact of changes in policies did not result in changes to diluted earnings per share for the six months ended 30 June 2012 and the year ended
    31 December 2012.

(b) Adjusted operating earnings per ordinary share
The reconciliation of profit for the financial period to adjusted operating profit after tax attributable to ordinary equity holders is as follows:

                                                                                                                GBPm   
                                                                                            Six months          Year   
                                                                               Six months        ended         ended   
                                                                                    ended      30 June   31 December   
                                                                                  30 June         2012          2012   
                                                                                     2013  Restated(1)   Restated(1)   
Profit for the financial period attributable to equity holders of the parent          414          930         1,172   
Adjusting items                                                                        69          149           467   
Tax on adjusting items                                                               (28)          (3)          (44)   
Non-core operations                                                                   (2)         (53)         (165)   
Profit from discontinued operations                                                     8        (595)         (564)   
Non-controlling interest on adjusting items                                          (13)         (13)          (25)   
Adjusted operating profit after tax attributable to ordinary equity holders           448          415           841   
Adjusted weighted average number of ordinary shares (millions)(2)                   4,835        4,806         4,818   
Adjusted operating earnings per ordinary share (pence)                                9.3          8.6          17.5   

(1) Prior periods have been restated for the impact of changes in accounting policies. Refer to note A1 for further details.
(2) For the six months ended 30 June 2012 and the year ended 31 December 2012, the weighted average number of shares used in the calculation of basic and diluted
    earnings per share was adjusted for the seven-for-eight share consolidation that was affected on 23 April 2012. For adjusted operating earnings per share, the
    adjustment of the weighted average number of shares has been made effective from 1 January 2012. This adjustment had the effect of presenting adjusted earnings
    per share on a more consistent basis, but resulted in a difference between the adjusted weighted average number of shares for IFRS and AOP for the comparative
    periods.

(c) Headline earnings per share
The Group is required to calculate a 'headline earnings per share' (HEPS) in accordance with the JSE Limited (JSE) Listing Requirements,
determined by reference to the South African Institute of Chartered Accountants' circular 3/2009 'Headline Earnings'. The table below sets out a
reconciliation of basic earnings per ordinary share and HEPS in accordance with that circular. Disclosure of HEPS is not a requirement of IFRS, but
it is a commonly used measure of earnings in South Africa.
                                                                                                                     GBPm   
                                                                                   Six months ended             Year ended   
                                                           Six months ended            30 June 2012       31 December 2012   
                                                              30 June 2013              Restated(1)            Restated(1)   
                                                          Gross          Net     Gross          Net     Gross          Net   
Profit for the financial period attributable to                                                                              
equity holders of the parent                                414          414       930          930     1,172        1,172   
Dividends declared to holders of perpetual preferred                                                                         
callable securities                                        (17)         (17)      (17)         (17)      (32)         (32)   
Profit attributable to ordinary equity holders              397          397       913          913     1,140        1,140   
Adjustments:                                                                                                                 
Impairments of goodwill and intangible assets                 1            1         -            -         -            -   
Loss/(profit) on disposal of subsidiaries,                                                                                   
associated undertakings and  strategic investments            1         (14)     (262)        (256)     (183)        (173)   
Realised gains (net of impairments) on available-for-                                                                        
sale financial assets                                       (8)          (8)       (6)          (6)      (21)         (21)   
Exchange differences realised on disposal                     -            -     (350)        (350)     (350)        (350)   
Headline earnings                                           391          376       295          301       586          596   
Weighted average number of ordinary shares                4,436        4,436     4,759        4,759     4,587        4,587   
Diluted weighted average number of ordinary                                                                                  
shares                                                    4,721        4,721     5,144        5,144     4,901        4,901   
Headline earnings per share (pence)                         8.8          8.5       6.2          6.3      12.8         13.0   
Diluted headline earnings per share (pence)                 8.3          8.0       5.7          5.9      12.0         12.2   

(1) Prior periods have been restated for the impact of changes in accounting policies. Refer to note A1 for further details.

C3: Dividends                                                                                                      
                                                                                                            GBPm   
                                                                           Six months   Six months          Year   
                                                                                ended        ended         ended   
                                                                              30 June      30 June   31 December   
                                                                                 2013         2012          2012   
2011 Final dividend paid - 3.5p per 10p share                                       -          178           178   
Special dividend - 18.0p per 10p share                                              -          915           915   
2012 Interim dividend paid  1.75p per 11 3/7p share                                -            -            79   
2012 Final dividend paid  5.25p per 11 3/7p share                                238            -             -   
Dividends to ordinary equity holders                                              238        1,093         1,172   
Dividends declared to holders of perpetual preferred callable securities           22           22            42   
Dividend payments for the period                                                  260        1,115         1,214   
 
Final and interim dividends paid to ordinary equity holders are calculated using the number of shares in issue at the record date less treasury
shares held in ESOP trusts, life funds of Group entities, Black Economic Empowerment trusts and related undertakings.

As a consequence of the exchange control arrangements in place in certain African territories, dividends to ordinary equity holders on the branch
registers of those countries (or, in the case of Namibia, the Namibian section of the principal register) are settled through Dividend Access Trusts
established for that purpose.

An interim dividend of 2.1 pence (or its equivalent in other applicable currencies) per ordinary share in the Company has been recommended by the
directors. The interim dividend will be paid on 31 October 2013 to shareholders on the register at the close of business on 27 September 2013. The
dividend will absorb an estimated GBP93 million of shareholders' funds. The Company is not planning to offer a scrip dividend alternative.

In March 2013, GBP22 million was declared and paid to holders of perpetual preferred callable securities (March 2012: GBP22 million; November
2012: GBP20 million).

D: Other income statement notes 
D1: Income tax expense
(a) Analysis of total income tax expense
                                                                                         GBPm   
                                                                     Six months          Year   
                                                        Six months        ended         ended   
                                                             ended      30 June   31 December   
                                                           30 June         2012          2012   
                                                              2013  Restated(1)   Restated(1)   
Current tax                                                                                     
United Kingdom                                                   9            6            18   
Overseas tax                                                                                    
- Africa                                                       198          208           512   
- United States                                                  -            -             4   
- Europe                                                        10            8            30   
Secondary tax on companies (STC)                                 -           20            23   
Adjustment to current tax in respect of prior years           (19)            2             5   
Total current tax                                              198          244           592   
Deferred tax                                                                                    
Origination and reversal of temporary differences               40          (3)         (121)   
Changes in tax rates/bases                                       -            -             2   
Recognition of deferred tax assets                               -            -           (2)   
Adjustments to deferred tax in respect of prior years           12            -             -   
Total deferred tax                                              52          (3)         (121)   
Total income tax expense                                       250          241           471   

(1) Prior periods have been restated for the impact of changes in accounting policies. Refer to note A1 for further details.

(b) Reconciliation of total income tax expense                                               
                                                                                      GBPm   
                                                                  Six months          Year   
                                                     Six months        ended         ended   
                                                          ended      30 June   31 December   
                                                        30 June         2012          2012   
                                                           2013  Restated(1)   Restated(1)   
Profit before tax                                           805          728         1,385   
Tax at UK standard rate of 23.25% (2012: 24.5%)             187          178           339   
Different tax rate or basis on overseas operations           33           27            19   
Untaxed and low taxed income                               (31)         (45)          (57)   
Disallowable expenses                                       (4)           11            48   
Net movement on deferred tax assets not recognised           13           22            48   
Effect on deferred tax of changes in tax rates                -            2             2   
STC                                                           -           18            20   
Income tax attributable to policyholder returns              49           28            59   
Other                                                         3            -           (7)   
Total income tax expense                                    250          241           471   

(1) Prior periods have been restated for the impact of changes in accounting policies. Refer to note A1 for further details.

(c) Income tax relating to components of other comprehensive income
                                                                                                                    GBPm   
                                                                                                Six months          Year   
                                                                                   Six months        ended         ended   
                                                                                        ended      30 June   31 December   
                                                                                      30 June         2012          2012   
                                                                                         2013  Restated(1)   Restated(1)   
Preferred perpetual callable securities                                                   (5)          (5)          (10)   
Actuarial gains on defined benefit plans                                                    1            2             4   
Income tax on items that will not be reclassified subsequently to profit or loss          (4)          (3)           (6)   
Income tax on items that may be reclassified subsequently to profit or loss               (1)            -             5   
Income tax credit  continuing operations                                                 (5)          (3)           (1)   
Income tax expense on fair value movements  discontinued operations                        -            1             1   
Income tax credit relating to components of other comprehensive                                                            
income                                                                                    (5)          (2)             -   

(1) Prior periods have been restated for the impact of changes in accounting policies. Refer to note A1 for further details.

(d) Reconciliation of income tax expense in the IFRS income statement to income tax on adjusted operating profit
                                                                                                                   GBPm   
                                                                                               Six months          Year   
                                                                                  Six months        ended         ended   
                                                                                       ended      30 June   31 December   
                                                                                     30 June         2012          2012   
                                                                                        2013  Restated(1)   Restated(1)   
Income tax expense                                                                       250          241           471   
Goodwill impairment and impact of acquisition accounting                                   6           13            51   
Profit on disposal of subsidiaries, associates and strategic investments                  15          (8)          (10)   
Short-term fluctuations in investment return                                               3            7             7   
Income tax attributable to policyholders returns                                        (71)         (34)          (75)   
Tax on dividends declared to holders of perpetual preferred callable securities                                           
recognised in equity                                                                     (5)          (5)          (10)   
US Asset Management equity plans                                                           9          (2)             6   
Tax on dividends received in trusts                                                        -          (2)             -   
Income tax on adjusted operating profit                                                  207          210           440   

(1) Prior periods have been restated for the impact of changes in accounting policies. Refer to note A1 for further details.

E: Financial assets and liabilities
E1: Group statement of financial position
The Group is exposed to financial risk through its financial assets (investments and loans), financial liabilities (investment contracts, customer
deposits and borrowings), reinsurance assets and insurance liabilities. The key focus of financial risk management for the Group is ensuring that
the proceeds from its financial assets are sufficient to fund the obligations arising from its insurance and banking operations. The most important
components of financial risk are credit risk, market risk (arising from changes in equity, and bond prices, interest and foreign exchange rates), and
liquidity risk.

Categories of financial instruments
The analysis of assets and liabilities into their categories as defined in IAS 39 'Financial Instruments: Recognition and Measurement' is set out in
the following table. Assets and liabilities of a non-financial nature, or financial assets and liabilities that are specifically excluded from the scope of
IAS 39, are reflected in the non-financial assets and liabilities category.
                                                                                                                                   GBPm
                                            Fair value through
                                              income statement
                                                                      Available-                                 Financial          Non-   
                                                                        for-sale      Held-to-                 liabilities     financial   
                                             Held-for-                 financial      maturity     Loans and     amortised    assets and   
At 30 June 2013                      Total     trading   Designated       assets   investments   receivables          cost   liabilities   
Assets                                                                                                                                     
Mandatory reserve deposits with                                                                                                            
central banks                          760           -            -            -             -           760             -             -   
liabilities                          1,629           -        1,386            -             -            19             -           224   
Loans and advances                  37,240       2,467        3,778            2             -        30,993             -             -   
Investments and securities          89,093       1,237       85,115          811         1,550           380             -             -   
other assets                         2,955         176          393            -             -         1,882             -           504   
Derivative financial instruments     1,417       1,417            -            -             -             -             -             -   
Cash and cash equivalents            5,035           -            -            -             -         5,035             -             -   
Total financial assets             138,129       5,297       90,672          813         1,550        39,069             -           728   
Total non-financial assets           7,603           -            -            -             -             -             -         7,603   
Total assets                       145,732       5,297       90,672          813         1,550        39,069             -         8,331   
Liabilities                                                                                                                                
liabilities                         81,443           -       61,876            -             -           209             -        19,358   
of funds                             5,479           -        5,479            -             -             -             -             -   
Borrowed funds                       2,563           -          880            -             -             -         1,683             -   
other liabilities                    5,031         416          472            -             -           211         2,778         1,154   
Amounts owed to bank depositors     38,009       3,661        5,032            -             -             -        29,316             -   
Derivative financial instruments     1,623       1,623            -            -             -             -             -             -   
Total financial liabilities        134,148       5,700       73,739            -             -           420        33,777        20,512   
Total non-financial liabilities      1,951           -            -            -             -             -             -         1,951   
Total liabilities                  136,099       5,700       73,739            -             -           420        33,777        22,463   

Fair value hierarchy
The table below analyses the financial assets and liabilities according to fair value hierarchy:

                                                                                         GBPm   
At 30 June 2013                                           Total   Level 1   Level 2   Level 3   
Financial assets measured at fair value                                                         
Held-for-trading (fair value through income statement)    5,297       474     4,811        12   
Loans and advances                                        2,467         -     2,467         -   
Investments and securities                                1,237       294       936         7   
Other financial assets                                      176       176         -         -   
Derivative financial instruments  assets                 1,417         4     1,408         5   
Designated (fair value through income statement)         90,672    72,482    16,966     1,224   
Reinsurers' share of policyholder liabilities             1,386     1,386         -         -   
Loans and advances                                        3,778         2     3,772         4   
Investments and securities                               85,115    70,703    13,192     1,220   
Other financial assets                                      393       391         2         -   
Available-for-sale financial assets                         813       371       439         3   
Loans and advances                                            2         2         -         -   
Investments and securities                                  811       369       439         3   
Total assets measured at fair value                      96,782    73,327    22,216     1,239   
Financial liabilities measured at fair value                                                    
Held-for-trading (fair value through income statement)    5,700       412     5,288         -   
Other liabilities                                           416       408         8         -   
Amounts owed to bank depositors                           3,661         -     3,661         -   
Derivative financial instruments  liabilities            1,623         4     1,619         -   
Designated (fair value through income statement)         73,739    44,675    28,529       535   
Life assurance policyholder liabilities                  61,876    43,806    17,535       535   
Third-party interests in consolidated funds               5,479         -     5,479         -   
Borrowed funds                                              880       865        15         -   
Other liabilities                                           472         4       468         -   
Amounts owed to bank depositors                           5,032         -     5,032         -   
Total liabilities measured at fair value                 79,439    45,087    33,817       535
   
                                                                                         GBPm   
At 31 December 2012                                       Total   Level 1   Level 2   Level 3   
Financial assets measured at fair value                                                         
Held-for-trading (fair value through income statement)    5,459       639     4,816         4   
Designated (fair value through income statement)         87,813    68,059    18,694     1,060   
Available-for-sale financial assets                         902       335       565         2   
Total assets measured at fair value                      94,174    69,033    24,075     1,066   
Financial liabilities measured at fair value                                                    
Held-for-trading (fair value through income statement)    5,925       462     5,463         -   
Designated (fair value through income statement)         68,895    42,788    25,627       480   
Total liabilities measured at fair value                 74,820    43,250    31,090       480   

The best evidence of fair value is a quoted price in an active market. In the event that the market for a financial asset or liability is not active, or
quoted prices cannot be obtained without undue effort, another valuation technique is used.

The judgement as to whether a market is active may include, for example, consideration of factors such as the magnitude and frequency of trading
activity, the availability of prices and the size of bid/offer spreads. In inactive markets, obtaining assurance that the transaction price provides
evidence of fair value or determining the adjustments to transaction prices that are necessary to measure the fair value of the asset or liability
requires additional work during the valuation process.

The majority of valuation techniques employ only observable data and so the reliability of the fair value measurement is high. However, certain
financial assets and liabilities are valued on the basis of valuation techniques that feature one or more significant inputs that are unobservable and,
for them, the derivation of fair value is more judgemental. A financial asset or liability in its entirety is classified as valued using significant
unobservable inputs if a significant proportion of that asset or liability's carrying amount is driven by unobservable inputs. In this context,
'unobservable' means that there is little or no current market data available for which to determine the price at which an arm's length transaction
would be likely to occur. It generally does not mean that there is no market data available at all upon which to base a determination of fair value.
Furthermore, in some cases the majority of the fair value derived from a valuation technique with significant unobservable data may be attributable
to observable inputs. Consequently, the effect of uncertainty in determining unobservable inputs will generally be restricted to uncertainty about the
overall fair value of the asset or liability being measured. Details of the Group's valuation techniques can be found in Note E1(p) of the Annual
Report. There have been no significant changes to the valuation techniques applied.

The transfers into Level 3 largely relate to instances where inputs to the valuation for certain financial assets and liabilities obtained from pricing
service providers are no longer observable. There were no significant transfers between Level 1 and Level 2 during the year.

The table below shows the movement in Level 3 assets measured at fair value:
                                                                                                                         GBPm   
                                                                         Designated       Designated                            
                                                                         fair value       fair value                            
                                                                            through          through                            
                                           Held-for-                         income           income   Available-for-           
                                           trading -           Held-   statement  -     statement  -           sale -           
                                         Investments   for-trading -      Loans and      Investments      Investments           
Six months ended 30 June 2013         and securities     Derivatives       advances   and securities   and securities   Total   
Level 3 financial assets                                                                                                        
At beginning of the year                           4               -              9            1,051                2   1,066   
the income statement for the period                4               -            (5)               54                -      53   
comprehensive income                               -               -              -                1                -       1   
Purchases and issues                               -               5              -               24                -      29   
Sales and settlements                            (1)               -              -             (21)                -    (22)   
Transfers in                                       -               -              -              151                1     152   
Transfers out                                      -               -              -                -                -       -   
Foreign exchange and other                         -               -              -             (40)                -    (40)   
Total level 3 financial assets                     7               5              4            1,220                3   1,239   
Gains relating to assets heald
at 30 June 2013 recognised in:                                                                                                  
- income statement                                 -               -              -               52                -      52   
- other comprehensive income                       -               -              -                -                -       -   

The table below shows the movement in Level 3 liabilities measured at fair value:

                                                                                GBPm 
                                                                     Designated fair   
                                                                       value through   
                                                                              income   
                                                                         statement -   
                                                                      Life assurance   
                                                                        policyholder   
                                                                         liabilities   
                                                                         (investment   
Six months ended 30 June 2013                                             contracts)   
Level 3 financial liabilities                                                          
At beginning of the year                                                         480   
Total net losses recognised in the income statement for the period                72   
Purchases and issues                                                               1   
Sales and settlements                                                          (104)   
Transfers in                                                                      77   
Foreign exchange and other                                                         9   
Total level 3 financial liabilities                                              535   
- income statement                                                                74   
- other comprehensive income                                                       -   

Effect of changes in significant unobservable assumptions to reasonable possible alternatives
Favourable and unfavourable changes are determined on the basis of changes in the value of the financial asset or liability as a result of varying the
levels of the unobservable parameter using statistical techniques. When parameters are not amenable to statistical analysis, quantification of
uncertainty is judgemental.

When the fair value of a financial asset or liability is affected by more than one unobservable assumption, the figures shown reflect the most
favourable or most unfavourable change from varying the assumptions individually.

In respect of private equity investments, the valuations are assessed on an asset-by-asset basis using a valuation methodology appropriate to the
specific investment, in line with industry guidelines. In many of the methodologies, the principal assumption is the valuation multiple to be applied to
the main financial indicators including, for example, multiples for comparable listed companies and discounts for marketability.

For asset-backed securities whose prices are unobservable, models are used to generate the expected value of the asset, incorporating benchmark
information on factors such as prepayment patterns, default rates, loss severities and the historical performance of the underlying assets. The
models used are calibrated by using securities for which external market information is available.

For structured notes and other derivatives, principal assumptions concern the future volatility of asset values and the future correlation between
asset values. These principle assumptions include credit volatilities and correlations used in the valuation of the structured credit derivatives. For
such unobservable assumptions, estimates are based on available market data, which may include the use of a proxy method to derive a volatility
or correlation from comparable assets for which market data is more readily available, and examination of historical levels.

Alternative assumptions
Accounting standards require consideration of the effect of reasonable possible alternative assumptions on the fair value of Level 3 financial assets
and liabilities.

Alternative assumptions are assessed in terms of possible favourable and unfavourable changes in the key market inputs for the major types of
Level 3 financial assets and liabilities, ranging from, for example, a 10% change in the price earnings multiple for equity securities, to a 25% change
in the discount rates applied to debt securities and volatility assumptions in derivative contracts. Changes in business risk inputs such as lapses and
non-performance risk were also considered.

The table below shows the income statement effect of reasonable possible alternative assumptions on the fair value of Level 3 financial assets and
liabilities:
                                                                                      GBPm
                                                                         Reflected in
                                                                      income statement
                                                                 Favourable   Unfavourable
Six months ended 30 June 2013                                       changes        changes
Level 3 financial assets
Designated (fair value through income statement)                        123            120
    Loans and advances                                                    1              1
    Investments and securities                                          122            119

Total Level 3 financial assets                                          123            120
Level 3 financial liabilities
Designated (fair value through income statement)                         20             48
 Life assurance policyholder liabilities (investment contracts)          20             48

Total Level 3 financial liabilities                                      20             48

The impact of reasonable possible alternative assumptions on other comprehensive income was GBPnil in all periods.

E: Financial assets and liabilities
E2: Borrowed funds
                                                                                                             GBPm   
                                                                           At                                  At   
                                                    Group             30 June       Group                 30 June   
                                                excluding                2013   excluding                    2012   
                                        Notes     Nedbank   Nedbank     Group     Nedbank   Nedbank         Group   
Senior debt securities and term loans                 123       994     1,117         507     1,427         1,934   
Floating rate notes                     E2(a)           -       525       525           -       926           926   
Fixed rate notes                        E2(b)         123       469       592         507       501         1,008   
Mortgage-backed securities              E2(d)           -       114       114           -        70            70   
Subordinated debt securities (net of                                                                                
Group holdings)                         E2(e)         714       618     1,332         747       785         1,532   
Borrowed funds                                        837     1,726     2,563       1,254     2,282         3,536   
Other Group instruments treated as                                                                                  
equity for accounting purposes                                                                                      
US$750 million cumulative                                                                                           
preference securities                                   -                             458                           
EUR495 million perpetual preferred                                                                                  
callable securities                                   334                             338                           
GBP348 million perpetual preferred                                                                                  
callable securities                                   348                             350                           
Total: Book value                                   1,519                           2,400                           
Nominal value of the above                          1,594                           2,476                       
                                                                                                             GBPm   
                                                                                                               At   
                                                                                    Group             31 December   
                                                                                excluding                    2012   
                                                                                  Nedbank   Nedbank         Group   
Senior debt securities and term loans                                                 122     1,363         1,485   
Floating rate notes                     E2(a)                                           -       849           849   
Fixed rate notes                        E2(b)                                         122       514           636   
Mortgage-backed securities              E2(d)                                           -       131           131   
Subordinated debt securities (net of                                                                                
Group holdings)                         E2(e)                                         765       669         1,434   
Borrowed funds                                                                        887     2,163         3,050   
Other Group instruments treated as                                                                                  
equity for accounting purposes                                                                                      
US$750 million cumulative                                                                                           
preference securities                                                                   -                           
EUR495 million perpetual preferred                                                                                  
callable securities                                                                   334                           
GBP348 million perpetual preferred                                                                                  
callable securities                                                                   348                           
Total: Book value                                                                   1,569                           
Nominal value of the above                                                          1,590                           

Senior notes
(a) Floating rate notes
                                                                                                    GBPm   
                                                                              At        At            At   
                                                                         30 June   30 June   31 December   
                                                         Maturity date      2013      2012          2012   
Nedbank - Floating rate unsecured senior debt                                                              
R98 million at inflation linked (3.80% real yield)              Repaid         -         9             8   
R1,750 million at inflation linked (3.90% real yield)           Repaid         -       158           151   
R1,690 million at JIBAR + 1.50%                                 Repaid         -        81             -   
R1,552 million at JIBAR + 1.48%                                 Repaid         -       123           114   
R988 million at JIBAR + 1.05%                               March 2014        64        75            71   
R500 million at JIBAR + 1.00%                               April 2014        30        39            33   
R1,075 million at JIBAR + 0.94%                           October 2014        72        85            79   
R1,297 million at JIBAR + 1.00%                          February 2015        87       102            95   
R1,027 million at JIBAR + 1.75%                             April 2015        69        81            76   
R250 million at JIBAR + 1.00%                              August 2015        17         -            18   
R1,044 million at JIBAR + 2.20%                         September 2015        70        82            76   
R677 million at JIBAR + 1.25%                               March 2016        45        53            49   
R405 million at JIBAR + 1.30%                            February 2017        27        32            30   
R786 million at JIBAR + 1.31%                              August 2017        39         -            43   
R80 million at JIBAR + 2.15%                                April 2020         5         6             6   
Total floating rate notes                                                    525       926           849   

All floating rate notes are non-qualifying for the purposes of regulatory tiers of capital.

(b) Fixed rate notes
                                                                                         GBPm   
                                                                   At        At            At   
                                                              30 June   30 June   31 December   
                                              Maturity date      2013      2012          2012   
Nedbank - Fixed rate unsecured senior debt                                                      
R450 million at 8.39%                            March 2014        30        36            33   
R478 million at 9.68%                            April 2015        32        38            35   
R3,244 million at 10.55%                     September 2015       222       260           242   
R1,137 million at 9.36%                          March 2016        77        91            85   
R1,273 million at 11.39%                     September 2019        93        61           102   
R660 million at zero coupon                    October 2024        15        15            17   
                                                                  469       501           514   
Group excluding Nedbank                                                                         
GBP112 million eurobond at 7.125%              October 2016       112       496           112   
US$16 million secured senior debt at 5.23%      August 2014        11        11            10   
                                                                  123       507           122   
Total fixed rate notes                                            592     1,008           636   

All fixed rate notes are non-qualifying for the purposes of regulatory tiers of capital.
 
(c) Revolving credit facilities and irrevocable letters of credit
The Group has access to a GBP1,200 million five-year multi-currency revolving credit facility (agreed in April 2011). At 30 June 2013, 30 June 2012
and 31 December 2012, none of this facility was drawn down and there were no irrevocable letters of credit in issue against this facility.

(d) Mortgage-backed securities - Nedbank                                                                
                                                                                                 GBPm   
                                                                           At        At            At   
                                                                      30 June   30 June   31 December   
                                             Tier     Maturity date      2013      2012          2012   
Nedbank                                                                                                 
R1.4 billion (class A2A) at 11.817%        Tier 2            Repaid         -        60             -   
R98 million (class B note) at 12.067%      Tier 2            Repaid         -         6             -   
R76 million (class C note) at 13.317%      Tier 2            Repaid         -         4             -   
R480 million (class A1) at JIBAR + 1.10%   Tier 2   25 October 2039        24         -            32   
R336 million (class A2) at JIBAR + 1.25%   Tier 2   25 October 2039        23         -            25   
R900 million (class A3) at JIBAR + 1.54%   Tier 2   25 October 2039        60         -            66   
R110 million  (class B) at JIBAR + 1.90%   Tier 2   25 October 2039         7         -             8   
Total mortgage-backed securities                                          114        70           131   

(e) Subordinated debt securities (net of Group holdings)
                                                                                                                             GBPm   
                                                                                                     At          At            At   
                                                                                                30 June     30 June   31 December   
                                                      Tier   First call date    Maturity date      2013        2012          2012   
Nedbank                                                                                                                             
R500 million at 3 month JIBAR + 0.45%               Tier 2            Repaid           Repaid         -          39             -   
R500 million at 3 month JIBAR + 0.70%               Tier 2            Repaid           Repaid         -          39             -   
R120 million at 10.38%                              Tier 2            Repaid           Repaid         -          10             -   
R300 million at 3 month JIBAR + 2.50%               Tier 2     December 2013    December 2013        10          12            11   
R1.8 billion at 9.84%                               Tier 2    September 2013   September 2018       124         150           137   
R1,265 million at JIBAR + 4.75%            Non-core Tier 1     November 2018    November 2018        85         100            93   
R487 million at 15.05%                     Non-core Tier 1     November 2018    November 2018        37          43            43   
R1.7 billion at 8.90%                               Tier 2     February 2014    February 2019       118         143           132   
R1.0 billion at 10.54%                              Tier 2    September 2015   September 2020        72          86            81   
R2.0 billion at JIBAR + 0.47%                       Tier 2         July 2017        July 2022       134         157           146   
US$100 million at 3 month USD LIBOR       Tier 2 Secondary        March 2017       March 2022        66          64            62   
                                                                                                    646         843           705   
Less: banking subordinated debt                                                                                                     
securities held by other                                                                                                            
Group companies                                                                                    (28)        (58)          (36)   
Banking subordinated securities (net of                                                                                             
Group holdings)                                                                                     618         785           669   
Group excluding Nedbank                                                                                                             
R3.0 billion at 8.92% to October 2015,                                                                                              
3 month JIBAR + 1.59% thereafter)             Lower Tier 2      October 2015     October 2020       199         234           218   
GBP500 million at 8.00%                       Lower Tier 2                 -        June 2021       515         513           547   
                                                                                                    714         747           765   
Total subordinated debt securities                                                                1,332       1,532         1,434   

F: Other Notes
F1: Events after the reporting date
Acquisition of Faulu Kenya DTM LTD (Faulu)
On 3 July 2013, the Group announced that it is to enter into a strategic partnership with Faulu through the acquisition of a controlling stake in the
business. The transaction is conditional on the relevant regulatory approvals being obtained and is expected to complete by the end of 2013.

Acquisition of SELAH (Skandia Europe & Latin America Holdings) by Old Mutual South Africa (OMSA) from Old Mutual plc (parent company).

The Financial Services Board has provisionally given approval for the acquisition of SELAH by OMSA from Old Mutual plc and the transaction was
completed on 12 July 2013. This resulted in increasing the cash holdings of the parent company by GBP120 million.

Repatriation of Old Mutual Bermuda capital
In July 2013, Old Mutual Bermuda received formal written approval from the Bermuda Monitory Authority (BMA) to repatriate $450 million via
cancellation of OM Group (UK) Limited Loan Notes.

New debt issued by Nedbank
In July 2013, Nedbank successfully issued a total of R1.8 billion new-style, fully loss-absorbent, Basel lll compliant, tier 2 subordinated-debt capital
to replace the GBP119 million debt that matures in September 2013. Furthermore, R3.2 billion of three-year senior unsecured debt was also issued.

G: Discontinued operations and disposal groups held for sale
G1: Discontinued operations

Discontinued operations relate to the results of the Group's Swedish, Danish and Norwegian life businesses, collectively Nordic. The disposal of
Nordic was completed on 21 March 2012 following shareholder and regulatory approval and was reported up until that date. The Group continues to
incur costs that are directly related to the sale of Nordic. These costs relate to the transition of IT and other services, previously provided by Nordic
to the wider Group, back to the Group. These costs are included in the expenses related to the discontinued operations.

(a) Income statement from discontinued operations (Nordic)                                           
                                                                                              GBPm   
                                                             Six months   Six months          Year   
                                                                  ended        ended         ended   
                                                                30 June      30 June   31 December   
                                                                   2013         2012          2012   
Revenue                                                               -          842           842   
Expenses                                                            (9)        (831)         (866)   
(Loss)/profit before tax from discontinued operations               (9)           11          (24)   
Profit on disposal                                                    -          242           239   
Realised available-for-sale investment gains and exchange                                            
differences on disposal                                               -          350           350   
(Loss)/profit before tax                                            (9)          603           565   
Income tax credit/(charge)                                            1          (8)           (1)   
(Loss)/profit from discontinued operations after tax                (8)          595           564   

G2: Contingent liabilities in respect of the disposal of US Life

Following its disposal in April 2011 of US Life to the Harbinger group (Harbinger), the Group has retained certain residual commitments and
contingent liabilities relating to that business. These arise from sale warranties and indemnities that are typical in transactions of this nature,
including in respect of certain litigation (including class actions) and regulatory enforcement actions arising from events that occurred before
completion of the sale. The residual commitments are in effect for varying periods of time.

The sale agreement contemplated that Harbinger would establish certain internal reinsurance arrangements after completion, which were subject to
regulatory approval. If such regulatory approval was not forthcoming, there was potential for a reduction in the purchase price of US Life of up to a
maximum of US$50 million. In July 2012, Harbinger filed a lawsuit against the Group, claiming payment of a purchase price adjustment of US$50
million. The Group has filed its defence and is vigorously defending this claim. In view of the ongoing uncertainty and the Group's current
assessment of this claim, the Group has not raised a provision against this exposure.

Sponsor:
Merrill Lynch South Africa (Pty) Ltd
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