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OLD MUTUAL PLC - Interim results for the half year ended 30 June 2015

Release Date: 06/08/2015 08:00
Code(s): OML     PDF:  
Wrap Text
Interim results for the half year ended 30 June 2015

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

Ref 558/15
6 August 2015

Old Mutual plc Interim results for the half year ended 30 June 2015

Strong financial performance
-    Adjusted operating profit (AOP) of GBP904 million, up 20% in constant currency, 19% in reported currency
-    AOP earnings per share of 10.3p up 18% in constant currency, 17% in reported currency
-    Interim dividend of 2.65p up 8%
-    Net client cash flow (NCCF) of GBP1.4 billion
-    FUM at GBP335.7 billion up 7% in constant currency, 5% in reported currency (vs FY2014)
-    GBP508 million net free surplus generated (H1 2014: GBP467 million)
-    Group ROE 15.0%, at the top end of our target range of 12-15%
-    IFRS profit after tax distributable to equity holders of the parent of GBP260 million, up 22% in reported currency

Transforming our prospects in our chosen markets
-    Building an African financial services champion
          -    Strong performance by Old Mutual in South Africa, with profits up 14%, and profits up 31% in Rest of Africa
          -    Nedbank headline earnings up 16%; with Rest of Africa up more than 400% due to 20% stake in ETI
          -    Completed acquisition of UAP; implementing integration plan
-    Building the leading retail investment business in the UK
          -    Profits at Old Mutual Wealth up 26%; up 33% excluding Quilter Cheviot and European divestments
          -    Quilter Cheviot integration on track; 100 day plan complete
          -    GBP1.2 billion of gross flows from Platform into OMGI; Intrinsic restricted advisers delivered 24% of Platform NCCF
-    OM Asset Management (OMAM)
          -    Strong organic growth, with profits up 38% to $128 million, including $19 million due to an exceptional performance fee
          -    Sale of a further 13% of OMAM raised gross proceeds of $257 million, before underwriting costs

Julian Roberts, Group Chief Executive, commented:

"This has been an exceptional six months for Old Mutual. Last year, we reallocated significant capital to buy quality businesses in our core
markets. This year is about ensuring that these investments are fully integrated and making the returns we expect. We have an absolute
focus on achieving this, while being a responsible business.

"Our businesses in South Africa continue to perform very well in the context of challenging economic conditions in large emerging markets.
Old Mutual in South Africa grew profits by 14%, Nedbank grew its headline earnings by 16% and we are making good progress on these
businesses working more closely together. Old Mutual's Rest of Africa businesses are growing strongly, with profits up 31%, and
Nedbank's Rest of African division has seen very significant growth through the acquisition of a 20% stake in ETI.

"In the UK, we are seeing further proof that we have the right business model and believe we will be a net beneficiary from the ongoing
reform in the pensions market. Pressure to deliver full access to pension freedoms, including drawdown for beneficiaries of a pension,
creates additional opportunities for Old Mutual Wealth as one of the leading retail investment businesses. Nevertheless, I believe that the
Government must balance pension liberalisation with the need for individuals to save for their retirement.

 "This is the last set of results I will present as Group Chief Executive of Old Mutual. I am delighted to be able to pass on the stewardship
of the Group to my successor when it is in such robust health. While we expect the next six months to be challenging for emerging markets,
and exchange rate movements will likely temper sterling reported growth, I am confident that by remaining focused on meeting our
customers' needs and improving the operating efficiencies of the business we will continue to make good progress."

Old Mutual plc interim results for the half year ended 30 June 2015

Enquiries

Investor Relations

Patrick Bowes                                 UK                 +44 20 7002 7440
Dominic Lagan                                 UK                 +44 20 7002 7190
Sizwe Ndlovu                                  SA                 +27 11 217 1163

Media

William Baldwin-Charles                                          +44 20 7002 7133
                                                                 +44 7834 524 833

Notes to the financial summary on the front page of this announcement
-     All figures refer to core continuing operations. Core continuing operations exclude the results of the Bermuda business, which is
      classified as non-core.
-     Constant currency figures are calculated by translating the Group's principle local currency in (ZAR and USD) prior-period figures
      at the prevailing exchange rates for the period under review.
-     AOP reflects the directors' view of the underlying long-term performance of the Group. AOP is a measure of profitability which
      adjusts the IFRS profit measures for the specific items detailed in the notes in Part 3 of these interim results and, as such, it is a
      non-GAAP measure.
      For core life assurance and property and casualty businesses, AOP is based on a long-term investment return, including returns on
      investments held by life funds 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 accounting for intangibles acquired in a business
      combination and costs related to completed acquisitions, revaluations of put options related to long-term incentive schemes,
      profit/(loss) on acquisition/disposal of subsidiaries, associated undertakings and strategic investments, fair value profits/(losses) on
      certain Group debt instruments and costs related to the fundamental restructuring of continuing businesses. AOP includes dividends
      declared to holders of perpetual preferred callable securities. Old Mutual Bermuda and Nordic are treated as non-core and
      discontinued operations in the AOP disclosure. As such they are not included in AOP. 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.
-     MCEV information is subject to departures from MCEV Principles (Copyright© Stichting CFO Forum Foundation 2008) due to the
      use of the government bond yield curve in the majority of Emerging Markets.

Cautionary statement

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

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

Notes to editors

A webcast of the presentation on the interim results and Q&A will be broadcast live at 12:30 pm BST/UK time (1:30 pm South African
time) today on the Company's website www.oldmutual.com. Analysts and investors who wish to participate in the call should dial the
following numbers and quote the pass-code 17006277#:

UK/International                                   +44 20 3139 4830
US                                                 +1 718 873 9077
South Africa                                       +27 21 672 4008

Playback (available for 30 days from 6 August 2015), using pass-code 659476#:

UK/International                                   +44 20 3426 2807

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

The following documents, containing financial data for 2015 and 2014, are also available from the Company's website.
     -      Presentation slides
     -      Appendix slides
     -      Financial Disclosure Supplement
     -      MCEV Supplementary information

Sterling exchange rates
                                                                                                             Appreciation / (depreciation) of                                                                                                        
                                                                         H1 2015               H1 2014        local currency against sterling
South African Rand                     Average Rate                       18.16                 17.85                      (2%)
                                       Closing Rate                       19.11                 18.18                      (5%)
US Dollar                              Average Rate                        1.52                 1.67                        9%
                                       Closing Rate                        1.57                 1.71                        8%

Group Review

                                                                                    H1 2014
                                                                                  (constant              2014 (as
Group highlights(1)                                                      H1 2015  currency)    change   reported)   change
Adjusted operating profit (pre-tax, GBPm)                                    904        755       20%         761      19%
Adjusted operating earnings per share (pence)                              10.3p       8.7p       18%        8.8p      17%                                                                     
IFRS profit after tax distributable to equity holders of the parent(2)       260        211       23%         213      22%
Return on equity(3)                                                        15.0%                            13.2%   180bps
Adjusted net asset value per share (pence)(4,5)                           210.9p     212.8p      (1%)      221.9p     (5%)
Net client cash flow (GBPbn)                                                 1.4        1.4         -         1.6    (13%)
Gross sales (GBPbn)                                                         15.6       12.5       25%        12.5      25%
Group customer numbers (millions)                                           17.7                             16.7       6%
Funds under management (GBPbn)(5)                                          335.7      314.1        7%       319.4       5%
Interim dividend for the year (pence)                                      2.65p                            2.45p       8%

(1) The figures in the table are in respect of core continuing operations only, unless otherwise stated
(2) A full reconciliation of IFRS profit to AOP is shown in Part 2
(3) Group ROE is calculated as AOP (post-tax and NCI) on an annualised basis divided by average ordinary shareholders' equity (i.e. excluding the perpetual
    preferred callable securities). It excludes non-core operations
(4) The adjusted Group NAV per ordinary share uses an MCEV valuation basis for Emerging Markets covered business and the UK Heritage business in Old
    Mutual Wealth as well as the market value of listed subsidiaries. Other businesses and other assets are included at IFRS NAV
(5) Comparative is at 31 December 2014

Overview

In the first six months of the year Old Mutual has made further operational and strategic progress. At the presentation of our full year
results for 2014 on 27 February 2015, we highlighted that our focus this year would be on integrating the acquisitions we have made,
creating value from these investments and delivering operational improvements. We are making good progress in this regard. This will
remain our focus while ensuring that our businesses continue to deliver sustainable, profitable growth and that we maintain a rigorous
control on costs.

Producing strong financial results

Profits grew strongly in the six months up 20% in constant currency to GBP904 million and up 19% in reported currency. NCCF for the
Group was GBP1.4 billion and excluding our non-US asset management affiliate, was GBP4.2 billion. Gross sales of GBP15.6 billion
were up 25% in constant currency, with funds under management up 7% to GBP335.7 billion also in constant currency. Annualised Group
return on equity (RoE) at 15.0% was at the top end of our target range of 12 to 15%, benefiting from profit growth and the impact of a
weaker rand.

Against a varied macro-economic backdrop

The economy in our main market of South Africa remains weak as it is affected by a number of wide ranging issues, including power
outages, with GDP growth forecast to be 2.0% for the year. Wage demands and a rise in maize and electricity prices have created
inflationary pressures. These factors continue to put pressure on the rand and the interest rate increase of 25 basis points in July will
place further financial pressure on consumers. Growth in sub-Saharan Africa is expected to remain strong at 4.4%, although Zimbabwe
continues to slow down and the Nigerian economy is under pressure due to the low oil price.

Growth in GDP in the UK is expected to moderate, from 2.9% in 2014 to 2.4% in 2015, with the US GDP growth forecast to be 2.5% for 2015.

It has been a somewhat volatile six months for the equity markets. The average levels of the JSE All Share, FTSE 100 and Russell 1000
Value were all higher during the first half of 2015 than in the first half of 2014. The JSE All Share ended the half 4% higher than it started
the year, whereas the FTSE-100 and Russell 1000V were moderately down, 1% and 2% respectively.

In currency terms, the rand has weakened by approximately 6% against sterling since the start of the year, and was 2% weaker on average
than in the first half of 2014.

Despite the challenging macro-economic backdrop, demand and the need for financial services remains robust in South Africa and the
rest of Africa, and this is supported by increasing awareness of financial services and digital access. Old Mutual has been able to deliver
another strong performance by doing what it does best – focusing on its customers, offering a broad and innovative product suite with
competitive pricing and ensuring the Group has the right strategies in its key markets.

While continuing to deliver our strategy

Building an African financial services champion

We are making good progress in building an African financial services champion. In South Africa, we are ensuring our three businesses
of Old Mutual South Africa, Nedbank and Mutual & Federal are collaborating more closely. Old Mutual South Africa has agreed to
outsource certain of its IT infrastructure functions to Nedbank. This will allow both companies to leverage their joint scale and generate
material synergy benefits over the next five years. The expected savings will form part of our target of R1 billion of collaboration synergies,
of which we have now identified the full R1 billion.

In October 2014, Nedbank invested approximately R6 billion to obtain approximately 20% of Ecobank Transnational Incorporated (ETI),
enabling clients to grow on the continent and providing shareholders with the opportunity to participate in higher growth in the rest of
Africa. More than 70 Nedbank wholesale clients now conduct transactional banking with Ecobank. Nedbank continues to explore
acquisition opportunities in the Southern African Development Community and East Africa.

In response to the challenging macro environment, we have continued to focus on developing innovative products for our customers. In
the second half of the year we will be launching the Old Mutual Money Account for our customers. This new transactional account and
separate, but linked, savings account will have a low monthly administration cost and low charges and will also allow our customers to
bank via their phones and the internet. We would expect persistency amongst our existing customers to improve if they transfer their
banking account to the Old Mutual Money Account as well as for levels of saving to increase. Following the success of the 2-IN-ONE
product in South Africa, we have also rolled out similar products into Namibia and Nigeria and will launch in Malawi in the fourth quarter
of 2015.

In South Africa, we continue to deploy our customers' long-term savings into infrastructure and developmental impact assets that support
socio-economic growth and are supportive of financial inclusion while generating attractive risk-adjusted returns for savers and
pensioners. Our Development Impact Funds, part of Old Mutual Investment Group (OMIG) has invested or committed in excess of R13
billion in aggregate. The Developmental Impact Fund targets a number of areas: the backlog in affordable housing through the Housing
Impact Fund; micro-finance, black SME finance and mortgage finance through the Financial Sector Charter and education through the
Schools and Education fund. In addition, along with the state-owned National Housing Finance Corporation, Old Mutual has recently
allocated more than R1.3 billion to provide affordable mortgage loan finance to the lower end of the housing market. Loan instalments will
be increased with salary adjustments rather than interest rate movements making these loans more affordable for customers than
traditional loan finance. We believe this to be an important innovation in mortgage finance, and an important initiative to drive broader and
much needed financial inclusion in South Africa.

Through the acquisition of a 60.7% stake in UAP, an East and Central African financial services company, we now have an East African
business of scale, which has the right offering, network and skill sets to take advantage of the significant growth potential of these markets.
The acquisition completed on 24 June 2015 from which date we consolidated the business in our Group financial statements. We are
now in the process of integrating UAP with our existing Old Mutual Kenya and Faulu businesses. We have established a new board and
management team to run the new entity and are in the process of implementing governance, finance, product and actuarial processes.
The merger of our operations is expected to be concluded before year end. We have agreed with the Kenyan regulator that we will list the
combined business on the Nairobi Stock Exchange in due course.

In West Africa, we are seeing steady growth in our existing businesses in Nigeria and Ghana, and will increasingly look to harness the
relationship we have with ETI in West Africa. In Nigeria, we are trialling a model very similar to the South African Mass Foundation
business, and we are seeing particularly pleasing growth in savings products through our agency force. In Ghana, we have launched our
bancassurance retail offering through ETI, which is one of the top three banks in the country, to sell our products through 35 of their
branches. We expect to expand this offering to all 79 ETI branches in Ghana by the end of the year. Our existing mass market products
in both countries will be enhanced during the second half of the year.

Building the leading retail investment business in the UK

This is an important period for Old Mutual Wealth as it continues its transformation and it is showing further evidence of the success of its
vertically integrated model. For example: Intrinsic restricted advisers delivered 11% of platform sales and 24% of Platform NCCF in the
period; Old Mutual Global Investors (OMGI) now manages some 13% of Platform funds, up from 9% at the same point in 2014; the
Platform generated GBP1.2 billion (H1 2014: GBP0.8 billion) of gross flows into OMGI.

Integration of Quilter Cheviot is progressing well and we continue to explore synergies via distribution and asset management. We believe
that industry dynamics are boosting demand for tailored investment services for the high net worth customer segment and we will also
seek to offer further opportunities to existing customers. For example, Quilter Cheviot added a selection of high-performing OMGI funds
to their buy-list during the second quarter. We have also effected a number of cost synergies during the first half, including the
implementation of centralised support services.

We have continued to build our advice and distribution network in the UK, which we believe, is a critical element for a retail financial
services business to succeed under the new regulations, and Intrinsic is now fully integrated into Old Mutual Wealth. It increased its
restricted network to 988 advisers at the end of H1 2015, up from 840 in H1 2014. In April, Intrinsic was selected by Sesame Bankhall
Group to become their preferred adviser network partner. This is expected to lead to approximately 220 new wealth advisers joining our
network. By the year end, we expect to have more than 1,200 restricted advisers within the Intrinsic network.

The project to build a best-in-class platform and outsource various administration functions to International Financial Data Systems (IFDS)
is well underway. We are half way through building the requisite coding, with detailed testing and roll-out to follow. We have completed
the detailed implementation planning and expect the cost of the project will be some GBP50 million more than the GBP160 million we had
originally anticipated due to additional costs in relation to pension liberalisation, corporate activity, regulatory changes and the deferral of
completion dates. In addition, we have identified opportunities to build a new customer interface and enhance our service and product
offering as part of this project, and have extended the project scope to deliver this. These improvements will ensure even better digital
functionality and flexibility and their development will cost a further GBP40 million. We now expect the system to go live at the start of
2017, with the timing dependent on minimising customer disruption and the outcome of detailed testing. The delivery of the new best-in-
class platform remains a critical part of the strategy to build an integrated wealth management business, to deliver what our customers
need as well as improving efficiency. We have incurred GBP40 million of costs in the first half of the year with regard to this project and
expect these costs to be approximately GBP90 million for the full year.

During the period, we completed the sale of our businesses in France and Luxembourg and on 29 May 2015 entered into an agreement
to sell Skandia Switzerland to Life Invest Holding. As at 31 December 2014 the Swiss business had funds under management of CHF 1.3
billion. It made CHF 25 million of pre-tax adjusted operating profit in 2014.

Improving and growing our US asset management business

OMAM had an excellent six months with higher margin net flows and continues to seek value enhancing acquisitions. Old Mutual further
sold down its stake in OMAM during June to increase liquidity in the stock and to broaden and deepen the shareholder base. The Group
sold 15.3 million OMAM shares raising gross proceeds of $257 million, less underwriting costs. Following the sale, the Group's holding of
OMAM has been reduced to 65.8%. Old Mutual plc remains a supportive shareholder in OMAM.

Becoming a leader in responsible business

We have identified financial wellbeing, covering financial inclusion and financial education, and responsible investment, covering our
commitment to invest in the green economy and infrastructure, as focus areas for our commitment to responsible business. We are now
working to set clear and ambitious goals in these areas. We will also make it simple for our customers to choose investment funds that
suit their needs. We recognise that we can have a greater impact working with strategic partners to deliver these programmes and will
commission independent reports on their impact.

More information regarding Old Mutual's responsible business commitments can be accessed on our website:
www.oldmutual.com/positivefutures

Adapting to new regulatory frameworks

The regulatory environments in South Africa and the EU continue to evolve. In South Africa, the regulatory frameworks of Solvency
Assessment and Management (SAM) and Twin Peaks will come into effect in 2016. Under Twin peaks, Old Mutual South Africa and
Nedbank have both been identified as Domestic Systemically Important Financial Institutions (D-SIFIs). We are in discussions with our
regulators in South Africa and the UK over the implications of the Twin Peaks regime. In the UK, Solvency II comes into effect on 1 January 2016.

Under the Financial Services Compensation Scheme (FSCS) Old Mutual Wealth has incurred a levy of GBP8 million. This is an industry
levy and primarily driven via a number of company failures and pension transfers or switches to SIPPs with inappropriate underlying
investments.

Regulatory changes impose considerable direct costs as well as indirect costs. In the UK, the government is deregulating parts of
consumer financial services to reduce charges and enhance flexibility for customers in managing their savings, whereas in South Africa
there is a move to restrict access to savings and preserve savings pools. It is too early to determine which approach will most benefit the
consumer.

Business review

The following business review refers to reported basis unless otherwise stated.

AOP analysis by business unit (GBPm)   H1 2015   H1 2014   % change   
Core operations                                                       
Old Mutual Emerging Markets                333       291        14%   
Nedbank                                    404       361        12%   
Old Mutual Wealth                          151       120        26%   
Institutional Asset Management              83        54        54%   
                                           971       826        18%   
Central activities                        (67)      (65)         3%   
Adjusted operating profit before tax       904       761        19%   

AOP by business unit

Old Mutual Emerging Markets profits increased 16% on a constant currency basis (14% on a reported basis) to GBP333 million, benefiting
from good equity market performance, continued positive mortality and persistency experience and the impact of Old Mutual Finance
(OMF) consolidation, partly offset by finance costs incurred since December 2014 on newly-issued OMLAC(SA) debt (issued in December
2014 and March 2015) of R3,061 million. Mutual & Federal has delivered significant improvement in its underwriting result in the current
period due to strong claims performance.

Nedbank delivered a good set of results, achieving an increase of 14% on a constant currency basis (12% on a reported basis) and an
ROE (excluding goodwill) of 17.3%. Growth was driven by strong non-interest revenue generation, disciplined expense management and
improvement in the credit loss ratio and from Nedbank's shareholding in ETI being associate income net of funding cost.  

Old Mutual Wealth profits rose 26%, to GBP151 million, with strong growth in the OMGI and other UK businesses. Intrinsic has continued
to deliver strong flows into OMGI's Cirilium fund range and on to the Platform. Excluding Quilter Cheviot and divested business, underlying
profits rose 33%.

Institutional Asset Management profits rose strongly as a result of increased performance and management fees earned in the period.
Excluding one-off exceptional performance fees and Rogge, underlying profits rose 17%.

Central activities increased to GBP67 million from GBP65 million as a result of lower investment return on excess assets as a result of
acquisition activity and weaker rand.

The following business commentary refers to the locally reported currency. A further detailed business unit report is shown in Part 2 of
these 2015 Interim Results.

Continuing growth in Old Mutual Emerging Markets

This has been another six months of strong profit growth from Old Mutual Emerging Markets, with AOP up 16% on the prior period mainly
due to higher asset based fees, good risk experience, the consolidation of OMF and an improved performance from Mutual & Federal.
Gross sales increased by 23% to R105.7 billion, mainly due to two large non-life deals in our Corporate business, excellent flows in OMIG
and 19% growth in the Rest of Africa. The Corporate deals and OMIG performance also helped grow NCCF by 61% on the prior period
to R14.8 billion. FUM was up 5% from the beginning of the year at R948.5 billion.

In South Africa, Retail Affluent recorded profits of R1.9 billion, up 1% on a strong comparative period due to higher market levels and
improved disability experience, partly offset by a planned reduction in administration fees for the new Wealth offering and higher adviser
costs following investment in distribution. Gross sales were up 13%, with particularly strong APE sales, up 35%, due to strong sales of
Old Mutual Invest (our tax free savings account), XtraMax and Wealth Life. Non-covered sales increased by 34%, with good growth in Old
Mutual Wealth, OMUT and Private Client Securities. We have now recorded R177 million of APE sales from Old Mutual Invest, in the
short period since launch in March.

Mass Foundation's profits were up 60%, with half of the growth due to the consolidation of the increased stake in OMF and the balance
from improved new business result and good retention. APE Sales were up 23% due to a combination of the increased ownership of
OMF, good 2-IN-ONE sales, good sales from the enhanced funeral range and the change in the recognition of sales methodology, with
the second quarter particularly strong with sales up 26% against the prior period following the completion of training in the first quarter.
Excluding the methodology change and the impact of increased OMF ownership, the sales growth was 9%. We continue to expand our
distribution footprint in the Mass Foundation market. Our branch adviser force increased by 9% since the start of the year and we have
expanded the number of OMF branches by 21 branches from the prior year to 260 branches. Sales made through OMF branches now
account for 27% of the total Mass Foundation life sales.

In the Corporate business, APE sales of R707 million were down 31% on the first half of 2014, which was particularly strong due to a
number of significant group assurance deals. Non-life sales were R14.7 billion, against a R1.4 billion in 2014, after the business secured
two significant deals.

Old Mutual Investment Group (OMIG) had an encouraging half, with investment performance continuing to improve across key equity and
multi-asset funds. NCCF for the half was R2.0 billion, against R0.2 billion in 2014, and non-covered sales were up 27% to R18.5 billion
as OMIG secured a number of large mandates. However, profit for the period was down 14% to R463 million as higher OMSFIN profits
were offset by a planned reduction in the fee basis for some retail funds and a return to normalised operating cost levels. The prior year
also included one off gains in the Alternatives boutique. OMIG received a number of awards during the period, including: Hedge Fund
Provider of the Year; and Futuregrowth was named Responsible Manager of the year for the third time.

Property & Casualty in South Africa had a good first half of the year, with an underwriting profit of R147 million, against a loss of R75
million for the same period last year. AOP of R355 million was up significantly on the same period in 2014 (R129 million) with a significant
improvement in claims experience. The Credit Guarantee Insurance Company (CGIC) delivered strong profits mainly due to maintenance
of underwriting discipline and the absence of high profile corporate failures as was seen in early 2014. We have reached agreement with
Santam to acquire their 33.6% interest in Credit Guarantee Insurance Corporation of Africa Limited (CGIC) for a purchase consideration
of cR600 million in cash. The transaction is subject to regulatory approval and expected to complete in H2 2015.

In the Rest of Africa, profits were up 31% with good profit growth in Zimbabwe, Malawi and Namibia. While Zimbabwe has had a good six
months, the economic environment remains very challenging. Gross sales across Rest of Africa were up 19%, with APE sales 44% ahead
of last year due to new business in Malawi, increased advisor numbers, credit life sales in Zimbabwe and good corporate sales in Namibia.
Non-life sales were up 27% due to increased asset management flows in all countries, particularly Kenya.

In Latin America and Asia, profits were slightly down on the comparative period at R278 million, mainly due to higher Asia profits offset
by lower profits in Latin America due to increased distribution costs in Mexico and currency devaluation. APE sales were up 62% to R877
million with excellent growth in India, driven by strong recurring premium individual savings business and Group recurring fund business,
as well as good non-bank sales in China.

Nedbank

Nedbank delivered a strong set of results for the first half of 2015, achieving an increase of 15.7% in headline earnings to R5.3 billion
underpinned by strong non-interest revenue (NIR) growth, disciplined expenses growth, ongoing improvement in impairments and faster
growth from our activities in the rest of Africa, including associate income from our shareholding in Ecobank Transnational Incorporated
(ETI).

Diluted headline earnings per share (HEPS) increased 14.1% to 1,101 cents (June 2014: 965 cents) and headline earnings per share
grew by 13.7% to 1,128 cents (June 2014: 992 cents).

The increases in the return on average ordinary shareholders' equity (ROE), excluding goodwill to 17.3% (June 2014: 16.5%) and the
ROE to 16.0% (June 2014: 15.1%) were driven by a higher return on assets (ROA) of 1.28% (June 2014: 1.22%). Economic profit (EP)
increased by 59.4% to R1.3 billion against a cost of equity of 13.0% (June 2014: 13.5%).

Nedbank remained well capitalised with the Basel III common-equity tier 1 (CET1) ratio at 11.4% (December 2014: 11.6%) within the
target range of 10.5% - 12.5%. The liquidity coverage ratio (LCR) at 76.3% in the second quarter of 2015 (December 2014: 66.4%) is well
above the 60% requirement in 2015 and is reflective of adequate funding and liquidity levels. Nedbank's high-quality-liquid-assets (HQLA)
and other sources of quick liquidity portfolio amounted to R142.2bn (December 2014: R124.6bn).

An excellent six months for Old Mutual Wealth

This is an important year for the Wealth business and we are seeing significant transformation towards a vertically integrated wealth and
asset management business. AOP was up 26% to GBP151 million (H1 2014: GBP120 million), including four months of Quilter Cheviot
profit of GBP17 million. Excluding Quilter Cheviot, and recent European divestments profits were up 33% to GBP134 million. Profits from
our core growth business were GBP112 million (H1 2014: GBP67 million) compared to GBP39 million (H1 2014: GBP53 million) from the
Heritage business. We remain well placed to achieve our GBP270 million profit target, which excludes the contribution of Quilter Cheviot,
at current market levels.

Profit growth has been predominantly driven by revenue growth in our fast growing core businesses, with Old Mutual Global Investors
profit up 88%, from GBP16 million at H1 2014 to GBP30 million at H1 2015, and our Platform also showing good growth. Intrinsic continues
to deliver strong flows into OMGI's Cirilium fund range and onto the Platform and is a key contributor to the growth in revenue in these
businesses.

Gross sales in the half were up 26% at GBP9.8 billion. UK Platform gross sales were GBP3.0 billion, 19% up on the first half of 2014.
OMGI sales were up 12% to GBP5.1 billion. Pension activity increased significantly following the pension liberalisation legislation
introduced in April 2015. Our pension offering is well placed to help customers take advantage of these changes as we already have a
flexible drawdown facility, which allows customers to access their cash immediately while retaining the balance of their assets in a pension
wrapper. Pension sales are up 43% on the comparative period, and we have seen a notable increase in partial withdrawals although full
cash drawdowns have not had a material impact.

NCCF was GBP2.3 billion, 92% higher than the comparative period, with strong net flows into the UK Platform and our International
businesses. Excluding Quilter Cheviot and the divested European businesses NCCF was GBP1.9 billion, 73% up on the first half of 2014.
This is a particularly pleasing result given the uncertain environment for retail investors in the first part of the year ahead of the general
election and the run up to the pension liberalisation legislation taking effect. OMGI NCCF was GBP1.0 billion for the half (H1 2014: GBP1.1
billion) with the Global Equity Absolute Return fund continuing to attract strong net flows with NCCF of GBP0.8 billion year to date. Cirilium
continues to perform well attracting GBP0.4 billion of NCCF in the first half. Following the strategic restructure in the fixed-income team,
we saw outflows from the Global Strategic Bond fund, and while this has now stabilised we do expect some further outflows over the rest
of the year.

UK Platform delivered NCCF of GBP1.2 billion, 33% up on the prior half. NCCF was boosted by new flexi-drawdown enhancements on
our pension product which we introduced following the new flexible pension rules introduced on 6 April 2015. WealthSelect continues to
be successful, attracting over GBP0.5 billion of NCCF for the six months. Quilter Cheviot contributed GBP0.3 billion of NCCF in the first
half.

Investment in our International business is coming to an end and we are beginning to see this investment reflected in performance. The
business contributed GBP0.3 billion of NCCF, up from GBP0.1 billion in the first half of 2014, as sales of the Wealth Management Plan,
launched in Hong Kong in March, began to gain traction and our new licence in Miami, which has resulted in increased sales into Latin
America. Our European region benefited from a single case worth GBP54 million.

Our business in Italy saw a significant uplift in NCCF to GBP0.4 billion due to expansion of distribution agreements.

Institutional Asset Management

OM Asset Management

OMAM continued to generate strong organic growth with a significant increase in revenue from NCCF. AOP was up 38% at $128 million,
including $19 million relating to an exceptional performance fee, and FUM increased 3% to $226.6 billion. Revenues of $379 million were
30% higher than the comparative period due to growth in average FUM and higher performance fees.

NCCF for the period was $0.6 billion. Gross inflows totaled $14.5 billion (H1 2014: $13.9 billion), driven by sales in international equities,
emerging markets equities, and real estate classes. Gross inflows of $5.9 billion were from new client accounts during the period. Gross
outflows totaled $13.9 billion (H1 2014: $11.3 billion) driven by U.S. value equity and some global equity products. Gross outflows of $0.5
billion relate to investment-driven hard asset disposals by Heitman, OMAM's real estate manager.

OMAM's aggregate investment performance is reported as weighted by the revenue generated by its products. As of 30 June 2015,
assets representing 70%, 74%, and 89% of revenue outperformed benchmarks over the one-, three- and five-year periods (30 June 2014:
70%, 73%, and 75%, 31 March 2015: 55%, 70%, and 77%). On an asset-weighted basis, over the one-, three- and five-year periods
ended 30 June 2015, 61%, 61% and 80% of assets outperformed benchmarks, compared to 57%, 62% and 61% at 30 June 2014 and
43%, 58%, and 64% at 31 March 2015.

Non-US affiliate

Rogge had net outflows of GBP2.8 billion in the half, with FUM at GBP28.0 billion down from GBP32.3 billion at the beginning of the year.
Despite the continued improvement in investment performance, we expect heightened net outflows for the remainder of 2015.

Dividend

The Board has considered the position in respect of an interim dividend for 2015, and is declaring an interim dividend of 2.65p per share
(or its equivalent in other applicable currencies). This is in line with our stated policy to pay an interim dividend of 30% of the prior year's
total dividend. Further details of the interim dividend are contained in this morning's separate announcement on the subject.

Board changes

On 15 April 2015 the Company announced the appointment of Bruce Hemphill as Group Chief Executive in succession to Julian Roberts.
Julian Roberts will remain as Group Chief Executive until Bruce Hemphill's start date on 1 November 2015. Bruce will be an Executive
Director and based in London.

Vassi Naidoo joined the Old Mutual plc Board as a non-executive director in May 2015, when he also succeeded Dr. Reuel Khoza as
Chairman of Nedbank Group Limited and Nedbank Limited. Dr. Khoza retired from the Old Mutual plc Board at the end of the Annual
General Meeting on 14 May 2015.

Adjusted Group NAV per ordinary share

Adjusted Net NAV per share was 210.9p compared to 221.9p at FY 2014. The major movements between FY 2014 and HY 2015 were
exchange rate losses of 9.1p, a net 1.4p of adverse movements in the value of quoted subsidiaries, a dilution of 0.9p due to an increase
in the number of shares, general business growth and other movements of 6.8p and the final 2014 dividend of 6.4p.

Outlook

In our main market of South Africa we expect conditions to remain challenging as power shortages constrain growth and an upward
interest rate cycle will increase financial pressure on consumers. However, our businesses in South Africa are in good shape and have
been performing well despite the ongoing headwinds as we have focused on our customers through offering a broad and innovative
product suite with competitive pricing.

In the UK, we are seeing further proof that we have the right business model and believe we will be a net beneficiary from the ongoing
reform in the pensions market. We remain well placed to achieve our GBP270 million profit target, excluding Quilter Cheviot's contribution,
at current market levels.

In the US, OMAM remained focused on pursuing growth opportunities including developing capabilities in new asset classes, through its
global distribution initiative and through value enhancing acquisitions.

We are confident that by remaining focused on meeting our customers' needs and improving the operating efficiencies of the business,
we will continue to make good progress.

REVIEW OF FINANCIAL PERFORMANCE

AOP Analysis

Financial results in this part are on a reported basis unless otherwise stated 
                                              
AOP analysis by line of business (GBPm)                                                       H1 2015   H1 2014   % change   
Line of business                                                                                                             
Life & Savings                                                                                    340       314         8%   
Asset Management(1)                                                                               182       140        30%   
Banking & Lending(2                                                                               426       362        18%   
Property & Casualty                                                                                23        10       130%   
                                                                                                  971       826        18%   
Finance costs                                                                                    (42)      (41)         2%   
Long-term investment return on excess assets                                                       11        13      (15%)   
Interest payable to non-core operations                                                           (2)       (2)          -   
Corporate costs                                                                                  (24)      (25)       (4%)   
Other net shareholder (expenses)                                                                 (10)      (10)          -   
Adjusted operating profit before tax                                                              904       761        19%   
Tax on adjusted operating profit                                                                (235)     (202)        16%   
Adjusted operating profit after tax                                                               669       559        20%   
Non-controlling interests – ordinary shares                                                     (157)     (126)        25%   
Non-controlling interests – preferred securities                                                 (10)       (9)        11%   
Adjusted operating profit after tax attributable to ordinary equity holders of the
parent(3)                                                                                         502       424        18%   
Adjusted weighted average number of shares (millions)                                           4,855     4,840          -   
Adjusted operating earnings per share (pence)                                                    10.3       8.8        17%   

(1) Includes Institutional Asset Management, OMGI and Quilter Cheviot, OMEM and Nedbank's asset management businesses
(2) Includes Nedbank, OMSFIN, Faulu in Kenya, CABS in Zimbabwe and Old Mutual Finance from FY 2014
(3) IFRS profit after tax attributable to equity holders of the parent was GBP260 million for the six months ended 30 June 2015 (30 June 2014: GBP213
    million). A full reconciliation of IFRS profit to AOP is shown later in Part 2

AOP by line of business

Life & Savings profits were boosted by strong growth in insurance profits in South Africa.

Asset Management earnings rose substantially following growth in profits in the U.S. and the UK.

Banking & Lending profits grew through Nedbank's strong non-interest revenue generation, disciplined expense management, and
continued improvement in the credit loss ratio, and associate income from the 20% shareholding in ETI. Increased profits from CABS
and consolidation and growth at OMF also contributed which amounted to 10% of Banking & Lending profits in H1 2015. Property &
Casualty earnings showed a strong recovery in South Africa with strong claims cost management.

Long-term investment return (LTIR) on excess assets decreased in 2015 as a result of a lower asset base following acquisition activity in
Emerging Markets, as well as the impact of the weaker rand.

Corporate costs were in line with prior year.

Other net shareholder (expenses) will increase in the second half of the year, in part, due to the final implementation costs for Solvency
II, which will be effective 1 January 2016. Based on the current underlying timetable and regulation of Solvency II, we estimate the total
cost of completion will be up to GBP20 million, of which GBP10 million will be incurred in H2 2015, and the balance running into H1 2016.
In addition to the usual H2 uplifts, there are expected to be a further GBP10m of costs in relation to other Group initiatives, including costs
related to the incoming Group Chief Executive.

Tax 

The AOP effective tax rate (ETR) for the Group has decreased slightly to 26.0% (H1 2014: 26.5%).

As over 80% of the profits and tax before non-controlling interests arise in Emerging Markets and Nedbank, movements in the ETR in
these businesses have a large impact on the Group ETR. The ETR in Nedbank fell slightly, mostly due to Ecobank being accounted for
as an associate, while the ETR in our emerging markets businesses increased marginally due to a general reduction in tax exempt
income.  

The ETR for our Old Mutual Wealth business is generally lower than those in our emerging markets businesses given the lower corporate
tax rate in the UK and in the markets in which the International businesses operate. Interest and corporate costs incurred in the UK can
be offset against profits in Old Mutual Wealth UK in the same year. Due to the uncertainty of utilising prior year losses these are not
recognised. 

The tax environment within which the Group operates continues to be subject to significant change – this has recently been illustrated by
the UK Summer Budget of 8 July 2015, the release of draft tax law changes in South Africa on 22 July 2015, and the expected adoption
by the G20 Heads of Government of various of the OECD's Base Erosion and Profit Shifting reports in September 2015. Nevertheless
these are not expected to impact materially the Group's forecast 2015 AOP effective tax rate which, subject to market conditions and profit
mix, continues to be forecast in the 25% to 28% range as previously indicated. 
 
Return on Equity

Group return on equity (GBPm)(1,2)                H1 2015   H1 2014   % change   
Adjusted Operating Profits from core operations       502       424        18%   
Average shareholders' equity                        6,680     6,422         4%   
Return on average equity(2)                         15.0%     13.2%              

(1) ROE is calculated as AOP (post-tax) divided by average ordinary shareholders' equity (i.e. excluding the perpetual preferred callable securities). It
    excludes non-core operations
(2) Half year return on equity is annualised

The Group ROE increased by 1.8% to 15.0% and is at the top end of the 12% to 15% target. The increase is due to profit growth after
tax and non-controlling interests of 18% being substantially higher than the average equity growth.

Profits benefitted from 16% growth in the business units, driven by a strong underlying performance and through operating profits from
inorganic activity in the period.

Average equity is up 4% to GBP6,680 million (June 2014: 6,422 million). The growth in average equity has been reduced by the impact
of foreign currency translation effects on shareholder equity and the final dividend paid in May 2015 on closing equity.

Return on Equity   
                              
Group and local ROE (annualised basis) H1 2015 (GBPm)                                      Return on
                                                                 Shareholder             shareholder               
                                                                equity excl.            equity excl.               
                                                         AOP   intangibles 1           intangibles 2   Local ROE   
Old Mutual Emerging Markets                              226           1,497                   28.3%       23.2%   
Nedbank 5                                                161           1,699                   18.3%       17.3%   
Old Mutual Wealth                                        132             260                   44.4%       17.0%   
Institutional Asset Management                            46              23                   >100%       15.0%   
Central Activities                                      (63)       3,090 1,3                       -           -   
Group RoE                                                502           6,569                 15.0% 4     15.0% 4   

(1) Shareholders' equity is at 30 June 2015. Business unit figures exclude the Group share of 'Goodwill and other intangible assets' as reported in the
    segmental balance sheet; however these assets are included in the Group ROE
(2) Calculated as AOP post-tax and NCI divided by average shareholders' equity excluding 'goodwill and other intangible assets'
(3) Includes 'Goodwill and other intangible assets' and excludes the perpetual preferred callable securities and non-core operations
(4) Group ROE is calculated using average ordinary shareholders' equity (i.e. excluding perpetual preferred callable securities) and excludes non-core
    operations
(5) Local ROE for Nedbank excluding goodwill

At an individual business unit level, each business performed well in relation to their expected medium and long-term ROE target
ranges.

IFRS Results

The Group IFRS profit after tax attributable to equity holders of the parent was GBP260 million for the six months ended 30 June 2015
(H1 2014: GBP213 million).

Basic earnings per share (pence) was 5.4p as at 30 June 2015 and 4.5p as at 30 June 2014.

                                        Old Mutual                   Old  Institutional               Discontinued
IFRS to AOP Reconciliation six            Emerging                Mutual          Asset               and non-core
months ending June 2015                    Markets   Nedbank      Wealth     Management    Other(2)  operations(3)   Total
Profit/(loss) after tax attributable to
equity holders of the parent                   177       167        (42)             48        (73)           (17)     260
Total adjusting items(1)                        48       (3)         200              5          10              -     260
Tax on adjusting items                           5         1        (26)            (7)           -              -    (27)
Non-controlling interest in adjusting
items                                          (4)       (4)           -                          -              -     (8)
Discontinued and non-core operations             -         -           -              -           -             17      17
AOP after tax and non-controlling
interest                                       226       161         132             46        (63)              -     502

                                        Old Mutual                        Institutional               Discontinued
IFRS to AOP Reconciliation six months     Emerging            Old Mutual          Asset               and non-core
ending June 2014                           Markets   Nedbank      Wealth     Management    Other(2)  operations(3)   Total
Profit/(loss) after tax attributable to
equity holders of the parent                   204       148        (81)             35        (97)              4     213
Total adjusting items(1)                        12         -         209              8          26              -     255
Tax on adjusting items                        (10)         -        (27)            (1)          10              -    (28)
Non-controlling interest in adjusting
items                                          (4)       (8)           -                          -              -    (12)
Discontinued and non-core operations             -         -           -              -           -            (4)     (4)
AOP after tax and non-controlling
interest                                       202       140         101             42        (61)              -     424

                                        Old Mutual                        Institutional               Discontinued
IFRS to AOP Reconciliation year end       Emerging            Old Mutual          Asset               and non-core
December 2014                              Markets   Nedbank      Wealth     Management    Other(2)     operations   Total
Profit/(loss) after tax attributable to
equity holders of the parent                   395       315        (37)             77       (119)           (49)     582
Total adjusting items(1)                        45         2         230             40        (16)              -     301
Tax on adjusting items                        (20)       (1)        (14)           (18)          17              -    (36)
Non-controlling interest in adjusting
items                                         (10)      (15)           -            (3)           -              -    (28)
Discontinued and non-core operations             -         -           -              -           -             49      49
AOP after tax and non-controlling
interest                                       410       301         179             96       (118)              -     868

(1) Full details of the adjustments applied in determining AOP is set out in note C1 to the Interim Financial Statements, which can be found in Part 3 of this
    document
(2) Other: principally relates to post-tax central activities which include finance costs
(3) Discontinued and non-core operations comprises: Loss of GBP17 million at 30 June 2015 which principally comprises of the US litigation expense of
    GBP21 million, offset by OM Bermuda profit of GBP4 million

Adjusting items

Old Mutual Wealth adjustments primarily arise from the amortisation of acquired intangibles and acquired PVIF of GBP46 million, mainly
resulting from the Skandia transaction in 2006, GBP40 million of restructuring costs in relation to the transformation IT project `and the
impairment of goodwill and other intangibles in Skandia Switzerland prior to its expected disposal in the second half of 2015 in respect of
GBP94 million.

In May 2015, the Group settled litigation arising from the disposal of US Life in 2011 following a court ruling in favour of the plaintiff on
the main matter in dispute. For the six months ended 30 June 2015, an expense of GBP21 million (2014: GBP19 million) was
recognised in the income statement in relation to this matter.

Free surplus generation

Our businesses have generated free surplus of GBP508 million in the first half of 2015 (H1 2014: GBP467 million), which represents a
conversion rate of 90% of AOP post-tax and NCI (H1 2014: 96%). The reduction in conversion rate is largely due to lower investment
returns in Emerging Markets against a strong comparative.

Group cash flows (GBPm)                                              H1 2015   H1 2014   FY 2014   
Opening cash and liquid assets at holding company at 1 January         1,003       545       545   
Operational flows                                                                                  
Operational receipts from northern hemisphere businesses                  85        61       154   
Operational receipts from emerging markets businesses                    203       180       310   
Corporate costs and other operational flows                             (86)      (17)      (30)   
Total operational flows                                                  202       224       434   
Capital servicing                                                                                  
Interest paid                                                           (16)      (16)      (32)   
Preference dividends                                                    (17)      (17)      (32)   
Ordinary cash dividends                                                (297)     (285)     (411)   
Total servicing of capital                                             (330)     (318)     (475)   
Capital movements                                                                                  
Net business unit funding                                               (38)        28        51   
Issue of ordinary shares                                                   -         -       (5)   
Total capital movements                                                 (38)        28        46   
Other Group cash movements                                                                         
Net corporate activity(1)                                              (287)      (13)       453   
Total Group cash movements                                             (287)      (13)       453   
Closing cash and liquid assets at holding company at end of period       550       466     1,003   

(1) Old Mutual Emerging Markets and Nedbank corporate activity was funded directly by those businesses

Operational cash flows

A total of GBP288 million (H1 2014: GBP241 million) has been remitted by the operating business units to the Group Holding company
during the first half of 2015. This increase reflects higher remittances from Old Mutual Emerging Markets and Old Mutual Wealth. 
The increase in Old Mutual Wealth remittances is largely due to timing as no material dividends had been received in the comparative
period. The OMAM remittances are lower following its partial listing in October 2014, the Group now receives a dividend based on 25%
of Economic Net Income (ENI) and annual payment in respect of deferred tax whereas in the comparative period all available cash was
remitted.

Servicing of capital

Dividend payments to shareholders of GBP297 million have been made in the year to date in relation to the final dividend for 2014, of
which GBP175 million was paid to shareholders in southern Africa.

Capital movements

Group capital movements year to date in 2015 include the co-investment returns of GBP3 million from OM Asset Management, less the
redemption of GBP25 million in respect of Bermuda funding and GBP16 million seed investment.

Corporate activity

Cash flows from corporate activity includes the payment of GBP566 million to fund the Quilter Cheviot acquisition and the receipt of
GBP156 million (net of costs) from the sale of OMAM shares in a secondary offering and after the litigation settlement relating to the
disposal of US Life.

Liquidity

At 30 June 2015, the Group holding company had available liquid assets of GBP550 million (30 June 2014: GBP466 million; 31 December
2014: GBP1,003 million) invested in cash and near cash instruments, including; money market funds, UK government securities and a
highly liquid corporate bond portfolio. The Group holding company also has access to an undrawn committed facility of GBP800 million
(30 June 2014: GBP800 million; 31 December 2014: GBP800 million).

In addition to cash and available resources held at the Group holding company level, which are considered adequate to support the Group
under both normal and stressed conditions, each individual business also maintains liquidity and credit facilities sufficient to support its
normal trading operations and to withstand stress events. 

Group debt

Group debt summary(1)                                            H1 2015      FY 2014   
Senior gearing (gross of holding company cash) - IFRS basis         1.8%         2.1%   
Total gearing (gross of holding company cash) - IFRS basis         14.0%        13.3%   
Book value of debt - IFRS basis (GBPm)                             1,613        1,540   
Total interest cover(2)                                       15.5 times   16.8 times   
Hard interest cover(2)                                         5.5 times    4.3 times   

(1) Excludes banking-related debt of GBP2,479 million at Nedbank and Old Mutual Emerging Markets (GBP135 million is held at OMF, GBP28 million is held
    at CABS and GBP11 million is held at Faulu)
(2) Total interest cover and hard interest cover ratios exclude non-core operations. Hard interest cover now calculated to exclude LTIR on excess assets
    and all OMEM and Nedbank earnings (previously only adjusted for earnings in South Africa and Rest of Africa). Comparatives have been restated

Maturity profile of debt outstanding at 30 June 2015

The Group has first calls on capital instruments of R3,000 million (GBP157 million) Tier 2 debt, issued by OMLAC(SA) exercisable in
October 2015, and at the holding company level, EUR374 million (GBP266 million) Tier 2 debt, exercisable in November.

The Group also has GBP112 million of senior debt maturing in October 2016, GBP273 million of Tier 1 debt exercisable in March 2020
and GBP500 million of Tier 2 debt maturing in June 2021. OMLAC(SA) has a further R1,000 million (GBP53 million) Tier 2 debt callable
in November 2019. In addition, during the year, OMLAC(SA) raised R1,524 million (GBP79 million) in fixed rate Tier 2 bonds and R537
million (GBP28 million) in floating rate Tier 2 bonds in the South African bond market. The fixed instruments have first calls in 2020, 2022
and 2025, the floating bond has first call in 2020. OMLAC(SA) is continuing with this programme and intends issuing further debt in H2
2015.

OM Asset Management has drawn $145 million (GBP92 million) on a $350 million 5 year Revolving Credit Facility.

Nedbank has a remaining GBP243 million of maturities on its debt for the second half of 2015.

Nedbank redeemed R1.8 billion of hybrid debt in January 2015, and issued R2.3 billion of Basel III compliant debt in line with its capital plan.

Normal course debt management remains important to us in terms of both our liquidity and solvency positions.

REVIEW OF FINANCIAL POSITION

Capital

The Group's capital position is managed to optimise shareholder value creation within evolving regulatory regimes, ensuring that both
Group and subsidiary businesses are appropriately capitalised under local and Group capital rules, are resilient to stress scenarios and
have the resources to deliver on current strategic plans. The Group capital position is supported by debt and hybrid instruments and takes
account of operating within appropriate and sustainable levels of debt gearing including stress scenarios.

Business Unit regulatory solvency strength

The Group's subsidiary businesses continue to have strong and resilient local capital. This is consistent with the Group's strategic
controller model and philosophy of ensuring that capital resides where the risks lie, and is sufficient for risks associated within extreme
scenarios. The table below summarises the principal local statutory capital positions.

                                                                         Capital        Capital                                 
Local currency                                                         Resources   Requirements   Surplus   H1 2015   FY 2014   
Old Mutual Life Assurance Company (South Africa)
(OMLAC(SA))(1) (Rbn)                                                        47.6           15.9      31.7      3.0x      3.1x   
Mutual & Federal(2) (Rbn)                                                    3.0            2.1       0.9      1.7x      1.8x   
Nedbank(3) (Rbn)                                                            67.6           46.6      21.0     14.5%     14.6%   
UK(4) (GBPbn)                                                                0.5            0.2       0.3      2.4x      2.7x   
Bermuda(5) ($bn)                                                             0.3            0.2       0.1      1.2x      1.3x                                                                            

(1) South Africa Statutory Valuation Methods (SVM) in accordance with the FSB requirements
(2) Capital Adequacy Requirement (CAR) in accordance with the FSB requirements
(3) Basel III valuation method and including unappropriated profits and showing total Group Capital Adequacy ratio
(4) FGD basis (we are not required to report to the PRA separately)
(5) Enhanced Capital Requirement as set by the Bermuda Monetary Authority

Group regulatory capital - Financial Groups Directive (FGD)

The Group currently measures its Group solvency and regulatory capital in accordance with the EU Financial Groups Directive (FGD).
The FGD methodology and framework differ fundamentally from the risk based Solvency II regime, to which the industry will transition on
1 January 2016.

The Group's regulatory capital surplus, calculated under the FGD, was GBP1.7 billion at 30 June 2015 (31 December 2014: GBP2.1
billion as reported to the PRA) representing a statutory cover ratio of 151% (31 December 2014: 164%).

The movement in surplus and coverage ratio is due to a decrease in capital resources as a result of corporate activity including the
acquisition of Quilter Cheviot and UAP Holdings, partially offset by the unwind of the BEE schemes and the sell-down of an additional
12.9% of OMAM. The capital requirements in rand increased as a result of growth in Nedbank's risk-weighted banking assets and the
continued growth in the protection part of OMEM's insurance book.

Group regulatory capital (FGD basis) (GBPbn)   H1 2015  FY 2014(1)   
Capital resources                                  5.0         5.4   
Capital requirements                               3.3         3.3   
Surplus                                            1.7         2.1   
Coverage Ratio                                    151%        164%   

(1) As reported to the PRA in April 2015

34% of the Group FGD resources of GBP5.0 billion comprise of qualifying debt instruments (totalling GBP1.7 billion). These provide
additional liquidity as well as optimising the Group's Weighted Average Cost of Capital (WACC). They consist of GBP1.0 billion of debt
instruments issued at the Group holding company and GBP0.3 billion at the Group's South African subsidiary Old Mutual Life Assurance
Company (South Africa) Limited (OMLAC(SA)) and GBP0.4 billion at Nedbank.

Regulatory capital has been assessed in the context of various stress scenarios. This analysis indicates that a 1% fall in the ZAR/GBP
exchange rate would result in a GBP11 million reduction in the surplus (2014: GBP13 million reduction), and if the ZAR/GBP weakened
to R25, the surplus would reduce to GBP1.4 billion, yet the FGD ratio coverage would increase to 154%. The cover ratio is resilient to
movements in exchange rates in a stress scenario because both the capital resources and the capital requirement fluctuate with changes
in those same exchange rates.

Future Regulatory Capital assessment- Solvency II and Solvency Assessment and Management (SAM)

The Group is progressing our Solvency II and SAM implementations in line with our plans. SAM has been delayed until at least Q2
2016. We expect that formal PRA approval applications will only be received late in 2015 and as such, we continue to operate in a period
of uncertainty in respect of the ultimate basis for Group Solvency until early 2016, when we should have clarity on the outcome of the
calculation methodology. 

The Solvency II regime will introduce a different lens through which to look at Group capital. It will use a more conservative 1 in 200 stress
scenario in determining capital requirements and apply a more rules-based determination of capital fungibility and transferability. The
Group result will also depend on the assumptions and aggregation models used in Solvency II calculations. Irrespective of the outcome
of certain specific aspects used to determine the Group position under Solvency II, the local regulatory capital strength relative to the risks
of our underlying business will remain unchanged. By comparison, the FGD regime is not a risk based regime and assumes full fungibility
and transferability of capital across geographies. Given the inherent conservatism of Solvency II compared to the FGD regime, it is likely
that Solvency II will result in the reporting of lower yet more resilient levels of Group surplus regulatory capital and a lower Group coverage
ratio when compared with the FGD regime. This view is unchanged on that shared at our 2014 Preliminary Results announced in February
2015. 

During July 2015, we completed our initial reporting to regulators under the interim arrangements of Solvency II. Our preparation and
readiness for the full Pillar 3 reporting under Solvency II and SAM, which is required from 2016 onwards when the new regimes become
effective, is progressing well. However, preparing for reporting under the new regulations requires significant effort and investment in
reporting processes for our businesses. Given the delays in the SAM legislative process, the South African entities will be subject to a
period of dual reporting under both old and new regulations. 

Risk Management

Principal risks and uncertainties

Our principal risks have been determined by assessing the possible effects on our reputation, our stakeholders, our earnings, capital and
liquidity, and the future sustainability of our business. These risks are closely monitored by local management and independent subsidiary
boards and overseen by Group management. They are reported to the Board on a regular basis.

The Group's principal risks remain largely unchanged during 2015. However, given the successful completion of the purchase of Quilter
Cheviot and regulatory approval of the UAP acquisition, execution and integration risk has increased. The IT transformation of Old Mutual
Wealth is a complex and substantial project which involves implementation and execution risk given the new nature of the technology
solution being employed.

The most significant external risk to earnings relates to our exposure to South African economic conditions and the impact thereof on our
South African customer base, as well as the value of the Group's earnings when translated from rand to Sterling. As previously discussed,
the South African economy remains weak. The rand has depreciated in 2015, but remains within the Group's business plan stress test
boundary levels. The Group holds capital in the location where its risks reside, which naturally hedges some balance sheet currency
translation risk. To mitigate the impact of currency fluctuations on Group liquidity, the Group uses forward currency contracts to hedge
expected rand cash flows needed to make dividend payments in Sterling.

Within Nedbank, the increased holdings in Ecobank introduced a different form of currency risk, as Nedbank is now exposed to movements
in ETI's foreign currency translation reserve as detailed in Nedbank's Interim Results disclosures.

In line with our peers, there is significant regulatory change impacting the financial services sector in the territories we operate. There
continues to be change in the conduct agenda of regulators in terms of the way business is sold or the nature of the products designed to
achieve required customers' outcomes. Our focus on responsible business, core values and culture gives us confidence to embrace these
changes, and we continue to monitor the position carefully.

In most of the territories in which we operate there is increasing focus by the regulators on companies' management of money
laundering risk, in particular demonstrating suitable processes and documentation for customer identification and risk profiling. In
addition, international tax co-operation initiatives such as the OECD Common Reporting Standard and US FATCA are increasing client
data gathering and management obligations. We have significantly increased our programmes of work in these areas and we will incur
additional costs for some time to meet these rising regulatory requirements.

As previously discussed, the Twin Peaks system of regulating the financial sector in South Africa is due to come into effect on 1 April
2016. We are actively preparing to meet the proposed regulatory requirements and are in discussion with the Group's regulators over the
implications of both Old Mutual South Africa and Nedbank being identified as D-SIFIs.

In addition to regulatory changes, there are a number of tax changes to the treatment of long term savings and pensions which could have
an impact on how our products are designed and sold in future. We continue to monitor developments and adapt accordingly.

Further discussion of these risks and the process by which the Group routinely assesses and responds to the changing risk environment
was provided in the 2014 Annual Report and Accounts and available on the Investor Relations section of the Group website.

Tax risks and uncertainties

The Revenue authorities in the principal jurisdictions in which the Group operates (South Africa, United Kingdom and the United States)
routinely review historic transactions undertaken and tax law interpretations made by the Group. The Group is committed to conducting
its tax affairs in accordance with the tax legislation of the jurisdictions in which they operate. All interpretations made by management are
made with reference to the specific facts and circumstances of the transaction and the relevant legislation.

There are occasions where the Group's interpretation of tax law may be challenged by the Revenue authorities. The financial statements
include provisions that reflect the Group's assessment of liabilities which might reasonably be expected to materialise as part of their
review. The Board is satisfied that adequate provisions have been made to cater for the resolution of tax uncertainties and that the
resources required to fund such potential settlements are sufficient.

Due to the level of estimation required in determining tax provisions, amounts eventually payable may differ from the provision recognised.

Corporate activity

As part of its corporate activity, the Group undertake acquisitions and disposals. In certain transactions, in addition to the stakes acquired,
the Group may obtain options to acquire additional stakes at market value or other amounts. The Group has previously entered into a
combination of put and call options to acquire an additional 23% stake in its Indian life joint venture from the current holding of 26%, which
would be settled at the fair value of the stake if and when exercised.

Group gross flows and funds under management (FUM)

                                                                                                   Net flows as
                                                                             Market and            % of opening
                                     FUM      Gross       Gross                   other        FUM          FUM
(GBPbn)                         1-Jan-15    inflows    outflows  Net flows    movements  30-Jun-15 (annualised)
Emerging Markets                    50.3        5.8       (5.0)        0.8        (1.5)       49.6           3%
Nedbank                             12.6        6.6       (5.9)        0.7        (0.3)       13.0          11%
Old Mutual Wealth                   82.5        9.8       (7.5)        2.3         16.2      101.0           6%
Invest and Grow markets             73.4       10.4       (7.7)        2.7         18.4       94.5           7%
Manage for Value markets            17.1        0.9       (1.1)      (0.2)        (2.1)       14.8         (2%)
Eliminations                       (8.0)      (1.5)         1.3      (0.2)        (0.1)      (8.3)           5%
Institutional Asset Management     174.0       10.3      (12.7)      (2.4)          0.5      172.1         (3%)
OM Asset Management                141.7        9.5       (9.1)        0.4          2.0      144.1           1%
Non-US based affiliate              32.3        0.8       (3.6)      (2.8)        (1.5)       28.0        (17%)
Core operations                    319.4       32.5      (31.1)        1.4         14.9      335.7           1%

                                                                                                   Net flows as
                                                                             Market and            % of opening
                                     FUM      Gross       Gross                   other        FUM          FUM
                                1-Jan-14    inflows    outflows  Net flows    movements  30-Jun-14 (annualised)
Emerging Markets                    48.3        4.8       (4.3)        0.5        (0.6)       48.2           2%
Nedbank                             11.7        6.3       (5.7)        0.6            -       12.3          10%
Old Mutual Wealth                   78.5        7.7       (6.5)        1.2          0.6       80.3           3%
Invest and Grow markets             63.9        8.2       (6.1)        2.1          0.5       66.5           7%
Manage for Value markets            22.0        1.1       (1.5)      (0.4)            -       21.6         (4%)
Eliminations                       (7.4)      (1.6)         1.1      (0.5)          0.1      (7.8)        (14%)
Institutional Asset Management     155.3        9.9      (10.6)      (0.7)          5.1      159.7         (1%)
OM Asset Management                120.0        8.3       (6.7)        1.6          4.1      125.7           3%
Non-US based affiliate              35.3        1.6       (3.9)      (2.3)          1.0       34.0        (13%)
Core operations                    293.8       28.7      (27.1)        1.6          5.1      300.5           1%

At 30 June 2015, Funds Under Management grew by 12% to GBP335.7 billion compared to that at the end of 30 June 2014. Funds
under management in Old Mutual Wealth increased by 22%, primarily as a result of the acquisition of Quilter Cheviot in February 2015,
which added GBP17.5 billion of funds under management.

For HY 2015, Group net flows as a percentage of opening Funds Under Management were 1%, with GBP2.8 billion of net outflows from
the Group's non-U.S. based asset management affiliate. Excluding these outflows NCCF over opening FUM was 3%.

Old Mutual Emerging Markets 
                                                                        
Highlights (Rm)                                                                    H1 2015   H1 2014   % change   
AOP (pre-tax)                                                                        6,044     5,198        16%   
Gross Sales                                                                        105,747    85,759        23%   
Covered sales (APE)                                                                  5,474     4,544        20%   
NCCF (Rbn)                                                                            14.8       9.2        61%   
FUM (Rbn)(1)                                                                         948.5     904.9         5%   
IFRS profit after tax attributable to equity holders of the parent                   3,214     3,641      (12%)   

(1) FUM is shown on an end manager basis and prior year comparative represents the balance at 31 December 2014

Operating environment

Emerging Markets business had a strong first half of 2015, despite slowing economic growth. The slowdown in emerging markets can be
attributed to lower commodity prices, and the rebalancing of the Chinese economy and volatile exchange rates.

In South Africa, the SARB reported a narrowing trade deficit for the first quarter of 2015, however despite the improvement, the deficit
remains relatively large. The economic landscape remains challenging with the wide-ranging impacts from power outages, the
depreciating rand, protracted labour wage negotiations and a drought creating inflationary pressure, adversely impacting the economy.
GDP growth forecasts have been revised down from 2.1% to 2.0% for 2015. Despite this, the recent credit rating cycle resulted in Fitch
and S&P maintaining the SA sovereign rating, albeit with precautions.

South African equity markets reached all-time highs during the first half of 2015, but have remained volatile and have shown some
vulnerability over recent months exacerbated by anticipated increases in US interest rates.

In the rest of emerging markets, the lower oil price has negatively impacted government revenues and economic growth for net oil
exporters, particularly in Colombia and Nigeria, while stimulating growth in other countries. As a result, the local currencies in Colombia
and Nigeria have continued on a depreciating trend against the US dollar.

The Zimbabwe economy continues to slow down, amid considerable political uncertainty, evidenced by the Zimbabwean stock exchange
declining by 9% since the start of the year. Other southern African economies have proved resilient and are attracting increased foreign
direct investment.

China's economic growth continues to slow from historically strong levels of growth, now at 7% growth, with a 6.8% projection for 2015.
There has been a significant decline in the Chinese stock market in June, retracting a portion of the significant growth in the past year,
which prompted the Chinese government to introduce measures to manage this volatility. Investment markets in India have been strong
with sentiment of recovery across several sectors.

Business developments

Expansion across emerging markets

In South Africa, we have agreed to purchase a further 33.6% interest in Credit Guarantee Insurance Corporation for R600 million in cash,
with the transaction expected to complete in H2 2015, subject to regulatory approvals.

We continue to expand our operations in Rest of Africa through both acquisitions and organic growth, increasing the size of our sales
forces and innovative product development. We successfully completed the acquisition of UAP on 24 June 2015, resulting in a majority
stake of 60.7%. The financial results and financial position of UAP were subsequently consolidated in the Group financial statements.
This provides us with an excellent platform to accelerate growth in Kenya and the broader East Africa region through access to customers
in five additional Central and East African countries (Tanzania, Uganda, South Sudan, DRC and Rwanda). By combining, UAP, OM Kenya
and Faulu we have a solid foundation upon which we can build an integrated financial services offering to our customers in this region.

Our West African businesses continue to leverage our bancassurance relationship with Ecobank in Ghana and Nigeria to grow sales. In
Ghana, Ecobank and Old Mutual officially launched their partnership in May and sales staff from 79 Ecobank branches have been trained
on the two products expected to go live in H2 2015.

Rest of Africa's profit contribution is up to 11.3% (9.8% as at 31 December 2014) as a percentage of South Africa profits and is expected
to increase further following the UAP acquisition.

In Latin America, AIVA has supported the entry into the 3rd party agency channel in Mexico. In India distribution via Kotak bank branches
continues to grow and there is a strong focus on growing sales via the internet channel in China.

In South Africa, we continue enhancing our customer segmentation in the Affluent markets with a dedicated Wealth offering and are
building new distribution mechanisms in advance of the retail distribution review. We continue to expand our distribution footprint in Mass
Foundation, growing the branch adviser force by 9% since the start of 2015, with sales made through OMF branches now accounting for
27% of total MFC life sales. Retail persistency remains stable with MFC seeing some improvements on prior year.

Our product development has been very active in the period, with key capabilities being developed which can be used across our
operations.

In South Africa, Old Mutual Invest, a Tax Free Savings Account (TFSA) was launched in March 2015 as the first mainstream product
offered through direct/digital and intermediated channels. Old Mutual was one of the first to market and has had excellent life APE sales
of R177 million for TFSA by the end of June 2015. We have also launched the innovative Old Mutual Money Account to lower-middle
income market clients. We expect the more regular customer interaction from this product to help us deepen our relationship with this key
target customer base in due course. Mutual & Federal (M&F) have launched two new general insurance products; Motorsure, a standalone
vehicle insurance product; and Prosure, a comprehensive insurance policy with preferential rates, exclusively for Old Mutual Greenlight
customers.

Investment performance continues to show steady improvement across key equity and multi-asset class funds. Institutional fund
performance and key retail equity and multi-asset class funds have shown good investment performance improvement and remain
generally positioned above peer median and client targets over 1 and 3 years. Our continuing drive to increase the use of alternative asset
class capacity continues to be enhanced with major initiatives in Responsible Investing.

We have commenced a multi-year IT investment initiative to improve our customer experience and manage costs in a modern, digitally
enabled way. This is an evolution of our IT strategy and is being managed as a portfolio of projects in order to mitigate implementation
risks. As part of this programme, we have entered into a joint venture with Nedbank on technology infrastructure support through which
we benefit from shared skills and scale to improve service and efficiency.

In Nigeria a guaranteed money market fund was introduced for both the long-term and short-term savings markets. In Namibia we
launched our unique 2-IN-ONE savings plan on 25 May which was built on innovations introduced in South Africa.

Supporting economic transformation in SA

Old Mutual South Africa achieved Level 2 BBBEE status with its highest overall score in 5 years. OMIG retained its Level 2 BBBEE rating,
for the 3rd consecutive year.

Following the maturity of the 10 year Broad Based Black Economic Empowerment Schemes in May 2015, OMEM together with Nedbank
committed R100 million each over 3 years to invest in initiatives aligned to the National Development Plan. As a first step in this
commitment, WIPHOLD will receive the first tranche of the funds committed to a small-scale agricultural commercialisation project, which
seeks to address rural unemployment and cultivate sustainability.

Old Mutual together with the state-owned National Housing Finance Corporation, has allocated more than R1.3 billion to provide affordable
mortgage loan finance to the lower end of the housing market. Loan instalments will be increased with salary adjustments rather than
interest rate movements making these loans more affordable for customers than traditional loan finance. Of the R1.3 billion allocated,
R480 million has already been drawn down, with the balance committed for housing still under development.

We remain committed to support responsible business initiatives through our Development Impact Funds, IDEAS Renewable Energy
Fund and Agri Funds, which have committed in excess of R15 billion. These funds, along with other infrastructure investments across
OMIG, drive socio-economic growth and support financial inclusion in South Africa.

Financial highlights

Pre-tax AOP

Strong profit growth of 16% on the prior year with strong growth in South Africa, Rest of Africa and Asia.

By segment

Retail Affluent profit was marginally up on a strong prior year with increased fees from higher market levels and improved disability claims
experience. This was partly offset by a planned reduction in administration fees for the new Wealth offering, a change in the fee basis for
some retail funds and higher distribution costs following investment in our distribution capability.

MFC profits are 60% ahead of prior year largely due to the increased ownership of OMF (from September 2014), positive persistency
experience, lower new business strain and improved credit loss experience.

Corporate profits are up 9% mainly due to higher asset-based fees, partly offset by lower risk profits compared to a particularly strong first
half of 2014.

OMIG profits are 14% below the prior year despite higher asset based fees and investment returns in OMSFIN, due to a return to
normalised operating cost levels and a planned change in fee basis for some retail funds. The prior year profits were boosted by a one-
off gain in the Alternatives boutique.

Central costs increased due to the start of the next cycle of investment in information technology to improve the customer experience and
deliver efficiencies.

In the Rest of Africa, profits were up 31% with good profit growth in Namibia and Malawi supported by growth in banking profits in
Zimbabwe. Profits in Zimbabwe also benefited from US dollar improvements against the rand.

In Latin America and Asia profits were up 32% due to higher investment income, lower new business strain from bank channel sales and
one-off realised investment gains in Asia, partly offset by lower profits in Latin America due to increased distribution costs in Mexico and
currency devaluation.

Debt costs were incurred following new debt raised by OMLAC(SA) in December 2014 and March 2015.

By line of business

Life and Savings businesses benefited from higher asset-based fees and better experience variances (mainly persistency).

Banking profits benefitted from the consolidation of OMF, improved OMF earnings and increased loan advances in Zimbabwe.

Property & Casualty earnings were up significantly due to the turnaround in the underwriting result of the South African operations as we
successfully execute the turnaround strategy. Credit Guarantee Insurance Company has delivered significantly improved profits mainly
due to the absence of high profile corporate failures seen in early 2014 and maintenance of underwriting discipline.

Asset Management results are 20% down on prior year as higher base fees were offset by one-off gains in prior year and a reduction in
fee basis for some SA retail funds from performance fees to a flat fee basis.

NCCF: Strong net client cash flows up 51%

NCCF is R5.6 billion up on prior year mainly due to two large non-covered deals secured by Corporate, good net retail flows in South
Africa and improved asset management flows in OMIG and Rest of Africa, partly offset by a large termination of low margin mandates in
both Corporate and OMIG. Latin America NCCF is slightly up on prior year in constant currency.

Gross sales: Strong growth in Corporate and OMIG

Gross sales increased by 23% to R105.7 billion due to strong non-covered sales growth of 41% (up from R58.3 billion to R82.0 billion) as
well as good covered sales growth of 20%.

The excellent growth in non-covered sales in South Africa was mainly due to large deals secured by Corporate and good Retail Affluent
unit trust and OMIG sales. In the Rest of Africa non-covered sales are 27% up on prior year mainly due to strong asset management flows
in Namibia, Kenya, Zimbabwe and Malawi. Latin America sales were 3% down in constant currency, due to lower mandatory pension
sales affecting the entire industry as a result of strong competition from the government social security system.

Life APE sales: Strong growth in Retail sales in South Africa, Rest of Africa and Asia

Covered sales increased by 20% to R5.5 billion with strong single and regular premium retail sales in South Africa, supported by good
performance in Rest of Africa and Asia.

Retail Affluent delivered single premium sales growth of 39% supported by the continued success of the XtraMax product and Wealth
product sales. Recurring premium sales have increased by 31% with excellent sales of the new Old Mutual Invest product (TFSA). Risk
sales were flat.

Mass Foundation sales are up 23% on prior year following increased ownership of OMF, a change in the sales recognition methodology
and supported by good savings and risk sales. Sales in Mass Foundation were boosted by a change in the sales recognition criteria in
order to be consistent with Retail Affluent's treatment and to align to our advisor remuneration model. Mass Foundation sales (excluding
the APE reporting methodology change and the impact of increased OMF ownership) are 9% up on prior year.

Corporate sales are down on prior year due to large group assurance and annuity deals secured in the prior year not repeated in 2015,
although good retention of group assurance business has been experienced.

Rest of Africa sales are 44% ahead of prior year mainly due to strong new business in Malawi, increased adviser numbers and credit life
sales in Zimbabwe, and good corporate sales in Namibia.

Latin America sales were supported by growth from the AIVA channel. Asia sales are 69% ahead of prior year with strong growth in India
sales, driven by strong individual, group and credit term sales and further supported by good internet and broker channel sales in China.

Gross written premiums

Growth was 3% with lower premium growth rates in South Africa mainly due to the continued remediation of our commercial insurance
portfolio.

Rest of Africa gross written premiums are 12% up on prior year. UAP results will be consolidated from H2 2015.

Banking: Responsible growth in loan book and improved credit loss experience

OMF grew its loan book by 3% from December 2014 to R10.2 billion whilst it also increased its collections ratio to 92.5% and reduced
credit losses from 14.0% to 11.3%.

In Rest of Africa, the CABS loan book has grown in local currency by 14% since the end of 2014. We have increased the CABS impairment
provision given the observed deterioration in the Zimbabwean economic landscape. The CABS credit loss ratio has therefore increased
from 1.1% as at 31 December 2014 to 4.5%.

In Faulu (Kenya) our loan book growth has been modest. We have increased our focus during this period on growing our deposits. We
have taken a more cautious approach to impairment provisioning, which has increased our credit loss ratio from 0.9% at year-end to 1.1%.
Collection experience remains very good.

Value of new business (VNB) and margins:

VNB improved by 11% to R907 million with the PVNBP margin up 0.2% to 3.2% compared with June 2014 mainly due to higher tax relief
on expenses, a more profitable mix of business sold, particularly in MFC and operating assumption changes made at the end of 2014.

Embedded value:

Operating MCEV earnings (post-tax) increased by 40% on prior year to R3,455 million. Operating earnings were higher compared to 30
June 2014 due to improved persistency experience, higher value of new business, higher expected return and better other operating
variances.

Persistency profits have emerged mainly due to lower than expected pre-retirement smoothed bonus terminations in Corporate as well as
positive experience variances in Retail Affluent and Mass Foundation businesses. The good risk experience seen in recent years has
continued into 2015, but at a lower level following the assumption changes made at December 2014.

Development cost and negative expense variances increased mainly due to African expansion, new product and IT initiatives.

As a result of the higher operating earnings mentioned above, the annualised Return on Embedded Value (RoEV%) improved from 10.2%
in the comparative period to 12.3%.

Economic variances benefitted from the decision to align the risk free reference rate used for MCEV with the risk free curve used for SAM
reporting, which increased MCEV by R543m. There were also positive investment variances on in-force business due to good investment
returns earned on policyholder funds and positive impacts of other economic assumption changes.

Total MCEV earnings have increased by 26% on prior year to R4,527 million.

Outlook

South Africa

Lower growth forecasts and an upward interest rate cycle will increase financial pressure on the consumer, however we do not expect
significant deterioration in the short term given levels of household spending and a modest improvement in global demand. There are a
number of upcoming regulatory proposals that are expected to increase cost pressures over the medium term. In addition equity markets
are trading at near all-time highs with the risk of a downward correction increasing.

Rest of Africa

Underlying economic growth is higher than in South Africa although economic growth has slowed as global conditions moderate these
emerging markets. The deterioration in the terms of trade through weak commodity prices and lower capital flows to emerging markets
continues. Our developing operations in the Rest of Africa are placed to take advantage of rising penetration rates and rising GDP per
capita across a number of products and services over the medium term.

Asia and Latin America

The Indian outlook is robust; however China remains vulnerable to further equity market volatility and credit losses.

The major economic slowdown in Brazil creates knock-on risk to the rest of the continent. For many other countries state budgets have
been reduced due to lower commodity prices. Increased regulation and taxation changes moderate the outlook. Our Colombian business
is largely exposed to higher income groups and we do not expect significant impact on our prospects for this market.

Emerging Markets data tables (Rand)

Adjusted operating profit by cluster (pre-tax, Rm)   H1 2015   H1 2014   % change   
Retail Affluent                                        1,920     1,901         1%   
Mass Foundation                                        1,377       863        60%   
Corporate                                                873       800         9%   
OMIG                                                     463       541      (14%)   
Property & Casualty                                      147      (75)       296%   
LTIR                                                     879       837         5%   
Central expenses and administration                    (406)     (346)      (17%)   
South Africa                                           5,253     4,521        16%   
Rest of Africa                                           421       357        18%   
LTIR                                                     284       246        15%   
Central expenses and administration                     (91)     (136)        33%   
Rest of Africa                                           614       467        31%   
Asia & Latin America                                     278       210        32%   
Debt costs                                             (101)         -       100%   
Total Emerging Markets                                 6,044     5,198        16% 
  
Adjusted operating profit by product (pre-tax, Rm)      2015      2014   % change   
Life & Savings                                         4,279     3,742        14%   
Asset Management                                         699       998      (30%)   
Banking & Lending (1)                                    642       272       136%   
Property & Casualty                                      424       186       128%   
Total Emerging Markets                                 6,044     5,198        16%   

(1) Comprises Faulu in Kenya, Central African Building Society (CABS) in Zimbabwe, Old Mutual Specialised Finance (OMSFIN) and Old Mutual Finance in South Africa

Embedded Value (Rm)                         H1 2015   H1 2014   % change   
PVNBP sales                                  28,785    27,644         4%   
PVNBP Margin (%)                               3.2%      3.0%              
Return on MCEV (RoEV) %                       12.3%     10.2%              
VNB                                             907       818        11%   
MCEV operating earnings (post-tax and MI)     3,455     2,471        40%   

Gross sales and funds under management (Rbn) (1)                                                 
                                                                                               Net flows as   
                                                                      Market and               % of opening   
                              FUM     Gross      Gross                     other         FUM            FUM   
                         1-Jan-15  sales (2)   outflows   Net flows movements (3)  30-Jun-15   (annualised)   
Retail Affluent             123.8      33.2     (29.8)         3.4           9.1       136.3             5%   
Mass Foundation (4)             -       4.7      (2.2)         2.5         (2.5)           -              -   
Corporate                    71.0      25.3     (22.7)         2.6         (2.2)        71.4             7%   
OMIG (4)                    518.6      18.5     (16.5)         2.0          21.2       541.8             1%   
Property & Casualty           2.5         -          -           -         (0.2)         2.3              -   
Total South Africa          715.9      81.7     (71.1)        10.6          25.3       751.8             3%   
Rest of Africa               62.2       7.8      (5.9)         1.9           1.3        65.4             6%   
Asia & Latin America        126.8      16.3     (14.0)         2.3           2.2       131.3             4%   
Total Emerging Markets      904.9     105.7     (90.9)        14.8          28.8       948.5             3%   

                                                                                              Net flows as
                                                                      Market and              % of opening
                             FUM     Gross       Gross                     other          FUM          FUM
                        1-Jan-14  sales (2)   outflows   Net flows movements (3)    30-Jun-14  (annualised)
Retail Affluent             99.8      29.5       (26.5)        3.0          11.4        114.2            6%
Mass Foundation (4)            -       4.2        (1.9)        2.3         (2.3)            -             -
Corporate                   51.9      12.2       (12.9)      (0.7)           7.0         58.2          (3%)
OMIG (4)                   506.9      14.6       (14.4)        0.2           2.4        509.5             -
Property & Casualty          2.9         -          -           -          (0.7)          2.2             -
Total South Africa         661.5      60.5       (55.7)        4.8          17.8        684.1            1%
Rest of Africa              53.9       6.5        (5.6)        0.9           2.8         57.6            3%
Asia & Latin America       125.4      18.7       (15.2)        3.5           5.9        134.8            6%
Total Emerging Markets     840.8      85.8       (76.6)        9.2          26.5        876.5            2%

(1) FUM shown on an end manager basis
(2) Gross sales are cash inflows for the period and thus include prior period recurring premium flows
(3) Includes the foreign exchange impact of translating FUM managed outside of South Africa
(4) Mass Foundation gross sales are recorded by segment but all FUM is managed by OMIG

Covered sales - APE (Rm)
                              Single premium APE           Regular premium APE                  Total APE
By cluster:               H1 2015   H1 2014  % change    H1 2015   H1 2014 % change   H1 2015    H1 2014  % change
Retail Affluent               843       605        39%       869       662     31%      1,712      1,267       35%
Mass Foundation (1)             2         1       100%     1,677     1,363     23%      1,679      1,364       23%
Corporate                     485       539      (10%)       222       487   (54%)        707      1,026     (31%)
Total South Africa          1,330     1,145        16%     2,768     2,512     10%      4,098      3,657       12%
Rest of Africa                 88        62        42%       411       284     45%        499        346       44%
Asia & Latin America (2)      115       194      (41%)       762       347    120%        877        541       62%
Total Emerging Markets      1,533     1,401         9%     3,941     3,143     25%      5,474      4,544       20%

                               Single premium APE                RegulaR premium APE                   Total APE              
By product:              H1 2015     H1 2014   % change   H1 2015      H1 2014   % change   H1 2015     H1 2014   % change   
Savings                    1,418       1,166        22%     2,199        1,626        35%     3,617       2,792        30%   
Retail Affluent              755         521        45%       520          314        66%     1,275         835        53%   
Mass Foundation                2           1       100%       781          666        17%       783         667        17%   
Corporate                    461         393        17%       106          226      (53%)       567         619       (8%)   
Rest of Africa                85          57        49%       247          166        49%       332         223        49%   
Asia and Latin America       115         194      (41%)       545          254       115%       660         448        47%   
Protection                     -           -          -     1,742        1,517        15%     1,742       1,517        15%   
Retail Affluent                -           -          -       349          349          -       349         349          -   
Mass Foundation                -           -          -       897          696        29%       897         696        29%   
Corporate                      -           -          -       115          261      (56%)       115         261      (56%)   
Rest of Africa                 -           -          -       164          118        39%       164         118        39%   
Asia and Latin America         -           -          -       217           93       133%       217          93       133%   
Annuity                      115         235      (51%)         -            -          -       115         235      (51%)   
Retail Affluent               88          84         5%         -            -          -        88          84         5%   
Corporate                     24         147      (84%)         -            -          -        24         147      (84%)   
Rest of Africa                 3           4      (25%)         -            -          -         3           4      (25%)   
Total Emerging Markets     1,533       1,401         9%     3,941        3,143        25%     5,474       4,544        20%   

(1) OMF credit life sales of R137 million are included within Mass Foundation protection sales (R105 million H1 2014)
(2) Asia & Latin America represents Mexico and a proportional share of India and China.

Non-covered sales
                                   Unit trust sales            Other non-covered sales           Total non-covered sales
                              H1 2015   H1 2014   % change    H1 2015   H1 2014  % change      H1 2015   H1 2014 % change
South Africa (1, 2)            21,822    15,737        39%     41,197    22,505       83%       63,019    38,242      65%
Africa (ex. SA)                 3,275     2,732        20%      1,979     1,405       41%        5,254     4,137      27%                       
Asia & Latin America (3, 4)    13,759    15,908      (14%)          -         -         -       13,759    15,908    (14%)
Total Emerging Markets         38,856    34,377        13%     43,176    23,910       81%       82,032    58,287      41%

(1) Within South African Retail Affluent, Old Mutual Investment Services recognises Linked Investment Service Provider (LISP) sales on which it earns fees
    irrespective of where the underlying funds are managed. Where these funds are managed by Old Mutual Unit Trusts (OMUT), OMUT also recognises a
    sale. These intra-segment sales for HY 2015 amount to R11,224 million (HY 2014: R4,571 million)
(2) Old Mutual International life sales amounting to R1,825 million (HY 2014: R2,468 million) are not included in the OMEM non-life sales as these sales are
    reported in Old Mutual Wealth (UK)
(3) AIVA sales amounting to R3,171 million (HY 2014: R1,262 million) are not included in the OMEM non-life sales as these sales are reported in Old
    Mutual Wealth (UK)
(4) Represents Colombia and Mexico

Value of new business    H1 2015   H1 2014   % change   
Retail Affluent              201       163        23%   
Mass Foundation              505       422        20%   
Corporate                     91       161      (43%)   
Total South Africa           797       746         7%   
Africa (ex. SA)              133        86        55%   
Asia & Latin America (1)    (23)      (14)        64%   
Total Emerging Markets       907       818        11%   

(1) VNB is not calculated in respect of Life APE sales in India and China. Latin America is Mexico only

Old Mutual Finance                H1 2015   H1 2014   % change   
Gross loans and advances (1, 4)    10,231     9,928         3%   
Impairment of advances (1, 4)     (2,208)   (1,986)        11%   
Loans and advances (1, 4)           8,023     7,942         1%   
Defaulted advances (1, 4)           2,660     2,266        17%   
Value of loan pay-outs              2,995     3,085       (3%)   
Credit loss ratio (2)               11.3%     14.0%   (270bps)   
AOP after tax (7)                     294       169        73%   
Return on assets (3)                 5.8%      3.9%     190bps   
Loan disbursal rate (average) (5)   30.5%     31.6%   (110bps)   
Return on equity (6)                44.8%     32.2%    1260bps   
Branches                              260       239         9%   
Staff                               2,540     2,206        15%   

(1) The above metrics are calculated using active and default loan balances. This excludes some long outstanding loans, for which the loan value of R3,084
    million (FY2014: R2,521 million) and the related impairment provision of R2,762 million (FY 2014: R2,276 million) are recognised on the balance sheet,
    these loans have a net value of R322 million (FY 2014: R245 million)
(2) The current year benefits from the prior year impact of an impairment methodology change. On a comparable basis HY 2014 would be 12.9%, an
    improvement of 110bps. The calculation of the credit loss ratio reflected in the table above is consistent with those of the direct peer group
(3) Return on assets is stated after capital charges. Calculated as AOP after tax and NCI over average gross loans and advances
(4) Comparative is 31 December 2014
(5) Calculated as a percentage of gross loans and advances
(6) Calculated as AOP profit after tax before capital charges divided by average equity (including preference share capital)
(7) Reflects OMF's share of AOP after tax and preference share distributions

OMF (KPIs prepared on Nedbank basis) (Rm)   H1 2015   H1 2014   % change   
Net interest income (NII)                       910       758        20%   
Non-interest revenue (NIR)                      454       403        13%   
Gross loans and advances (1)                 13,315    12,449         7%   
Impairment of advances (1)                  (4,970)   (4,262)        17%   
Loans and advances (1)                        8,345     8,187         2%   
Defaulted advances (1,)                       5,744     4,787        20%   
Equity (1, 2)                                 1,540     1,516         2%   

(1) Comparative is 31 December 2014
(2) Reflects closing total equity balance, including preference share capital

Part 2& – Detailed Business Review
Property Casualty (R'm)
                                     H1 2015   H1 2014   % change
Gross written premiums                 6,308     6,112         3%
 South Africa                          5,509     5,401         2%
 Rest of Africa (1)                      799       711        12%
Net earned premiums                    5,013     4,781         5%
 South Africa                          4,541     4,351         4%
 Rest of Africa                          472       430        10%
Underwriting result                      175      (47)       472%
 South Africa                            147      (75)       296%
 Rest of Africa                           28        28
Underwriting margin (%)
 South Africa                           3.2%    (1.7%)
 Rest of Africa                         5.9%      6.7%
Claims ratio (%)(2)
 South Africa                          65.8%     72.8%
 Rest of Africa                        69.9%     73.4%
Combined ratio (%)
 South Africa                          96.8%    101.7%
 Rest of Africa                        94.1%     93.3%

(1) Our share of gross written premiums written by associates (UAP) is R162 million, this is not included in the values presented above
(2) Includes claims administration costs transferred from management expenses
 
Nedbank

Highlights (Rm)                                                                               H1 2015   H1 2014   % change   
AOP (pre-tax)                                                                                   7,339     6,438        14%   
Headline earnings                                                                               5,323     4,599        16%   
Net interest income                                                                            11,675    11,263         4%   
Non-interest revenue                                                                           10,450     9,480        10%   
Net interest margin                                                                             3.36%     3.55%              
Credit loss ratio                                                                               0.77%     0.83%              
Efficiency ratio (including share of profits of associate companies and joint arrangements)     55.8%     56.4%              
Return on Equity                                                                                16.0%     15.1%              
Return on Equity (excluding goodwill)                                                           17.3%     16.5%              
Common equity Tier 1 ratio (1)                                                                  11.4%     11.6%              
IFRS profit after tax attributable to equity holders of the parent                              2,906     2,502        16%   

(1) Comparative is as at December 2014

The full text of Nedbank's results for the six months ended 30 June 2015, released on 4 August 2015, can be accessed on our website
http://www.oldmutual.com/media/news/viewNews.jsp?newsId=26919. The following is an edited extract:

Banking and economic environment

Global economic headwinds have increased as the Greek debt crisis intensified and heightened concerns around the sustainability of
growth in China led to weakness in commodity prices and volatility in the Chinese stock market. While advanced economies recorded a
gradual recovery, growth in emerging economies remained below expectations. The International Monetary Fund downgraded its global
gross domestic product (GDP) growth forecast to 3.3% in 2015 from the 3.5% projected earlier this year.

In South Africa, growth in GDP expanded by only 1.3% in the first quarter of 2015, supported by marginally stronger growth in household
consumption expenditure and growth in gross fixed-capital formation.

Underlying credit demand was moderate, with retail credit demand remaining weak as household debt to disposable income increased to
78.4%. In the wholesale sector conditions for production remained challenging. Although export growth was supported by the weaker rand
and lower crude oil price, these have been offset by a combination of power shortages, higher input costs, an uncertain regulatory
environment, lower international commodity prices and weak demand in key export markets, which together have had a negative impact
on business confidence. Growth in the wholesale sector has largely been driven by government infrastructure projects.

Pleasingly, international credit rating agencies Fitch and Standard & Poor's reaffirmed SA's sovereign risk ratings at an investment grade
of BBB with a negative outlook and BBB- with a stable outlook respectively. While electricity constraints remain the greatest threat to
domestic economic prospects, the credit rating agencies acknowledge the progress made in the tightening of fiscal policy and reduction
of the budget deficit, as well as maintaining inflation within the target range of 3% to 6%.

Review of results

Headline earnings for the six months ended 30 June 2015 ('the period') grew 15.7% to R5,323 million (June 2014: R4,599 million),
underpinned by strong non-interest revenue (NIR) growth, disciplined expenses growth, ongoing improvement in impairments and faster
growth from our activities in the rest of Africa, including associate income from our shareholding in Ecobank Transnational Incorporated
(ETI).

Diluted headline earnings per share (HEPS) increased 14.1% to 1,101 cents (June 2014: 965 cents) and headline earnings per share
grew by 13.7% to 1,128 cents (June 2014: 992 cents).

The increases in the return on average ordinary shareholders' equity (ROE), excluding goodwill to 17.3% (June 2014: 16.5%) and of the
ROE to 16.0% (June 2014: 15.1%), were driven by a higher return on assets (ROA) of 1.28% (June 2014: 1.22%). Economic profit (EP)
increased by 59.4% to R1,328 million (June 2014: R833 million) against a cost of equity of 13.0% (June 2014: 13.5%).

Nedbank remained well capitalised with our Basel III common-equity tier 1 (CET1) ratio at 11.4% (December 2014: 11.6%). The liquidity
coverage ratio (LCR) at 76.3% in the second quarter of 2015 (December 2014: 66.4%) is well above the 60% requirement in 2015 and is
reflective of strong funding and liquidity levels. Nedbank's portfolio of high-quality liquid assets and other sources of quick liquidity
amounted to R148.4 billion (December 2014: R126.0 billion).

Cluster financial performance

During the period under review we completed the integration of the support areas in Nedbank Retail and Business Banking (RBB) and
our wholesale clusters, Nedbank Corporate and Nedbank Capital, into Nedbank Corporate and Investment Banking (CIB). In total and
before central profits and losses the business clusters reported headline earnings growth of 19.9% to R5,480 million (June 2014: R4,571
million) and an ROE of 19.7% (June 2014: 18.7%).

Nedbank CIB performed well, with strong growth in our Markets business and Commercial Property Finance, and enhanced efficiencies
as a result of integration synergies. The ROE was lower than in the prior period as a result of higher economic capital allocations. Earnings
growth was supported by CIB's strong franchise, reflected in pre-provisioning operating profit increasing 26.3% to R3,837 million (June
2014: R3,037 million). This was underpinned by strong net interest income (NII) growth, enabled by good advances growth from
commercial property and investment banking, while NIR growth was driven by good performance in trading income and property private-
equity investments.

Nedbank RBB produced strong headline earnings growth and an improved ROE. This reflects a higher earnings contribution from the
Retail business, with its ROE in excess of Nedbank's cost of equity and that of the prior period. Overall, growth in earnings was
underpinned by an increase in NIR despite selected price reductions and interchange headwinds, lower impairment charges and
well-controlled expense growth.

Nedbank Wealth continued to generate good earnings growth at an attractive ROE. These results were attributed to continued growth
momentum in Asset Management and Wealth Management, offset by a marginal decline in Insurance earnings as a result of our selective
origination strategies for personal loans.

The strong growth in earnings in the Rest of Africa Cluster was driven by associate income generated from our approximately 20%
investment in ETI, less funding costs, as well as a sound performance from our subsidiaries in the South African Development Community
(SADC). This was partially offset by ongoing central investment costs.

Financial performance

Net interest income

NII increased 3.7% to R11,675 million (June 2014: R11,263 million) as the 9.6% growth in average interest-earning banking assets was
partially offset by the narrowing of the net interest margin (NIM) to 3.36% (June 2014: 3.55%). In December 2014 NIM was 3.52%.

Margin pressure resulted as the 7 basis points (bps) benefit from endowment income and improved asset pricing was offset by a negative
impact of:

-     11 bps due to changes in the advances mix as lower-margin wholesale advances grew faster than higher-margin retail advances;

-     6 bps from holding higher levels of low-yielding, high-quality liquid assets in line with increasing regulatory requirements; and

-     7 bps related to the cost of funding our investment in ETI.

Impairments charge on loans and advances

Impairments remained flat at R2,307 million (June 2014: R2,333 million), while the credit loss ratio (CLR) improved to 0.77% (June 2014:
0.83%) as a result of a lower specific impairments charge of 0.73% (June 2014: specific: 0.78%) and the decrease in the portfolio
impairments charge to 0.04% (June 2014: portfolio: 0.05%).

The improvement of the CLR was largely attributable to RBB's CLR remaining below target range, demonstrating the outcome of selective
asset origination and strong collections management. Post-write-off recoveries increased to R520 million (June 2014: R422 million), of
which R196 million (June 2014: R153 million) was attributable to personal loans. CIB experienced an increase in its CLR as we exited a
single-client exposure as well as increased portfolio impairments as a result of ratings migration following market conditions worsening
particularly in the resources portfolio.

Total defaulted advances declined to R16,695 million (June 2014: R17,409 million) as the residential-mortgage and personal-loans books
continued to improve.

The coverage ratio for total impairments was maintained at 65.9% (June 2014: 65.9%), declining in specific impairments to 39.6% (June
2014: 42.7%), while portfolio coverage on the performing book was maintained at 0.7% (June 2014: 0.7%).

Non-interest revenue

NIR increased 10.2% to R10,450 million (June 2014: R9,480 million). Growth was primarily driven by:

-     Commission and fee income growth of 7.6% to R7,498 million (June 2014: R6,970 million) led inter alia by net client gains, higher
      transactional volumes and inflation-related annual fee increases in RBB.

-     Insurance income declining 11.0% to R816 million (June 2014: R917 million) owing to lower personal-loan volumes and reduced
      credit life pricing with improved client product benefits.

-     Trading income growth of 30.3% to R1,685 million (June 2013: R1,293 million) following strong performance from our markets
      business on the back of increased client flows.

-     Private-equity income decreasing to R115 million (June 2014: R145 million) as a result of lower valuations while the increase in
      sundry income was mostly comprised of property partner increasing to R125 million (June 2014: R79 million) as a result of realised
      gains on sale of property stock.

Expenses

Expenses grew 7.4% to R12,578 million (June 2014: R11,712 million), reflecting disciplined cost management and traction gained from
our 'optimise and invest' strategy to deliver efficiencies through simplifying processes and rationalising systems.

The main underlying drivers include:

-     Staff-related costs increasing 6.1%, consisting of –

      -   7.1% growth in remuneration and other staff costs;

      -   12.6% increase in short-term incentives; and

      -   33.1% reduction in long-term incentives.

-     Computer processing costs up 10.3% to R1,671 million, including amortisation costs increasing 10.1% to R360 million.

-     Fees and insurance costs 18.7% higher at R1,242 million due to increased volumes of revenue-generating activities such as cash
      handling and card issuing and acquiring.

-     Occupation and accommodation costs growing 11.3% to R1,016 million as we continued to invest in the reformatting of retail
      branches to the 'branch of the future' format.

Overall, growth in gross operating income (excluding impairments and including associate income) of 8.7% exceeded that of expenses,
resulting in a positive jaws of 1.3% (June 2014: negative jaws of 4.4%), while the efficiency ratio improved to 55.8% (June 2014: 56.4%).

Associate income

Associate income increased to R436 million (June 2014: R11 million) and is mainly comprised of the equity accounting of our share of
approximately 20% of ETI's fourth-quarter attributable income, as reported in its 2014 full-year results, and first-quarter attributable income,
as reported in its 2015 first-quarter trading update, in line with our policy of accounting for ETI earnings a quarter in arrears. The related
pre-tax funding costs of R246 million are accounted for in NII.

Statement of financial position

Capital

Nedbank remains well capitalised and operated well within our Basel III capital adequacy targets. The CET1 ratio of 11.4% is lower than
the 11.6% reported at the 2014 year-end due mainly to an increase in risk-weighted assets (RWA) and foreign currency translation reserve
(FCTR) losses relating to our share of ETI's own Other Comprehensive Income (OCI) FCTR losses.

The increase in RWA resulted from a higher credit RWA, partly offset by a modest decrease in equity risk. The higher credit RWA primarily
relates to:

-     an industrywide South African Reserve Bank (SARB) requirement for a credit valuation adjustment (CVA) capital charge for over-
      the-counter ZAR and local derivatives not cleared through a central counterparty; and

-     increased conservatism applied in rating corporate banking and commercial property finance client exposures given the weak macro
      environment.

Our tier 1 and total capital ratios reflect the effects of redeeming R1.8 billion of hybrid debt in January 2015 and the issue of R2.3 billion
of Basel III-compliant tier 2 subordinated debt, in line with Nedbank's capital plan and Basel III transitional requirements.

Funding and liquidity

Nedbank maintained a strong funding profile and liquidity position, underpinned by a significant quantum of long-term funding, a large
surplus liquid-asset buffer, a strong loan-to-deposit ratio that is consistently below 100%, and a low reliance on interbank and foreign-
currency funding.

At June 2015 Nedbank's quarterly average LCR of 76.3% (December 2014: 66.4%) exceeded the minimum regulatory requirement of
60%. Nedbank is well positioned to exceed the minimum requirement throughout the phase-in period as the LCR requirement increases
by 10% per annum to 100% by 1 January 2019.

Liquidity Coverage Ratio          H1 2015   H1 2014   FY 2014   
High quality liquid assets (Rm)   109,060    78,358    91,423   
Net cash outflows (Rm)            143,029   152,255   137,725   
Liquidity Coverage ratio (%)         76.3      51.5      66.4   
Regulatory Minimum (%)               60.0       n/a       n/a   

Nedbank's portfolio of LCR-compliant, high-quality liquid assets increased to R109.1 billion (December 2014: quarterly average R91.4
billion). Together with our portfolio of quick-liquidity sources, the total available quick liquidity amounted to R148.4 billion (December 2014:
R126.0 billion), representing 17.1% of total assets.

We also maintained a strong, well-diversified funding profile. Our three-month average long-term funding ratio of 27.6% for the second
quarter of 2015 (December 2014: quarterly average of 25.4%) represents a slightly more conservative funding profile than the last reported
industry average. The strong funding profile was supported by growth in the Nedbank Retail Savings Bonds of R1.6 billion to R13.4 billion
and Nedbank having successfully issued R10.5 billion in senior unsecured debt in the first half of 2015.

Loans and advances

Loans and advances grew 11.8% (annualised) to R648.8 billion (December 2014: R613.0 billion), with banking and trading assets
increasing 11.4% and 31.0% respectively.

Advances growth in CIB was mostly from higher term loan growth of 18.3% (annualised) and commercial-mortgage growth (annualised)
of 10.8%. Growth in trading advances was comprised mostly of surplus foreign-currency placements and deposits placed under reverse
repurchase agreements.

RBB's annualised advances growth of 4.6% was impacted by the 10.4% decrease in Personal Loans, although offset by growth in new
pay-outs, resulting in growth in Home Loans of 1.2% and Card of 8.6%. MFC's growth slowed to 5.6% due to lower volumes in April and
May 2015 as a result of the system changes relating to the National Credit Amendment Act. The decrease in advances in Business
Banking was mainly due to the migration of Professional Banking's medical book to the Small Business Services Division in Retail.
Excluding this migration, Business Banking's and Retail's advances grew 10.4% and 2.8% respectively.

Deposits

Deposits grew 11.4% (annualised) to R690.5 billion (December 2014: R653.5 billion) resulting in a loan-to-deposit ratio of 94.0%
(December 2014: 93.8%).

Total funding-related liabilities grew 13.6% (annualised) to R735.7 billion (December 2014: R689.1 billion) following R10.5 billion of long-
term capital market funding issued in the first half of 2015.

Nedbank's focus on growing household and commercial liabilities led to the introduction of a number of new, innovative savings and
deposit products during the period such as our tax-free savings offering and 32-day fixed deposit. These initiatives, together with the
increase in demand for longer-term deposit products, supported strong growth of 50.2% in fixed deposits, 8.7% in savings accounts and
7.6% in call and term deposits.

Economic outlook

The local economy is expected to improve slightly in 2015 off the low 2014 base, supported by household spending and a modest
improvement in global demand. Growth in GDP for South Africa is currently forecast at 2.0% for 2015, with risk remaining to the downside,
given ongoing electricity constraints and commodity price weakness.

In view of inflationary factors due to the weaker rand and the anticipated normalisation of US interest rates, we currently expect the
Reserve Bank to increase interest rates by a further 25 bps in September 2015.

Growth in loans to households will remain constrained due to the weak job market and high debt levels, increasing only moderately off
last year's low base. Corporate credit demand will continue to be affected by the soft economic environment and many uncertainties
relating to power supply, labour relations, commodity prices and economic policies, which negatively impact business confidence. Growth
in the corporate sector will largely be driven by downstream government infrastructure projects and global demand.

Our financial guidance for organic growth in diluted HEPS in 2015 to be greater than nominal GDP growth and our medium-to-long-term
targets remain unchanged.

Nedbank data tables (Rand)
                                                      Headline earnings (Rm)               RoE (%)
Cluster performance
                                                    H1 2015   H1 2014    % change       H1 2015     H1 2014

Nedbank Corporate & Investment Banking                2,485     2,212         12%         22.9%       26.3%
    Nedbank Capital                                   1,242     1,053         18%         32.3%       31.6%
    Nedbank Corporate                                 1,243     1,159          7%         17.8%       22.8%
 

Nedbank Retail & Business Banking                     2,132     1,831         16%         15.9%       13.9%
    Nedbank Business Banking                            539       512          5%         19.9%       19.5%
    Nedbank Retail                                    1,593     1,319         21%         14.9%       12.5%
Nedbank Wealth                                          519       464         12%         38.9%       33.9%
Rest of Africa                                          344        64        438%         15.3%        4.4%
Business clusters                                     5,480     4,571         20%         19.7%       18.7%
Centre                                                 (157)       28      (661%)

Total                                                 5,323     4,599         16%         16.0%       15.1%

                                         Average Allocated Capital          Economic Profit (Rm)
Cluster performance
                                         H1 2015    H1 2014  % change     H1 2015       H1 2014    % change

Nedbank Corporate & Investment Banking    21,848     16,984       28%       1,076         1,074           -
    Nedbank Capital                        7,744      6,717       15%         743           603         23%
    Nedbank Corporate                     14,104     10,267       37%         333           471       (29%)


Nedbank Retail & Business Banking         27,043     26,659        1%         389            47        728%
    Nedbank Business Banking               5,450      5,285        3%         188           158         19%
    Nedbank Retail                        21,593     21,374        1%         201         (111)      (281%)
Nedbank Wealth                             2,691      2,763      (3%)         346           279         24%
Rest of Africa                             4,528      2,899       56%          52         (131)      (140%)
Business clusters                         56,110     49,305       14%       1,863         1,269         47%
Centre                                    11,011     12,561     (12%)       (535)         (436)         23%

Total                                     67,121     61,866        8%       1,328           833         59%

Cost of equity                                                              13.0%         13.5%

Credit loss ratio by cluster (%)                  % banking                              Through-the-cycle
                                                   advances      H1 2015       H1 2014       target ranges
Nedbank Corporate & Investment Banking                47.2%        0.38%         0.15%
   Nedbank Capital                                    13.7%        0.41%       (0.04%)       0.10% - 0.55%
   Nedbank Corporate                                  33.5%        0.36%         0.22%       0.20% - 0.35%
Nedbank Retail & Business Banking                     46.2%        1.22%         1.55%
   Nedbank Business Banking                           11.0%        0.49%         0.44%       0.55% - 0.75%
   Nedbank Retail                                     35.2%        1.44%         1.90%       1.90% - 2.60%
Nedbank Wealth                                         4.2%        0.18%         0.21%       0.20% - 0.40%
Rest of Africa                                         2.4%        0.86%         0.42%

Total credit loss ratio                                            0.77%         0.83%       0.80% - 1.20%

Loans and advances by cluster (Rm)                             % change
                                         H1 2015   FY 2014 (annualised)
Nedbank Corporate & Investment Banking   331,069   305,158          17%
   Nedbank Capital                       120,646   105,601          29%
         Banking activity                 82,034    78,596           9%
         Trading activity                 38,612    27,005          87%
   Nedbank Corporate                     210,423   199,557          11%
Nedbank Retail & Business Banking        275,079   268,882           5%
   Nedbank Business Banking               64,297    65,819         (5%)
   Nedbank Retail                        210,782   203,063           8%
Nedbank Wealth                            26,652    24,819          15%
Rest of Africa                            15,849    14,073          25%
Centre                                       195        89         240%

Total                                    648,844   613,021          12%

Credit loss ratio analysis (%)
                                 H1 2015   H1 2014
Specific impairments               0.73%     0.78%
Portfolio impairments              0.04%     0.05%
Total credit loss ratio            0.77%     0.83%

Capital (Basel III)                                                                Regulatory minimum
                                                                                                   (1)
                            H1 2015   H1 2014   FY 2014   Internal target range
Common equity Tier 1 ratio    11.4%     12.1%     11.6%           10.5% - 12.5%                   6.5%
Tier 1 ratio                  12.1%     13.1%     12.5%           11.5% - 13.0%                   8.0%

Total capital ratio           14.5%     15.0%     14.6%           14.0% - 15.0%                  10.0%

(Ratios calculated include unappropriated profits)

(1) The Basel III regulatory requirements are being phased in between 2013 and 2019 and exclude the Pillar 2b add-on.

Medium-to-long-term-targets

                    Metric                H1 2015 performance         Medium-to-long-term targets           2015 full-year outlook
                                                                  5% above cost of ordinary shareholders'
RoE (excluding goodwill)                          17.3%                           equity                          Below target
                                                                                  
Growth in diluted headline earnings per                           >- consumer price index + GDP growth +    > consumer price index +                                                  
share                                             14.1%                               5%                           GDP growth
                                                                    Between 0.8% and 1.2% of average        At lower end of target
Credit loss ratio                                 0.77%                      banking advances                        range
                                                                           
NIR-to-expense ratio                              83.1%                           > 85%                          Below target

Efficiency ratio (including associate
income) (1)                                       55.8%                      50.0% to 53.0% (2)                  Above target

Common equity tier 1 capital adequacy             11.4%                       10.5% to 12.5%                  Within target range
                                                  
ratio (Basel III)
Economic capital                            Internal Capital Adequacy Assessment Process (ICAAP): A debt rating (including 10% capital
                                                                                   buffer)
                                                                                  
Dividend cover                                  2.10 times                   1.75 to 2.25 times               1.75 to 2.25 times

Shareholders are advised that these forecasts are based on organic earnings and our latest macro-economic outlook and have not been
reviewed or reported on by Nedbank's independent auditors.

Old Mutual Wealth

Highlights
                                                                                  H1 2015   H1 2014  % change
AOP (pre-tax, GBPm)                                                                   151       120       26%
Gross sales (GBPm)                                                                  9,755     7,729       26%
NCCF (GBPbn)                                                                          2.3       1.2       92%
FUM (GBPbn) (1)                                                                     101.0      82.5       22%                           
Pre-tax operating margin (2)                                                          42%       40%    200bps
IFRS profit/(loss) after tax attributable to equity holders of the parent (GBPm)     (42)      (81)       48%

Excluding divested business and Quilter Cheviot
                                                                                  H1 2015   H1 2014  % change

AOP (pre-tax, GBPm)                                                                   134       101       33%
NCCF (GBPbn)                                                                          1.9       1.1       73%
FUM (GBPbn) (1)                                                                      83.6      80.6        4%

(1) Comparative as at 31 December 2014
(2) Pre-tax revenue operating margin is calculated as pre-tax AOP divided by net revenue

Operating environment

Investment markets in the UK and Europe have been volatile over the first half of 2015 with investors uncertain on the future of the
Eurozone. Risk-adjusted absolute return asset classes continue to prove popular as investors look for alternative investment options to
attain positive returns. Equity asset classes remain more attractive than bond markets in an ongoing low interest rate environment. Within
the equity asset classes, we have experienced strong flows as well as strong returns.

Our business model is well placed to react to changes in the regulatory environment. We are continuing to develop our proposition to
ensure we remain competitive and can capitalise on the new pension freedoms that were enacted on 6th April 2015. The increased
flexibility and changes in UK pension legislation has resulted in higher levels of inflows and outflows for both the industry and our own UK
Platform business.

Sterling has strengthened against the Euro since the start of the year reducing fund values and revenues in Sterling terms for funds
denominated in Euros. This was most relevant for our International offshore business and Italian operations in the first half of 2015. The
exchange rate for the US Dollar is close to that at the end of 2014 although the average rate for H1 2015 is markedly lower against
Sterling.

Business developments

Old Mutual Wealth performance in the first half of 2015 has been strong. Our vertical integration strategy is performing well, with improved
operating margins and increased operating profit across all of our key strategic businesses. The integration of our recently acquired
businesses, Quilter Cheviot and Intrinsic, has been the major management focus in the period.

Following the introduction of new pension reforms in April 2015, the launch of our marketing campaign to support advisors and customers,
a new flexi-access drawdown facility, and restructured Platform pricing, has driven a 43% increase in our pension sales compared to H1
2014. To complement our in-retirement proposition, we are developing our Generation funds to become more accessible and
understandable for our customers.

In May we agreed the sale of our business in Switzerland to Life Invest Holding, a company owned by the Mutschler Group and Hannover
Re. The transaction is subject to regulatory approval and is expected to complete in H2 2015. The sale of our businesses in France and
Luxembourg to APICIL completed on 2nd February 2015 and the acquisition of Quilter Cheviot completed on 25th February 2015.

Across the business, we have been recognised through multiple awards including being awarded SimplyBiz 'Investment Provider of the
Year', Intrinsic attaining 'Best Large Network' at the Mortgage Strategy Awards and OMGI being recognised across a variety of industry
events in the UK and globally. In particular, the Global Equities team have been recognised eight times and Richard Watts, who manages
the OMGI UK Mid Cap fund, has been named Fund Manager of the Year at the What Investment 2015 Unit Trust Awards. Our UK
Platform has also been commended for its high quality customer service, achieving a Defaqto Gold pension service rating and a five-star
service award from FTAdviser.com, the latter of which Quilter Cheviot was also awarded.

Our protection offering has made good progress in sales, demonstrating that our proposition is gaining traction in the market. To enhance
our offering, we have launched a customer support service facilitated by RedArc, which will provide emotional support, practical advice
and information to support customers' wellbeing throughout the claims process.

In April, Intrinsic agreed with Sesame Bankhall Group to become their preferred adviser network partner. This is expected to increase
restricted financial planners by around 220 by the end of the year, with the first restricted advisers joining the Intrinsic network during Q3
2015. Together with our ongoing Practice Buy-Out initiative, this is a significant opportunity to recruit high quality financial planners into
our business and drive growth across the business.

During Q2 2015, Quilter Cheviot added a limited selection of high-performing OMGI funds to its buy-list which will support our vertical
integration strategy. Quilter Cheviot will continue to review funds on its buy-list periodically to ensure only the highest quality propositions
from across the market are included. Quilter Cheviot has also been added to Intrinsic's discretionary fund manager panel.

Prompted by client demand, the Asian Equities fund has been transformed to add an emphasis on income investing and has been renamed
the Old Mutual Asian Equity Income fund. This will meet the demands of investors looking to receive an inflation-proofed income stream,
without sacrificing capital growth. The on-boarding of our Rates and Liability Driven Investment team is progressing well and the launch
of the first fund, Fixed Income Absolute Return fund will be in Q4 2015.

Cirilium is now fully embedded in OMGI and is continuing to see strong net inflows, with GBP0.4 billion over the first half of 2015 taking
funds under management above GBP2.5 billion.

WealthSelect has attracted more than GBP1.2 billion worth of net new investments since its launch in February 2014, with GBP0.5 billion
in the first half of 2015. We continue to review the funds available to enhance the proposition and offer financial advisers and customers
access to the very best fund managers at a highly competitive price.

Our new International licence in Miami is supporting the increase in sales into Latin America and our Wealth Management Plan, launched
in March, is selling well in Hong Kong.

In the UK the project to build a best-in-class platform and outsource various administration functions to International Financial Data
Systems (IFDS) is well underway. We are half way through building the requisite coding, with detailed testing and roll-out to follow. We
have completed the detailed implementation planning and expect the cost of the project will be some GBP50 million more than the GBP160
million we had originally anticipated due to additional costs in relation to pension liberalisation, corporate activity, regulatory changes and
the deferral of completion dates. .

In addition, we have identified opportunities to build a new customer interface and enhance our service and product offering as part of this
project, and have extended the project scope to deliver this. These improvements will ensure even better digital functionality and flexibility
and their development will cost a further GBP40 million. We now expect the system to go live at the start of 2017, with the timing dependent
on minimising customer disruption and the outcome of detailed testing. The delivery of the new best-in-class platform remains a critical
part of the strategy to build an integrated wealth management business, to deliver what our customers need as well as improving efficiency.

In total we have incurred GBP40 million of costs in the first half of the year with regard to this project and expect these costs to be
approximately GBP90 million for the full year.

AOP results

Old Mutual Wealth profit of GBP151 million for the first half of 2015 was 26% higher than prior year (H1 2014: GBP120 million). Excluding
Quilter Cheviot and the divested European businesses profit was GBP134 million (H1 2014: GBP101 million) reflecting year on year
growth of 33%. We continue to be confident that we will achieve our GBP270 million profit target for this year, excluding Quilter Cheviot,
subject to stable markets.

Profit growth has been predominantly driven by revenue growth in our fast growing core businesses, with Old Mutual Global Investors
profit almost doubling (from GBP16 million at H1 2014 to GBP30 million at H1 2015). Our Platform and UK Other, which includes profit
from our protection business, also showed good growth. Intrinsic continues to deliver strong flows into OMGI's Cirilium range and onto
the Platform and is a key contributor to the growth in revenue in these businesses.

Our International business and Italy have seen more moderate growth, in Sterling terms, due to weakening in the Euro exchange rate.
The local currency results in Italy shows stronger profit growth and underlying business performance is strong.

Our UK Heritage business also showed robust operating profit growth driven by cost reduction and improved revenues. Profits from our
European Heritage businesses reduced from prior year due to the sale of Austria, Germany and Liechtenstein in the fourth quarter of
2014.

Net client cash flow (NCCF)

NCCF of GBP2.3 billion was 92% higher than prior period (H1 2014: GBP1.2 billion) with strong net flows into the UK Platform and our
International businesses. Excluding Quilter Cheviot and the divested European businesses NCCF was GBP1.9 billion, 73% higher than
prior year (H1 2014: GBP1.1 billion).

OMGI NCCF of GBP1.0 billion continued at a similar level to prior year (H1 2014: GBP1.1 billion) despite the uncertainty in the market for
much of H1. The Global Equity Absolute Return fund continues to attract strong net flows with year to date NCCF of GBP0.8 billion,
compared with GBP0.5 billion in prior year. The Cirilium fund range is performing well, delivering GBP0.4 billion NCCF this year. The
North American Equity and UK Alpha funds are also attracting good net inflows. There has been a strategic restructuring in our fixed-
income team, following the retirement of a long-standing fund manager, as a result Christine Johnson and John Peta will now jointly
manage the Global Strategic Bond fund. Initially we saw outflows from the fund, which have now stabilised but we expect some further
outflows over the rest of 2015. Through July we have seen momentum build through the UK wholesale channel as investor appetite for
UK equities improves and we are well positioned to serve increased demand for investment solutions in this area.

UK Platform delivered NCCF of GBP1.2 billion, 33% higher than prior year (H1 2014: GBP0.9 billion). Gross sales exceeded GBP3.0
billion, 19% up on prior year (H1 2014: GBP2.5 billion). Pension activity is significantly increased in the light of pensions freedom
legislation. Our pension offering is well placed in the market to take advantage of the changes to the pension legislation already having
a flexible drawdown facility which enables customers to meet their need for a cash lump sum whilst retaining the bulk of their assets within
the pension wrapper. As a result we have seen a marked increase in sales of our Platform pension offering. In H1 2015 we have seen
customers using this flexible drawdown facility to a much greater extent resulting in a notable temporary increase with the amounts paid.
In comparison customers making full cash drawdowns has not been a material impact so far. Overall there has been an increase in net
flows into our pension offering (over 30% year on year). We expect continued growth in the net flows as the pension withdrawals return
to a normalised level.

Sales of our Platform products through the Intrinsic restricted advice panel have seen consistent growth and account for 24% of all Platform
NCCF over the first half of 2015. Total Platform net flows into OMGI were GBP0.5 billion, up from GBP0.4 billion at H1 2014. Net inflows
into our Cirilium fund range via the UK Platform were around GBP230 million, representing 56% of total Cirilium NCCF, a further GBP180
million of flows came through third party platforms.

Quilter Cheviot has contributed NCCF of GBP0.3 billion since acquisition in February. Its NCCF for the six months to 30 June 2015 was
GBP0.4 billion (H1 2014 GBP0.5 billion). The integration is progressing well and performance is in line with expectations.

International NCCF of GBP0.3 billion was significantly higher than prior year (H1 2014: GBP0.1 billion). The new licence in Miami increased
sales into Latin America and the Wealth Management Plan is beginning to gain traction in Hong Kong. Our European region benefited
from a single case worth GBP54 million.

The benefit of the expansion of our distribution agreement with one of our core distributors is reflected in the boost in NCCF to GBP0.4
billion in Italy (H1 2014: GBP0.1 billion).

Across our Heritage business, net outflows of GBP0.6 billion are largely in line with prior year (H1 2014: GBP0.6 billion) reflecting the
ongoing success of our retention strategy.

Funds under management (FUM)

Funds under management are GBP101.0 billion, up 22% from the end of 2014 with the acquisition of Quilter Cheviot adding GBP17.5
billion and the divestment of our France and Luxembourg businesses reducing FUM by GBP1.9 billion. Excluding this corporate activity,
growth was 4%, largely due to the positive NCCF in the period.

UK Platform assets are GBP32.9 billion, up 7% since the start of the year (December 2014: GBP30.8 billion). OMGI FUM was GBP22.4
billion, up 7% on the start of the year (December 2014: GBP21.0 billion), and now represents more than 22% of the total Old Mutual
Wealth FUM. OMGI now manages 13% of Platform assets, increasing from 9% at H1 2014. Investment performance remains good, with
50% of OMGI core funds in the first quartile over a three-year period and a total of 81% of funds above the median (by weight of assets).

Outlook

Following the significant transformation of our business in 2014, we have progressed well in the first half of 2015 towards becoming a fully
vertically-integrated wealth and asset management business. Global stock market instability presents a risk to the achievement of our
2015 pre-tax AOP target of GBP270 million before earnings from Quilter Cheviot. Recent investor fears of Greece exiting the Eurozone
sparked widespread market falls which have since been partially recovered. Similar events over the remainder of 2015 could result in
reductions to our fund-based revenue and profits. Nevertheless, we maintain our target of GBP270 million.

We anticipate that we will continue to see growth in the sales of Platform products from Intrinsic over H2 2015. The Intrinsic restricted
protection panel has been refreshed in June to maintain the best products for our customers, which we expect will increase production
and also grow traction of our own protection offering.

In OMGI we continue to appraise opportunities for further development of our asset management capabilities through team builds. We
expect to launch our Fixed Income Absolute Return fund during Q4 2015 and launched a Global Equity Income fund at the end of July.
We will continue to focus on expanding our offshore distribution strategy and building on the presence of our Asian equity team to gain
traction over the remainder of 2015.

We anticipate that WealthSelect will continue to build on its popularity to date and grow further in 2015 as financial advisers continue to
turn to outsourced investment solutions for their clients. We expect continued growth from our Cirilium fund range as the number of
Intrinsic restricted advisers grow.

Our focus in Quilter Cheviot is to enhance our range of tailored investment services for the growing high net worth customer segment and
seek to offer further opportunities for our existing customer base.

Our earnings profile continues to shift towards new and modern sources of profit and away from our heritage businesses. We believe we
have the right business model to drive substantial growth in earnings and value through our vertically-integrated model.

Old Mutual Wealth data tables

Adjusted operating profit pre-tax (GBPm)   H1 2015   H1 2014   % change   
Invest & Grow markets                                                     
UK Platform                                     13        10        30%   
UK Other (1)                                    15         4       275%   
International                                   26        23        13%   
Old Mutual Global Investors                     30        16        88%   
Quilter Cheviot                                 17         -          -   
Total Invest & Grow                            101        53        91%   
Manage for Value markets                                                  
Europe – open book (2)                          11        14      (21%)   
Heritage business (3)                           39        53      (26%)   
Total Manage for Value                          50        67      (25%)   
Total Old Mutual Wealth                        151       120        26%   

(1) Includes Protection, Series 6 pensions, UK Institutional business and Intrinsic results
(2) Includes business written in Italy and divested businesses in France and Luxembourg (sold in February 2015) and Poland (sold in May 2014)
(3) Includes UK Heritage, Switzerland (sale announced 29 May 2015) and divested businesses in Germany, Austria and Liechtenstein (sold in Q4 2014)

Adjusted operating profit by line of business (pre-tax, GBPm)   H1 2015   H1 2014   % change
Life and savings                                                    104       104          -
Asset and Investment Management                                      47        16       194%

Gross sales and funds under management (GBPbn)                                                  
                                                                                                            Net flows as
                                                                                    Market and              % of opening
                                            FUM     Gross      Gross                     other         FUM          FUM
                                        1-Jan-15    sales    outflows   Net flows   movements     30-Jun-15 (annualised)
Invest & Grow markets
UK Platform (1)                            30.8      3.0        (1.8)        1.2          0.9         32.9           8%
UK Other (2)                                6.0      0.4        (0.5)      (0.1)          0.1          6.0         (3%)
International                              15.6      1.1        (0.8)        0.3            -         15.9           4%
Old Mutual Global Investors (3)            21.0      5.1        (4.1)        1.0          0.4         22.4          10%
Quilter Cheviot (4)                           -      0.8        (0.5)        0.3         17.0         17.3            -
Total Invest & Grow                        73.4     10.4        (7.7)        2.7         18.4         94.5           7%
Manage for Value markets
Europe - open book (5)                      6.7      0.7        (0.3)        0.4        (2.2)          4.9          12%                    
Heritage business (6)                      10.4      0.2        (0.8)      (0.6)          0.1          9.9        (12%)
Total Manage for Value                     17.1      0.9        (1.1)      (0.2)        (2.1)         14.8         (2%)
Elimination of intra-Group assets (7)     (8.0)    (1.5)          1.3      (0.2)        (0.1)        (8.3)           5%
Total Old Mutual Wealth                    82.5      9.8        (7.5)        2.3         16.2        101.0           6%

                                                                                                            Net flows as
                                                                                    Market and              % of opening
                                            FUM    Gross        Gross                    other         FUM           FUM
                                       1-Jan-14    sales     outflows  Net flows     movements   30-Jun-14  (annualised)
Invest & Grow markets
UK Platform (1)                            27.3      2.5        (1.6)        0.9           0.6        28.8            7%
UK Other (2)                                5.6      0.3        (0.3)          -             -         5.6             -
International                              15.0      0.9        (0.8)        0.1             -        15.1            1%
Old Mutual Global Investors (3)            16.0      4.5        (3.4)        1.1         (0.1)        17.0           14%
Total Invest & Grow                        63.9      8.2        (6.1)        2.1           0.5        66.5            7%
Manage for Value markets 
Europe - open book (5)                      6.6      0.7        (0.5)        0.2         (0.4)         6.4            6%
Heritage business (6)                      15.4      0.4        (1.0)      (0.6)           0.4        15.2          (8%)
Total Manage for Value                     22.0      1.1        (1.5)      (0.4)             -        21.6          (4%)
Elimination of intra-Group assets (7)     (7.4)    (1.6)          1.1      (0.5)           0.1       (7.8)           14%
Total Old Mutual Wealth                    78.5      7.7        (6.5)        1.2           0.6        80.3            3%

(1) UK Platform FUM excludes intra-Group assets from our International business of GBP1.3 billion at 30 June 2015 (30 June 2014: GBP1.5 billion)
(2) Includes Protection, Series 6 pensions and UK Institutional business
(3) OMGI FUM includes GBP0.2 billion of shareholder assets at 30 June 2015 (30 June 2014: GBP0.1 billion)
(4) The acquisition of Quilter Cheviot completed on 25 February 2015, market and other movements include GBP17.5 billion of acquired FUM
(5) Includes business written in Italy and divested businesses in France and Luxembourg (sold in February 2015) and Poland (sold in May 2014)
(6) Includes UK Heritage, Switzerland (sale announced 29 May 2015) and divested businesses in Germany, Austria and Liechtenstein (sold in Q4 2014)
(7) The elimination represents the removal of double-counting of assets and flows managed by OMGI on behalf of other Old Mutual Wealth businesses. In
    H1 2014, there was GBP0.3 billion seeding of the Foundation fund range

Asset Management Revenue FUM Margin (bps)   H1 2015   H1 2014
Old Mutual Global Investors (1)                  65        60
Quilter Cheviot                                  86       n/a

(1) Excludes non-asset based revenues. Including total revenues OMGI margin was 75bps (FY 2014: 74bps; H1 2014: 69bps)

Institutional Asset Management

Institutional Asset Management consists of OM Asset Management plc (OMAM), listed on the New York Stock Exchange (market
capitalisation of $2.14 billion as at 30 June 2015), and a Non-US affiliate. Further information is included in the Financial
Disclosure Supplement and at OMAM's corporate website -http://ir.omam.com/investor-relations/news/

Highlights: Old Mutual Asset Management
                                                                              H1 2015  H1 2014   % change
AOP (pre-tax, $m)                                                                128        93        38%
Operating margin, before affiliate key employee distributions                    39%       38%
Operating margin, after affiliate key employee distributions                     34%       32%
Net client cash flows ($bn)                                                      0.6       2.6      (77%)
Funds under management ($bn)(1)                                                226.6     220.8         3%
IFRS profit after tax attributable to equity holders of the parent ($m)(2)        73        58        26%

(1) Comparative information for FUM is presented as at 31 December 2014
(2) Institutional Asset Management, including the non-US affiliate

Overview

OMAM generated strong organic growth during the period, with substantial increases in revenue from net client cash flows. In addition,
investment performance continued to strengthen across Affiliates.

IFRS AOP of $128 million was up 38% on H1 2014, while FUM grew 3% from 31 December 2014.

The full text of OMAM's 2015 Financial and Operating Results for the Second Quarter Ended 30 June 2015 announcement, released at
8.00 EDT on 6 August 2015, can be accessed via the OMAM corporate website – http://ir.omam.com/investor-relations/news/

Business developments

On 16 June 2015, the Group announced the pricing of its secondary public offering of 13,300,000 ordinary shares of OM Asset
Management plc (OMAM) at $17.50 per share. An additional 1,995,000 ordinary shares were sold under the underwriters' greenshoe
option. The offering which closed on 22 June 2015 augmented the liquidity of the stock and expanded the public shareholder base. As
a result, the Group continues to own approximately 65.8% of OMAM.

OMAM paid a quarterly interim dividend of $0.08 per share on June 30, 2015.

IFRS AOP results and operating margin

IFRS AOP of $128 million was up 38% on H1 2014. Excluding the pre-tax AOP impact of exceptional performance fees earned in an
alternative strategy of $19 million, IFRS AOP of $109 million increased by 17% (H1 2014: $93 million) primarily due to increases in
revenues from global/non-U.S. and alternative products.

Revenues of $379 million for the period were 30% higher than H1 2014 ($292 million), resulting primarily from growth in average FUM
and higher performance fees than the comparative period. Performance fees in the period of $52 million (H1 2014: $2 million) include
those attributable to the exceptional performance fee earned in an alternative strategy.

AOP margin before affiliate key employee distributions remained relatively consistent with the comparative period at 39%, as higher
revenues were partially offset by $4.7 million of additional expenses related to being a public company (excluding interest expense related
to the $145 million of outstanding debt on the revolving credit facility). On a post affiliate key employee distributions basis, reported
operating margin increased 2% to 34%.

Investment performance

OMAM's aggregate investment performance is reported as weighted by the revenue generated by its products. As of 30 June 2015,
assets representing 70%, 74%, and 89% of revenue outperformed benchmarks over the one-, three- and five-year periods (30 June 2014:
70%, 73%, and 75%, 31 March 2015: 55%, 70%, and 77%). On an asset-weighted basis, over the one-, three- and five-year periods
ended 30 June 2015, 61%, 61% and 80% of assets outperformed benchmarks, compared to 57%, 62% and 61% at 30 June 2014 and
43%, 58%, and 64% at 31 March 2015.

Investment performance improved from 31 March 2015, with a number of large cap value and global value equity strategies outperforming
their respective benchmarks.

Funds under management and net client cash flows

Funds under management and net client cash flows ($bn)
                                                        H1 2015    H1 2014
Opening FUM                                               220.8      198.8
Gross inflows                                              14.5       13.9
Gross outflows                                           (13.4)     (10.4)
Total client driven net flows                               1.1        3.5
Hard asset disposals                                      (0.5)      (0.9)
Net client cash flows                                       0.6        2.6
Disposals/Transfers                                         0.7      (0.4)
Market and other                                            4.5       13.9
Closing FUM                                               226.6      214.9
Annualised revenue impact of net flows ($m)(1)             24.8       15.4
Derived average weighted net client cash flows(2)           7.2        4.6

(1) Annualised revenue impact of net flows represents the difference between annualized management fees expected to be earned on new accounts and net
    assets contributed to existing accounts, less the annualized management fees lost on terminated accounts or net assets withdrawn from existing accounts,
    including equity-accounted Affiliates. Annualized revenue is calculated by multiplying the annual gross fee rate for the relevant account by the net assets
    gained in the account in the event of a positive flow or the net assets lost in the account in the event of an outflow.
(2) Derived average weighted net client cash flows ("NCCF") reflects the implied NCCF if annualised revenue represents asset flows at the weighted fee rate
    for OMAM overall (i.e. 34 bps in H1 2015).

Fund Mix ($bn)
                                    H1 2015   H1 2014
U.S. Equity                            85.4      86.0
Global/non-U.S. Equity                 90.7      82.7
U.S. Fixed income                      14.8      14.5
Alternative, real estate & timber      35.7      31.7
Total OM Asset Management FUM         226.6     214.9

OMAM's FUM grew 3% to $226.6 billion (31 December 2014: $220.8 billion) primarily due to $4.5 billion of market appreciation
(contributing 2% growth) and $0.6 billion of positive net client cash flows (contributing 0.3% growth). Transfers during Q2 2015 increased
FUM by $0.7 billion, relating largely to an Affiliate's purchase of additional ownership interests in a joint venture during the period. Net
client cash flows during the period are expected to result in a $24.8 million positive impact to annualised revenue, representing 3.4% of
beginning of period run rate management fee revenue with inflows in higher fee non-U.S., emerging markets, and alternative products.

Gross inflows totalled $14.5 billion (H1 2014: $13.9 billion), with sales in international equities, emerging markets equities, and real estate
assets. Gross inflows of $5.9 billion were from new client accounts during the period.

Gross outflows totalled $13.9 billion (H1 2014: $11.3 billion) constituted mainly of U.S. value equity and some global equity products.
Gross outflows of $0.5 billion relate to investment-driven hard asset disposals by Heitman, OMAM's real estate manager.

The OMAM Global Distribution team continues to work with our Affiliates to expand their non-U.S. client base in key markets and
jurisdictions around the world. Assets raised by the OMAM Global Distribution initiative were approximately $1 billion in the first six months
of 2015. Non-U.S. clients currently account for approximately 21% of FUM (31 December 2014: 20%).

Outlook

OMAM is pursuing organic growth initiatives, including developing capabilities in multi-asset class, LDI and global/non-U.S. equities and
further penetration of specialized and non-U.S. markets through its Global Distribution initiative. In addition, the Company continues to
develop relationships with at-scale asset management boutiques with strong investment and executive talent and a vision to enhance and
expand their business by partnering with OMAM.

Non-U.S. affiliate

Rogge had net outflows of GBP2.8 billion in the half, with FUM at GBP28.0 billion down from GBP32.3 billion at the beginning of the year.
Despite the continued improvement in investment performance, we expect heightened net outflows for the remainder of 2015.

NON-CORE BUSINESS – BERMUDA
Business development

OM Bermuda has continued its focus on reducing risk and managing capital efficiently. The existing dynamic tail hedging strategy and
structured look back options continue to effectively manage the potential downside associated with the 120% Capital Return Guarantee
and the Highest Anniversary Value features for those policies that contain Guarantee Minimum Accumulation Benefits (GMAB's). As
with the approach leading up to the 5 year anniversaries, we expect that as the 10 year anniversaries of these policies approach the
business will adapt the hedging strategy so that it efficiently manages market exposure from guarantee top-up payments in 2017 and
2018. In addition, the business has been restructured in order to more efficiently manage capital leading up to the 10-year anniversaries
and provide flexibility for further strategic initiatives.

Business performance

IFRS results of Old Mutual Bermuda

Old Mutual Bermuda was closed to new business in March 2009 and has subsequently been reported as a non-core business.
Consequently, its results are excluded from the Group's IFRS AOP. IFRS post-tax profit for the period was $6 million (H1 2014: $23
million profit). The higher profit for 2014 was primarily due to more favourable guarantee performance net of hedging.

Policyholder surrender experience

Policy surrenders for H1 2015 were $147 million, taking the reduced policy base into account this rate is consistent with H1 2014 ($181
million). The hedging strategy of the business primarily focusses on risks associated with Universal Guarantee Options (UGOs)
provided on certain policies with GMABs. The analysis below illustrates the decline in UGO policy surrender experience outside the
fifth anniversary period when the size of the UGO book and related risk exposure significantly reduced: 

OM Bermuda policy count        H1 2015     2014     2013     2012
Policies with UGO                8,107    8,668    9,940   17,207
Other policies                   1,734    2,024    2,895    4,768

Total                            9,841   10,692   12,835   21,975

Decrease (versus prior year)      (8%)    (17%)    (42%)    (37%)

The proportion of UGOs that have the tenth year anniversary feature has gradually increased as a percentage of total policies (82%
as at 30 June 2015).

Bermuda Guarantees and hedging

All policies with the GMAB UGO provide policyholders with a Capital Return Guarantee of 120% of their original investment value at
the 10 year anniversary date. In addition, there is a Highest Anniversary Value (HAV) feature whereby, if elected, certain policyholders
are guaranteed the highest policy value at any preceding anniversary date. The UGO features, including the HAV features, mature on
the 10 year anniversaries of these policies in 2017 and 2018. Other policies under administration, including policies that have the
Capital Guarantee Option (CGO) GMAB, a product predecessor to the UGO, have less onerous guarantees which do not give rise to
significant risk.

120% Capital Return Guarantee

On an account value basis, at 30 June 2015, 72% of the policies with UGOs had a value below the 120% Capital Return Guarantee
(31 December 2014: 78%). The dynamic tail hedging strategy in respect of the GMAB remains in place to offer protection from
significant market losses by hedging the risk of equity and foreign exchange exposures. Hedge coverage is systematically adjusted in
response to market movements by progressively increasing (or decreasing) hedge coverage as markets fall (or rise). Dynamic tail
hedging coverage was 14% of exposures as at 30 June 2015 (31 December 2014: 16%), at which time the median account value
exceeded invested premiums by circa 10%, compared to 6% as at 31 December 2014. The tail hedging approach increases coverage
toward 100% if policy values fall below 72% of invested premiums. 

Highest Anniversary Value feature

On an account value basis, as at 30 June 2014, 86% of UGO policies have the HAV feature (31 December 2014: 85%). In order to
hedge the equity and currency risks associated with the UGO GMAB policies with the HAV feature, structured "look-back" options (HAV
Options) were acquired in 2013 for the 10-year risk associated with the HAV feature of the Hong Kong policies only. The HAV Options
provide protection against markets rising above the 120% guarantee and subsequently falling. The non-Hong Kong UGO GMAB HAV
exposure is not hedged as this exposure is less significant. The HAV Options are performing as intended with a HAV coverage ratio of
95% as at 30 June 2015 (31 December 2014: 102%).

Forward Start Options (FSO)

As the GMAB guarantees approach maturity, the dynamic hedging strategy will be adapted to manage market risks associated with the
required guarantee top-up payments. This is similar to the approach taken in the run up to the 5 year anniversaries in 2012 and 2013,
and it is expected that during 2016 the current dynamic tail hedging strategy will be replaced with a put option strategy as the 10-year
anniversaries draw near.

The business entered into a programme of Forward Start Options (FSOs) during H1 2015 and July 2015 to take advantage of historically
low volatilities across global equity markets. The FSOs have the effect of fixing the cost of the future put option strategy in relation to
market volatility, although they do not provide cover against the absolute market levels until the start of the put options in early 2017.
The FSO's have expiration dates that are staggered to coincide with the maturities of the GMAB guarantees. They will provide cover
for volatility on approximately 70% of the expected equity market exposure. The total premium paid for the FSOs was $22 million, $16
million was paid in H1 2015 and $6 million in July 2015.

Financial position and capital

Abridged statement of IFRS financial position

The statement of financial position illustrates that, on an IFRS basis, assets backing of the Bermuda business exceeded liabilities by
$405 million.

$m                        H1 2015   2014   % change
Assets
Cash and hedge assets          65     58        12%
Group Seed investments        260    260          -
Inter-company loan notes      262    297      (12%)
Other assets                   15     15          -
Total Assets(1)               602    630       (4%)
Liabilities
GMAB reserves                  74     82      (10%)
Other liabilities             123    149      (17%)
Total Liabilities(1)          197    231      (15%)
Total Equity                  405    399         2%

(1) Total assets and liabilities excludes separate account assets and liabilities of $876 million (2014: $975 million)

Liquidity requirements for operating costs, surrender and hedging activities can be met by drawing down the inter-company loan notes.
These are structured in tranches, which allows capital and treasury management flexibility.

At 30 June 2015, liabilities relating to the 120% Capital Guarantee and HAV of $70 million (31 December 2014: $78 million) are included
in the GMAB reserves with $56 million (31 December 2014: $66 million) attributable to the 120% Capital Guarantees and $14 million
(31 December 2014: $12 million) attributable to the HAV guarantees. GMAB reserves also include a $4 million CGO liability. "Other
liabilities" primarily relate to policies under administration that have less onerous market related guarantees.

Capital position and outlook

The table illustrates the local regulatory capital and capital requirements for the business: 

OM Bermuda statutory capital surplus ($m)  H1 2015   2014
Capital                                        393    387
Capital requirement                            315    295
Surplus                                         78     92
Cover (times requirements)                     1.2    1.3

*Capital requirements are determined by the Bermuda Monetary Authority.

Statutory capital of $393 million compares to IFRS equity of $405 million, due to the inadmissibility of certain assets for statutory
purposes. Statutory capital increased to $393 million as at 30 June 2015 (31 December 2014: $387 million) due mainly to the $6 million
IFRS profit over the period. Based upon the 31 December 2014 Statutory Return submission, the statutory requirement increased by
$20 million to $315 million. This increase was primarily attributable to changes in the underlying investment composition of "Group Seed
investments" in 2014.

Given the slower run off of the book after the fifth year policy anniversaries completed in 2013, subsequent lower overall business levels,
and the significant release of capital in 2013-2014, sizeable capital releases are not anticipated in the run-up to the 10-year policy
anniversaries in 2017 and 2018. The business has established a reinsurance entity in Bermuda, Old Mutual (Bermuda) Re Ltd
(OMBRE). OMBRE has been licensed in Bermuda for the sole purpose of accepting the GMAB risk of OM Bermuda. OMBRE has been
capitalised with existing OM Bermuda capital and has assumed OM Bermuda's hedging programmes with effect from 1 July 2015. It is
expected that OMBRE will be wound up shortly after the last GMAB expires in Q3 2018 with any remaining capital released to Old
Mutual plc subject to BMA approval.

Sponsor:
Merrill Lynch South Africa (Pty) Ltd

Date: 06/08/2015 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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