UNITED KINGDOM, Nov. 15, 2000 (PRIMEZONE) -- Old Mutual plc (OML.L) announces that the Board of Mutual & Federal Ltd, South Africa, its general insurance subsidiary listed on the Johannesburg Stock Exchange, has made the following declaration to shareholders of a special dividend.
The Board of Mutual and Federal Ltd has determined after a review that its solvency margin (being the ratio of net assets to net premiums) was in excess of 100% at 30 September 2000. It has concluded that the level of capital is in excess of that required, and has accordingly proposed a special dividend of 300 cents per share. This will have the effect of returning R723 million (approximately £66 million based on yesterday's closing rate of exchange*) to shareholders. The Board is satisfied that capital remaining after this dividend will be sufficient to support the current operations and facilitate future development of the business.
The special dividend of 300 cents per share has been declared payable to shareholders on the register at the close of business on 1 December 2000, and payable on or about 11 December 2000.
Old Mutual plc has voting control of Mutual and Federal. It owns 51% of Mutual and Federal Investments Ltd., which in turn owns 77% of Mutual & Federal. In addition, Old Mutual owns 12% of Mutual & Federal directly, giving it an aggregate economic interest of 51%. Royal & Sun Alliance Insurance Group owns the remaining 49% of Mutual & Federal Investments Ltd.
*Mid-rate yesterday R10.9324 / £1
15 November 2000
CONTACT: Old Mutual
James Poole, Investor Relations
(44) 207 7569 0100
College Hill
Mark Garraway
(44) 207 7457 2020