9 Months Business Figures - New Business Up 30%

CGU PLC
27 October 1999

                               CGU plc
                WORLDWIDE LIFE & SAVINGS NEW BUSINESS
                            9 MONTHS 1999

 *    Worldwide new business increased by 30% to £5,412m.
 
 *    New annual premiums up 67% to £521m, including £179m from
      Polish pensions in the third quarter.
 
 *    Single premium sales 25% higher at £4,256m.
 
 *    ISA, PEP, unit trust and UCITS sales up 37% to £635m.


Bob Scott, Group Chief Executive, commented:

'Record  new  business sales of £5.4 billion were  achieved  in  the
first nine months, 30% higher than last year, with growth in all our
major businesses.

The UK again produced a good performance, with strong investment
bond and pensions new business, and our equity ISA sales are growing
faster than the market.  In Poland, we are the leading pensions
business having captured some 25% of this new market, with new
annual pension premiums totalling £179m in the third quarter.

We  continue to seek new opportunities to grow our life and  savings
business  and  to  build on our strong position in  the  UK  and  in
Continental Europe.'

Enquiries:

Media
Robbie Graham, Director of Life Development    [phone]

UK Press:
Ian Harper, Public Relations Manager           01904 452 172
                                               0410 011 428 (mobile)
Analysts/Investors
Steve Riley, Head of Investor Relations        [phone]


                New single         New annual        ISAs/PEPs        TOTAL
                 premiums           premiums         unit trusts
                                                     /UCITS (ii)
                                                            
                        Local             Local             Local     Local
              9 mths currency   9 mths currency   9 mths currency  currency
                1999   growth     1999   growth     1999   growth    growth
                  £m        %       £m        %       £m        %         %

United Kingdom 1,974       29      127       (4)      549      51        30
France           979       18        9       13                          18
Netherlands      244        9       57        4                           8
Italy            679       17       38        1                          16
Poland             9      167      225      487                         461
Germany           83      n/a       24      n/a                         n/a
Other Europe     138      160        8       29        86     (12)       48
Rest of World    150       (3)      33       21                           1
               -----      ---      ---      ---       ---     ---       ---
TOTAL          4,256       25      521       67       635      37        30
               -----      ---      ---      ---       ---     ---       ---
Notes:
(i)   Average exchange rates used and premiums are gross of reassurance.
(ii)  UCITS are  collective investments sold throughout Europe and Asia.
(iii) Growth excludes sales from discontinued business.

UK  :   CGU  Life's total sales of new life, pensions and investment
business rose by 30% to £2.7bn. There was strong growth through  our
multi-channel  distribution network, with NAPI (new annual  premiums
plus  a tenth of new single premiums and investment products)  sales
up 10% through IFAs and 36% through our other channels.

New  single premiums were 29% higher at £1,974m, boosted  by  a  43%
increase  to  £1,371m in sales of our main investment  product,  the
Portfolio Bond.  New single premium pension sales increased  by  19%
to  £559m, including an 18% increase in individual pensions business
to £303m and a 20% increase in group pensions business to £256m.

New  annual premiums were 4% lower overall with increased individual
pensions  business  offset by lower mortgage and  protection  sales.
Annual  premium  pension sales were up 5% at £82m,  with  individual
pension  business  11% higher at £50m and group  pensions  sales  of
£32m.  These strong pensions sales and CGU Life's position as one of
the  lowest  cost operators make it ideally placed to capitalise  on
future stakeholder pensions.

New  investments into ISAs, unit trusts and PEPs were 51% higher  at
£549m, including £162m of ISA sales.  In the 3rd quarter, ISA  sales
were  £79m,  roughly 90% of PEP sales in the 3rd  quarter  of  1998.

France :   New business levels continued to show good growth,  with
single  premium sales 18% higher at £979m, well ahead of the  market
growth  of around 10%.  AFER bond sales remained buoyant, up 51%  at
£531m, reflecting the product's competitive return.  Sales of  unit-
linked policies (including £91m in unit-linked AFER sales) and other
savings  products were at a similar level in the third  quarter  and
group  protection sales remain ahead of 1998 levels.   To  grow  its
share  of  the individual protection market, Abeille vie  redesigned
and  relaunched  its  main protection policy, 'ANOR',  in  September
1999.

Netherlands :  New annual premiums were 4% higher at £57m, including
a  33%  increase  to  £13m in sales of Delta Life,  our  unit-linked
universal  life  product.  Single premiums  were  up  9%  to  £244m,
following  the  acquisition  of a new  group  pension  scheme.   The
acquisition  of Nuts Ohra will make Delta Lloyd Nuts  Ohra  the  4th
largest  life insurer in the Netherlands, and the second largest  in
pensions.   Sales  from  Nuts Ohra are not  included  in  these  new
business  results and will be consolidated in the fourth quarter  of
1999.

Italy  :  Following strong sales in the first 6 months of the  year,
new  annual and single premiums remained ahead of 1998 levels at the
9 months stage, at £38m and £679m respectively.

We  are focused on developing our newest bancassurance arrangements.
Banca Popolare di Lodi contributed £3m (1998 £1m) in annual premiums
and  £24m  (1998  £2m)  in single premiums,  and  business  is  just
commencing  through Banca delle Marche, contributing £9m  to  single
premiums.  Together, they provide a 500 national branch network  and
training  and  new product design are well underway.   We  have  the
bancassurance  expertise  and international  reputation  to  further
expand  distribution  in  Italy and  CGU  is  actively  seeking  new
opportunities.

Poland  :   CU Polska has a leading position in the Polish  pensions
market  and  generated  £179m in new annual premiums  in  the  third
quarter,  representing the processing of 1.1m applications.   At  30
September  1999,  1.6m  pension  applications  in  total  had   been
received, with a further tranche expected in the fourth quarter.

Life  sales  have  benefited  from the  cross-selling  opportunities
provided by the new pension arrangements.  Annual premium life sales
were  16%  higher at £44m and single premiums increased by  167%  to
£9m.   Overall, total annual premium sales were substantially higher
at £225m in the first nine months.

In  Romania,  we  were pleased to receive a licence  to  begin  life
operations   from   next  year.   Romania  offers  exciting   growth
prospects,  with  a  large population of  23  million,  a  low  life
assurance  spend  to GDP of 0.03% (UK 7.87%), and  the  prospect  of
future reform of state pensions.

Germany :  New business levels remained strong at Berlinische  Leben
and  we  continue  to refocus the business on the  profitable  unit-
linked  and group pensions markets.  Sales were well ahead  of  last
year, with annual premiums increasing to £24m, including £9m in  the
third  quarter,  and  single  premiums of  £83m,  reflecting  strong
pension and annuity sales.

In  Ireland, excellent single premium investment bond sales of  £55m
were  achieved in the third quarter, boosting total new business  to
£118m  in 1999.  Our cross-border business in Luxembourg added  £86m
in  UCITS sales.  New annual premiums more than doubled to  £12m  in
Turkey, reflecting an increase in the direct salesforce to over 600.

In  the  United States, single premium sales of £128m were 5% lower,
with  good  sales of a new deferred annuity product being offset  by
reduced  demand for immediate annuities.  Annual premiums  were  15%
lower  at  £15m, following our withdrawal from sales of unprofitable
group  health products.  In Canada, sales of protection and  annuity
products  boosted  new  annual premiums by 32%  to  £6m  and  single
premiums were 9% higher at £21m.


ASSET MANAGEMENT

CGU manages worldwide assets of around £130bn, making us one of the
top 20 fund managers in Europe.

Over £6bn in new funds, including life and savings new business and
over £800m in third party mandate investments, have been attracted
in the first nine months of 1999.  Our UK longer term investment
performance record remains strong, with our third party pension fund
performance ranking in the top quartile over the last 5 years.

NOTES TO EDITORS

*  CGU is Europe's 5th largest insurance group and the largest in
   the UK (based on worldwide sales of some £18bn per annum).

*  Life  and  savings represents around half  of  CGU's  total
   business.

*  The  geographical  split of total life,  pensions  and  retail
   investment sales for the 12 months to 30 September 1999 was:

                          %
      United Kingdom     49
      France             19
      Netherlands         6
      Italy              12
      Poland              4
      Germany             2
      Other Europe        4
      Rest of World       4
                        ---
                        100
                        ---

*  Distribution of UK life and savings products using  NAPI  (new
   annual premiums plus a tenth of new single premiums and investment
   products) for the 9 months to 30 September 1999 was:

                          %
     IFAs                66
     Partnership/Direct  34
                        ---
                        100
                        ---

*  All growth rates are quoted in local currency.

*  CGU's 9 months 1999 results will be reported on 10 November 1999.

*  Results and corporate news releases are available on the Internet:
   www.cgugroup.com/group


        Worldwide life & savings new business - 9 months 1999

                    New single          New annual             ISAs/PEPs
                     premiums            premiums           unit trusts/
                                                              UCITS (ii)

                              Local               Local               Local
                  9 months currency   9 months currency   9 months currency
                1999   1998  growth  1999  1998  growth  1999  1998  growth
                  £m     £m       %    £m    £m       %    £m    £m       %
United Kingdom
Individual
pensions         303    256      18    50    45      11
Group pensions   256    214      20    32    33      (3)
Mortgage           -      -       -    31    38     (18)
Other life     1,415  1,064      33    14    16     (13)
PEPs/ISAs/
unit trusts        -      -       -     -     -       -   549   364      51
               -----  -----     ---   ---   ---      ---
               1,974  1,534      29   127   132      (4)

France
AFER (excl.
unit-linked)     531    348      51     -     -        -
Unit-linked &
other savings    337    370      (9)    8     7       18
Group protection
business         111    106       4     1     1      (22)
               -----  -----     ---   ---   ---      ---
                 979    824      18     9     8       13

Netherlands
Individual
pensions          67     63       5     -     -        -
Group pensions   118     81      46    13    14       (3)
Universal life    13     27     (53)   13    10       33
Other individual
life              37     43     (15)   25    25       (4)
Group life         9      8       8     6     5        5
               -----  -----     ---   ---   ---      ---
                 244    222       9    57    54        4

Italy
Unit-linked      590    540       9    15     9       70
Savings, 
protection &
other             89     40     122    23    29      (21)
               -----  -----     ---   ---   ---      ---
                 679    580      17    38    38        1

Poland
Life & savings     9      4     167    44    42       16
Pensions           -      -       -   181     -      n/a
               -----  -----     ---   ---   ---      ---
                   9      4     167   225    42      487

Germany
Life & savings    28      6     n/a    12     4      n/a
Pensions &
annuities         55      6     n/a    12     3      n/a
               -----  -----     ---   ---   ---      ---
                  83     12     n/a    24     7      n/a

Other Europe
Life & pensions  138     53     160     8     6       29
UCITS              -      -       -     -     -        -  86    98      (12)
               -----  -----     ---   ---   ---      ---
                 138     53     160     8     6       29

United States
Life assurance     5      7     (27)    7    11      (36)
Pensions &
annuities        123    124      (3)    8     7        -
               -----  -----     ---   ---   ---      ---
                 128    131      (5)   15    18      (15)

Other             22     21       9    18     9       94
               -----  -----     ---   ---   ---      ---  ---   ---     ---
TOTAL          4,256  3,381      25   521   314       67  635   462      37
               -----  -----     ---   ---   ---      ---  ---   ---     ---

Notes:
(i)   Average exchange rates used and premiums are gross of reassurance.
(ii)  UCITS are collective investments sold throughout Europe and Asia.
(iii) 1998 figures exclude sales from discontinued business.