Acquisition

CGU PLC
13 September 1999



CGU ACQUISITION IN CANADA


CGU Group Canada Ltd. ('CGU'), the 100% owned subsidiary of CGU plc, has
signed a definitive agreement to acquire The GAN Company of Canada Limited
('GAN Canada') from the French insurer GROUPAMA for a consideration of some
£56m. 

GAN Canada is the 22nd largest property and casualty insurance group in
Canada, with just over 1% of the market.  It writes both commercial and
personal insurance with a third of total premiums in affinity group and
employers' schemes.  The company had net general insurance premiums of £79m. 

CGU plc is already the market leader in Canadian general insurance, with an
11% market share (including Pilot Insurance Company).  The acquisition will
increase exposure to profitable personal lines scheme business, where CGU has
a leading market position.  It will also add value through the utilisation of
CGU Canada's proven underwriting and integration skills to improve the
performance of GAN Canada.

GAN Canada's net asset value is estimated to be some £70m, including tax loss
carry forward benefits of £28m.

The transaction is subject to regulatory approval.  It is expected to be
completed by the end of 1999.



Enquiries:

Peter Foster, CGU plc Group Finance Director         Tel:  [phone]



NOTES TO EDITORS

* CGU plc is Europe's 5th largest insurance group based on worldwide sales,
with total premium income and retail investment sales of some £18bn annually.

* CGU is the leading property and casualty insurer in Canada with net general
insurance premiums of £792m in 1998.

* GAN Canada's business mix is 65% personal and 35% commercial, with about a
third of total premium income coming from personal lines scheme business. 
Distribution is through a range of tied and independent intermediaries.

* All figures are converted at £1 = C$2.47.