Bond Launch

CGNU PLC
12 November 2001

                                                              12 November 2001



CGNU announces successful bond launch


On 2 August 2001 CGNU plc (CGNU) announced that it intended to raise £1
billion of subordinated debt to enhance the Group's capital position and
support future growth opportunities. CGNU now confirms that the issue was
nearly two times over-subscribed and, as a result, it will raise an increased
amount of £1.2 billion of subordinated debt, reflecting this strong investor
demand.


The issue, which will be denominated in Sterling and Euros, was priced on
Friday 9 November and is due for settlement on Wednesday 14 November 2001.


A £700 million Sterling tranche was priced at a fixed rate of 6.125% (based on
a spread of 185 bp over the 6% Gilt due December 2028). A Euro800 million Euro
tranche was priced at a fixed rate of 5.75% (based on a spread of 112 bp over
the mid Euro ten year swap rate).


The transaction is expected to be rated Aa3/A by Moody's and Standard and
Poor's respectively and will be listed on the London Stock Exchange.




Enquiries:


Analysts

Steve Riley, Investor Relations Director

Tel: [phone]


Media

Ian Frater, Head of Group Media Relations


                                        Tel: [phone]


                                        Alex Child-Villiers, Financial
                                        Dynamics

                                        Tel: [phone]



Notes to editors:

  * CGNU is the world's seventh-largest insurance group and the largest
    insurer in the UK. It has worldwide premium and investment sales from
    ongoing business of £27 billion, and more than £200 billion in assets
    under management at 30 June 2001.

  * The most recent financial reports are available on the Group's website,
    www.cgnu-group.com