CGNU Completes US GI Sale

CGNU PLC
1 June 2001


     CGNU COMPLETES SALE OF US GENERAL INSURANCE BUSINESS

CGNU plc announces the completion of the sale of its US general insurance 
operations to White Mountains Insurance Group, Ltd. in accordance with the 
announcements of 25 September 2000 and 20 February 2001. The proceeds were 
£1.3 billion ($1.9 billion), net of the £141 million ($200 million)
pre-closing adjustment, plus the repayment of an inter-company loan of 
£0.8 billion ($1.1 billion). This concludes CGNU's exit from the US general 
insurance market.

CGNU continues to pursue its strategy to grow its long-term savings business 
aggressively and profitably, build a world-class fund management business, 
take a focused approach to general insurance, build top five positions in key 
markets and withdraw from lines of business or markets that do not offer
the potential for market leading positions or superior returns.


ENQUIRIES

Analysts/Investors

Steve Riley - Investor Relations Director, CGNU        [phone]


Media

Alex Child-Villiers - Financial Dynamics               [phone]


Note: an exchange rate of $1.42 = £1 has been used to translate dollar amounts
into pounds sterling throughout this announcement