CGNU Enters Hungarian Market

CGNU PLC
20 March 2001


CGNU ENTERS HUNGARIAN LONG-TERM SAVINGS MARKET

CGNU plc ('CGNU') announces the acquisition of ABN AMRO Magyar Elet es 
Nyugdijbiztosito Reszvenytarsasag ('Mebit'), the sixth largest life insurance 
business in Hungary, from ABN AMRO Bank N.V. for Euro 102 million
(£64 million).

Hungary is one of the most prosperous countries in the Central and Eastern 
European region, with a population of 10 million.  The life insurance market 
grew by 38% per annum between 1995-1999, although it remains relatively
underdeveloped, with life insurance penetration currently under 1% of GDP.

Mebit focuses on the high net worth segment of the market with distribution 
through an 800 strong direct sales force and a successful call centre.  
The main products sold are flexible unit-linked life policies.

The transaction is subject to regulatory approval and is expected to complete 
in the first half of the year.

Tony Wyand, Group Executive Director for CGNU, said:

'CGNU has several significant and developing businesses in the promising
growth markets of Central and Eastern Europe.  The acquisition of Mebit, 
which has an excellent management team, provides a good market position and a
platform for further development in Hungary.'


Enquiries:

Analysts/Investors
Steve Riley, Investor Relations Director          [phone]

Press
Hayley Stimpson, Director of External Affairs     [phone]
Alex Child-Villiers, Financial Dynamics           [phone]



Notes to Editors:

* CGNU is the UK's largest insurance group with over 25% of its premiums 
  and sales in Continental European long-term savings markets.

* CGNU has a leading position in Poland, top 5 ranking in Turkey and newer 
  developing businesses in the Czech Republic and Romania.

* Mebit commenced business in 1997 and has a head office in Budapest.  
  In 2000, gross written premiums were £19 million.