CGNU Exchangeable Bonds

CGNU PLC
14 June 2002

 
CGNU EXCHANGEABLE BONDS

CGNU plc today announced that it has given notice to redeem its Euros 425m 
1.5% Guaranteed Exchangeable Bonds due July 2003.

The Exchangeable Bonds were issued in July 1998 by Societe Vinci Obligations 
(SVO), a French subsidiary of CGNU plc, and jointly guaranteed by CGU France 
and CGNU plc.  Following the notice of redemption, investors have the right, 
until 27 June 2002 to exchange the bonds for Societe Generale shares 
currently held by SVO, in the ratio one bond for four shares.  If not 
exchanged, the bonds will be redeemed at par on 15 July 2002.

The maximum number of shares that can be exchanged for the bonds represents 
1.72%  of the issued share capital of Societe Generale.  If all such shares 
were exchanged, this would reduce CGNU's holding in Societe Generale from 
6.75% to 5.03%.

The effect of the transaction will be neutral on CGNU's net asset value.

Enquiries:

Analysts / Investors:
James Matthews, Head of Investor Relations        [phone]

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


Notes to editors:

*   CGNU is the UK's largest insurance group, one of the top-five insurers 
    in Europe and has substantial positions in   other markets around the 
    world. CGNU is the world's seventh-largest insurer based on gross 
    worldwide premiums.

*   CGNU's principal business activities are long-term savings, fund 
    management and general insurance, with worldwide premium income and 
    retail investment sales from ongoing business of more than £28 billion, 
    and over £200 billion of assets under management at 31 December 2001.



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