CGNU Exits London Market

CGNU PLC
1 November 2000




CGNU ANNOUNCES SALE OF MARLBOROUGH UNDERWRITING AGENCY AND
EXIT FROM LONDON MARKET BUSINESS

CGNU plc today announces that it has reached agreement in
principle for the sale of Marlborough Underwriting Agency
Ltd ('Marlborough'), its wholly owned Lloyd's managing
agency, to the Berkshire Hathaway Group. Under the terms
of the agreement the Berkshire Hathaway Group will also
undertake, subject to Lloyd's approval, to replace CGNU
as the provider of capacity to the Marlborough managed
syndicates for 2001.  As at 31 December 1999 Marlborough
had audited net assets of £1.1 million.

The sale of Marlborough follows CGNU's exit from the
global risks market in August 2000 and will complete the
group's withdrawal from London market business.

In order to secure protection against any adverse impact
of the run-off of claims reserves held by CGNU in respect
of London market business written prior to
1 October 2000, the date of exit, CGNU has also reached
an agreement in principle for the purchase of reinsurance
with the Berkshire Hathaway Group.  This will provide
cover of £1 billion in excess of CGNU's claims reserves
of £1.2 billion.

A £448 million one off charge before tax (£322 million
after tax) will be taken in CGNU's consolidated results
for the nine months to 30 September 2000* in relation to
its exit from London market business and associated
reinsurance protection.  Results for Marlborough and the
other London market business for the nine month period
will be reported separately as 'Operations to be
discontinued.'

Bob Scott, group chief executive said: 'These actions are
consistent with the group's strategy of focusing its
general insurance operations on personal and small
commercial lines business. They will improve the quality
of the group's future earnings by removing the
uncertainties relating to London market risks and any
further exposure to this business.  This completes the
major repositioning of general insurance business which 
would have any material financial consequence for the group.'


Analyst/investor enquiries:
Steve Riley 
Investor Relations Director               Tel: [phone]

Media enquiries:
Mike Biggs 
Executive Director - UK General Insurance Tel: [phone]
Hayley Stimpson 
Director of External Affairs              Tel: [phone]
Alex Child-Villiers 
Financial Dynamics                        Tel: [phone]

Note to editors:
*to be announced on 8 November 2000

Marlborough Underwriting Agency Ltd is a Lloyd's managing agent for three
active syndicates (syndicates 62,1047 and 1861) and two run-off
syndicates (syndicates 744 and 1242) with managed
capacity for the 2000 year of account of £285 million.
Syndicate 1861 is a leading marine syndicate at Lloyd's
with £150m of capacity and was formed for the 2000 year
of account following the transfer of the CGU London
market marine portfolio, previously transacted within the
Institute of London Underwriters.  Syndicate 62
underwrites a marine portfolio specialising in hull
business.  Its capacity for the year 2000 is £36 million.
Syndicate 1047 underwrites a non-marine liability
portfolio with a stamp capacity in 2000 of £32 million.

London market figures for the six months to 30 June 2000
were:
Net written premiums: £162 million
Underwriting loss: £31 million
Combined operating ratio: 122%

Berkshire Hathaway Inc. is a holding company owning subsidiaries engaged in a
number of diverse business activities.  The most important of these is the
property and casualty insurance business conducted on both a direct and
reinsurance basis through a number of subsidiaries.  Included in this group of
subsidiaries is GEICO Corporation, the sixth largest auto insurer in the
United States and General Re Corporation, one of the four largest reinsurers
in the world and its wholly owned subsidiary of D.P. Mann Ltd., a Lloyd's
managing agent.  D.P. Mann is one of the largest syndicates at Lloyd's with a
2000 stamp capacity of over £257 million.

Its interests also include the Reinsurance Division of the Group, which
specialises in the management and risk assumption of discontinued and run-off
business on an international scale.

The Berkshire Hathaway Group, which has a combined surplus in excess of USD 40
billion, is one of the most strongly capitalised insurance/reinsurance groups
in the world. 

CGNU plc is the UK's largest insurance group and the world's sixth largest
insurer based on gross worldwide premiums.  The group was created from the
merger of CGU and Norwich Union on 30 May 2000.