CGNU - Minority Acquisition

CGNU PLC
16 August 2000

                            

CGNU plc ('CGNU') has reached agreement, subject to contract and to
Lloyd's approval, with the Blenheim Partnership ('Blenheim')to acquire
Blenheim's 49% shareholding in Marlborough Underwriting Agency Limited
('Marlborough'), the Lloyd's managing agent.  As a consequence of this
transaction, Marlborough will become a wholly-owned subsidiary of CGNU.
The consideration for this transaction is not material in relation to
CGNU's net assets.

Angus Sladen and Jill Loveless, respectively managing director and finance
director of Marlborough, have decided to resign their appointments in order
to pursue interests elsewhere and will leave Marlborough shortly after
the completion of the transaction. It is also the intention of Sir Patrick
Sheehy, non-executive chairman to resign.  Clive Watson, currently the CGNU
London Markets Director will be appointed as managing director of Marlborough,
subject to Lloyd's consent.

CGNU currently provides in aggregate approximately 85% of the capacity of
Lloyd's syndicates 62, 1047 and 1861 managed by Marlborough.  CGNU will
continue to support these syndicates for the 2001 year of account.


Enquiries:

Clive Watson, London Markets Director          [phone]

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