CGNU Sells CGU Seguros

CGNU PLC
1 August 2001


CGNU sells its Brazilian general insurance subsidiary

CGNU plc ('CGNU') has agreed the sale of its entire interest in the holding 
company of CGU Companhia de Seguros ('CGU Seguros'), its Brazilian general 
insurance subsidiary, to the Brazilian subsidiary of Royal & Sun Alliance 
Insurance Group plc for R$51 million (£15 million) in cash.

CGU Seguros is a niche general insurer focused on small to medium sized 
enterprises and personal lines. In 2000 it had gross written premiums of 
£48 million.

The disposal is consistent with CGNU's strategy of building top five 
positions in its chosen markets and withdrawing from operations where it 
does not have sufficient scale to achieve this.

The transaction is subject to regulatory approval and is expected to complete 
in the fourth quarter of 2001.

Enquiries:

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

Media
Hayley Stimpson, Director of External Affairs, CGNU  [phone]

Geoffrey Pelham-Lane, Financial Dynamics             [phone]


Notes to editors
*  CGNU plc is the world's sixth-largest insurance group and the largest 
   insurer in the UK
*  Premiums have been converted at £1=R$2.77 (2000 average rate of exchange) 
   and the purchase price at £1=R$3.48 (30 July 2001 closing rate).