CGNU to exit Canada Life

CGNU PLC
14 June 2000


CGNU TO EXIT CANADIAN LIFE MARKET

Following a strategic review of its life businesses in Canada, CGNU plc
('CGNU') has decided to divest its Canadian life operations.  CGNU's strategy
is to focus resources on businesses where it can build top 5 market positions
and has concluded that its Canadian life businesses, with some 1% of the long
term savings market, lacked the scale and platform to achieve this objective.

The CGNU Canadian life businesses had total premium income of £97m in 1999 and
an embedded value of approximately £100m at 31 March 2000.  The sale will be
handled by BMO Nesbitt Burns.

CGNU will continue to focus on enhancing returns from its Canadian general
insurance business, which ranks number 1 in the market with a 12% market
share.



Enquiries:

Steve Riley       Investor Relations Director           + 44 (0)20 7662 8115




NOTES TO EDITORS

* CGNU was formed by the merger of CGU and Norwich Union, which completed on
30 May 2000.

* CGNU is the largest UK based insurance group and a top five European life
insurer with worldwide premium income and retail investment sales of £26bn. 
It is the second largest UK based fund manager with over £200bn of assets
under management.

* CGNU has 2 life business in Canada - Commercial Union Life Assurance Company
of Canada and Norwich Union Life Insurance Company (Canada).

* Figures have been converted at £1=C$2.40.