CGNU: Turkey

CGNU PLC
1 June 2001


CGNU announced today that it has agreed in principle with the Finansbank Group
of Turkey to purchase for US$17m (£12m) the Finansbank Group's 30% holding 
in Commercial Union Sigorta AS, a small general insurance company operating
in Turkey, with net written premiums in 2000 of £36m.  This will increase 
CGNU's holding in Commercial Union Sigorta AS to 85%, with the remaining 
shares listed on the Istanbul Stock Exchange.  In due course, CGNU intends
to extend an offer for the remaining shares at an equivalent price.

The transaction is subject to regulatory approval and is expected to complete 
early in the second half of 2001.


Enquiries:

Analysts / investors
Steve Riley                             [phone]

Media
Alex Child-Villiers, Financial Dynamics [phone]


Notes to editors:

* CGNU has both a life and a general insurance company in Turkey.

* The  life  company, CU Hayat Sigorta, achieved new business sales growth 
  of approximately 40% in 2000 and has a top five position in the life 
  market.

* This transaction follows a similar consolidation of CGNU's interest in its 
  life company, CU Hayat Sigorta, in December 2000.  After a successful 
  partnership since the early 1990s with Finansbank, CGNU is now seeking to
  strengthen and expand its position in this  promising market.

* Exchange rate £1 = US$ 1.42