CGNU UK Life Presentation

CGNU PLC
8 March 2002

Presentation to investors and analysts on CGNU's UK life business

Norwich Union Life, CGNU plc's UK life business, will hold a presentation 
today for investors and analysts.  Norwich Union Life is the leading 
UK life insurer with a market share of over 11% and new business premiums 
in excess £8 billion in 2001.  In total, the business accounted for 36% of 
the Group's ongoing net written premiums in 2001.

Philip Scott, Chief Executive Norwich Union Life commented:

'Our multi-channel, multi-product strategy and our proven abilities in 
change management have helped us create the market leader in the UK life 
market.  These, together with our brand and financial strength leave us 
well positioned to continue to lead the UK market through the significant 
changes ahead.

'Our target is for a market share of some 15% by the end of 2005 
(2001: over 11%).  Our relationships and product breadth will see us benefit 
from the de-polarisation expected.

'Sales through our joint venture with The Royal Bank of Scotland Group 
(RBSG) continue to gain momentum following a strong start to 2002. We have 
agreed in principle to extend the RBSG joint venture to include Collective 
Investments from early 2003.

'With an Inherited Estate estimated at £5 billion and a strong flow of 
in-force profits, we have the financial and capital strength to support this 
growth, and generate significant value for shareholders.'



Slides from the presentation will be available on the Group's website 
www.cgnugroup.com at 11.00am (GMT) on 8 March. In addition, a webcast will 
be available later the same afternoon.



Enquiries:

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

Media
Hayley Stimpson, Head of External Affairs        [phone]
Alex Child-Villiers, Financial Dynamics          [phone]



Notes to Editors:

CGNU is the world's seventh-largest insurance group and the largest insurer 
in the UK. It has worldwide premium and investment sales from ongoing 
business of more than £28 billion, and over £200 billion in assets under
management at 31 December 2001.

The most recent financial reports are available on the Group's website, 
www.cgnu-group.com 

Key points from the presentation:-

The UK Market - leadership through change

*  Regulatory change and industry reviews will result in significant change 
   in the UK life industry
*  £27 billion annual savings gap identified in the UK
*  As the overall market expands, our target is a market share of 15% by 
   the end of 2005

Strategy for growth

*  We have leading market positions in most major life and pensions product 
   areas including bonds, pensions and individual annuities

*  We have established the leading position in the emerging stakeholder 
   market, with a market share of 20%.  The majority of the annual savings 
   gap of £27 billion is in retirement funding

*  We will continue to develop these market positions through the power of our
   distribution

*  Norwich Union has the IFA relationships in place to benefit from the 
   de-polarisation that is expected later in 2002. We are the lead provider 
   to each of the top-six IFA companies in the UK and, we believe these 
   companies are well placed to be the winners in a de-polarised world
*  We are the market leader in the provision and utilisation of e-commerce 
   to IFAs through internal and external portals; e-enablement of distribution
   will be key in closing the savings gap as it drives down the cost of 
   distribution in the market

*  Sales through the joint venture with Royal Bank of Scotland Group (RBSG) 
   totalled £115 million for January and February 2002, 
   (full year 2001: £480 million), with the newly launched with-profit bond 
   attracting £50 million in its first four weeks 

*  At these volumes the joint venture has positive new business added value

*  We expect sales to continue to gain momentum

*  We have agreed in principle to extend the joint venture to include 
   Collective Investments from early 2003. A further announcement on this 
   will follow in due course 

*  Our refocused direct sales force has almost tripled its productivity in 
   the last two years to £182,000 annual premium equivalent (APE) per 
   head and we will look to increase this further as our new, market leading 
   point of sale technology ('RIO'), is rolled-out

*  This technology will also be used through our arrangements with our 
   building society partners and the sales teams in the NatWest and Royal 
   Bank of Scotland branches

*  De-polarisation will also have a significant impact in the non-IFA market 
   as multi-ties develop. We are well positioned to lead through this change 
   by building on the significant partnerships we have in place 

*  Our extensive product range will allow us to exploit 'product gap-filling' 
   opportunities with distributors

*  The post-tax internal rate of return on total UK life and pensions new 
   business in 2001 was 17% and, 12% for non-profit business

Wealth Management

*  Our Wealth Management business is being integrated into our UK life 
   business

*  We have developed a robust e-business platform for use in both the life 
   and general insurance business in the UK

*  A suite of financial planning tools, a share dealing service and a 
   supermarket of funds were launched in 2001

*  Personal loans were launched early in 2002, and further banking products 
   backed by RBSG are scheduled for launch later in 2002

*  In consolidating these operations we will reduce ongoing annual costs by 
   £10 million per annum



Value through operational delivery

*  An integrated customer service platform is at the core of our business 
   model

*  Continuing investment of some £75 million per annum is planned to enhance 
   our customer service capability, develop new product propositions and 
   increase productivity. Investments are assessed against the Group's 
   target of 10% net real return, as a minimum

*  By 2004 our target is to reduce acquisition costs (excluding commission) 
   from 25% of APE to 19%

*  By 2004 our target is to reduce maintenance costs by over 20% from 0.16% 
   of funds under management* to 0.12%

*  Productivity improvements will be driven by our scaleable infrastructure, 
   continuing investment in process improvement and the full emergence of 
   merger savings

*  We are committed to extending e-processing throughout our business and 
   expect 14% of new business to be transacted through IFA portals and direct 
   e-commerce channels in 2002

Financial strength

*  The estimated Inherited Estate of £5 billion, 13% of total with-profit 
   asset shares, demonstrates the financial strength of our with-profit 
   business. There are no current plans to seek a reattribution of the 
   Inherited Estate

*  On the statutory basis the average Free Asset Ratio** across our three     
   major Funds is estimated at 8% after allowing for minimum statutory        
   solvency of approximately 4% and after satisfying the resilience test      
   requirements

*  The capital requirements of 'non-profit' new business (new business strain)
   is funded from the release of profit from 'non-profit' in-force business. 
   We are confident that we have the capital strength to support our growth 
   plans for new business from Norwich Union Life resources


_______________________________
*  Funds under management - the equity component has been normalised to 
FTSE All-Share at 31 December 1999
** Free Asset Ratio is measured as (total assets less total liabilities 
less minimum solvency margin) / total assets and includes implicit items 
of approximately 3.5%




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