CGU Disposes of Greek Life Business

CGU PLC
26 October 1999


CGU DISPOSES OF GREEK LIFE BUSINESS

Following an ongoing review of our business operations, CGU plc ('CGU') has
reached agreement in principle to sell its Greek life assurance company to
Aspis Pronia AEGA ('Aspis'), an insurance company listed on the Athens stock
exchange.

The overall consideration is not material in the context of the consolidated
net assets of CGU and we will be accepting a small part of the consideration
as shares in Aspis.

Following completion of the transaction, which is subject to formal agreement
and regulatory approval, Aspis will be a distributor in Greece for investment
products of the CGU group.


Enquires:

Analysts/Investors
Steve Riley, Head of Investor Relations            [phone]

Media
Laura Frost, The Maitland Consultancy              [phone]        
     

NOTES TO EDITORS

* CGU is Europe's 5th largest insurance group and the largest in the UK (based
  on worldwide sales of some £18bn per annum).

* CGU's Greek life assurance premium income was £26m in 1998.