Delta Lloyd Merger Agrmnt

CGU PLC
30 September 1999


CGU's DELTA LLOYD CONFIRMS MERGER WITH DUTCH INSURER

Following the announcement of 5 July 1999, Delta Lloyd, the major Dutch
insurer which is 100% owned by CGU plc ('CGU'), has reached agreement to merge
with NUTS OHRA, the Dutch health, life and general insurer.

The new company, DELTA LLOYD NUTS OHRA, will be the 3rd largest insurer in the
Netherlands. The merger is subject to the approval of the European Commission
and full details of the transaction will be released at the time of CGU's 9
months results on 10 November 1999.


Enquiries:

Analysts/investors   Steve Riley   Head of Investor Relations   0171 662 8115
Media        William Clutterbuck   The Maitland Consultancy     0171 379 5151


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).

* Delta Lloyd ranked fifth in the Netherlands for both life and general
insurance, with total premium income of £1.1bn in 1998, of which life business
accounted for two-thirds. 

* NUTS OHRA is a mutual insurance company and the 10th largest insurer in the
Netherlands.  It has a strong position in health care (some 80% of sales) and
direct distribution (some 40% of sales) with the balance through
intermediaries.  Premiums in 1997 were over £900m. 

* Business analysis of DELTA LLOYD NUTS OHRA, based on premium income:

56% Life
21% General insurance
21% Health
 2% Other

* Distribution channels of the new group:

75% Intermediary (ranked 1st)
25% Direct marketing (ranked 2nd)

* Key market positions of the new group:

3rd largest insurer in the Netherlands
3rd largest pensions business
2nd largest health company
4th largest life business
4th largest general insurance business