Disposal

CGNU PLC
25 July 2000



CGNU TO EXIT GERMAN GENERAL INSURANCE MARKET

CGNU plc ('CGNU') has agreed the sale of its German general insurance
business, General Accident Versicherungs AG ('GAVAG') to Gerling-Konzern
Lebensversicherungs-AG.

This followed a strategic review, which concluded that the business lacked the
platform and scale to generate satisfactory returns for CGNU shareholders.

In 1999, GAVAG had net premium income of £96m and net assets of approximately
£25m.  The sale is subject to regulatory approval and is expected to complete
before the end of 2000.

CGNU will continue to focus on developing its long term savings business in
Germany through its life subsidiary, Berlinische Lebensversicherung.


Enquiries:

Analysts/investors
Steve Riley  
CGNU Investor Relations Director   [phone]

Media
Alex Child-Villiers 
Financial Dynamics                 [phone]


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.

Premiums have been converted at £1=DM2.98 (1999 average rate of exchange)
and net assets at £1=DM3.14 (1999 closing rate).