Disposal

CGNU PLC
22 December 2000


CGNU sells Commercial Union Life Holdings Canada Ltd and Norwich Union
Holdings (Canada) Limited

CGNU plc announces that it has signed a binding agreement to sell to Manulife
Financial the entire issued share capital of Commercial Union Life Holdings
Canada Ltd for approximately £62m.

CGNU has also signed a binding agreement to sell to a subsidiary of American
International Group, Inc., (AIG) the entire issued share capital of Norwich
Union Holdings (Canada) Limited for a consideration in the form of cash and
special dividends of approximately £71m.

This follows the announcement in June to sell the group's existing Canadian
life operations as part of CGNU's strategy to focus on building top five
positions in its chosen markets. 

The transactions are subject to regulatory approval and are expected to be
completed in the first quarter of 2001.

CGNU will focus in Canada on enhancing returns from its general insurance
interests, CGU Group Canada Ltd and Pilot Insurance Company, which combined
rank number one with a 12 per cent market share.

                             
Notes to editors:

* CGNU plc is the UK's largest insurance group and the world's sixth largest
insurer based on gross worldwide premiums.  The group was created from the
merger of CGU plc and Norwich Union plc on 30 May 2000.
* Manulife Financial is a leading Canadian-based financial services company
operating in 15 countries and territories worldwide.  Through its 28,000
employees and agents, together with a network of distribution partners,
Manulife Financial offers clients a diverse range of financial protection
products and wealth management services.
* AIG is the leading US-based international insurance and financial services
organization and the largest underwriter of commercial and industrial
insurance in the United States. Its member companies write a wide range of
commercial and personal insurance products through a variety of distribution
channels in approximately 130 countries and jurisdictions throughout the
world.  AIG's global businesses also include financial services and asset
management including aircraft leasing, financial products, trading and market
making, consumer finance, institutional, retail and direct investment fund
asset management, real estate investment management, and retirement savings
products.
* Exchange rate £1 = CDN$2.24 

Enquiries:

Analysts
Steve Riley, Investor Relations Director           Tel: [phone]/
                                                        [phone]

Media
Hayley Stimpson, Director of External Affairs      Tel: [phone]/
                                                        [phone]    
  
Alex Child-Villiers, Financial Dynamics            Tel: [phone]/
                                                        [phone]