Disposal

CGNU PLC
29 June 2001


                                                                  29 June 2001

CGNU exits mortgage indemnity business in Australia

CGNU plc ('CGNU') announces the sale of the entire issued share capital of 
CGU Lenders Mortgage Insurance Ltd ('CGU LMI') to PMI Mortgage Insurance
Australia (Holdings) Pty Limited.  The proceeds will be approximately 
A$107 million (£39 million) equivalent to the net asset value of CGU LMI at 
31 December 2000.  CGU LMI is a mortgage indemnity business operating 
principally in Australia, with a branch office in New Zealand, and had total 
net written premiums of A$25 million (£9 million) in 2000.

CGNU has a top five position in the Australian general insurance market with 
pro forma net written premiums in 2000, including the recently announced 
acquisition of Fortis Australia Limited, of A$1.4 billion (£0.5 billion).

This sale represents a further step in repositioning our general insurance 
business in these markets.

The transaction is subject to regulatory approval and is expected to complete 
in the second half of 2001.


Enquiries:

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

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

Notes to editors:

CGNU is the world's sixth-largest insurance group and the largest insurer in 
the UK. It has worldwide premium and investment sales from ongoing business 
of £27 billion and more than £210 billion in assets under management.

CGNU also has a long-term savings and an investment business in Australia 
including its 'fund of funds' open architecture business, Navigator.

Exchange rate: £1: A$ 2.73