Fthr re Proposed Disposal

CGNU PLC
18 December 2001

                                                              18 December 2001


CGNU Pakistan

Further to the announcement of 16 July 2001 that CGNU plc (CGNU) had agreed to
sell its general insurance business in Pakistan as well as its 51% stake in
Commercial Union Life Assurance Company (Pakistan) Limited to Old Mutual plc,
CGNU now announces that Old Mutual plc has advised that it has decided not to
proceed with the acquisitions.

The combined net assets of these businesses were £3 million at 31 December
2000.

Enquiries:

Analysts

James Matthews, Head of Investor Relations
Tel: [phone]

Media

Ian Frater, Head of Group Media Relations
Tel: [phone]

Stuart Blackmore, Financial Dynamics
Tel: [phone]


Notes to editors:

  * CGNU is the world's seventh-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 £200 billion in assets
    under management at 30 June 2001.

  * The most recent financial reports are available on the Group's website,
    www.cgnu-group.com