Jt. Cautionary Announcement

CGNU PLC
15 June 2000


CGNU plc - SOUTH AFRICAN GENERAL INSURANCE BUSINESS

The joint announcement below, concerning the proposed sale of CGNU's 51% stake
in its South African general insurance subsidiary, has been released in South
Africa today. 

The subsidiary, referred to as 'CGU' in the announcement, is a listed company
in South Africa.

Enquiries:

Steve Riley, Investor Relations Director             [phone]


JOINT CAUTIONARY ANNOUNCEMENT

Shareholders are advised that negotiations are in progress between Mutual &
Federal and the major shareholders of CGU, being CGNU plc and Metropolitan who
together hold approximately 79% of the issued share capital of CGU.

In the event that these negotiations are successful, it would be the intention
of Mutual & Federal to acquire the entire issued share capital of CGU.  Such
negotiations, if successfully concluded, may have a material effect on the
share prices of CGU, Metropolitan and Mutual & Federal.

Shareholders are accordingly advised to exercise caution when dealing in their
Mutual & Federal, CGU and Metropolitan shares until a further announcement is
made.