NU Polish Pension & Life Sale

CGNU PLC
20 September 2000



    SAMPO BUYS NORWICH UNION'S PENSIONS AND LIFE BUSINESSES
                      IN POLAND FROM CGNU


Sampo Insurance Company plc ('Sampo'), Finland's largest
insurance group, and CGNU plc ('CGNU'), the UK's largest
insurance  group, today announces that they have agreed the
sale and purchase of 100 per cent of the equity in each of PTE
Norwich Union S.A. ('PTE NU'), the pensions provider, and
Norwich Union Towarzystwo  Ubezpieczen  na  Zycie  S.A.  ('NU
Life'), the life insurance company. Each transaction is subject 
to separate Polish regulatory approval and Anti-Monopolies Office
clearance.

The consideration for PTE NU is Euro 189 million (£114 million) 
and the consideration for NU Life is Euro 47.5 million
(£29 million), subject to certain performance criteria on the
future  growth of customer numbers. Completion is expected  by
30th  November 2000.

The merger of CGU plc and Norwich Union plc to form CGNU caused
the Polish pensions regulator to require CGNU to sell one of
its two pension businesses in Poland. Under Polish  pensions
regulations, pension operating licences are restricted to one
per group.  As announced in May, CGNU decided to dispose of PTE
NU and retain the CGU pensions business. CGNU also decided to sell 
NU Life with the pensions business,  reflecting the strong 
operational links between the two businesses. Following this 
decision, CGNU conducted a competitive tender for the sale.

PTE NU is the fifth largest pension provider in Poland
(measured in terms of registered customers) with a market share
of around 4.8%. NU Life was launched in February of this year
and has reached an impressive 6th place in the market in terms
of new insurance policies sold.  As of end-August 2000, it had 
issued over 12,000 policies.


Mr. Jouko Leskinen, Sampo's Chief Executive Officer, said:

'This acquisition is an important part of Sampo's strategy  to
internationalize its business, in particular in the markets  of
Central & Eastern Europe. We see the acquisition of PTE NU  and
NU Life as an unique, high quality opportunity for Sampo and
the  new Sampo-Leonia Group to enter the high growth and large
Polish insurance and pensions markets. We do not believe that
similar opportunities will emerge in Poland for the foreseeable
future.  We believe that Sampo's long experience in  life  and
pension  insurance  business provides a  solid  foundation  for
growth in Poland, too.'


Mr. Richard Harvey, CGNU Deputy Group Chief Executive, said:

'I am delighted with the swift conclusion of these transactions
which demonstrate the value which we were able to create in
Poland.  We will now be working closely with Sampo to seek to
ensure rapid and satisfactory regulatory approval.'


Enquiries:

Sampo Insurance Company plc

Mr. Juhani Kangas
Senior Vice President, Strategic Business Development
                                   Tel: [phone]
Mr. Jarmo Salonen
Vice President, Development, Sampo Life      
                                   Tel: [phone]
                    
Mrs. Taru Narvanmaa
Investor Relations Manager                   
                                   Tel: [phone]

Mr. Matti Saarinen
Vice President, Corporate Marketing                 
                                   Tel: [phone]
                                        [phone]

Mr. William Wells
Director, Chase Manhattan          Tel: [phone]
(Principal advisers to Sampo in the purchase)



CGNU plc

Mr. Tom Fraser
Managing Director, Europe          Tel: [phone]

Mr. Steve Riley
Investor Relations Director        Tel: [phone]

Mr. Charles Lucas
Director, ABN AMRO                 Tel: [phone]
(Principal advisers to CGNU in the sale)

Mr. Alex Child-Villiers
Financial Dynamics                 Tel: [phone]



NOTES TO EDITORS

*  Sampo is the leading insurer in Finland. On December 31, 2000
   Sampo will become the parent company of the first full-service
   financial group in Finland when Leonia plc  will  merge  with
   Sampo.  The new Sampo-Leonia will offer comprehensive banking,
   asset management, life and non-life insurance services.
   Furthermore, Sampo-Leonia networks will offer the pension
   insurance products of Varma-Sampo, the largest earnings-related
   pension insurer in Finland and a co-operation partner of Sampo-
   Leonia.

*  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 and Norwich Union on
   30 May 2000.

*  PTE NU commenced operations in March  1999 when the State
   pensions  system  in Poland was changed.  NU Life began
   operations in early 2000.