Stmnt re HSBC Hldgs and CCF

CGNU PLC
21 December 2000


CGNU and CCF sell stakes in Quilter Holdings Ltd

CGNU plc ('CGNU'), the majority shareholder in Quilter Holdings Ltd
('Quilter') and CCF Holdings Ltd announce that the shareholders of Quilter
have entered into an agreement to sell their shareholdings in Quilter to
Morgan Stanley Dean Witter and Co ('MSDW').  The total consideration of
approximately £172 million will be payable in cash and stock on completion. 
CGNU and CCF are to receive cash, and Quilter directors and staff are to
receive a combination of cash and MSDW shares.

Following the exercise of management options and immediately prior to the
change of ownership, the ordinary shares in Quilter on a fully diluted basis
at the time of sale will be owned in the following proportion: CGNU 56.7%, CCF
20.2% and directors and staff 23.1%.

The transaction is subject to regulatory approval and is expected to complete
in the first quarter of 2001.

Quilter is a private client investment management company with £4.9 billion
assets under management at 30 June 2000.

Enquiries:

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

Media
Hayley Stimpson, Director of External Affairs Tel: [phone]
Alex Child-Villiers, Financial Dynamics       Tel: [phone]
Christine Chaussade (CCF)                     Tel: [phone]
                             
Notes to editors:

* This announcement is issued jointly by CGNU plc and CCF Holdings Ltd.
* 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.
* CGNU acquired Quilter in November 1988 and announced its intention to sell
its stake on 15 September 2000.
* CCF became a member of the HSBC Group in July 2000.  With some 6000 offices
in 81 countries and territories, and assets of US$580 billion at 30 June 2000,
the HSBC Group is one of the world's largest banking and financial services
organisations. 
* The vendors were advised by Credit Suisse First Boston Europe Ltd.