CGNU Joint Venture

Royal Bank of Scotland Group PLC
17 July 2000


THE ROYAL BANK OF SCOTLAND GROUP PLC AND CGNU PLC ANNOUNCE FINANCIAL TERMS OF
BANCASSURANCE JOINT VENTURES

The Royal Bank of Scotland Group plc ('RBSG') and CGNU plc ('CGNU') have
agreed the terms of their bancassurance partnerships, comprising Royal
Scottish Assurance plc ('RSA') and National Westminster Life Assurance Limited
('NWLA').

As part of the arrangement, both RSA and NWLA will be restructured through
joint venture agreements, with both RBSG and CGNU having a 50% share of each
business.   RBSG and CGNU will also seek to identify opportunities to develop
their respective businesses through further commercial co-operation.

The parties have agreed that CGNU will pay £600m to RBSG for its 50% stakes,
valuing the RBSG bancassurance business at £1.2bn, with a total embedded value
currently estimated at £630m.  It is anticipated, subject to regulatory
approval, that the joint ventures will be operational during 2000.

Commenting on the announcement, Fred Goodwin, Group Chief Executive of RBSG
said:

'Today's announcement confirms the commitment we made to the market in
November 1999 in respect of bancassurance.  Since that time, we have enjoyed
excellent working relationships with CGNU and can already see further
possibilities for future co-operation.  We believe that £600m represents a
fair value for 50% of this business.  We are confident that CGNU's first class
track record in design and delivery of quality products will greatly benefit
our customers.'

Bob Scott, Group Chief Executive of CGNU said:

'This joint venture will combine the market leading life capability of CGNU in
the UK with RBSG's enormous power in the retail market.  Together we will set
new standards in UK bancassurance.'

Enquiries:

RBSG
Benny Higgins, Deputy Chief Executive, Retail Banking  Tel: [phone]
Chris Wermann, Deputy Group Director, Communications   Tel: [phone]

CGNU
Philip Scott, Executive Director UK Life               Tel: [phone]
Steve Riley, Investor Relations Director               Tel: [phone]


NOTES TO EDITORS

RBSG is a leading European financial institution and in March this year we
acquired NatWest.  Within the UK RBSG is number 1 in corporate banking, number
1 in private and offshore banking and number 2 in retail banking.  In the UK
RBSG has 15 million personal customers.

Contained within the Group there are a number of brands including The Royal
Bank of Scotland, NatWest, Direct Line, Lombard and Coutts.  In addition RBSG
has a number of joint venture relationships - Tesco, Virgin, Shell and
Scottish Power as well as a strategic alliance with BSCH.  In November 1999 a
strategic partnership in bancassurance. was announced with CGU (now CGNU)

CGNU was formed by the merger of CGU and Norwich Union, which completed on 30
May 2000.  CGNU is the largest UK based insurance group and a top five
European life insurer with worldwide premium income and retail investment
sales of £26bn.  It is the second largest UK based fund manager with over
£200bn of assets under management.