CGNU Bancassurance in Italy

CGNU PLC
26 July 2000


CGNU extends bancassurance distribution in Italy

CGNU announces that it has extended its life and pensions distribution 
through the expanded branch network of Banca Popolare di Lodi ('BPL') 
in Italy.

BPL has grown significantly in recent years and this distribution deal 
would expand and give exclusive access to a total branch network of over 
1,200, up from 250 in the original agreement established in 1998.

As part of the agreement, CGNU will increase its investment in the BPL
Group to some £140m.


Enquiries

Steve Riley                                   020 7662 8115
Investor Relations Director



NOTES TO EDITORS

* Over 50% of new business sales are through bancassurance distribution 
  in Italy.

* CGNU is the largest UK based insurance group and a top 5 European 
  life insurer with worldwide premium income and investment sales of £26bn.  
  It is the second largest UK based fund manager with over £200bn of assets 
  under management.