CGNU - Bancassurance in Italy

CGNU PLC
22 February 2001



CGNU ANNOUNCES MAJOR NEW BANCASSURANCE ARRANGEMENT IN ITALY

CGNU plc ('CGNU') today announces a major new distribution arrangement with 
UniCredito Italiano ('UCI'), a leading Italian bank.

With immediate effect CGNU's subsidiary CU Vita will provide life and savings 
products for distribution by Cassa di Risparmio di Torino ('CRT'), a 
wholly-owned subsidiary of UCI.  CRT is the market leading savings bank in 
the north-western province of Piemonte.

The distribution arrangement covers over 500 branches with 1.4 million 
customers and will extend CGNU's bank distribution power in Italy to over 
2000 branches by the end of 2001.

Tony Wyand, group executive director for CGNU said: 'In the Italian life 
market where bancassurance distribution accounts for over 70 per cent of 
new business sales, this new arrangement is an important further step for us 
and confirms our close relationship with UCI.  The substantial new business 
flows we expect from this arrangement will be administered through our 
existing efficient bancassurance operation.'



Enquiries:
Analysts/investors:
Steve Riley, Investor Relations Director      [phone]

Media:
Hayley Stimpson, Director of External Affairs [phone]
Alex Child-Villiers, Financial Dynamics       [phone]


Notes to editors:

CGNU 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 has the following distribution arrangements with banks in Italy:
* Over 1200 branches of Banca Popolare di Lodi.  The initial arrangement of 
  250 branches from March 1998 is being extended to further branches          
  throughout 2001.
* 300 branches of Banca delle Marche, from September 1999.