CGNU Sells CGU Courtage

CGNU PLC
13 March 2002



13 March 2002 

CGNU sells CGU Courtage in France

Following its announcement on 4 January 2002 of exclusive
discussions with Groupama, CGNU plc confirms that CGU France has
agreed the sale of CGU Courtage to Groupama.

CGU Courtage is a general insurance commercial lines business
distributed through brokers and had net written premiums in 2001
of  Euros 378 million. Net assets at 31 December 2001 were Euros
228 million. The profit on sale is expected to be Euros 10 million 
after taking account of transaction costs, warranties and indemnities.

This completes the strategic re-orientation of our business in
France to focus on long-term savings and personal and small
commercial lines general insurance.  CGU France operates in the life 
market in France through Abeille vie, which had Euros 3.2 billion of new
business in 2001, and will continue to operate in general insurance through
Abeille assurances (tied agency distribution) and Eurofil (tele-direct). 
These businesses are complemented by Victoire Asset Management, our
award winning investment management company in France.

As part of the sale, the participation of CGU Courtage in the
aviation and space pools, La Reunion Aerienne and La Reunion
Spatiale, will transfer to Groupama.  In addition Abeille
assurances has resigned its membership of La Reunion Aerienne and 
La Reunion Spatiale with effect from 31 December 2002 and has reinsured 
its 2001 and 2002 participations.

The transaction is subject to regulatory approval and completion
is expected in the first half of 2002.

Enquiries:

Analysts/Investors:
James Matthews, Head of Investor Relations        [phone]

Media:
Ian Frater, Head of External Affairs              [phone]
Alex Child-Villiers, Financial Dynamics           [phone]


Notes to Editors

*  Total general insurance net written premiums in France, in 2001, were
   Euros 1,129 million

*  CGNU is the world's seventh-largest insurance group and the largest
   insurer in the UK. It has worldwide premium and investment sales from      
   ongoing business of more than £28 billion, and over £200 billion in 
   assets under management at 31 December 2001.
   
*  The most recent financial reports are available on the Group's website,
   www.cgnu-group.com






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