CGNU to Exit Pakistan

CGNU PLC
16 July 2001



                                                                16 July 2001


CGNU to exit Pakistan

CGNU plc ('CGNU') has agreed the sale of its general insurance business in 
Pakistan and its 51% stake in Commercial Union Life Assurance Company 
(Pakistan) Limited both to Old Mutual plc.

The exit is in line with CGNU's strategy of withdrawing from markets where 
it does not have sufficient scale to generate satisfactory returns for its 
shareholders.

The combined net assets of these businesses were £3 million at 
31 December 2000.

The sale is subject to regulatory approval and is expected to complete 
in the third quarter of 2001.

Enquiries:

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

Media
Hayley Stimpson, Director of External Affairs     [phone]
Stuart Blackmore, Financial Dynamics              [phone]


Notes to editors:

*  CGNU is the world's sixth-largest insurance group and the largest insurer 
   in the UK. It has worldwide premium and investment sales from ongoing  
   business of £27 billion and more than £210 billion in assets under
   management.
*  The  most recent financial reports are available on the Group's website, 
   www.cgnu-group.com