6 Mths Business Fig's-Amendmt

CGU PLC
28 July 1999


The headline for the CGU PLC announcement released today should read
'6 Months Business Figures'.

The full text shown below remains unchanged.


                                   CGU plc
                     WORLDWIDE LIFE & SAVINGS NEW BUSINESS
                            FIRST 6 MONTHS OF 1999

 *    Worldwide new business increased by 29% to £3,741m.
 
 *    New annual premiums up 17% to £239m.
 
 *    Single premium sales 28% higher at £3,019m.
 
 *    PEP, ISA, unit trust and UCITS sales up 44% to £483m.

 *    Exceptional pensions success in Poland.

Bob Scott, Group Chief Executive, commented:

'The  group's UK and Continental European life and savings businesses
produced another excellent performance with new business sales 29% higher
at £3.7bn.

In the UK, total sales rose by 36%.  CGU Life has one of the strongest
financial positions in the market, is among the lowest cost operators and is
well placed for the introduction of stakeholder pensions.  ISA sales have
made a good start and were ahead of PEP sales in the month of June of last
year.  In Poland, we expect to achieve a market share in excess of 25% in
the new pensions market, which will boost annual premium sales by over £250m
as contributions are re-directed from the state scheme over the next year.

We are well placed to capitalise on the growing awareness among consumers
in the UK and Continental Europe of the need to save for their retirement.'

Enquiries:
Peter Foster, Group Finance Director         Telephone [phone]
Robbie Graham, Director of Life Development  Telephone [phone]

UK Press:
Ian Harper, Public Relations Manager         Telephone [phone]
                                             Mobile    [phone]

                   New single       New annual          PEPs/ISAs
                    premiums        premiums          unit trusts      TOTAL
                                                       /UCITS (ii)
                         Local            Local              Local     Local
               6 mths currency  6 mths currency    6 mths currency  currency
                 1999   growth    1999   growth      1999   growth    growth
                   £m        %      £m        %        £m        %         %

United Kingdom  1,335       32      82       (6)      427       62        36
France            652       17       7       11                           17
Netherlands       167       11      38       19                           13
Other  Europe
- Italy           615       23      36       23                           23
- Poland            6      119      34       24                           32
- Germany          67      n/a      15      n/a                          n/a
- Other            74      148       5       29        56     (21)        29
Rest of World     103        1      22       21                            4
                -----      ---     ---      ---       ---     ---        ---
TOTAL           3,019       28     239       17       483      44         29
                -----      ---     ---      ---       ---     ---        ---

Notes:
(i)   Average exchange rates used and  premiums are gross of reassurance.
(ii)  UCITS are collective investments sold throughout Europe and Asia.
(iii) 1998 figures exclude sales from discontinued business.

UK :  CGU Life's total sales of new life, pensions and investment business
rose by 36%  to £1.8bn in the first half of 1999, with strong and profitable
growth through our multi-distribution network. In terms of NAPI (new annual
premiums plus a tenth of new single premiums and investment products), new
business increased by 21% to £258m.

CGU  Life has wide distribution capability, with a strong presence in the
IFA market, 18 tied building society partners, a 375 strong estate agency
network and a direct marketing channel.  NAPI sales through IFAs were 14%
higher and sales through our other channels increased by 37%.  We were
recently  awarded 'Best Life Sales Force of the Year' at the British
Insurance Industry awards.

New life single premiums were 32% higher at £1,335m, boosted by strong
sales of our flagship investment product, the Portfolio Bond, which achieved
sales of £921m in the first half, up 46% on 1998.  New single premium pension
sales were 23%  higher at £384m, including a 24% increase in individual
pensions  business to £202m and increased sales of group pensions business,
22% higher at £182m.

Annual premium pension sales rose by 6% to £55m in the first half of the
year, with individual pension business 14% higher at £33m, while group
pensions sales of  £22m  were at a similar level.  This was against a
background of lower personal pension  sales for the industry as a whole in
the first quarter and reflects the positive response from our customers to
our clear 'no penalty transfer' stance on stakeholder pensions.  Overall,
new annual premiums were 6% lower,  with reduced sales of mortgage endowment
products.  Sales of  mortgage protection products improved in the second
quarter, following the repricing  of the product range.

New investments into PEPs, unit trusts and the new ISAs rose 62% to £427m.
ISA sales  have  increased  steadily since their launch in April,  with over
£83m invested to date. Sales of £38m in June 1999 were ahead of PEP sales in
June last year.  The majority of ISA investment, some £79m, has been in the
maxi-ISA.

France  :  The strong improvement in performance continued, with single
premium sales up 17% to £652m, ahead of the market growth of around 10%.
These sales were boosted by a 66% increase in AFER sales to £351m (excluding
£56m in unit-linked  AFER  sales),  underpinned by the product's strong
performance  record.  Total sales of unit-linked (including unit-linked AFER
sales) and other savings products improved in the discrete second quarter,
following a reduction in  the first  quarter due to a strong performance in
1998.  Abeille vie is  continuing its  focus  on  the important areas of
retirement planning and protection,  and will be launching new products to
target these markets later this year.

Netherlands  :  New annual premiums were 19% higher at £38m, reflecting good
growth in pensions business and a 36% increase to £8m in sales of Delta Life,
our  unit-linked universal life policy.  Single premiums were up 11% to 
£167m, following the acquisition of a new group pension scheme in the
first quarter.

Italy : Annual premium new business was up 23% at £36m, reflecting strong
sales of our unit-linked product range.  Single premiums were also  23%
higher at £615m, following buoyant sales in the second quarter.

Excellent  sales  from  our  bancassurance arrangement with Credito Italiano
continued  through to the end of our distribution agreement in June  1999.
We are rolling out another bancassurance arrangement with Banca Popolare di
Lodi through its 250 strong branch network and sales have just commenced
through our latest  bancassurance  partner, Banca delle Marche,  which  has
a 220 branch network.  Together, they provide national coverage.  Backed by
a good brand and an excellent reputation for bancassurance, we are actively
looking  at opportunities to further develop our distribution in Italy.

Poland  :  CU Polska, Poland's second largest life company, has captured in
excess of 25% of the new privatised pensions market and is the leading
pensions player,  with over 1.3m pension applications received to date.
£2m of annual premium  pensions were included in the second quarter, with
substantial volumes expected in the second half, as pension payments are
re-directed from the state scheme.  New annual pension premiums will increase
by over £250m over the next year.

We have capitalised on the cross-selling opportunities provided by the new
private pensions,  with annual premium life sales up 18% to £32m and single
premium sales doubled to £6m.

Germany :  New  business is gaining momentum at Berlinische  Leben since we
acquired the company in July 1998.  Annual premium sales of £8m in the second
quarter,  making £15m for the first six months, were well ahead of last year.
Single  premium  sales  of £67m have more than doubled over the same period,
benefiting from strong pension and annuity sales in the first quarter.  The
development of Berlinische is focused on increasing  unit-linked and group
pensions business.

In Ireland, strong sales continued with single premium investment bond new
business  of £63m in the first half of 1999.  UCITS sales from our cross-
border marketing business in Luxembourg added £56m. Annual premiums more
than doubled to  £7m  in Turkey, reflecting strong sales from our growing
direct salesforce, and annual premium increased by 66% to £2m in Greece.

In the United States, new annual premiums were 10% lower at £11m, following
the exiting of certain group health business, due to limited  growth and
profit potential.  Single premium sales were similar to last year at £89m,
with good sales of a new deferred annuity product being offset by reduced
demand for immediate annuities.  In  Canada, new annual premiums were up
19% to £4m following good sales of protection products and single premiums
were 7%  higher at £14m, reflecting good annuity sales.

ASSET MANAGEMENT

CGU manages worldwide assets of around £125bn, making us one of the top 20
fund managers in Europe.

Strong investment performance supports the growth of funds under management
and in the UK, pension fund performance puts us in the top five best
performers over the last 5 years.

NOTES TO EDITORS

*  CGU is Europe's 5th largest insurance group and the largest in the UK
   (based on worldwide sales).

*  Life and savings represents around half of CGU's total business.

*  The geographical split of total life, pensions and retail investment
   sales for the 12 months to 30 June 1999 was:

                          %
      United Kingdom     50
      France             20
      Netherlands         6
      Italy              13
      Poland              1
      Germany             2
      Other Europe        4
      Rest of World       4
                        ---
                        100
                        ---

*  Distribution  of  UK  life and savings products using  NAPI  (new  annual
   premiums plus a tenth of new single premiums and investment products) for
   the first half of 1999 was:

                          %
   IFAs                  67
   Partnership/Direct    33
                        ---
                        100
                        ---

*   All growth rates are quoted in local currency.

*   CGU's 6 months 1999 results will be reported on 11 August 1999.

*   Results and corporate news releases are available on the Internet:
    www.cgugroup.com

             Worldwide life & savings new business - 6 months 1999

              New single premiums   New annual premiums        PEPs/ISAs
                                                               unit trusts
                                                               /UCITS (ii)

                            Local                 Local                Local
               6 months  currency    6 months  currency   6 months  currency
              1999  1998   growth  1999  1998    growth  1999  1998   growth
                £m    £m        %    £m    £m         %    £m    £m        %

United Kingdom
Individual
pensions       202   163       24    33    29        14
Group pensions 182   149       22    22    23        (4)
Mortgage         -     -        -    18    24       (25)
Other life     951   697       36     9    11       (18)
PEPs/ISAs/
unit trusts      -     -        -     -     -         -   427   264       62
             ----- -----      ---   ---   ---        ---  ---   ---      ---
             1,335 1,009       32    82    87        (6)  427   264       62

France
AFER (excl.
unit-linked)   351   207       66     -     -         -
Unit-linked
& other
savings        226   266      (17)    6     5        13
Group
protection
business        75    70        5     1     1         -
               ---   ---      ---    ---   --        --
               652   543       17     7     6        11

Netherlands
Individual
pensions        41    51      (21)    -     -         -
Group pensions  88    41      114     9     6        49
Universal life   8     8        2     8     6        36
Other
individual
life            24    42      (46)   18    17        (2)
Group life       6     5       19     3     2        46
               ---   ---      ---   ---   ---       ---
               167   147       11    38    31        19

Italy
Unit-linked    538   456       15    15     6       155
Savings,
protection
& other         77    32      134    21    23       (11)
               ---   ---      ---   ---   ---       ---
               615   488       23    36    29        23

Poland
Life &
savings          6     3      119    32    30        18
Pensions         -     -        -     2     -       n/a
               ---   ---      ---   ---   ---       ---
                 6     3      119    34    30        24

Germany
Life &
savings         17     -      n/a     7     1       n/a
Pensions & 
annuities       50     -      n/a     8     -       n/a
               ---   ---      ---   ---   ---       ---
                67     -      n/a    15     1       n/a

Other Europe
Life &
pensions        74    29      148     5     4        29
UCITS            -     -        -     -     -         -     56   68      (21)
               ---   ---      ---    --    --        --     --   --      ----
                74    29      148     5     4        29     56   68      (21)

United States
Life 
assurance        4     4       (3)    5     7       (30)
Pensions &
annuities       85    83        -     6     5         -
               ---   ---       --    --    --        --
                89    87        -    11    12       (10)

Other           14    13        7    11     6        88
             ----- -----       --   ---   ---       ---    ---  ---      ---
TOTAL        3,019 2,319       28   239   206        17    483  332       44
             ===== =====       ==   ===   ===       ===    ===  ===      ===

Notes:
  (i)   Average exchange rates used and premiums are gross of reassurance.
 (ii)   UCITS are collective investments sold throughout Europe and Asia.
(iii)   1998 figures exclude sales from discontinued business.