CGNU sells Portugese Gen Ins.

CGNU PLC
18 February 2002


CGNU sells its Portuguese general insurance business

CGNU plc ('CGNU') has agreed the sale of its Portuguese general insurance 
operation, a branch of CGU International Insurance plc (CGUII), to Victoria 
Seguros SA, a subsidiary of the Ergo Group. The net asset value of the 
business as at 31 December 2000 was Euros 4.6 million.

CGUII's Portuguese branch is a general insurer focused on personal lines. 
In 2000 it had gross written premiums of Euros 21 million.

The disposal is consistent with CGNU's strategy of building top five positions
in its chosen markets and withdrawing from operations where it does not have
sufficient scale to achieve this.

The transaction is subject to regulatory approval and is expected to complete 
in the second quarter of 2002.

Enquiries:

Analysts/Investors
Steve Riley, Investor Relations Director, CGNU   [phone]

Media
Ian Frater, Head of Group Media Relations, CGNU  [phone]

Alex Child-Villiers, Financial Dynamics          [phone]


Notes to editors
*  CGNU plc is the world's seventh largest insurance group and the largest 
   insurer in the UK





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