CGNU - South African GI Sale

CGNU PLC
15 August 2000


CGNU SOUTH AFRICAN GENERAL INSURANCE BUSINESS SALE

Following the announcement of 30 June 2000, the terms have
been agreed for the sale of CGNUs 51% stake in its South
African general insurance business, CGU Holdings Ltd
('CGUH'), to Mutual & Federal Insurance Company Limited.

Based on 50,000,000 CGUH shares in issue, the offer price is
R24.12 per CGUH share.  This represents a premium
of 56% to the weighted average closing price of R15.49 per
CGUH share over the 30 trading days leading up to the 30 June
2000.



Enquiries:

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

Media
Alex Child-Villiers, Financial Dynamics
[phone]



Notes to Editors

CGNU plc is the UKs largest insurance group and the
worlds sixth largest insurer based on gross worldwide
premiums.  The group was created from the merger of CGU
and Norwich Union on 30 May 2000.