Joint Venture

CGU PLC
28 July 1999
                                      

Not for release, publication or distribution in or into the United States of
                     America, Canada, Japan or Australia
                                      
                            CGU plc
                                      
  Discussions in relation to a bancassurance joint venture with Societe
                            Generale
                                      
CGU  announces that it has conducted preliminary and exploratory  discussions
with  Societe  Generale on forming a bancassurance joint venture  in  France.
This would have included the existing general insurance joint venture between
the  partners.   The  two  groups  also explored  bancassurance  distribution
opportunities  in  other  European countries.  These  discussions  have  been
terminated  pending  the  resolution of the hostile  BNP  offer  for  Societe
Generale.  CGU may seek to reopen these discussions at a later date when this
uncertainty has been resolved.

The  discussions built on the success of Sogessur, the existing joint venture
between CGU and Societe Generale to sell general insurance products via  bank
distribution.   CGU  continues to believe that in some  countries,  including
France,  bancassurance agreements offer an attractive means  to  combine  its
expertise in structuring and underwriting general and life insurance products
with   the  extensive  distribution  available  through  retail  bank  branch
networks.

In   addition  to  its  existing  joint  venture,  CGU  has  a  long-standing
relationship  with  Societe  Generale.  CGU  currently  owns  3.1%   of   the
outstanding share capital of Societe Generale, and CGU or its predecessor has
held a seat on the Societe Generale Board since 1987.  In the context of  the
current  hostile bid, CGU may purchase additional shares of Societe  Generale
to protect its commercial relationship with Societe Generale.

Enquiries:

Peter Foster, Group Finance Director                Tel.:[phone]

The  contents  of  this  document, for which CGU is  responsible,  have  been
approved  by J. Henry Schroder & Co. Limited, a member of The Securities  and
Futures  Authority Limited, for the purposes of section 57 of  the  Financial
Services Act 1996

J.  Henry  Schroder & Co. Limited ('Schroders'), which is  regulated  in  the
United  Kingdom  by The Securities and Futures Authority Limited,  is  acting
exclusively  for  CGU  plc  and  no  one  else  in  relation  to  this  press
announcement  and will not be responsible to anyone other than  CGU  plc  for
providing the protections afforded to customers of Schroders