Subsid's Acquisition

CGNU PLC
26 June 2000


CGNU's Irish subsidiary, Hibernian Group plc, has announced the acquisition of
the personal lines general insurance business of Friends First Group in
Ireland.

The Hibernian Group is Ireland's leading composite insurer.  Including this
acquisition, it will have a 26% market share of the consolidating general
insurance market.

The consideration is not material in the context of the net assets of CGNU
plc, and the deal is subject to contract and regulatory approval.


Enquiries:

Analysts/investors
Steve Riley              Investor Relations Director       [phone]

Media
Alex Child-Villiers      Financial Dynamics               [phone]


NOTES TO EDITORS

* CGNU is the largest UK based insurance group and a top five European life
insurer with worldwide premium income and retail investment sales of £26bn. 
It is the second largest UK based fund manager with over £200bn of assets
under management.

* The general insurance portfolio being acquired from Friends First Group has
approximately 66,000 motor and 27,000 household policies.  Net written
premiums totalled IR£24m in 1999.