Talks re Possible Disposal

CGNU PLC
4 January 2002

                                                                4 January 2002

CGNU in exclusive talks to sell CGU Courtage in France

CGNU plc announced on 8 October 2001 that CGU France was beginning a process
to find a buyer for CGU Courtage, its general insurance commercial lines
business distributed through brokers.

CGU France has now entered into a period of exclusive discussions with
Groupama and a further announcement will be made in due course.


Enquiries:

Analysts/Investors:

Steve Riley, Investor Relations Director           [phone]

Media:

Hayley Stimpson, Director of External Affairs      [phone]

Alex Child-Villiers, Financial Dynamics            [phone]



Notes to Editors

  * CGU France will continue to operate in personal lines and small
    commercial lines general insurance through Abeille assurances.

  * CGU France also has long-term savings and asset management businesses in
    France operating through Abeille vie and Victoire Asset Management.
  * CGNU is the world's seventh-largest insurance group and the largest
    insurer in the UK. It has worldwide premium and investment sales from
    ongoing business of £27 billion, and more than £200 billion in assets
    under management at 30 June 2001.

  * The most recent financial reports are available on the Group's website,
    www.cgnu-group.com