CGNU plc ("CGNU") has agreed the sale of its German general insurance business, General Accident Versicherungs AG ("GAVAG") to Gerling-Konzern Lebensversicherungs-AG.
CGNU plc ("CGNU") has agreed the sale of its German general insurance business, General Accident Versicherungs AG ("GAVAG") to Gerling-Konzern Lebensversicherungs-AG.
This followed a strategic review, which concluded that the business lacked the platform and scale to generate satisfactory returns for CGNU shareholders.
In 1999, GAVAG had net premium income of Ł96m and net assets of approximately Ł25m. The sale is subject to regulatory approval and is expected to complete before the end of 2000.
CGNU will continue to focus on developing its long term savings business in Germany through its life subsidiary, Berlinische Lebensversicherung.
Enquiries:
Media
Alex Child-Villiers
Financial Dynamics
+ 44 (0)20 7269 7107
NOTES TO EDITORS
- CGNU was formed by the merger of CGU and Norwich Union, which completed on 30 May 2000.
- CGNU is the largest UK based insurance group and a top five European life insurer with worldwide premium income and retail investment sales of Ł26bn. It is the second largest UK based fund manager with over Ł200bn of assets under management.
- Premiums have been converted at Ł1=DM2.98 (1999 average rate of exchange) and net assets at Ł1=DM3.14 (1999 closing rate).