Unaudited Results - 6 months ended 30 June 2000

Bob Scott, Group Chief Executive, commented:

"Following the merger of CGU and Norwich Union completed in May this year, integration of the business is moving ahead rapidly. CGNU is the world's sixth largest insurance group, a top-five European life insurer and the UK's largest insurance group. Our general insurance business results were disappointing and we continue to take the necessary steps to improve profitability. Our life and savings business in the UK and Continental Europe made excellent progress in the half year as well as achieving a number of significant new distribution agreements."

• Operating profit before tax, including life achieved profit, of Ł800 million (1999: Ł853 million) is after a Ł41 million charge for developing our e-enabled UK wealth management service. On a modified statutory basis operating profit before tax was Ł652 million (1999: Ł796 million).
• Life achieved operating profit up 24% to Ł754 million, with improvements in all our major European businesses.
• General insurance operating profit of Ł327 million was disappointing reflecting late notified claims from the December 1999 storms in France of Ł90 million and an increase in large claims.
• Worldwide new business sales rose to Ł6.1 billion, up 18%.
• Increasing distribution strength through alliances in the UK with Royal Bank of Scotland and Tesco and with Bancaja in Spain and Banca Popolare di Lodi in Italy.
• Merger integration proceeding rapidly, increased estimate of pre-tax annualised savings from Ł250 million to Ł275 million.
• Interim dividend 14.25 pence net per share.

Enquiries:

Bob Scott - Group Chief Executive
Telephone +44 (0)207 662 2003

Richard Harvey - Deputy Group Chief Executive
Telephone +44 (0)207 662 2286

Peter Foster - Group Finance Director
Telephone +44 (0)207 662 2007