CGNU Nears Sale of U.S., Polish Units

September 21, 2000

According to the Financial Times CGNU is close to concluding a deal for its U.S. property/casualty business to White Mountains Insurance Group, a Bermuda based holding company which operates insurance subsidiaries in the U.S.

The report also indicated that CGNU was prepared to accept a lower offer than it had hoped for, under the £2 billion ($2.8 billion) net asset value, as a consequence of the depressed state of the U.S. p/c market and its desire to transfer all of the business to the buyer.

In another transaction Finland’s largest insurer, Sampo, became the successful bidder for two CGNU Polish subsidiaries. It will pay €189 million ($160.65 million) for Powszechne Towarzystwo Emerytaine Norwich Union, Poland’s 5th largest pension insurer, and €47.5 million for ($40.38 million) for Norwich Union Towarzystwo Ubezpieczen na Zycie, a life insurer.

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