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Norwich Union has cut its rates in both Term Assurance andMortgage Protection products with critical illness options witheffect from 29th November 2000. Mortgage Protection with CriticalIllness has been reduced by up to 20%* and Term Assurance withCritical Illness has been reduced by up to 15%*.

This latest cut comes in addition to a reduction of up to 25% interm assurance and mortgage protection rates, announced on 1November 2000, and is supported by a market leading MortgageRepayment Guarantee on the Mortgage Protection product designed togive customers peace of mind.

The guarantee means that, provided the loan interest rate is 10%or lower when the mortgage is taken out, Norwich Union guaranteesthere will never be any loan outstanding should a claim arise**.This effectively ensures that policyholders will not have to worryabout higher interest rates in the future.

The Critical Illness component ensures that mortgage protectionand term assurance benefits will also be payable to policyholderswho develop a specified critical illness.
It is a clear demonstration of Norwich Union's commitment toprovide first rate value for money and market-leading premiums.

Commenting on the rate cuts, John Enos, Director of IFA Sales,said:

"Our commitment to this market is demonstrated in our activemonitoring of the market place, supported by our established andrapid re-pricing process."

"In creating the number one company, we're continually drivingdown costs by investing in state-of-the-art systems and introducingfirst class product support services."

-ENDS-

Notes to Editors

1. 1. Norwich Union is the UK life and general insurance tradingbrand of holding company, CGNU plc, which was created from themerger between CGU and Norwich Union on 30 May 2000.
2. 2. Norwich Union is the UK's largest life and pension company(based on 2000 new premium income).
3. 3. Norwich Union IFA extranet site:www.norwich-union.co.uk/ifa

* Some rates may be subject to increases.

** How the guarantee works:

The policy contains a schedule of sums assured reducing eachyear at an assured rate of 5% p.a. However, in the event of aclaim, where the amount shown in the schedule is lower than theoutstanding mortgage, the policy guarantees to pay off the balanceof the mortgage on death of the life insured (or satisfactorydiagnosis of terminal illness or critical illness), during thepolicy term, regardless of any increase in mortgage interest rates,provided that:

• The mortgage interest rate was no more than 10% when thepolicy commenced
• The initial sum insured was not less than the amount of themortgage when the policy was taken out
• The amount and term of the mortgage have not changed (exceptwhen the policy has been amended in line with the new mortgagedetails)
• Mortgage repayments are up to date
• Premiums have been maintained

Full written details are available on request

Press Office contacts:

Ian Frater - 01904 452791

Helen Murray-Wells - 01904 452617

Out of hours - 07889 995726