Argus Acquires Aviva's Property & Casualty Portfolio In Bermuda

(Hamilton, Bermuda, December 7, 2004) - The Argus Group ("Argus") today announces that it has signed an agreement with Aviva plc, the world's fifth largest insurance company, to acquire the Bermuda portfolio of CGU International Insurance plc ("CGUII").  The portfolio, which comprises property and casualty insurance in Bermuda, is currently managed by Centurion Insurance Services Limited, ("Centurion"), a wholly owned subsidiary of the Argus Group.

Under the terms of the agreement, Argus will acquire the assets and liabilities of the portfolio in Bermuda and the business currently transacted by CGUII in Bermuda will transfer to Argus on the completion date. Centurion will continue to manage the business as in the past and there will be no change to the service provided by Centurion to its clients, save that the insurance carrier will be Argus instead of CGUII. Centurion employs five people and there will be no redundancies as a result of the acquisition.

Gerald Simons, President and Chief Executive Officer of the Argus Group, is delighted with the acquisition.  He said:

"The acquisition of this portfolio is a natural progression for the Argus Group as we currently manage the business.  By purchasing the portfolio from CGUII we will further strengthen our position as Bermuda's largest local provider of insurance and pension administration services.  Centurion will be in contact with each of its clients to provide them with additional information and to assure them that they will receive the same service as they currently enjoy and to answer any questions they may have."

Ian Nelson of Aviva commented:

"We are very pleased with the agreement we have come to with Argus. Aviva has had an excellent relationship over the past decade with the Argus Group. It makes good sense for the Bermuda portfolio of CGUII to be owned by the same company that already manages it."

The acquisition is expected to be completed on December 31, 2004.

Notes to Editors

Argus Insurance Company Limited and its subsidiaries (The Argus Group) is the largest Bermuda-owned insurance company.  The first company in the Group was founded in 1950.  Argus writes most classes of insurance through specialised property, life and health insurance companies; it is the leader in group health insurance and pension plans in Bermuda.  The Argus Group is rated "A" Excellent by the insurance rating agency, A. M. Best.

Aviva is the world's fifth-largest insurance group.  Its main activities are long-term savings, fund management and general insurance. It has premium income and investment sales from continuing operations of about £30 billion and over £240 billion of assets under management. The group, which has 51,000 employees serving 30 million customers worldwide, was formed in 2000 by the merger between CGU plc and Norwich Union plc.  Commercial Union has been represented in Bermuda since 1883.

For further information, log on to www.argus.bm