RNS Number:9221M
BRITANNIC GROUP PLC
30 June 2003


EMBARGOED UNTIL 7AM

30 JUNE 2003


                            BRITANNIC GROUP PLC
                         Sale of Britannic Money

Britannic Group plc ("the Group") today announces that it has agreed the sale of
Britannic Money, its wholly owned mortgage lending subsidiary, to the Paragon
Group of Companies for #19 million in cash, subject to adjustment to reflect net
assets at completion.  The transaction is expected to complete later today.

Britannic Money provides flexible residential and buy-to-let mortgages, which
are distributed predominantly via independent intermediaries.  The current
mortgage portfolio is #2.2billion, of which the majority is securitised.  For
the year ended 31 December, 2002, Britannic Money made a loss before tax of #5
million and had net assets of #42 million at the year end.

Britannic Money continues on course to achieve its break-even target this year. 
However, Britannic Money is no longer core to the Group's strategy.  In
addition, the mortgage market remains highly competitive and Britannic Money
lacks synergies with the rest of the Group, making it difficult for Britannic
Group to earn an acceptable return on the invested capital.

The transaction will result in a loss of approximately #25 million after
expenses.    Proceeds will remain as part of Shareholders' Retained Capital in
the Britannic Assurance Life Fund.   Following the sale, the Free Asset Ratio of
Britannic Assurance will be approximately 10.0% including implicit items and
6.7% excluding implicit items.   Since the beginning of the year the equity
exposure in Britannic Assurance's With Profit Fund has been reduced to 30%.

The Group will no longer publish new business figures separate from the normal
half yearly results announcement given the closure to new business at Britannic
Assurance.  Britannic Group's Interim Results will be announced on 2 September
2003.

Enquiries


Britannic Group plc              Telephone:      01564 204475
Paul Thompson


Citigate Dewe Rogerson     Telephone:      0207 638 9571
Anthony Carlisle
Stephanie Barrett (07939 123 220)




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