82NY Hsbc Bk. 24

RNS Number:5611X
Legal & General Group PLC
21 June 2002



                          Strategic Alliance Extended

Legal & General Group Plc ("Legal & General") and Barclays PLC ("Barclays")
today announce that they are extending their strategic alliance.

From 1 January 2003, Gresham Insurance Company Limited ("Gresham"), which is 90
per cent owned by Legal & General Insurance Limited ("Legal & General
Insurance") and 10 per cent owned by Woolwich plc ("Woolwich"), will provide
buildings and contents insurance to customers of Barclays Bank PLC ("Barclays
Bank"). Gresham already provides general insurance products to customers of
Woolwich, introduced to Gresham through the jointly owned distribution and
servicing company Woolwich Insurance Services Limited ("Woolwich Insurance
Services"), owned 90 per cent by Woolwich and 10 per cent by Legal & General
Insurance.

This extension of the relationship between Barclays Bank and Legal & General
builds upon both the success Barclays Bank has achieved in selling Legal &
General's savings and protection products to its customer base and the long
standing general insurance relationship between Legal & General and Woolwich.

Kate Avery, Group Director, Legal & General said:

"We are delighted that Barclays has decided to extend further our successful
alliance with them. Legal & General already provides Barclays with investments,
pension and protection products. This addition of household general insurance
products is, I believe, an important vote of confidence in Legal & General's
business and strategy."

Lynne Peacock, Chief Executive, Woolwich said:

"This is a natural extension to the existing relationship which Woolwich already
has with Legal & General but it marks an important step forward for Barclays
Bank and its customers. Barclays Bank will now have the same level of influence
in setting service standards as Woolwich has benefited from for several years. I
am confident that Barclays Bank customers will soon see the advantage of this
new agreement."

Enquiries:



Investors:

Cathy Turner
Head of Investor Relations
Barclays PLC
Tel: 020 7699 3638
Email: cathy.turner1@barclays.co.uk



Peter Horsman
Head of Investor Relations
Legal & General Group PLC
Tel: 020 7528 6362
Email: peter.horsman@group.landg.com



Media:

Perry Jones
Public Relations Manager
Barclays PLC
Tel: 020 7699 4077
Email: perry.jones@barclays.co.uk



John Morgan
Head of PR
Legal & General Group Plc
Tel: 020 7528 6213
Email: john.morgan@landg.com



Notes:

 1. Gresham is part of the existing joint venture arrangement between Legal &
    General and Woolwich, covering underwriting, sales and claims administration
    servicing, which was entered into in 1995, and which included arrangements
    under which one or both parties could in certain circumstances increase or
    reduce their shareholdings in Gresham or Woolwich Insurance Services, the
    two joint venture companies, either during or on termination of the joint
    venture (including on termination of the joint venture either party, in
    specified circumstances, exercising an option either to purchase the other
    party's shares in Gresham or to sell its shares in Gresham to the other
    party), and terms setting out the basis for calculating the price payable
    for shares bought and sold under those arrangements. Similar terms are
    contained within the new agreement with the price payable for shares either
    being based on underlying net asset value, or being calculated to give Legal
    & General an agreed rate of return on its investment in Gresham.


 2. Barclays and Legal & General announced on 16 January 2001 that they intended
    to form a strategic alliance under which Barclays Bank would sell Legal &
    General life, pensions (including stakeholder pensions) and investment
    products throughout its UK distribution network. Through its alliance with
    Barclays, Legal & General has access to 13 million customers. Barclays Bank
    and Woolwich each have around 300,000 household general insurance customers
    in the UK.

    Barclays subsidiary, Woolwich, announced on 10 July 2001 that it also would
    offer Legal & General branded life assurance products through its UK
    distribution channels. Woolwich said it would offer Legal & General's level
    and decreasing term assurance, critical illness cover and waiver of premium
    benefits through its branch network and call centres and via the Internet.


 3. In 2001, Legal & General generated £269 million of general insurance net
    written premiums. £77 million of household general insurance premiums were
    written by Gresham Insurance and £139 million by Legal & General Insurance
    Limited. The household account achieved an operating profit of £15 million
    (2000: £5 million) benefiting from a low level of bad weather claims.

    As at 31 December 2001 Gresham had net assets of £40 million. Gresham made
    profits of £8 million in the year ending on that date. It is anticipated
    that Gresham's capital base will be increased by around £30 million in 2003
    to accommodate the expected increase in premium volumes.
 4. Woolwich Insurance Services Limited was established in 1995. As an
    intermediary, the company's primary areas of business are the provision of
    home and family-related insurance services. The product portfolio includes
    buildings and the provision of home and contents, motor, pet, travel,
    healthcare and creditor insurance, with an ongoing remit to develop value
    added services and other relevant products in response to customer demand.





                      This information is provided by RNS
            The company news service from the London Stock Exchange

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