Acquisition of 50% Interest in IQUO

CGU PLC
8 March 2000


CGU STEPS UP E-COMMERCE DEVELOPMENT WITH 50 % STAKE IN ON-LINE SYSTEM PROVIDER
IQUO


CGU plc, the largest insurance company in the UK, today announces the
acquisition of a 50 per cent stake in on-line insurance system provider IQUO.
The move is part of a continued strategy to become a leading force in the
field of e-commerce, enabling CGU Insurance, the UK general insurance arm of
CGU plc,  to access systems and experience that will increase the speed to
market by which e-commerce development can be implemented across its business.


Phil Loney, UK Executive Director at CGU Insurance commented: 'The acquisition
of a 50 per cent stake in IQUO is another piece in our strategy to capitalise
on e-commerce opportunities throughout our business and follows the formation
of our e-venture business Siliconwharf of which the on-line auction portal
bluecycle.com is the first fruit.'


CGU Insurance and IQUO will work together to develop general insurance
solutions which can then be sold to CGU's Corporate Partners and other
insurance providers on the internet. Hence CGU will generate revenues by
providing the infrastructure for insurance to be bought, sold and serviced
over the World Wide Web.


Phil Loney and Mike Maher, Director of Strategic Systems at CGU Insurance join
the board of IQUO alongside current Managing Director, John McLaughlin. Under
the terms of the agreement, CGU Insurance has an option to acquire the
remaining 50 per cent of IQUO in four years time.


John McLaughlin, Managing Director of IQUO, welcomed the partnership: 'We are
delighted to be entering this venture with CGU Insurance. It will enable us to
take significant steps forward in the development of the business and utilise
the growing potential of e-commerce whether it be through the internet,
digital TV or telecommunications.'

The price of the deal is immaterial in the context of the Group's assets.


For further information contact:

Media
Ian Frater
020 7662 8221

Analysts
Steve Riley
Head of Investor Relations


Notes to Editors
                                                                              
1.       IQUO Limited use 'SilverScreen' one of the most advanced software    
         packages to provide competitive personal insurance products to       
         consumers via the World Wide Web.                                
                                                                              

2.       Website address for IQUO is www.yourinsurancenow.co.uk