IFA Joint Venture with The Woolwich

Woolwich PLC
2 November 1999


THE WOOLWICH AND MMC TO ESTABLISH IFA JOINT VENTURE

Woolwich plc and Marsh & McLennan Companies, Inc. (MMC) have agreed to
establish a 50-50 joint venture company which will acquire the business of
Sedgwick Financial Services Limited (SFS).  The transaction is conditional on
approval by the Personal Investment Authority.  MMC acquired SFS when it
bought The Sedgwick Group in November 1998.  

The new company, called Sedgwick Independent Financial Consultants Limited,
will have some 145 Registered Intermediaries and will focus on advising
clients gained through corporate and professional connections.  It will
complement The Woolwich's existing IFA business, Woolwich Independent
Financial Advisory Services (WIFAS), which has more than 200 Registered
Intermediaries advising personal clients gained predominantly through the
bank's branch network.

A spokesman for MMC, David Strauss, who will be a director of the new company
said: 'Woolwich is a strong company with a clear strategy and has shown that
it can run a successful IFA business. The joint venture offers the opportunity
to maintain relationships with corporate clients and professional connections
and to share expertise and best practice.'

Lynne Peacock, Woolwich group operations director added  'The joint venture
will help to ensure that for clients the change of ownership will be seamless.
For The Woolwich it provides the opportunity to develop an IFA business that
will be complementary to WIFAS, providing access to corporate and professional
markets and greatly increasing our presence in the IFA sector.'

The managing director of Sedgwick Independent Financial Consultants will be
John Dick, currently one of The Woolwich's three divisional managers with
responsibility for its branch network.  He will be supported by a team drawn
from the existing SFS team and senior operational staff from WIFAS. 

Approval has been sought from the Personal Investment Authority for the
authorisation of the joint venture company.  Sedgwick Financial Services will
continue to trade without change until the application for Sedgwick
Independent Financial Consultants is determined.  Book net assets and
regulatory capital provided by the joint venture partners on establishment is
expected to be £5 million. 

Woolwich plc has been advised by Credit Suisse First Boston (Europe) Limited,
MMC has been advised by Donaldson, Lufkin & Jenrette International. 

Credit Suisse First Boston (Europe) Limited is acting exclusively for Woolwich
plc and no one else in connection with this transaction and will not be
responsible to anyone other than Woolwich plc for providing the protections
afforded to customers of Credit Suisse First Boston (Europe) Limited or for
giving advice in relation to the transaction.

Donaldson, Lufkin & Jenrette International is acting exclusively for Marsh &
McLennan Companies, Inc. and no one else in connection with this transaction
and will not be responsible to anyone other than Marsh & McLennan Companies,
Inc. for providing the protections afforded to customers of Donaldson, Lufkin
& Jenrette International or for giving advice in relation to the transaction.


NOTES

This is the third joint venture announced by The Woolwich this year.  

* In February The Woolwich announced a joint venture with Countrywide Credit
Industries Inc., the leading US mortgage processor. The venture, Global Home
Loans, will provide cost-effective and efficient mortgage processing services
to Woolwich and will, in due course, provide these processing service to third
parties.

* In July, The Woolwich announced a £5 million joint venture with the retail
and home shopping group, Littlewoods, to provide financial services products
to Littlewoods' home shopping customer base of some 3.5 million with whom
Littlewoods has an existing financial relationship. This venture allows The
Woolwich to broaden significantly its distribution base without expensive
customer acquisition costs.

* In the past The Woolwich has also established successful joint ventures in
the life and general insurance fields with Legal & General and Royal &
SunAlliance.

* Woolwich Independent Financial Advisory Services (WIFAS) was established in
1989 with the aim of providing advice on investment and pension opportunities
to complement the service offered by The Woolwich's branch network.  In 1998
WIFAS recorded a 38% increase in income to £26 million and for the first half
of 1999 it earned £24.6 million.

* Sedgwick Financial Services (SFS) is one of the UK's largest firms of
independent financial advisers. Originally established in the 1960s as part of
the Noble Lowndes Group, it provides a broad range of personal financial
planning services to more than 100,000 individual clients. The company
currently operates from 24 office locations nationwide, and employs over 140
PIA registered individuals.

* SFS has been registered under ISO 9001 since 1993 and was re-accredited last
year. Customer satisfaction questionnaires in the last year have shown that
over 95% of respondents believe the services they received were either very
good or excellent.

* This year, SFS won the Money Marketing Best Technology IFA of the Year Award
and was runner up in a number of other categories.

* Specific services include planning and advisory services in the areas of
savings and investments, pensions, life assurance and income protection,
pensions, taxation and mortgages.


Inquiries



Woolwich:
Hilary McVitty Tel [phone]
Rob McIvor Tel [phone]

MMC:  
Byron West Tel [phone]