Strengthening of market position in the US and in UK
Zurich, March 20, 2001. - With two new strategic partnerships with banks in the US and in UK, Zurich Financial Services (Zurich; ticker symbol ZURN) is emphasizing its focus on strengthening its consumer business in key markets. Through these alliances Zurich will gain access to a large potential of new customers. At the same time these partnerships will allow Zurich to provide comprehensive insurance and banking services. They will consist of all non-life and life products, pension care solutions and asset management solutions as well as banking services for retail customers. With these alliances Zurich gets closer to strongly increasing its customer base and its offerings of products and services to its clients without having to build up new and costly infrastructures.
Farmers Insurance Group and Bank of America have agreed upon a significant strategic alliance to develop and market integrated insurance and banking solutions. The alliance will begin in several markets as part of phase 1 starting in July of this year. It will leverage the large distribution networks of both organizations which include Bank of America's 4400 retail banking centers, 13,000 ATMs and the Farmers' network of 17,000 exclusive and independent agents. Through these two distribution networks they can reach more than 37 million households in the US, which makes up more than three times Farmers' current customer base.
In the UK, Zurich Financial Services last Friday announced the plan of a major joint venture with Bank of Scotland in which each partner will take a 50% stake, subject to regulatory approval. This joint venture plans to offer bank accounts, personal loans, mortgages and credit cards under the Zurich brand. It also plans to provide banking services through Zurich's personal financial portal which will launch this summer.
