Merger between Zurich and the financial services business of B.A.T successfully completed to form Zurich Financial Services

Zurich/London, September 7, 1998 - Today’s merger of the Zurich Group with the financial services business of B.A.T Industries creates one of the world’s leading insurance and financial services organizations. The Zurich Financial Services Group, with headquarters in Zurich, Switzerland, employs over 68,000 people and serves more than 30 million customers in over 50 countries. In addition to the former Zurich Group, the new organization comprises Eagle Star, Allied Dunbar and Threadneedle along with their subsidiaries, and the Farmers Group in the USA.

Shares of both holding companies, Zurich Allied AG and Allied Zurich p.l.c. will start to trade on Tuesday, September 8 on the Swiss and the London Stock Exchange respectively. Until further notice, the shares of Zurich Insurance Company that have not yet been exchanged will continue to be listed on the Swiss Exchange; Zurich Allied AG, however, retains the right to delist and invalidate Zurich shares. Zurich Allied AG is replacing Zurich in the Swiss Market Index (SMI), which represents the 23 most important Swiss companies listed on the Swiss Exchange. Allied Zurich p.l.c. is included in the FTSE-100 Share Index in London. The Zurich Financial Services Group will be a significant factor in both of these equity markets. The dual listing structure will enable Swiss and UK shareholders to hold their interest in the Zurich Financial Services Group through shares quoted and traded in their respective local currency.

The Zurich Financial Services Group will have a strong presence in each of its three home markets, Switzerland, the United Kingdom and the United States. It is the largest Swiss based insurance group, the third largest non-life insurer in the UK and the third largest property and casualty writer in the USA. The Group will be one of the world’s top ten asset managers with some USD 375 billion in assets under management.