Attachment to the news release of Zurich Financial Services dated October 16, 2000: "Allied Zurich Tender Offer successfully completed"

Attachment to the news release of Zurich Financial Services dated October 16, 2000: "Allied Zurich Tender Offer successfully completed"

Flowback management and repurchase programs

Under the share flowback and repurchase programs for up to CHF 1 billion and USD 1 billion which have been authorised by the board of directors of Zurich Allied AG and the shareholders' meeting of Allied Zurich p.l.c. respectively a total amount of approximately CHF 1.6 billion remains unused.

Based on pronouncements of the Swiss Takeover Commission of April 28, 2000 and October 13, 2000 and the necessary internal approvals Zurich Allied AG and Zurich Financial Services are authorised to use up to CHF 1.6 billion for flowback and share repurchases until December 31, 2000 under the following rules:

In the flowback management period from October 16 to October 27, 2000 Zurich Allied AG and Zurich Financial Services are not subject to any restrictions relating to the daily trading volume. As set out by the Swiss Takeover Commission, Zurich Allied AG and Zurich Financial Services will, however, not be allowed to purchase shares at a price above the lower of the following prices: the most recent, independent price paid on the SWX Swiss Exchange and the average price of Zurich Allied Shares on October 13, 2000 (CHF 808). Such repurchases will be marked in the exchange trading system with a dealer identification agreed with the SWX Swiss Exchange and the "disclosure" function will be activated for each such purchase order. The end of this program and the number of shares purchased during its course will be published daily in the electronic media.

From October 30, 2000 to December 31, 2000 Zurich Financial Services is not allowed to effect repurchases in excess of 25% of the average daily traded volume over the last 30 trading days. In addition, during this period, Zurich Financial Services is not permitted to effect purchases during the opening and closing auctions and any auctions resulting from a "stop trading" in accordance with the rules of the SWX Swiss Exchange. Disclosure will be effected daily.

The reason for authorizing the flowback and share repurchase programs are expected sales of Allied Zurich shares (Zurich Financial Services shares after the unification) by U.K. investors, who can only hold domestic or FTSE-indexed securities in their portfolios. Zurich Financial Services shares would not qualify since as Swiss shares will not be included in the FTSE Indices.

Zurich, 16 October 2000
Zurich Allied AG
Zurich Financial Services