Zurich/London, May 2, 2000. - Zurich Insurance Company, Zurich, a member of the Zurich Financial Services Group, and the Medical Defence Union (MDU), London, have agreed to enter into a joint venture under which Zurich Financial Services’ operation in the UK will underwrite professional indemnity insurance cover for members of the MDU. Under this agreement Zurich Insurance Company will acquire a minority interest in MDU Services Ltd., which is currently a wholly owned subsidiary of the MDU. The consideration is less than 0.2% of the shareholders’ equity of the Zurich Financial Services Group.
The MDU, the UK’s premier medical defence organization, is a leading provider of discretionary professional indemnity, as well as advice, to the medical and dental professions in the United Kingdom. MDU Services Ltd. will administer the joint venture and provide services to the members of the MDU.
The conclusion of the joint venture agreement has been a combined effort by the MDU, Zurich Re and Zurich Financial Services’ General Insurance operation in the UK. Dirk Lohmann, CEO of Zurich Re and Member of the Group Executive Board, commented: "This venture is in line with our group strategy to provide compellingly convenient solutions tailored to specific affinity groups through strategic and marketing alliances. Combining the MDU’s specialist expertise with our Group’s risk management and underwriting capabilities will result in the delivery of a high level of service and customer care to the members of the MDU. Furthermore, it will broaden Zurich’s customer base in the UK."
Dr Michael Saunders, MDU Chief Executive, stated: "Over our long history, the MDU has always been at the forefront of medico-legal developments. In these changing times in the health service, the civil justice system and in the regulation of practitioners, our members, quite rightly, demand increasingly sophisticated services from us. This alliance with Zurich is a unique and forward-thinking step that will help us to enhance the services and support members already enjoy."
The Zurich Financial Services Group is a global leader in the financial services industry, providing its customers with solutions in the area of financial protection and asset accumulation. The Group concentrates its activities in four core businesses: non-life and life insurance, reinsurance and asset management. Headquartered in Zurich, Switzerland, the Group’s worldwide presence builds on strong positions in its three key markets - the United States, the United Kingdom and Switzerland. It has offices in more than 60 countries reaching over 35 million customers and employing 68,000 people. Based on consolidated figures for 1999, the Group achieved gross premiums of USD 48 billion. This amount includes insurance deposits as well as premiums from the Farmers Exchanges. The net income amounted to USD 3.26 billion. On December 31, 1999, the Group had USD 442 billion of assets under management of which USD 264 billion represent funds managed for third-party institutional and retail customers.
Formed in 1885 the MDU is the UK’s premier provider of discretionary indemnity, advice and assistance to its members who are doctors, dentists, nurses and other healthcare professionals. The MDU is a mutual, non-profit making organization and is owned by its members. The MDU head office is in central London.
