Zurich Financial Services Group acquires majority stake in Bolivia’s leading insurance group

Zurich, September 7, 2000. - The Zurich Financial Services Group has reached an agreement to acquire a 51% stake of La Boliviana Ciacruz de Seguros y Reaseguros and a 51% stake of La Boliviana Ciacruz de Seguros Personales in Bolivia. The remaining 49% in both companies are held by local investors. The consideration is less than 0.2% of the shareholders’ equity of the Zurich Financial Services Group. Subject to receiving the necessary regulatory approvals, the transaction should be completed before the end of this year.

The acquisition of La Boliviana Ciacruz de Seguros y Reaseguros and La Boliviana Ciacruz de Seguros Personales, Bolivia’s largest insurance group, will allow Zurich to enhance its position in the growing South American financial services market. Zurich is currently present in Argentina, Brazil, Chile, Mexico and Venezuela.

William H. Bolinder, member of the Group Executive Board of Zurich Financial Services responsible for North and Latin America, highlighted the long-term relationship that Zurich has built with La Boliviana as its cooperation partner over many years. ’This acquisition is therefore a logical step, providing our Group with substantial growth potential, in the life insurance and asset accumulation businesses in particular, in a highly deregulated market.’

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 five business segments: non-life and life insurance, reinsurance, Farmers Management Services, 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 June 30, 2000, the Group had USD 435 billion of assets under management of which USD 260 billion represent funds managed for third-party institutional and retail customers.

For further information please contact:
Zurich Financial Services, Media and Information, Iris Roth
8022 Zurich, Switzerland
Phone +41 (0)1 625 21 00, Fax +41 (0)1 625 26 41
http://www.zurich.com