Zurich Financial Services: US Analyst Day in New York

Zurich/New York, June 27, 2001. - The Zurich Financial Services Group yesterday held its second annual Analyst Day in the United States. The purpose of the event was to update analysts on key US insurance operations and the units of global asset businesses. As of December 31, 2000, the United States accounted for 51 percent of the Group's total insurance premium volume and more than 16 million customers.

Highlights of the day's presentations include:

Zurich North America Corporate

Zurich North America Corporate is a leading commercial property-casualty insurance provider serving the multinational, middle-market and small business sectors in the United States and Canada.

• Zurich North America Corporate's gross written premiums increased by 38.4% to USD 4.2 billion in the first five months of 2001, following growth of 26% for 2000.

• On a cumulative basis, since market hardening began in the second quarter of 1999, premium rates have increased over 27% in the first five months of 2001.

• On a statutory basis, the expense ratio decreased to 23.6% in the first quarter of 2001 from 29% in the first quarter 2000.

• In May 2001, 76% of new small business policies were originated and written over the internet via almost 27,000 registered independent agencies.

Zurich North America Consumer

Zurich North America Consumer consists of Farmers Group and Zurich Life. Farmers Group is the third largest private car and homeowners insurer in the United States. Farmers offers a wide variety of insurance solutions for auto, home, retirement, life, business and healthcare professional liability needs.

• Farmers net written premiums increased by 8.9% in the first quarter 2001; management fees increased by 10.6%.

• Farmers Life sales volume increased by 22% in the first quarter 2001 over the first quarter 2000 and revenue is up 13% from first quarter 2000 to first quarter 2001.

• Farmers strategic alliances with Bank of America and Ulico Insurance Group enter into their pilot phases beginning this summer.

• Zurich Life total premium increased by 47% from first quarter 2000 to first quarter 2001, and variable annuity sales increased by 54% to USD 430.3 million.

Zurich's Global Asset Businesses

The global asset businesses include: the traditional asset management of Zurich Scudder Investments; alternative investments; and the structured risk management units of Zurich Capital Markets and Centre Group. As of December 31, 2000, the Group had USD 440 billion in assets under management including USD 259 billion of third party assets. 

• Zurich Scudder Investments had its best earnings year ever in 2000 and investment performance has steadily been improving. For the one-year period ending May 31, 63% of equity funds and 61% of fixed income funds were in the first and second quartile; for the three-year period ending May 31, 58% of equity funds and 65% of fixed-income funds were in the first and second quartile. The firm has taken aggressive actions to enhance efficiency, manage costs and improve profitability.

• Zurich Capital Markets and Centre Group continued to experience positive growth in the first quarter.

Notes to the editor:
The presentations will be replayed on the Internet. For details, please refer to "For Investors" section of Zurich's website. www.zurich.com.

The following businesses were presented at the US Analyst Day in New York

Zurich North America Corporate:
Zurich North America Corporate (www.zurichna.com)
Zurich North America Consumer:
Farmers Group (www.farmers.com)
Zurich Life (www.zurichlife.com)
Zurich Global Asset Business:
Zurich Scudder Investments
Zurich Capital Markets (www.zcmgroup.com)
Centre Group (www.centresolutions.com)