Zurich Group to establish USD 2 billion Euro Medium Term Note Programme

Zurich, May 25, 1998. - The Zurich Group today announced the establishment of a USD 2 billion Euro Medium Term Note (EMTN) Programme. Under the Programme, the Zurich Group may be distributing Notes from time to time on the Euromarket by way of private or public placement up to an aggregate principal amount not exceeding USD 2 billion at any time. The notes may be denominated in any currency and at such maturities as may be agreed between the relevant Issuer and the relevant dealer. The EMTN-Programme allows Zurich to diversify its investor base and to enhance its overall financial flexibility. Funds to be raised will be used to refinance existing debt but also for general corporate purposes. Arranger of the Programme are Swiss Bank Corporation and UBS Limited.

The Zurich Group is a leading, internationally recognized provider of insurance and financial services in non-life and life insurance, reinsurance and asset management. It offers financial protection and investment solutions to customers in the personal, commercial and corporate market segments. Headquartered in Zurich, Switzerland, the Group operates in 50 countries worldwide and employs approximately 43,000 people. Premium income for 1997 was CHF 31 billion (USD 21.3 billion); including deposits from policyholders it amounts to CHF 36.9 billion (USD 25.3 billion). Zurich’s consolidated net income for 1997 totaled CHF 1’786 million (USD 1’238 million). Zurich has CHF 421 billion (USD 289 billion) in overall assets under management, with third-party investments equaling CHF 297 billion (USD 204 billion).