Zurich terminates US ADR program in connection with the merger with the financial services business of B.A.T Industries p.l.c.

Zurich, June 12, 1998. - The Zurich Group announced today the cancellation of Zurich Insurance Company’s level one, over-the-counter market (OTC: ZURRY), American Depositary Receipt (ADR) program. The program is being canceled as a necessary consequence of the reorganization of the Zurich Group to prepare for the merger with B.A.T Industries’ financial services businesses.

After the merger, the combined group Zurich Financial Services will have two publicly traded holding companies: Zurich Allied AG, traded on the Swiss Exchange, and Allied Zurich p.l.c., traded on the London Stock Exchange. The creation of an ADR program for Zurich Allied AG is currently under consideration.

Zurich Insurance Company’s ADR program has been in effect since July of 1996 through Morgan Guaranty Trust Company, a subsidiary of J.P. Morgan & Co. Incorporated in New York.