Change in the Group Executive Board of Zurich Financial Services

Zurich, October 4, 1998 - Markus Rohrbasser, Member of the Group Executive Board and Chief Financial Officer, has tendered his resignation from Zurich Financial Services. The Board of Directors of Zurich Financial Services has accepted his resignation and appointed Günther Gose as Chief Financial Officer. Gose has been a member of the Group Executive Board since 1990; until now his responsibilities included the Groups business division covering Northern and Eastern Europe. Heinrich Focke who concurrently has been appointed to the Group Executive Board will succeed Gose as responsible for Northern and Eastern Europe. Focke held the position of Chief Executive Officer of the Zurich Group in Germany.

The background for Markus Rohrbasser’s decision to resign is an inquiry that has recently been opened by the District Attorney of the City of Zurich against unknown persons to investigate possible insider trading in shares and options of Zurich Insurance. The investigation has apparently been caused by unusual fluctuations in trading volumes shortly before the public announcement of the merger plans of Zurich Insurance with the financial services business of B.A.T in October 1997.

Markus Rohrbasser has informed Zurich Financial Services as well as the District Attorney that - during an earlier period (as from June 1997) - four purchase/sales transactions had been carried out in his name each in the order of magnitude of CHF 100,000 to CHF 200,000 which produced in the aggregate a profit of less than CHF 250,000. These transactions were part of the ordinary management of Markus Rohrbasser’s private funds by an external investment manager. Although it may well be concluded that these transactions do not breach any insider dealing obligations, Markus Rohrbasser decided that an immediate resignation from his position with Zurich Financial Services would be in the best interest of the company.

Zurich Financial Services expressly regret the resignation of Markus Rohrbasser.

Background information on the persons

Günther Gose (1944), joined Zurich as a member of the Group Executive Board in 1990. In 1991 he took over responsibility for Life and Financial Services. One year later he was appointed CEO of Zurich Life Insurance Company. Since 1994 Günther Gose has also been responsible for the business division Northern and Eastern Europe.

Heinrich Focke (1952), joined Zurich in 1989 as a Deputy Chief Executive Officer of Zurich’s branch office and affiliated group members in Germany. In 1990 he was appointed Chief Executive Officer (CEO) of Zurich’s and VITA’s German operations. In 1996 Focke was also appointed CEO of Agrippina Versicherungen, Agrippina Leben and ZABAG Holding.
Markus Rohrbasser (1954), joined Zurich as a member of the Group Executive Board and CFO in 1997. Before he was Executive Vice President and CEO of UBS North America, New York.