The Zurich Financial Services Group acquires majority of insurance company in Sri Lanka

Zurich, May 21, 1999. - The Zurich Financial Services Group, in a strategic alliance with the National Development Bank (NDB), has acquired an 80% stake of CTC Eagle Insurance Company in Sri Lanka. This share holding represents the former 64% interest of Ceylon Tobacco Company and the 16% stake held by the NDB Group (NDB and Capital Development and Investment Company). The remaining 20% are held by local investors.

Eagle NDB Fund Management Company, an existing joint venture between NDB and Eagle, will also become a member of the Zurich Financial Services Group. Eagle NDB, Sri Lanka’s largest fund manager, will thus be able to benefit from Zurich’s global expertise in asset management. The operations in Sri Lanka, with its 18.5 million population, put the Zurich Financial Services Group in a strong position to benefit from the soon to be deregulated large insurance market in neighboring India.

In 1998 CTC Eagle Insurance Company employed about 400 people and had gross written premiums of USD 23.6 million - of which 62% were from its life activities.

The National Development Bank (NDB) is Sri Lanka’s leading development finance institution. NDB promotes industrial and agricultural development in the country by offering its customers advice based on analysis, expertise and business insights as well as highly competitive finance.