The Zurich Financial Services Group reorganizes its operations in Taiwan

Zurich, June 2, 1999. - The Zurich Financial Services Group has sold its participations in two joint venture operations in Taiwan - Eagle Star President Life Insurance Co. Ltd. and Eagle Star President General Insurance Co. Ltd. - to Allianz AG of Germany. This divestment is a result of a strategy review in Taiwan following the merger of the Zurich Group with the financial services businesses of B.A.T Industries. Completion of this transaction is subject to approvals by the local authorities.

Zurich Financial Services continues to offer non-life and life products to its customers in Taiwan through its two well established local entities, Zurich Insurance (Taiwan) Ltd. and Zurich Life Insurance Company Ltd., Taiwan branch. Frank Schnewlin, member of the Group Executive Board of Zurich Financial Services and responsible for the Asian/Pacific region, commented: "We remain enthusiastic about the outlook for the Taiwanese insurance market. Moreover, Taiwan continues to be a significant corner-stone in our growing presence in the Asian/Pacific region".

Zurich entered the Taiwanese market in 1980. It employs more than 900 people. In 1998 Zurich wrote combined life and non-life premiums of USD 162 million.