Zurich Financial Services Group acquires an interest in Bâloise

Zurich, November 8, 1999. - The Zurich Financial Services Group has signed an agreement under which it will control a new company, INZIC AG, that will own shares and options equivalent to 23% in Bâloise-Holding, a Swiss listed insurance group.

INZIC is formed to acquire 19.9% of shares and options in Bâloise-Holding from Incentive Investment at a price equivalent to CHF 1244.00 per share. The Zurich Financial Services Group will contribute to INZIC its existing 3.2% interest in Bâloise. It will then own 70% of INZIC. The consideration received by Incentive is CHF 540 million and a 30% stake in INZIC.

The interest in Bâloise has been made available by Incentive Investment, a privately held Swiss investment company that focuses on long-term strategic investments in public companies and private equity. Zurich Financial Services has made this investment because it believes that the Swiss market has excellent performance potential. Bâloise has successfully focused on the Swiss market and also has significant operations in Germany and Belgium.

Rolf Hüppi, Chairman and CEO of the Zurich Financial Service Group commented: "We will explore all options to enhance the value of this investment. However, at present, we have no intention of launching a public tender offer for Bâloise shares."