Zurich Financial Services Group forms insurance joint venture with Banco Mercantil de São Paulo in Brazil

Zurich, November 30, 2000. - Zurich Financial Services Group has signed an agreement with Banco Mercantil de São Paulo to form a joint venture, Finasa Zurich Seguros e Previdência S.A. The joint venture combines the Brazilian life and non-life insurance businesses of Banco Mercantil de São Paulo, Finasa Seguradora, and Zurich Brasil Seguros. The transaction is subject to the approval by the responsible authorities.

Banco Mercantil de São Paulo, a prestigious and traditional financial institution headquartered in São Paulo, is internationally recognized as one of the most solid banks in Brazil, providing commercial banking, credit financing and investments, real estate credit, leasing, insurance and other related services and activities.

Gastón Aguirre, member of the Group Management Board of Zurich Financial Services and responsible for Latin America, commented on the agreement: "We are very excited about the partnership with Banco Mercantil de São Paulo in the insurance sector. Our intention is to jointly develop our offerings of solutions in financial protection and asset accumulation in the Brazilian market. The combination of the strengths of both groups will allow us to leverage our capacity to provide a wide array of world class services to an enlarged customer base in the largest insurance market in Latin America."

Luís Roberto S. Vidigal, member of the Board of Banco Mercantil de São Paulo, expressed his enthusiasm for the partnership, stating: "It is a great satisfaction to be able to put together two insurance businesses which possess strong corporate values and share a common vision of the potential of the Brazilian market."

Zurich Brasil Seguros was acquired in 1984 by the Zurich Group. It employs more than 150 people. Combined life and non-life premiums amounted to USD 45 million in 1999.

Finasa Seguradora reached gross premiums of USD 86 million in 1999 and employs 350 people.

The Zurich Financial Services Group is a global leader in the financial services industry, providing its customers with solutions in the area of financial protection and asset accumulation. The Group concentrates its activities in five business segments: non-life and life insurance, reinsurance, Farmers Management Services, and asset management. Headquartered in Zurich, Switzerland, the Group’s worldwide presence builds on strong positions in its three key markets - the United States, the United Kingdom and Switzerland. It has offices in more than 60 countries reaching over 35 million customers and employing 68,000 people. Based on consolidated figures for 1999, the Group achieved gross premiums of USD 48 billion. This amount includes insurance deposits as well as premiums from the Farmers Exchanges. The net income amounted to USD 3.26 billion. On June 30, 2000, the Group had USD 435 billion of assets under management of which USD 260 billion represent funds managed for third-party institutional and retail customers.

For further information please contact:
Zurich Financial Services, 8022 Zurich, Switzerland
Media and Information, Iris Roth
Phone +41 (0)1 625 21 00, Fax +41 (0)1 625 26 41
http://www.zurich.com