Zurich Financial Services to exit Zurich Warranty Management Services

Zurich, November 26, 2002 – Zurich Financial Services announces that Zurich Warranty Management Services, Ltd. (ZWMS) of Prestatyn, Wales, a subsidiary of Zurich Holding Company of American Inc., has entered into an agreement with Home Service (GB) Ltd., (Home Service) of Walsall, England, a company owned by South Staffordshire Group plc, whereby Home Service will provide administrative services to the warranty management portfolio of contracts from ZWMS. Terms and conditions of the agreement have not been disclosed.

This decision is in line with the action program Zurich announced on September 5, which is focusing Zurich’s activities on core markets and core products capable of delivering sustainable and profitable growth. The transaction is expected to close on December 16, 2002. ZWMS is confident that its customers, suppliers and affinity partners will continue to enjoy a high level of service from Home Service.

ZWMS is doing everything it can to ensure that employees at Prestatyn – approximately 120 – are being treated fairly and will receive redundancy benefits as called for by law and the terms of any employee agreements. In addition, ZWMS will provide on-site job search assistance to employees, who also will be able to explore employment opportunities at Zurich Financial Services Groups’ UKISA business division.