Zurich Australia Announces Agreement on Non-Core General Insurance Line

Zurich, November 28, 2002 - Zurich Financial Services Australia today announced it had entered into an agreement with QBE Insurance (Australia) Ltd in relation to one of its non-core general insurance lines – direct personal insurance. Subject to regulatory approval, from January 1, 2003, the book will be managed by the personal lines division of the QBE Group, which trades as Western QBE. In addition, Western QBE will be entitled to offer renewals to those direct personal lines clients. The transaction price is not disclosed.

After the planned transaction, Zurich Australia’s insurance activities will have a strong focus on primarily business insurance distributed through intermediary networks. Zurich will continue to provide personal general insurance cover through intermediaries.

Commenting on the arrangement, Sandy Leitch, CEO of Zurich UK, Ireland, Southern Africa (UKISA) and Asia Pacific, said, "The transaction is part of Zurich’s global strategy announced in September to focus on core businesses that achieve high and profitable growth."

Customers of the direct personal lines business will not be materially affected as a result of the transaction. A seamless transition for clients is planned with little anticipated change in service and product features. The majority of affected staff - approximately 55 employees - are being offered employment and comparable employment conditions by Western QBE.