Zurich, December 4, 2002 - Zurich Financial Services has determined, after a thorough review of the activities of its subsidiary group of companies, Centre, that Centre will no longer write new credit enhancement business, while it will continue to support its existing book of credit enhancement business.
The structured finite risk insurance and reinsurance business of Centre, however, will continue to be a core function of the Zurich Group. Centre will continue to offer innovative and highly customized solutions in the property and casualty and the life and health areas to its clients in the North America (including Bermuda), United Kingdom and Continental European Markets.
Consistent with this decision, Centre’s finite risk insurance and reinsurance business will report to the Zurich North America business division as one of its major operating business units. Centre had previously reported on a separate basis.
James J. Schiro, Chief Executive Officer of Zurich, said, "The decision to exit the credit enhancement business, which was non-core and no longer met our internal hurdle rate, underlines our commitment to focus on core markets and core insurance-based products that provide sustained profitability."
John Amore, Chief Executive Officer of Zurich North America, added, "I look forward to the close cooperation between the Centre management team and our other business units, which will bring the best products and solutions to our clients. The joined team will be in a very good position to take advantage of excellent market opportunities that will contribute to the strong performance of this unit."
In line with the emphasis on Centre’s core life and non-life businesses, Joel Klaassen, previously a Senior Vice President of Centre and member of its Executive Committee, has been appointed President and Chief Executive Officer of Centre. He will report to John Amore.
