Exit insurance and asset management business in Sri Lanka

Zurich, July 3, 2003 - Zurich Financial Services Group has today announced that it has sold its indirect holding of 51% of the share capital in Eagle Insurance Company Limited ("Eagle") to Capital Development & Investment Company Limited ("CDIC") which is controlled by the National Development Bank of Sri Lanka, with a minority stake held by Bank of Ceylon. This transaction gives CDIC a total holding representing 87% of the share capital of Eagle, a composite insurance company listed on the Colombo Stock Exchange.

The decision to sell Eagle is in line with Zurich’s strategy announced in September 2002, to allocate capital to core markets in order to generate sustained profitable growth.

Eagle had gross written premiums of USD 30 million in its Life and Non-Life insurance portfolio by the end of 2002, and is one of the leading providers in the Sri Lankan market.

Eagle has begun a communications programme to keep customers fully informed and is confident that NDB will represent a strong partner with whom Eagle can continue to deliver the high level of service and performance achieved to date.