Focus on the Non-life corporate segment and exit all other segments in France

Zurich, September 5, 2003 - Zurich Financial Services Group (Zurich) has decided to focus its activities in France on the Non-life corporate segment and to operate it through its business unit Continental Europe Corporate (CEC). This realignment is flanked by the sale of all of Zurich’s Life operations – including the Eagle Star business - as well as parts of Zurich’s Non-life operations in the consumer and commercial segments, distributed by agents in France, to Assicurazioni Generali SpA (Generali). Zurich will put the Non-life business distributed by brokers in the consumer and commercial segments in run-off. An agreement between Zurich and Generali relating to this transaction has been signed. Both parties agreed to keep the price confidential. Subject to regulatory approvals, the transaction is expected to close by the end of the year.

Axel P. Lehmann, Chief Executive Officer of the Continental Europe Business Division, said, "The realignment of our activities in France follows a similar transaction in the Netherlands. It is in line with our strategy to exit peripheral businesses and to focus on key markets and core activities with a high potential to generate sustained profitable growth."

At the end of 2002, the insurance portfolios of Zurich France’s Life operations had gross written premiums, policy fees and deposits of about EUR 185 million, while the Non-life operations distributed by agents in the consumer and commercial segments recorded gross written premiums and policy fees of about EUR 128 million.