Estimates of aggregate hurricane claims payments

Zurich, October 18, 2004 – Zurich Financial Services Group (Zurich) expects aggregate claims payments related to four recent Atlantic hurricanes of approximately USD 525 million before tax and net of reinsurance. This corresponds to approximately USD 400 million after tax and net of reinsurance. Charges for these events will be recorded in the third quarter.

James J. Schiro, Chief Executive Officer of Zurich Financial Services, said: "Reacting to the tragedy caused by this exceptional series of storms was our first duty. Our next step was to estimate the claims payments. As a Group, it is our job to build the quality of earnings and balance sheet strength to be in a position to absorb the cost of claims payments arising from catastrophe events such as these."

The current estimate of potential claims is based on model calculations and reported claims. The estimate pertains to hurricanes Charley, Frances, Ivan and Jeanne that struck the Caribbean and the United States between August 10 and September 27, and it includes the claims estimate previously released for hurricane Charley.

According to recent estimates, claims payments for the four storms are likely to exceed USD 20 billion for the insurance industry. This exceeds the former record payment for hurricane Andrew in 1992. Insured losses from Andrew were USD 15.5 billion or roughly USD 20 billion in today’s dollars.