Zurich issues estimate of weather losses in the UK during June

Zurich, August 2, 2007 – Zurich Financial Services Group (Zurich) announced today that based on its current best estimate it expects aggregate claims payments related to storms and floods that occurred in the UK during June 2007 will not exceed USD 400 million before tax. This estimate is net of reinsurance. The period of extreme weather was from June 14 to the end of June with a peak loss suffered in the Sheffield, Doncaster and Hull areas on June 25. Charges will be recorded in the half year results 2007, which are due to be released on August 16, 2007.

While the amount represents our best estimate of the ultimate cost for these events, the nature of many of the losses and the extended remediation period needed to dry out properties and to complete repairs means that some uncertainty as to the final cost remains.

The recent floods that occurred in Southern England in July 2007 are an additional significant loss event, but at this stage it is too early to provide an estimate of the claims cost to be expected for Zurich. A charge for the July floods will be recorded in the third quarter results.

Zurich is committed to delivering against its customer promise and in these extreme circumstances the local teams, supported by resources from other Zurich operations in Europe and North America, have successfully maintained Zurich's high level of customer claims service. This is a great example of the competitive advantage of Zurich’s global reach and culture.