HomeAboutInsightInvestorsMediaCareers 
 
Media

Zurich announces USD 275 million impairment on Sigma’s notice of default

Zurich, October 2, 2008 – Zurich Financial Services Group (Zurich) announced today an impairment of about USD 275 million after policyholder allocation and before tax as a result of Sigma Finance Corporation’s (Sigma) notice of default.

Sigma is a limited purpose finance company and has announced on October 1, 2008 that it will cease trading and is expecting the appointment of a receiver as a result of financial-market turmoil.

As Zurich’s Chief Investment Officer Martin Senn remarked, “The write-down of our Sigma exposure, while reflecting the severity of the current market disruptions, should be seen in the context of our well-diversified portfolio of Group investments of nearly USD 200 billion. Given the extraordinary circumstances, we have not only taken a conservative view but are proactively disclosing impairments related to exposures in defaulting companies. We remain confident that our disciplined approach continues to put us in a good position to weather the current financial-market crisis.”

In terms of exposure to other recently defaulting financial services firms, Zurich also announces that the write-down on Washington Mutual’s debt instruments will be approximately USD 45 million after policyholder allocation and before tax.

In regards to Zurich’s previously disclosed Lehman Brothers exposure, the impairment amounts to about USD 295 million after policyholder allocation and before tax.

The total of these write-downs represents approximately 0.3% of total Group investments. These amounts form part of the impairment charge to be taken in the nine months results 2008, which are due to be released on November 13, 2008.

» Download PDF

Disclaimer and cautionary statement

Certain statements in this document are forward-looking statements, including, but not limited to, statements that are predications of or indicate future events, trends, plans or objectives. Forward-looking statements include statements regarding our targeted profit improvement, return on equity targets, expense reductions, pricing conditions, dividend policy and underwriting claims improvements. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and Zurich Financial Services’ plans and objectives to differ materially from those expressed or implied in the forward looking statements (or from past results). Factors such as (i) general economic conditions and competitive factors, particularly in our key markets; (ii) performance of financial markets; (iii) levels of interest rates and currency exchange rates; (iv) frequency, severity and development of insured claims events; (v) mortality and morbidity experience; (vi) policy renewal and lapse rates; and (vii) changes in laws and regulations and in the policies of regulators may have a direct bearing on Zurich Financial Services’ results of operations and on whether Zurich Financial Services will achieve its targets. Zurich Financial Services undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise.

This communication is directed only at persons who (i) have professional experience in matters relating to investments or (ii) are persons falling within Article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc) of The Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (as amended) or to whom it may otherwise lawfully be communicated (all such persons together being referred to as relevant persons). This communication must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only with relevant persons.

It should be noted that past performance is not a guide to future performance.

Persons requiring advice should consult an independent adviser.

Zurich Financial Services Group (Zurich) is an insurance-based financial services provider with a global network of subsidiaries and offices in North America and Europe as well as in Asia Pacific, Latin America and other markets. Founded in 1872, the Group is headquartered in Zurich, Switzerland. It employs approximately 60,000 people serving customers in more than 170 countries.

For additional information please contact:

Group Media Relations
Phone: +41 (0)44 625 21 00, Fax: +41 (0)44 625 26 41

Investor Relations
Phone: +41 (0)44 625 22 99, Fax: +41 (0)44 625 36 18

Zurich Financial Services
Mythenquai 2, P.O. Box, 8022 Zurich, Switzerland
SWX Swiss Exchange/virt-x: ZURN
Valor: 001107539

 
 

 

Home

About
About Zurich HelpPoint
Zurich HelpPoint principles
Your car
Life insurance, pensions and investments
Commercial businesses
Large and multi-national corporations
Who we are
Board and management
Corporate governance
Where we operate
Corporate values
History
Our global campaign
What we do
General Insurance 
Global Life
Farmers
Corporate responsibility
Microinsurance
Climate change
Corporate giving and community involvement
Corporate responsibility performance
Brokers and agents

Insight
Global initiatives
Microinsurance programs
Climate Change Initiative
Perspective
Industry Insight
Events
Reports
Insight in action

Investors
Our shares
Dividends
Share Buyback Program
Analysts’ recommendations
Share capital
Shareholder structure
Articles of incorporation
Securities custody service
Stock listings
US ADR program
Results and reports
Annual results
Quarterly results
Other statements
Presentations
Ratings
Ratings definition
Calendar
Investor relations contacts
Media
News
2008 news releases
2007 news releases
2006 news releases
2005 news releases
2004 news releases
2003 news releases
2002 news releases
2001 news releases
2000 news releases
1999 news releases
1998 news releases
Resources and contacts
Media contacts
Speeches
Presentations
Visuals library
Multimedia pressroom
FAQ
Events
Careers
Reasons to work for Zurich
Rewarding career choices
Experienced professionals
Recent graduates
Meet our people
Top tips
Campus events calendar
Global Associate Program
Job search

Services
Global directory
Contact us
Legal
Privacy
Newsletter subscription