HomeProducts & ServicesInsightAboutInvestorsMediaCareers 
 
Media - woman talking into a microphone

Zurich obtains USD 225 million of California earthquake protection from Lakeside Re II Ltd.

Download this news release (PDF, 65 KB)

Zurich, December 28, 2009 – Zurich Financial Services Group (Zurich) today announced that it has obtained, through its subsidiaries, Zurich American Insurance Company and Zurich Insurance Company Ltd, a 3-year USD 225 million catastrophe excess of loss reinsurance protection from Lakeside Re II Ltd. (Lakeside II) to cover the risk of earthquakes in California. This reinsurance transaction is a replacement of the expiring 2006 Lakeside Re Ltd. transaction.

Zurich has entered into a reinsurance transaction with Lakeside II, a special purpose reinsurance company domiciled in the Cayman Islands, to receive up to USD 225 million in payment of losses in the event of one or more California earthquakes during the 3-year period. Lakeside II, in turn, has issued to the capital markets principal at-risk variable rate notes linked to this risk. The catastrophe bond has a floating coupon consisting of a fixed 7.75% plus a variable investment yield received by Lakeside II on the underlying assets. The offering was oversubscribed.

Disclaimer & Cautionary Statement

The Lakeside Re II Ltd. notes were sold in a private placement pursuant to Rule 144A of the U.S. Securities Act of 1933, as amended (the “Securities Act”), and have not been registered under the Securities Act or any state securities laws; they may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY THE NOTES OR ANY OTHER SECURITIES.

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 Ltd
Mythenquai 2, P.O. Box, 8022 Zurich, Switzerland
SIX Swiss Exchange/SMI: ZURN
Valor: 001107539