Zurich, June 11, 1998 - 2,143 shareholders attended Zurich Insurance Company’s 125th ordinary General Meeting presided over by Chairman Rolf Hüppi and held in the Hallenstadion in Zurich, Switzerland. With an overwhelming majority of the represented shares, shareholders approved the merger between the Zurich Group and the financial services business of B.A.T Industries p.l.c. and the creation of a holding structure. The shareholders also passed the Board of Directors’ other proposals.
In his welcoming address to Zurich’s Anniversary General Meeting, Eric Honegger, President and Minister of the Zurich State Government, extended the canton’s best wishes to the many shareholders present. "Against a backdrop of global competition", said Honegger, "Zurich remained, and not only because of its name, a significant, sound and trustworthy asset to the Zurich financial center". Looking back over the company’s 125-year history, Chairman Rolf Hüppi remarked in summary, "Our anniversary motto, ’Inspired by tomorrow’ ideally reflects Zurich’s history. In all our crucial developments we demonstrated the courage to continually move forward". With this, Mr. Hüppi drew a link to the day’s main item on the agenda, the creation of the new Zurich Financial Services Group as one of the world’s leading providers of products and services in the areas of financial protection and investment management.
With the decisive approval of Zurich’s shareholders another milestone has been reached on the way to the creation of Zurich Financial Services. On Friday, the General Meeting of B.A.T Industries p.l.c. will vote on the merger. The exchange offer of Zurich Allied AG for Zurich shares at a ratio of 1:1 will begin on June 18 and end on July 15, 1998. Following completion of the exchange offer, Zurich Allied AG will be listed on the Swiss Exchange in place of Zurich. Pending further approvals, the merger is expected to close in September or October of this year.
The General Meeting approved an increase in the dividend per share from CHF 7.20 to CHF 9 (gross) plus an anniversary dividend of CHF 3 (gross) per share. From available earnings, CHF 422.1 million (1997: CHF 337.7 million) will thus be appropriated for ordinary dividend payments, CHF 140.7 million for the anniversary dividend and CHF 345.0 million (1997: CHF 265.0 million) for a transfer to the free reserves.
Kaspar V. Cassani was reelected member of the Board for a further one-year term of office. Long-time Board members Peter Böckli and Markus Kündig, who stepped down from the Board of Directors on the date of the General Meeting, were sincerely thanked by Chairman Rolf Hüppi for their tremendous commitment to Zurich.
