Zurich Financial Services Group receives binding commitment for non-life insurance license in China

Zurich, September 25, 2001.- Zurich Financial Services has received a binding commitment for a license to conduct non-life insurance business in China. The license is being granted in light of China's admission to the World Trade Organization (WTO) and the prior negotiations between the Swiss government and China. The license grants Zurich permission to open a branch in one of China's "open cities" from which it will be able to service its international customers directly. With a total premium volume of USD 19.5 billion, China ranks as one of the largest insurance markets.

Zurich has been present in the Chinese market since 1992 with representative offices in Beijing, Guanzhou and Shanghai. In December 2000, Zurich acquired a holding of 10% in China's fourth largest private life insurance company, New China Life (NCL), one of the few companies to hold a nationwide license for the life insurance business.

Malcolm Jones, member of the Group Management Board of Zurich Financial Services responsible for the Asia/Pacific business area, expressed his satisfaction at the granting of the license. "With a population of around 1.2 billion inhabitants, China offers huge potential for growth in both the non-life and life insurance lines. We are particularly gratified that we can now be active in both lines of insurance businesses."

The Zurich Financial Services Group (www.zurich.com) is a global leader of integrated financial services providing its customers solutions in the area of financial protection (non-life insurance and structured solutions) and asset gathering (life insurance and asset management). The Group focuses its activities on key markets, i.e. North America, UK, Switzerland, Europe and selected other markets where it has or can reach a competitive position. Founded in 1872, Zurich is headquartered in Zurich, Switzerland. It has offices in more than 60 countries employing approximately 70,000 people. In 2000, the Group achieved gross premiums of USD 50 billion. This amount includes insurance deposits as well as premiums from the Farmers P&C Group. The net income was USD 2.33 billion. On December 31, 2000, the Group had USD 440 billion of assets under management of which USD 259 billion represent funds managed for third-party institutional and retail customers.

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