21% Bâloise stake sold

Zurich, December 21, 2001. - Zurich Financial Services announced today the sale by its subsidiary, INZIC AG, of the Group's approximately 21% shareholding in Bâloise through JP Morgan to 'The Strategic Money Management Company B.V.' ("SMM") for a total price of CHF 1.72 billion producing a pre-tax capital gain of CHF 196.5 million.

SMM is an investment company incorporated in the Netherlands, which is managed by ABN-AMRO. Established in 1994, it invests in blocks of publicly traded companies and engages in capital markets transactions and strategic sales with a total volume to date of USD 35 billion.

In connection with the sale, the Group will retain a partial economic interest in the holding of the Bâloise shares pursuant to an agreement with JP Morgan. In addition, the Group continues to hold shares and options to acquire Bâloise shares amounting to approximately 6% of its outstanding capital.

Earlier this year Zurich announced a divestment program to focus on core businesses and reduce its financial leverage. With the sale of the Bâloise shares, announced divestitures exceed USD 5 billion in value and the Group will exceed its divestiture target of USD 4 billion.