Zurich launches CHF 600 million SMIC MILES

Zurich, January 15, 2002 - Zurich Financial Services (Zurich) is launching today approximately CHF 600 million of Market Index-Linked Exchangeable Securities ("MILES"). The MILES, exchangeable into new Zurich shares, will expire in 3 years and are linked to the SMI® total return index (SMIC index).

The structure of the MILES allows investors to fully participate in the performance of the SMI® total return index (SMIC index) over the next 3 years. In addition, investors receive an annual out-performance premium in cash of 1% of the SMIC index level fixed at issue. With respect to the MILES the rights of shareholders for advance subscription are withdrawn.

The instrument is exchangeable at any time until maturity into Zurich shares. The number of shares delivered will depend on the performance of the Zurich shares relative to the SMIC index. A higher relative performance will result in a lower number of Zurich shares delivered. The shares to be issued will originate from contingent share capital of a maximum of 3 million shares. If Zurich neither outperforms nor underperforms the SMIC index, a total of approx. 1.5 million shares will be delivered. This transaction allows Zurich to raise equity at attractive conditions, as the number of Zurich shares is determined upon the exchange date only, and a strong performance over the next 3 years will therefore minimize dilution.

"The MILES exchangeable into our own stock is an attractive instrument for index-oriented institutional investors and is an innovative tool for the management of Zurich's capital base. The MILES strengthens our balance sheet by increasing our equity, provides liquidity and reflects our confidence in the future performance of the Zurich share price", said Günther Gose, Chief Financial Officer of Zurich.

Bookbuilding starts on Tuesday January 15, 2002 and lasts until Monday January 21, 2002 at the latest. Application for listing of the MILES at the SWX Swiss Exchange will be made. Preliminary trading of the MILES is expected on January 25, 2002. UBS Warburg is acting as lead manager and sole bookrunner of this MILES transaction.

Summary Terms and Conditions

Status	Derivative Instrument
Size	approx. CHF 600 million
Expiry	3 years
Exchangeable into	Fully fungible Zurich shares out of contingent share capital for a maximum of 3 million Zurich shares
Annual cash premium	1% of nominal amount at issue (index level at issue) paid annually
Index	SMI® Total Return Index (SMIC index)
Investor exchange	At any time without additional share allocation
Issuer Call	At any time after 6 months until 25 trading days prior to maturity, in whole or in two parts, allocating additional 3% Zurich shares to investors Mandatory exchange at maturity, if previously un-exchanged, allocating additional 3% Zurich shares to investors

The Zurich Financial Services Group (www.zurich.com) provides its customers solutions in the areas of financial protection (non-life insurance and structured solutions) and asset gathering (life insurance and asset management). The Group focuses its activities on its key markets of North America, UK and Continental Europe. Founded in 1872, Zurich is headquartered in Zurich, Switzerland. It has offices in more than 60 countries and employs approximately 70,000 people.

For further information please contact:
Zurich Financial Services, Media and Public Relation
8022 Zurich, Switzerland
Phone +41 (0)1 625 21 00, Fax +41 (0)1 625 26 41
http://www.zurich.com

THIS PRESS RELEASE IS NOT BEING ISSUED IN THE UNITED STATES OF AMERICA, CANADA AND JAPAN AND SHOULD NOT BE DISTRIBUTED TO UNITED STATES PERSONS OR PUBLICATIONS WITH A GENERAL CIRCULATION IN THE UNITED STATES. THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER OR INVITATION TO SUBSCRIBE FOR OR PURCHASE ANY MILES. IN ADDITION, THE MILES OF ZURICH FINANCIAL SERVICES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR DELIVERED WITHIN THE UNITED STATES OR TO U.S. PERSONS ABSENT REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE UNITED STATES SECURITIES LAWS. STABILISATION / FSA. THE CONTENTS OF THIS PRESS RELEASE, WHICH HAS BEEN PREPARED BY AND IS THE SOLE RESPONSIBILITY OF ZURICH FINANCIAL SERVICES, HAVE BEEN APPROVED BY UBS WARBURG SOLELY FOR THE PURPOSES OF SECTION 21(2)(B) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000. UBS WARBURG IS ACTING FOR ZURICH FINANCIAL SERVICES IN CONNECTION WITH THE MILES OFFER AND NO-ONE ELSE AND WILL NOT BE RESPONSIBLE TO ANYONE OTHER THAN ZURICH FINANCIAL SERVICES FOR PROVIDING THE PROTECTIONS OFFERED TO CLIENTS OF UBS WARBURG NOR FOR PROVIDING ADVICE IN RELATION TO THE MILES OFFER.

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