Zurich announces 2001 result and proposed dividend

Zurich, March 11, 2002 - In difficult market conditions, Zurich Group recorded an IAS net loss of USD 387 million in 2001. The Board of Directors proposes a reduced dividend of CHF 8 per share. Normalized net income reached USD 348 million. Total premium volume increased by 13% to USD 56 billion.

Zurich Financial Services Group's IAS net income and its normalized results were affected by the events of September 11, which contributed insurance losses of USD 706 million after tax. In addition, higher than expected claims, increased charges for specific exposures such as asbestos and lower results from discontinued operations adversely affected IAS net income and normalized results. Moreover, the prevailing financial market conditions reduced life insurance and asset management results. They also led to lower realized capital gains and caused a pre-tax asset impairment charge of USD 838 million to IAS net income.

Taking these developments into account, the Board of Directors will propose a reduced gross dividend of CHF 8 per registered share (CHF 17.15 per share in the previous year) to the Annual General Meeting of Shareholders on May 16, 2002.

Details on the 2001 results will be presented and the outlook for 2002 will be addressed on March 21, 2002.