Investors’ Day: Zurich is well-positioned to outperform in a challenging environment

Zurich - Zurich Financial Services Group (Zurich) at today’s Investors’ Day will provide updates on its three Business Segments (General Insurance, Global Life and Farmers) as well as its Group Operations function. In addition, the company will present an update on its capital management and Non-Core Businesses.

Commenting on the key messages for the day, Martin Senn, CEO of Zurich, reaffirmed, “Zurich’s aspiration is to become the best global insurer as measured by its shareholders, customers and employees.

Zurich is well-positioned to outperform in a challenging environment. We believe that our agility, superior financial strength and strategic focus allow us to meet the industry challenges of low investment returns and new regulatory capital regimes.

Our ability to generate cash is strong, supporting our policy to pay a sustainable and attractive dividend.

We remain committed to our business operating profit after tax return on equity (BOPaT ROE) target of 16% over the medium term. The building blocks of our strategy remain unchanged and financial discipline is a core element. Our business model is straightforward, balanced and focused on providing insurance to help our customers understand and protect themselves from risk.

Finally, we are accelerating our global approach to how we run our businesses. Central to this acceleration is intensifying The Zurich Way as our umbrella program for driving global capabilities to support growth and competitiveness of our customer-facing businesses.”

Today’s presentations will discuss the following Group targets:

Group overall:

* Paying a sustainable, attractive and competitive dividend
* Reaffirming business operating profit after tax return on equity (BOPaT ROE) target of 16% over the medium term
* Reducing total expenses (excluding commissions) by 5% or USD 500 million on a run-rate basis by 2013
* Accelerating release of USD 1.5 billion of capital from non-core run-off businesses by 2015

General Insurance:

* Improving combined ratio (CoR) by 3 to 4 percentage points relative to global competitors by 2013 while contributing to Group BOPaT ROE target: more than 16%
* Reducing expenses (excluding commissions) by 7% or USD 350 million on a run-rate basis by 2013 (included in the USD 500 million Group target)
* Holding market position without compromising profitability

Global Life:

* Becoming a top 5 European-based global insurer by new business value (NBV) by 2013
* Generating 30% of NBV from Asia-Pacific & Middle East and Latin America by 2013
* Continuing to be cash generative while self-funding organic growth

Farmers:

* Maintaining top quartile growth performance amongst the 12 largest U.S. personal lines companies
* Continuing to increase market share for the Farmers Exchanges
* Improving retention at the Farmers Exchanges by 3 percentage points to close the gap relative to top-tier U.S. personal lines competitors

Note to Editors:
The presentation slides are available on our website www.zurich.com. The presentations can be followed live via webcast or conference call, starting at 10:00 a.m. CET.
For those who wish to listen to the presentation by phone, please find the dial in numbers below:
• Europe +41 (0)91 610 56 00
• UK +44 (0)203 059 58 62
• USA +1 (1) 866 291 41 66

Multimedia material is available on www.zurich.com/multimedia. If you are a first-time user of this portal, please take a moment to register. In case you have any questions, please e-mail: journalisthelp@thenewsmarket.com.

Zurich Financial Services Group (Zurich) is an insurance-based financial services provider with a global network of subsidiaries and offices in North America and Europe as well as in Asia-Pacific, Latin America and other markets. Founded in 1872, the Group is headquartered in Zurich, Switzerland. It employs approximately 60,000 people serving customers in more than 170 countries.

Disclaimer & Cautionary Statement

Certain statements in this document are forward-looking statements, including, but not limited to, statements that are predications of or indicate future events, trends, plans or objectives of Zurich Financial Services Ltd or the Zurich Financial Services Group (the “Group”). Forward-looking statements include statements regarding the Group’s targeted profit improvement, return on equity targets, expense reductions, pricing conditions, dividend policy and underwriting claims improvements, as well as statements regarding the Group’s understanding of general economic, financial and insurance market conditions and expected developments. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and plans and objectives of Zurich Financial Services Ltd or the Group to differ materially from those expressed or implied in the forward looking statements (or from past results). Factors such as (i) general economic conditions and competitive factors, particularly in key markets; (ii) the risk of the global economic downturn and a downturn in the financial services industries in particular; (iii) performance of financial markets; (iv) levels of interest rates and currency exchange rates; (v) frequency, severity and development of insured claims events; (vi) mortality and morbidity experience; (vii) policy renewal and lapse rates; and (viii) changes in laws and regulations and in the policies of regulators may have a direct bearing on the results of operations of Zurich Financial Services Ltd and its Group and on whether the targets will be achieved. Zurich Financial Services Ltd undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise.

Farmers is a trade name and may refer to Farmers Group, Inc. or the Farmers Exchanges, as the case may be. Farmers Group, Inc., a management and holding company, along with its subsidiaries, is wholly owned by the Zurich Financial Services Group. The Farmers Exchanges are three reciprocal insurers (Farmers Insurance Exchange, Fire Insurance Exchange and Truck Insurance Exchange), including their subsidiaries and affiliates, owned by their policyholders, and managed by Farmers Group, Inc. and its subsidiaries.

It should be noted that past performance is not a guide to future performance.

Persons requiring advice should consult an independent adviser.

This communication does not constitute an offer or an invitation for the sale or purchase of securities in any jurisdiction.

THIS COMMUNICATION DOES NOT CONTAIN AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES; SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR EXEMPTION FROM REGISTRATION, AND ANY PUBLIC OFFERING OF SECURITIES TO BE MADE IN THE UNITED STATES WILL BE MADE BY MEANS OF A PROSPECTUS THAT MAY BE OBTAINED FROM THE ISSUER AND THAT WILL CONTAIN DETAILED INFORMATION ABOUT THE COMPANY AND MANAGEMENT, AS WELL AS FINANCIAL STATEMENTS.