2 New Alzheimer's Drugs Show Promise in Early Studies

2 New Alzheimer's Drugs Show Promise in Early Studies

Researchers say two new drugs for Alzheimer's disease have shown promise in early experiments and will likely progress to the next round of clinical trials.
One drug, called a BACE inhibitor, has been in development for more than 10 years. In very early tests, it dramatically reduced levels of beta amyloid, a sticky protein that forms plaques in the brains of Alzheimer's patients.
The second drug is thought to reduce damaging inflammation. Patients with mild mental impairment who took the drug for over a year saw significant improvements in some measures of memory and thinking.

Link Seen in Age at Retirement and Risk of Alzheimer's (CME/CE)

Link Seen in Age at Retirement and Risk of Alzheimer's (CME/CE)

French retirees who had stopped working relatively late in life were less likely to develop Alzheimer's disease, a researcher reported here.

Analysis of a French healthcare insurer's records indicated that, for each year after age 60 at which a person retired, the risk of subsequently developing Alzheimer's disease was lower by 3.2% (HR 0.968, 95% CI 0.962-0.973), said Carole Dufouil, PhD, of INSERM in Bordeaux, France.

Statin On-Board May Cut Cancer Risk in HIV Infection (CME/CE)

Individuals infected with human immunodeficiency virus (HIV) who are on statin therapy are significantly less likely to develop cancer, researchers said here at the International AIDS Society Conference on HIV Pathogenesis, Treatment and Prevention.

In a retrospective analysis, Vincenzo Spagnuolo, MD, a resident in infectious diseases at Ospedale San Raffaele, Milan, observed that 363 individuals out of 4617 who were not on statins (7.9%) were diagnosed with cancer compared with 12 of 740 patients on statins (1.3%).

COPD Linked to Insomnia, Hospital Stays

Chronic obstructive pulmonary disease (COPD) was associated with increased risks of insomnia symptoms and hospitalizations, researchers reported here.

Based on survey data of noninstitutionalized participants, roughly half of those with COPD had insomnia symptoms (48.1%), twice the rate of those without COPD, according to Maurice Ohayon, MD, PhD, of the Stanford Sleep Epidemiology Research Center in Palo Alto, Calif.

FDA Proposes New Limit for Arsenic in Apple Juice

A new limit on the level of arsenic allowed in apple juice was proposed Friday by the U.S. Food and Drug Administration.
The move comes after a year of pressure from consumer groups concerned about the contaminant's effect on children.

The new standard would limit the amount of arsenic in apple juice to the same maximum level permitted in drinking water, 10 parts per billon, the agency said in a statement. Apple juice containing higher levels of arsenic could be removed from the market and companies could face legal action in those cases.

Gilotrif Approved for Late-Stage Lung Cancer

The drug Gilotrif (afatinib) has been approved by the U.S. Food and Drug Administration to treat spreading cases of non-small cell lung cancer (NSCLC) caused by certain gene mutations, the agency said Friday.

The treatment, given priority FDA review, was sanctioned for tumors that express certain epidermal growth factor receptor (EGFR) mutations, as detected by a newly approved diagnostic, the agency said in a news release.

Health Tip: Get More Bang for Your Beans

Beans are rich in fiber and full of valuable nutrients, while largely void of fat and cholesterol.

The Academy of Nutrition and Dietetics suggests how to add beans to your favorite recipes:

Use black beans in dishes such as Cuban rice and beans, soups, stews and tacos.Use cannellini, or white kidney beans, in your favorite Italian side dishes, casseroles, salads, soups and stews.

Health Tip: Know the Rules of Sponge Safety

Sponges may be a handy way to wipe up messes in the kitchen, but they can also spread germs.

The Academy of Nutrition and Dietetics offers this advice for safer kitchen sponges:

Don't use a sponge to wipe up spilled juices from meat.

Just Cutting Back on Smoking May Not Boost Lifespan

In recent years, researchers have suggested that smokers can boost their lifespans by cutting down instead of quitting.

But now, a new Scottish study that followed people for decades suggests that many smokers won't gain extra years by limiting -- but not eliminating -- their bad habit.

"You may be fooling yourself if you think that reducing the number of daily cigarettes will protect you from the health risk of smoking," said Dr. Steve Schroeder, a professor of medicine at the University of California, San Francisco, who studies how to convince smokers to quit.

However, the study isn't definitive, and another tobacco-use researcher said it has several potential weaknesses.

"It is not possible to know the detailed smoking history of every subject, and there's a myriad of subtle differences in consumption. There is little doubt that there is a difference in risk between one cigarette per day and 20, but it is not possible to measure all gradations in between," said Brad Rodu, a professor of medicine at the University of Louisville. "The other problem is reliability. Smokers who report fewer cigarettes might be underreporting, or they might be compensating by smoking more intensely."

Why does this kind of research matter? Because "there is an emerging trend for smokers to smoke fewer cigarettes, and some don't even smoke daily," Schroeder said.

Earlier this year, Great Britain's National Institute for Health and Clinical Excellence made news by urging some smokers to cut down -- with the help of nicotine gum and other alternatives -- instead of giving up. But there's controversy because people who smoke fewer cigarettes may smoke them more intensely.

The authors of the new study say medical officials shouldn't promote cutting down unless they understand its potential benefits. Previous research has been mixed, with some studies showing that smoking fewer cigarettes didn't affect lifespan.

In the new study, researchers tracked two groups of Scottish smokers. One included 1,524 working people who were tracked from the 1970s (when they were in their 40s, 50s and 60s) to 2010. The other group included 3,730 people from the general population who were tracked for about the same period of time.

The researchers found no difference overall in death rates between those who smoked and those who only cut down. In one of the studies, they found a lifespan benefit for those who cut down, but only among those who smoked 21 or more cigarettes per day. In the United States, that would be about a pack-a-day habit.

"These inconclusive results support the view that reducing cigarette consumption should not be promoted as a means of reducing mortality, although it may have a valuable role as a step toward smoking cessation," the researchers wrote.

The lead author of the study, public-health researcher Carole Hart at the University of Glasgow, in Scotland, declined to comment on the study. The two other study authors did not respond to a request for comment.

It remains clear that quitting itself is a good idea. The study found that smokers who quit were 25 percent to 34 percent less likely to die over the period of the research.

"Quit between ages 25 and 34 and save 10 years of life; between 35 and 44, save nine years; quit between 45 and 54, gain six years; quit between 55 and 64, gain four years," UCSF's Schroeder said.

If that's the case, why might cutting down not help much, if it all? "Many of the immediate effects come from reduced cardiovascular disease, which is sensitive to very low smoking exposure," he said. "The benefit from cancer risk reduction is not apparent for many years."

Schroeder cautioned, however, that cutting down still has benefits. "The main, and possibly only, benefit from reducing cigarette intake -- as opposed to stopping -- is that it makes it easier to quit subsequently," he said. "It also reduces the exposure of others to secondhand smoke."

The study was published online July 3 in the American Journal of Epidemiology.

Physical Punishment in Childhood Tied to Health Woes as Adults

Children whose parents use "harsh" physical punishment such as slapping or shoving may end up in relatively poorer physical health as adults, a new study suggests.

Researchers found that of more than 34,000 U.S. adults in a government health study, those who said they were harshly disciplined as kids had slightly higher risks of obesity, arthritis and heart disease.

Harsh punishment was defined as being hit, slapped, pushed or grabbed at least sometimes.

The findings, published online July 15 and in the August print issue of Pediatrics, do not prove that physical punishment, itself, affects kids' long-term health.

"It's an association. We can't say the punishment is causing the physical health problems," said lead researcher Tracie Afifi, of the University of Manitoba in Winnipeg, Canada.

But, she added, the findings add to evidence that physical punishment can harm kids. A number of studies have linked such punishment -- even spanking -- with problems such as aggressive behavior and poorer emotional well-being.

"Kids need discipline," Afifi said. "But it shouldn't involve physical force."

The findings are based on 34,226 U.S. adults who took part in a government health study in 2004 and 2005. Just under 4 percent fit the definition of being harshly punished as kids.

Overall, their rate of obesity was higher, compared to adults who reported no harsh physical punishment: about 31 percent, versus 26 percent. They also had higher rates of arthritis (22.5 percent, versus 20 percent) and heart disease (9 percent, versus 7 percent).

Afifi's team was able to account for some other factors -- including family income and whether kids suffered more severe abuse, physical or otherwise. "Harsh" discipline was still linked to a 20 percent to 28 percent increased risk of the three adulthood health problems.

A child-abuse expert not involved in the study agreed that physical punishment is potentially harmful. Plus, while it may get a child to stop the bad behavior right now, it does not work in the long run, said Dr. Rachel Berger, of the Children's Hospital of Pittsburgh.

"There's a tremendous and growing literature showing that corporal punishment is not necessary, and that there can be detrimental effects," Berger said.

The current study, though, has some limitations, said Berger, who co-wrote an accompanying editorial.

One issue, according to Berger, is how "harsh" physical punishment was defined. It was based on one question: "How often did a parent or other adults living in your home push, grab, shove, slap or hit you?" (The study did not ask specifically about "spanking" -- the most common form of childhood physical punishment.)

Only about 4 percent of adults said they'd at least sometimes been subjected to those forms of discipline. On the other hand, 38 percent reported more-severe child maltreatment -- including physical abuse that left kids bruised or injured.

Berger said fewer adults would be expected to report severe maltreatment, versus harsh punishment. So that raises doubts about how the question was asked, and how respondents were interpreting it, according to Berger.

And since the study did not look at milder physical punishment, the findings cannot be used to condemn everything down to the occasional whack on the behind. "You can't say, based on this alone, 'OK, now we know we shouldn't use any physical punishment,'" Berger said.

Another researcher not involved in the work said he did not find the results all that compelling. The study looked at seven adulthood health conditions, and found that harsh physical punishment was statistically linked to three of them.

And even then, the links were not strong in statistical terms, noted Christopher Ferguson, an associate professor of psychology at Texas A&M International University, in Laredo.

Ferguson said he is no advocate of spanking, but added, "I wouldn't want parents who have spanked their kids to become alarmed by this."

Study author Afifi agreed that parents should not feel alarmed -- or guilty. "We're not trying to point the finger at parents," she said. But based on the body of research, parents should try to learn nonphysical types of discipline, she added.

And if you're not sure how to do that? "I would recommend that parents start by talking to their pediatrician," Afifi suggested.

Based on past surveys, the vast majority of Americans were spanked as kids. So it may be pretty ingrained in the culture, noted Berger at Children's Hospital of Pittsburgh.

"But just because you were spanked," she said, "doesn't mean it's right for your child."

Putting Off Retirement May Help Stave Off Alzheimer's

As Americans increasingly delay retirement, a new French study indicates this scenario may have a silver lining: a lower risk of developing Alzheimer's disease.

Researchers analyzing health and insurance records of more than 429,000 self-employed workers found a 3 percent reduction in dementia risk for each extra year at the age of retirement. Workers evaluated had been retired for an average of more than 12 years, and 2.65 percent of the group had dementia.

"There's increasing evidence that lifestyle factors such as exercise, mental activities, social engagement, positive outlook and a heart-healthy diet may reduce the risk of developing Alzheimer's disease and other forms of dementia," said Dr. James Galvin. "Now we can add staying in the workforce to this list of potential protective factors."

Galvin, director of the Pearl Barlow Center for Memory Evaluation and Treatment at the NYU Langone School of Medicine, was not involved with the new research.

The study, led by Carole Dufouil, director of research in neuroepidemiology at the French National Institute of Health and Medical Research, is scheduled to be presented Monday at an Alzheimer's Association conference in Boston. Research presented at scientific conferences typically has not been peer-reviewed or published and results are considered preliminary.

About 5.2 million Americans have been diagnosed with Alzheimer's disease, which is the sixth leading cause of death in the United States, according to the Alzheimer's Association.

Americans are increasingly putting off retirement, especially those in the middle class. According to a 2012 Wells Fargo survey of 1,000 Americans earning less than $100,000 annually, almost one-third said they'd need to work until age 80 to live comfortably in retirement.

But Dufouil's research, which linked health and pension databases of self-employed workers who were retired as of 2010, puts a positive spin on that choice. In study background materials, she said the data is in line with the "use it or lose it" hypothesis of brain health. The study showed an association between higher retirement age and lower dementia risk, but not a cause-and-effect relationship.

One Alzheimer's disease expert was not surprised by the new findings.

"There seems to be growing evidence that staying cognitively [mentally] active is really important to reducing a person's risk, and perhaps professional activity may be one of those cognitive activities," said Heather Snyder, director of medical and scientific operations for the Alzheimer's Association, based in Chicago. "What we know is that things that promote lifelong learning seem to be beneficial. But that may mean different things for different people . . . and exactly what that is, we can't define at this point in time."

For his part, Galvin noted several caveats to keep in mind when interpreting the study's meaning. First, he said, self-employed workers may be inherently different than company-employed workers, with differences in skill sets, work environment, stress and social mobility that might affect the study's results.

Also, the prevalence of dementia was based on a review of either an existing dementia diagnosis or prescription for dementia-related medication, he noted.

"There is no way of knowing about those individuals who did not seek medical attention, did not have access to health care or who were not properly diagnosed," Galvin added. "Nonetheless, the study supports the concept that keeping oneself mentally, physically and socially active over the span of a lifetime may have important effects on both physical and mental health."

Sweet Tooth May Foretell of Binge Drinking, Brain Scans Show

A love of sweets might predict a fondness for the bottle, a new study suggests.

Researchers used functional MRI technology to scan the brains of 16 young adults while they drank either plain water or an intensely sweet mixture of sugar in water. Their brain activity was then compared to their drinking patterns.

There was a strong association between the participants' response to the sweet water in their brain's left orbitofrontal area -- part of the brain's reward system -- and binge drinking, according to the study published in the July 10 online edition of the journal Alcoholism: Clinical & Experimental Research.

"Specifically, the trend was such that those who drank more alcohol on drinking days had stronger left orbitofrontal responses to the intensely sweet water," study corresponding author David Kareken, deputy director of the Indiana Alcohol Research Center and a professor in the department of neurology at Indiana University School of Medicine, said in a journal news release.

How study participants rated their preference for the sweetened water also affected this relationship, "so that both the brain response itself, as well as liking of the sugared water, collectively correlated with drinking behavior," Kareken explained.

The findings mean that a strong response to sweet tastes in the brain's reward center may be an important indicator of an increased risk for alcoholism, the study authors noted.

While previous human and animal studies have noted this association between preferences for both sweet tastes and alcohol, Kareken believes this is the first study to examine the human brain mechanism behind this connection.

"While much more research needs to be done to truly understand the commonalities between sweet-liking and alcoholism, and while alcoholism itself is likely the product of several mechanisms, our findings may implicate a particular brain region that is more generally involved in coding for the value of 'primary' rewards such as pleasures," Kareken said.

"In a more practical sense, the findings are compelling evidence that the brain response to an intensely sweet taste may be used in future research to test for differences in the reward circuits of those at risk for alcoholism. This may be particularly useful since alcohol itself is not an easy drug to work with in this kind of human imaging, and since alcohol exposure is not ethically appropriate for use in all at-risk [study participants], or in [those] trying to abstain from drinking."

Texas Lawmakers Pass Strict Abortion Bill

The Texas state Senate passed an anti-abortion bill considered one of the most restrictive in the country Friday night, and Gov. Rick Perry is expected to sign it into law within a few days.

The bill would ban abortions after 20 weeks, hold abortion clinics to the same standards as surgical centers and require doctors performing abortions to have admitting privileges at local hospitals.

The bill was passed by the Republican-controlled Legislature in a highly charged atmosphere after heated debate. A previous version of the bill failed in June after an 11-hour filibuster by Democratic state Sen. Wendy Davis of Fort Worth.

After the first bill failed to pass, Perry, a Republican, called a special session of the Legislature on July 1 to reconsider the measure. On Friday, more than 2,000 demonstrators packed the Capitol building in Austin, the Associated Press reported.

Following passage of the bill, Perry said, "Today, the Texas Legislature took its final step in our historic effort to protect life."

Texas medical groups and the American Congress of Obstetricians and Gynecologists have opposed the legislation. In a July 2 statement, ACOG said the effort was "plainly intended to restrict the reproductive rights of women in Texas through a series of requirements that improperly regulate medical practice and interfere with the patient-physician relationship."

Democratic legislators said they would continue to oppose the bill, with a court challenge the likely next step.

Type 1 Diabetes Hope: Animal-to-Human Cell Transplants

U.S. scientists who successfully transplanted insulin-producing islet cells from rats to mice say it is the first step toward animal-to-human transplant of islet cells for people with type 1 diabetes.

The researchers at Northwestern Medicine in Illinois developed a method that prevented the mice from rejecting the rats' islet cells without the use of drugs to suppress their immune system.

The study was published online July 12 in the journal Diabetes.

"This is the first time that an interspecies transplant of islet cells has been achieved for an indefinite period of time without the use of immunosuppressive drugs. It's a big step forward," co-senior study author Stephen Miller, a research professor of microbiology and immunology at the Northwestern University Feinberg School of Medicine, said in a Northwestern news release.

Their ultimate goal is to be able to transplant pig islets into humans, said the other co-senior author, Dr. Xunrong Luo. "But we have to take baby steps," said Luo, medical director of the human islet cell transplantation program at Northwestern Memorial. "Pig islets produce insulin that controls blood sugar in humans."

People with type 1 diabetes don't produce insulin. A transplant of insulin-producing islets from a deceased donor can help control type 1 diabetes, but there is a severe shortage of islet cells from deceased donors. Many patients on waiting lists don't receive the transplant or suffer heart, nerve, eye and kidney damage while they wait.

Using islets from another species would enable more people to receive transplants. However, concerns about controlling rejection of transplants from a different species have made that approach seem impossible until now.

Vermont Releases Final Health Insurance Rates

Vermonters can expect to pay slightly lower premiums than those initially proposed by the two insurance carriers approved to sell plans on the state's new health insurance Marketplace, called Vermont Health Connect.

The Green Mountain Care Board -- the regulatory authority for insurance and hospital rates in Vermont -- announced this week that it negotiated 4.3% to 5.3% rate cuts in individual and small-group plans offered by Blue Cross Blue Shield of Vermont and MVP Health Care. The rates go into effect Jan. 1.

Vermont approved six "metal" plans in its health insurance Marketplace, also called an Exchange. There are two bronze, two silver, one gold, and one platinum plan, each with different combinations of copayments, coinsurance rates, and limits on annual out-of-pocket spending.

Every plan must cover the same services, but the companies pay a bigger share of costs going from the bronze to platinum. Bronze plans pay about 60% of the average person's health costs. Silver plans pay 70%, gold plans 80%, and platinum plans 90%. Customers pay the remaining costs. (For example, customers pay 40% of the costs under a bronze plan.) Bronze plans have the lowest premiums, while the platinum plans have the highest.

In Vermont, final rates for mid-range silver plans are from $395 (BCBS) to $410 (MVP) per month for a single person. Family plans range from $1,111 (BCBS) to $1,151 (MVP) per month. About 100,000 state residents are expected to buy insurance through Vermont Health Connect.

Lower-income Vermonters can expect to pay 0.5% to 8% of their income on health insurance premiums, according to Robin Lunge, Vermont's director of health care reform. Financial aid in the form of state subsidies and federal tax credits are available to ease the financial burden for about 49,500 residents.

Under the Affordable Care Act, signed into law in 2010, each state must have a health insurance Marketplace in place by Oct. 1 for coverage starting Jan. 1, 2014. Most Americans will be required to have health insurance starting Jan. 1. Vermont is one of 17 states, along with the District of Columbia, that will run its own Marketplace.

SOURCES: News release, Green Mountain Care Board. Robin Lunge, director of health care reform, state of Vermont. Anya Wallack, chair, Green Mountain Care Board. Emily Yahr, education and outreach manager, Vermont Health Benefit Exchange-Vermont Health Connect.

With Weekly Exercise, Time Trumps Frequency

The number of times you exercise in a week isn't as important as getting the recommended 150 minutes of physical activity, a new study finds.

Researchers looked at more than 2,300 Canadian adults to determine if their exercise frequency affected their risk for diabetes, heart disease and stroke. The participants were classified as either frequently active (five to seven days a week) or infrequently active (one to four days a week).

People who did 150 minutes of exercise on just a few days of the week were no less healthy than those who worked out more often, according to the study published recently in the journal Applied Physiology, Nutrition and Metabolism.

"The findings indicate that it does not matter how adults choose to accumulate their 150 weekly minutes of physical activity," Dr. Ian Janssen, of Queen's University in Kingston, Ontario, said in a university news release.

"For instance, someone who did not perform any physical activity on Monday to Friday but was active for 150 minutes over the weekend would obtain the same health benefits from their activity as someone who accumulated 150 minutes of activity over the week by doing 20 to 25 minutes of activity on a daily basis," he explained.

"The important message is that adults should aim to accumulate at least 150 minutes of weekly physical activity in whatever pattern that works for their schedule," Janssen said.

Clinical Notes: Fungus Found in Steroids

Fungus, Bacteria Found in Compounded Steroids

Unopened vials of supposedly sterile methylprednisolone acetate, prepared by a Tennessee compounding pharmacy at the center of a federal investigation, contained both fungi and bacteria, the FDA said Friday.

FDA scientists cultured fungal and bacterial microbes from two vials of the injectable steroid from Main Street Family Pharmacy in Newbern, Tenn., each from different lots. The agency said its staff was working with the Centers for Disease Control and Prevention (CDC) to identify the specific species.

Egg-Free Flu Vaccine Ready for Flu Season

Flublok is made using recombinant DNA technology and contains hemagglutinin produced in an insect cell line. Approved by the FDA in January, it is the only completely egg-free flu vaccine available, prompting the Advisory Committee on Immunization Practices (ACIP) to add it to the guidance for the upcoming season at one of its regular meetings at CDC headquarters in Atlanta.

According to the previous algorithm for determining how people with egg allergies should be vaccinated, those who had a history of only hives upon exposure to egg were recommended to get inactivated influenza vaccine followed by an observation period of at least 30 minutes after administration to watch for reactions.

Insurance is key to fostering economic growth and investment in the Middle East and North Africa region

Insurance can promote economic development, create jobs and boost trade across the Middle East and North Africa (MENA) region, according to “The Role of Insurance in MENA” – a new report from Zurich Insurance Group (Zurich) launched at the World Economic Forum, MENA summit, held in Jordan from May 24-26.

Though the MENA region has made considerable progress over the last decade, with some of the lowest insurance penetration rates in the world, there is still large growth potential in the insurance sector. However, insurance can help to transform the MENA economies to address many of the economic and social challenges facing the region, including helping nations to diversify and modernize their economies to create sufficient employment opportunities for the young. 

Insurance allows individuals and their families to protect their hard-earned assets, which provides economic stability for all classes of society. By providing risk transfer possibilities and facilitating capital formation, insurers also promote economic development. Insurance provides essential coverage to businesses that promotes trade and economic activity. Furthermore, by insuring trade and foreign direct investments, insurance contributes to sustainable growth across all market sectors. 

Saad Mered, CEO General Insurance Middle East & Africa, Zurich Insurance Group commented: “The role of insurance in emerging economies is often not well understood and underestimated. For these fast growing countries, insurance supports the pace of economic development and protects quality of life. It safeguards and rebuilds the foundations of economic activity after unexpected loss, like in the wake of natural catastrophes. Insurance can also play an important part in funding retirement solutions. It not only provides long-term savings vehicles, but also addresses risks that might affect the ability to save (i.e. disability) or living longer than expected (i.e. longevity risk) on one’s savings. In addition, given the long-term nature of their liabilities, insurers are ideally suited to provide finance for growth enhancing long-term investments. Finally, the insurance industry is a dynamic services sector which creates employment and entrepreneurship opportunities at all levels and in adjacent services sector.”

Insurance performs three core economic functions:
Risk transfer – insurance provides an efficient mechanism of risk transfer by pooling the risks of a large number of individuals (such as the family home being destroyed) based on the law of large numbers.
Risk management – by charging a premium that reflects the underlying risk, insurance provides a signal for efficient risk mitigation. Insurers also provide risk management advice and services to companies and individuals.
Capital formation – by collecting large pools of capital that are invested in capital markets, insurers foster capital formation that is available to fund long-term investments.
Through these functions, insurance enhances welfare, promotes economic activity and protects and supports the growing middle class in the MENA region.

Despite this, the MENA region has some of the lowest insurance penetration rates in the world. The average insurance penetration rate across the MENA region is 1.5%, which is almost four times lower than Singapore and almost eight times lower than the UK.

Against this backdrop, wider use of insurance in the MENA region would greatly speed up the region’s continued economic progress.

A concerted effort by policymakers, regulators and market participants is needed to address a number of market and regulatory challenges to enable insurance to grow in the region.

This includes:
Financial literacy – there is a widespread lack of financial literacy and a low-level of awareness about insurance products and their beneficial effects. Financial education is crucial to overcome this, and the public and private sectors should cooperate to broaden awareness.

Micro-insurance – insurance can be too expensive for the poorest part of the population. Insurers can tailor the products to reduce the thresholds for efficient insurance by simplifying policy terms and collecting payments in highly scalable ways (such as via mobile phones). Such tailored products can serve the needs of low-income households.

Regulation – Regulatory standards in the MENA region are relatively vague and less detailed and sophisticated than in developed countries. This can enhance the risk and screening costs for customers, allowing insurers with poorly developed risk management systems and poor reserves to enter the market. Therefore there is an urgent need to strengthen the regulatory framework and its enforcement.

In conclusion, insurance can play a crucial role in addressing the key challenges of the MENA region by protecting the assets of individuals, families and businesses and promoting economic development. However, a lack of trust and awareness by consumers is a major impediment for insurance in playing this role. On one hand, the insurance sector needs to develop affordable and tailored products for emerging markets that enable consumers to build up trust in the sector. On the other, it is vital for many countries of the MENA region to ensure that the right regulatory infrastructure exists to allow the sector to deliver the economic and social benefits that it is able to.

James Quin appointed Head of Investor Relations and Rating Agency Management

Zurich Insurance Group (Zurich) announces the appointment of James Quin, (44, British citizen), to the position of Head of Investor Relations and Rating Agency Management, effective July 1, 2013, with a transition period starting June 3. He succeeds Debra Broek, who has decided to return to the U.S. In his new role Mr. Quin will be responsible for interfacing with Zurich’s global investor community as well as with rating agencies. He will report to Pierre Wauthier, Chief Financial Officer, and be located in Zurich, Switzerland.

Mr. Quin joins Zurich from PwC where he is a partner in the capital markets, accounting advisory and structuring group. From 2000 to 2011 he worked in equity research, principally at Lehman Brothers and Citigroup, where he was a Managing Director and Head of the Citigroup European insurance equity research team. Before moving into equity research he spent 10 years with PwC in London and New York, mainly working on auditing and financial advisory projects with insurers. Mr. Quin holds a law degree from the University of Bristol and is a Chartered Accountant.

“James has in-depth knowledge and experience in the insurance industry having spent more than 20 years in equity research and advisory roles and he is highly regarded within the investor community. I very much look forward to welcoming him to the team,” said Pierre Wauthier, Chief Financial Officer. With regards to Mrs. Broek’s achievements, he added: “Since Debra has joined Zurich in 2007 she has made an invaluable contribution to the Group especially in her current position of Head of Investor Relations and Rating Agency Management. I want to thank Debra for her great dedication and commitment and wish her all the best.”

Ordinary General Meeting of Zurich approves dividend of CHF 17.00 – Monica Maechler elected to the Board of Directors

The Ordinary General Meeting of Zurich Insurance Group Ltd (Zurich) today approved an unchanged dividend of CHF 17.00 per registered share, resulting in a payout ratio of net income of 70%. As this year’s dividend payment will again be paid from the capital contribution reserves, it will be exempt from Swiss withholding tax. The dividend will be paid starting April 11, 2013.

The Ordinary General Meeting newly elected Monica Maechler to the Board of Directors. It also re-elected Susan Bies for a further term of office of three years as well as Victor L.L. Chu and Rolf Watter for a one year term of office. Armin Meyer, who has served the maximum tenure of office, retires from the Board of Directors. In its constituent meeting held after the General Meeting the Board of Directors re-elected Josef Ackermann as Chairman and Tom de Swaan as Vice-Chairman.

The Board of Directors now consists of the following members:

Josef Ackermann, Chairman Tom de Swaan, Vice-Chairman Susan Bies Alison Carnwath Victor L.L. Chu Rafael del Pino Thomas K. Escher Fred Kindle Monica Maechler Don Nicolaisen Rolf Watter

PricewaterhouseCoopers AG, Zurich, was re-elected as auditor for the business year 2013.

Furthermore, Zurich conducted an advisory vote on its remuneration system. In the non-binding vote, shareholders voted in favor of the remuneration system with 85.5% favorable votes.

The General Meeting also approved all other agenda items. 2,232 shareholders (incl. proxies), representing 57,053,601 registered shares or 58.3% of the shares entitling to vote, attended the meeting in Zurich.

Ulrich F. Zwygart appointed Chief Learning Officer

Zurich Insurance Group (Zurich) announces the appointment of Ulrich F. Zwygart (59, Swiss citizen) to the newly created position of Chief Learning Officer, effective January 1, 2013. In his new role, Mr. Zwygart will be responsible for the delivery of learning and development solutions that reflect business needs and strategies. He will report to the Group Head of Human Resources Thomas J. White.

“With Mr. Zwygart’s appointment we are strengthening our capabilities in the learning and development field with a world-class professional in this discipline underlining our aspiration to make Zurich the best global insurer as measures by our customers, shareholders and employees,” said Thomas J. White.

Ulrich F. Zwygart joins Zurich from Deutsche Bank, London where he has held the position of global head training and communications for risk since 2008.

Mr. Zwygart, Major General (ret.) is an Honorary Professor for General Management at the University of St. Gallen / Executive School for Management, Technology and Law. He holds a doctorate’s degree in Law from the University of Berne. Mr. Zwygart has published numerous articles and books on leadership and management and was awarded the “Swiss Economics Books Award 2007”.

Zurich announces strategic alliance with the IFRC as foundation of global flood resilience program

Zurich Insurance Group (Zurich) announced today a CHF 21 million five-year alliance with the International Federation of Red Cross and Red Crescent Societies (IFRC). The five-year commitment will serve as the foundation of Zurich’s global flood resilience program, which aims to enhance community flood resilience by finding innovative ways to increase the impact of disaster risk reduction efforts at the community, national and global levels. The first country program will take place in Mexico.

Zurich has committed to this major flood resilience program because floods affect more people globally than any other type of natural disaster and are responsible for some of the largest economic, social, humanitarian and insured losses. The program is being embedded within Zurich’s General Insurance business, making use of Zurich’s insurance and risk expertise around the world.

Mike Kerner, CEO of General Insurance, explained: “Floods are expected to have a growing impact due to natural factors, such as the increase in extreme rainfall events and rising sea levels, and man-made factors such as population growth and the number of homes and businesses in areas exposed to flooding. At the same time we believe that there is too little emphasis on pre-event flood mitigation, as opposed to post-event flood relief. This is a gap that Zurich can help fill because we have relevant risk management and insurance expertise.”

Zurich’s flood resilience program will focus on developing and disseminating knowledge and expertise on flood resilience. It will have an impact at the local level through strategic long-term alliances with the public sector, NGOs, private sector organizations and academia, and will also look at the contribution insurance can make when it comes to flood risk.

The Z Zurich Foundation and the organizations it cooperates with play an important role in Zurich’s global flood resilience program, an initiative that forms part of its broader corporate responsibility strategy.

To maximize the community impact of the program, Zurich has committed to a long-term strategic alliance on flood disaster risk reduction with the International Federation of Red Cross and Red Crescent Societies. Together with the IFRC, Zurich will enhance community flood resilience through the development and application of innovative disaster risk reduction solutions.

Bekele Geleta, Secretary General of the IFRC, commented: “Combining the risk expertise of Zurich with the deep disaster preparedness expertise of the IFRC in this alliance – one of the largest private sector co-operations of the Federation – will help to achieve a significant impact on communities at risk from floods and will help reduce devastating impacts.”

Both Zurich and the IFRC, which first started working together in 2008, expect this alliance to become a model that can be replicated globally. The Z Zurich Foundation, following the strategic investment in the amount of USD 100 million  made by Zurich last year, will invest up to CHF 21 million in the alliance over the five years to 2017. Zurich employees with relevant skills are also expected to invest an average of 500 working days per year in the alliance.

Zurich announces the appointment of Mike Davies to the position of Global Head of Marine Underwriting

Zurich Insurance Group (Zurich) announces the appointment of Mike Davies, (51, British citizen) to the position of Global Head of Marine Underwriting within the company’s General Insurance (GI) business, effective July 1, 2013. He succeeds Lee Meyrick who left Zurich in April, 2013. Mr. Davies will provide leadership and drive high performance underwriting in GI's Marine, Aviation and Fine Art & Species product lines globally. Mr. Davies, will report to Juan Beer, Chief Underwriting Officer, Property, Engineering Lines & Marine and will be located in Zurich.

Juan Beer commented: “Mike’s appointment says much about his proven underwriting excellence and the strength of Zurich's internal talent pool. His leadership and Zurich's underwriting integrity - together with a full product range, bespoke International Programs and marine-dedicated risk engineering services - spells a confident future for Zurich's marine capabilities.”

Mr. Davies's 32 years of marine sector experience include 15 years with Zurich in the UK and, most recently, in Asia Pacific as Zurich’s Regional Head of Marine Underwriting. He is an associate of the Chartered Insurance Institute. He was chairman of the International Union of Marine Insurance (IUMI) Cargo Committee from 2006-2011 and is currently a vice chairman of IUMI and a member of its executive committee.

Zurich announces the successful placement of EUR 788 million of dated subordinated notes

Zurich Insurance Group (Zurich) today announced the successful placement of dated subordinated notes (the “Notes”) in an amount of EUR 788 million. The Notes will mature in October 2043 and are first callable in October 2023. The transaction was primarily targeted at European institutional investors.

The Notes will be issued by Zurich Insurance Company Ltd to a repackaging vehicle (Aquarius + Investments plc, Dublin). The repackaging vehicle in turn issues notes to investors that are secured by the Notes. The annual coupon is fixed at 4.25% until the first call date. Thereafter, the holders of the Notes will receive a floating coupon.

Simultaneously with the new issuance investors who held the Zurich Finance (USA), Inc. EUR 500 million dated subordinated notes due 2025 were offered to switch part or all of their holdings for the Notes. The total nominal amount of the 2025 notes switched was EUR 82 million for which those investors received EUR 88 million of the Notes which reflects the offered switch price.

The Notes are expected to be treated as capital from a regulatory and rating agency perspective to the extent permissible. The transaction has been conducted for general corporate purposes and to address refinancing needs in 2013.

Zurich continues to progress on its strategy to exit non-core businesses

The Eagle Star Insurance Group transfers its general insurance portfolio to RiverStone 
The Eagle Star Insurance Group (Eagle Star), which is wholly owned by Zurich and based in the UK, has agreed to transfer its remaining general insurance business to RiverStone Insurance (UK) Limited (RiverStone). Zurich and RiverStone have signed a reinsurance agreement which transfers the benefits and risks of Eagle Star’s general insurance portfolio as at July 1, 2012 from Zurich to RiverStone until completion of the full transfer. As a result, USD 273 million in undiscounted gross liabilities will transfer to RiverStone, predominantly U.S. asbestos, pollution and health risks written from the mid-1940s to the mid-1980s. The transaction will generate a pre-tax profit in 2012 and is expected to release USD 340 million of local capital within two years. Eagle Star has been in run off since 2006, and this transaction is part of Zurich's wider strategy to divest most of its non-core businesses to release and redeploy USD 1.5 billion of capital by 2015. The completion of this transaction will be subject to regulatory review and court approval. Customers will not be materially affected, and the terms and conditions of their policies will continue to apply. Zurich will notify all affected policyholders as part of the formal transfer process.

Zurich Bank’s banking license returned
Furthermore and unrelated to the above, on December 14, 2012, The Central Bank of Ireland approved Zurich Bank's request to cancel its banking license. As a result, Zurich Bank has now been renamed Dunbar Assets Ireland. This is another significant step in the controlled exit of Zurich from its banking business. It follows the successful transfer of Dunbar Bank plc's remaining bank accounts and the return of its UK banking license last year.

Zurich delivers strong results for the first quarter 2013

Q1 BOP of USD 1.4 billion, essentially unchanged compared with prior yearQ1 NIAS of USD 1.1 billion, down 7% compared with prior yearQ1 combined ratio of 94.9%, compared with 94.6% in prior yearQ1 BOPAT ROE 12.0%, down from 13.4% at Q1 2012 and up from 9.3% at year-end 2012 High quality operating performance across all core businessesStrong underwriting performance largely offsetting lower investment incomeEfficiency program generating benefits in mature marketsGood growth in Global Life and target marketsStrong capital position well within AA target range

(For a more comprehensive set of financial highlights covering the three months ended March 31, see page 8 of the News Release)

Business operating profit (BOP)Net income after tax attributable to shareholders (NIAS)1Net investment return on Group investmentsTotal return on Group investmentsDiluted earnings per share (in CHF)Book value per share (in CHF) 3Return on common shareholders’ equity (ROE)4Business operating profit (after tax) return on common shareholders’ equity (BOPAT ROE) 4

Zurich, May 16, 2013 – Zurich Insurance Group (Zurich) today reported a business operating profit (BOP) of USD 1.4 billion and net income attributable to shareholders (NIAS)1 of USD 1.1 billion for the three months ended March 31, 2013.

“I am pleased with this result as it demonstrates the continued success of our strategy. All our core businesses delivered a high quality operating performance while maintaining focus on underwriting discipline and expense management. We continue to operate in a challenging economic environment with persisting low interest rates against which we have posted strong, high quality underlying profits,” said Chief Executive Officer Martin Senn.

“We remain on track to deliver our 2013 targets. We continue to grow in our Global Life business and in target markets, where our acquisitions and alliances have strengthened our position in several key countries, contributing to the robust insurance performance across the Group. In Latin America, Zurich Santander continues to contribute significantly to our performance, complementing strong organic growth in this strategically important region.”

General Insurance recorded a strong BOP of USD 807 million, despite persistent lower yields and less favorable development of reserves established in prior years, and achieved a 1.5 point improvement in the underlying loss ratio in the first three months of 2013 compared with 2012.

Global Life delivered a resilient set of results with an increasing contribution from insurance businesses acquired from Banco Santander S.A. (Zurich Santander) in Latin America and improvements in Europe, which benefited from expense savings, compensating for reductions in North America, Asia Pacific and the Middle East.

Farmers saw a strong increase in BOP of USD 51 million to USD 420 million reflecting an improved underwriting result in the reinsurance operation and a slightly reduced contribution from the management services company.

The non-core businesses recorded a business operating profit of USD 37 million compared with a business operating profit of USD 81 million in the same period of 2012, which had benefited from one-off gains. Other Operating Businesses reported an improvement in its business operating result of USD 7 million, reducing the loss to USD 221 million during the first three months of 2013.

The Group preserved a strong capital position with shareholders’ equity increasing to USD 34.8 billion. This does not reflect the 2012 accrual for the dividend, totaling USD 2.7 billion, which will be reported in the second quarter since the AGM took place in April. If shareholders’ equity were adjusted by the amount of the 2012 dividend, paid in the second quarter 2013, return on equity ratios would have increased by approximately 50 basis points. Solvency remains strong with the capitalization ratio under the Swiss Solvency Test (SST), as filed with the regulator as of January 1, 2013, at 185% compared with 178% as filed as of July 1, 2012.

(for the three months ended March 31, 2013)

General Insurance gross written premiums and policy feesGeneral Insurance business operating profitGeneral Insurance combined ratio (in %)

General Insurance maintained focus on disciplined underwriting and expense management. The business continued to achieve savings objectives in mature markets while investing selectively in target growth markets.

General Insurance business operating profit decreased by USD 51 million to USD 807 million, or by 6% in U.S. dollar terms or 5% on a local currency basis. This result in the first three months reflects the sustained focus on disciplined underwriting and expense management as the underlying loss ratio improved by 1.5 points, the best recorded since we have reported this figure. The segment also benefited from favorable weather conditions and the absence of significant catastrophes for the second consecutive year. Lower investment income as a result of persistent lower investment yields, lower net releases of reserves established in prior years and higher commissions offset these improvements, resulting in an overall combined ratio of 94.9%.

General Insurance gross written premiums and policy fees increased by USD 216 million to USD 10.7 billion, or by 2% in U.S. dollar terms and 3% on a local currency basis. Growth compared with the same period of 2012 was maintained in all businesses except in Europe where economic and competitive pressures continued. Double digit growth in International Markets, both organic and in Zurich Santander, was complemented by strong premium growth, particularly in North America Commercial and Global Corporate where improving economic conditions and the market environment continued to support rate increases and exposure growth.

The net underwriting result decreased by USD 17 million to USD 367 million, reflected in a slight increase of 0.3 percentage points in the combined ratio to 94.9%.

Global Life gross written premiums, policy fees and insurance depositsGlobal Life business operating profitGlobal Life new business annual premium equivalent (APE)Global Life new business margin, after tax (as % of APE)Global Life new business value, after tax

Global Life continued to make progress in its strategic objectives of increasing geographic diversification outside Europe and growth, both organic and through Zurich Santander, in target markets, while maintaining focus on shifting its product mix from traditional savings business towards protection and fee-based products.

Global Life business operating profit increased by USD 18 million to USD 308 million or by 6% in U.S. dollar terms and 10% on a local currency basis. Improvements in the expense margin from expense savings in mature European markets and lower policy acquisition expenses, together with a higher contribution from Zurich Santander, were partly offset by reductions in the investment margin.

Gross written premiums and policy fees increased by USD 295 million to USD 3.7 billion or by 9% in U. S. dollar terms or 11% on a local currency basis, driven primarily by increased volumes of protection business. Lower margin insurance deposits decreased by USD 975 million to USD 3.0 billion or by 25% in U.S. dollar terms and 24% on a local currency basis. This decrease occurred primarily in the UK following the expected reduction in insurance deposits from single premium Private Banking Client Solutions products as well as lower initial portfolio transfers in Corporate Life & Pensions savings business compared with the same period in 2012.

Overall new business value (NBV) of USD 332 million increased by 69% in U.S. dollar terms or 71% on a local currency basis driven by the inclusion of the Zurich Santander result and strong performance in all regions. New business annual premium equivalent (APE) increased by USD 123 million or by 13% in U.S. dollar terms and 14% on a local currency basis.

Farmers Management Services management fees and other related revenuesFarmers Re gross written premiums and policy feesFarmers business operating profitFarmers Management Services gross management resultFarmers Management Services managed gross earned premium margin

Farmers business operating profit increased by USD 51 million to USD 420 million or by 14%, driven by an improved underwriting result in Farmers Re. Farmers Management Services business operating profit decreased by USD 14 million to USD 338 million or by 4%, driven by lower revenues from new business generated by the Farmers Exchanges which are owned by their policyholders and managed by Farmers Group, Inc., a wholly owned subsidiary of the Group. Farmers Re business operating profit increased by USD 64 million to USD 82 million, driven by an improved underlying loss ratio and lower weather-related losses.

Farmers Management Services management fees and other related revenues decreased by USD 8 million to USD 702 million or by 1%, which was driven by a decrease in other related revenues arising from lower levels of new policies. The 8% decrease to USD 971 million in gross written premiums and policy fees of Farmers Re reflected mainly a decrease in the quota share reinsurance agreements as well as a 1% drop in gross written premiums in the Farmers Exchanges. The changes were a reduction in the All Lines quota share agreement with the Farmers Exchanges from 20% to 18.5% effective December 31, 2012, and a reduction in the Auto Physical Damage quota share reinsurance agreement with the Farmers Exchanges from USD 1 billion per year to USD 925 million per year effective January 1, 2013.

Other Operating Businesses: Other Operating Businesses, predominantly consisting of the headquarters’ expenses and financing activities, reported a decreased operating loss of USD 221 million, down USD 7 million from the same period in 2012. This was primarily driven by a reduction in the headquarters business operating loss to USD 3 million, some USD 24 million lower than in the same period of 2012.

Non-Core Businesses: Non-Core Businesses reported a business operating profit of USD 37 million compared with a business operating profit of USD 81 million in the same period of 2012. An improvement in centrally managed businesses was mainly driven by the recognition of profit arising from the reinsurance of a UK general insurance run-off portfolio. The reduction in Other run-off as compared with the same period of 2012 was mainly driven by the 2012 one-off gain from the reassessment of liabilities on certain life run-off policies.

Net investment result on Group investmentsNet investment return on Group investments (not annualized and calculated on average Group investments)Total return on Group investments (not annualized and calculated on average Group investments)

The net investment result on Group investments, which includes investment income, realized gains and losses and impairments, contributed USD 1.7 billion to the Group’s total revenues for the three months ended March 31, 2013, a net return of 0.8% (not annualized). The decline was driven by investing cash flow during a prolonged period of persistently low interest rates. Net capital gains on investments and impairments amounted to USD 120 million, mainly driven by sales of debt and equity securities. Net unrealized gains reported in shareholders’ equity decreased by USD 879 million since December 31, 2012, mainly driven by the widening of credit spreads in the eurozone and the slight increase in yields on government securities in some markets. Total return on Group investments, which includes investment income, realized gains and losses and impairments as well as changes in unrealized gains and losses reported in shareholders’ equity, was 0.4% (not annualized), a decrease of 1.6 points compared with the same period of 2012.

1Net income after tax attributable to shareholders

2Total Group business volumes comprises gross written premiums, policy fees, insurance deposits and management fees generated within General Insurance, Global Life and Farmers.

3As of March 31, 2013 and March 31, 2012, respectively

4Calculated based on the discrete quarter result and annualized. See the Financial Supplement and the Operating and Financial Review on the Investor Relations’ page of our website www.zurich.com/.

5March 31, 2012 and December 31, 2012 have been restated as set out in note 1 of the unaudited Consolidated financial statements.

6Does not include any contribution from the insurance businesses acquired from Banco Santander S.A. (Zurich Santander) or from the acquisition of Zurich Insurance Malaysia Berhad.

Financial Highlights (unaudited)

Zurich issues estimate for Storm Sandy

Zurich Insurance Group (Zurich) today announced that it currently estimates aggregate claims net of reinsurance of about USD 700 million relating to Storm Sandy. This includes USD 40 million related to Farmers Re in connection with the reinsurance cover provided to the Farmers Exchanges, which are managed but not owned by Farmers Group, Inc., a wholly-owned subsidiary of Zurich. In addition, we estimate reinstatement premiums due on reinsurance covers of USD 58 million. These are pre-tax estimates which will be recorded in the results for the fourth quarter 2012, which as part of the annual results, will be released on February 14, 2013.

"This storm has shown us once again how powerful natural forces can be and what risks they pose. I am proud of how Zurich's employees have been helping our customers, both before and after storm Sandy. Zurich's strong balance sheet, healthy cash flows and risk expertise enable us to be there for our customers when they need us and to deliver on our promise," said Chief Executive Officer Martin Senn.

Zurich’s response to Sandy began well before the storm made landfall in the U.S. on October 29, 2012. It reached out to customers using various media and sent pre-event e-mails with helpful links and tips to prepare for the storm to 1,800 select brokers. Risk Engineering volunteers were on standby, the Customer Care Center identified back-up resources and loss adjusters were lined up to make sure they were ready to respond quickly once the storm passed.

Zurich started with its team on the ground in the impacted area two days after the storm passed. Within five business days of notice of loss, the Zurich Catastrophe team made initial contact with all customers. Zurich issued its first claims payments on November 5, only six days after the storm had hit. All inspections of the locations with a reported large loss had been completed by mid-November.

Zurich issues estimates of losses related to floods in Central and Eastern Europe and U.S. tornadoes

Zurich Insurance Group (Zurich) announced today that it estimates losses of approximately USD 140 million related to floods in Central and Eastern Europe and approximately USD 138 million, for both Zurich North America and Farmers Re together, related to two severe tornadoes, which hit Oklahoma City Metropolitan Area in May this year. These estimates are net of reinsurance and before tax and will be recorded in the Group’s half-year results, which are due to be released on August 15, 2013.

The losses in Central and Eastern Europe resulted from severe flooding, the worst in the region in more than a decade, which caused extensive damage along the Danube and Elbe main watersheds in May and June 2013.

The losses in the U.S. are related to two severe tornadoes, which hit Oklahoma City Metropolitan Area in May this year. The estimated amount for Zurich’s North America Commercial and Global Corporate in North America businesses is approximately USD 52 million. The estimated amount for Zurich’s Farmers Re business is approximately USD 86 million, reflecting the reinsurance cover provided to the Farmers Exchanges, which are owned by their policyholders and managed by Farmers Group, Inc., a wholly owned subsidiary of the Group.

“Zurich is proud to contribute to society by delivering on our promise to be there for our customers and the communities in which we live and work, particularly when they need us most,” said Zurich Chief Executive Officer Martin Senn. “Our thoughts go out to everybody affected by these disasters. Our Group continues to share its resources and expertise to help build more resilient communities and improve pre-event mitigation through numerous initiatives such as our flood resilience program.”

Zurich maintains strong profitability in 2012 and proposes dividend of CHF 17

NIAS* of USD 3.9 billion, up 3% compared with 2011, Q4 NIAS of USD 983 million, up 82% compared with prior year BOP* of USD 4.1 billion, down 4% compared with 2011, Q4 BOP of USD 569 million, down 42% compared with prior year Combined ratio of 98.4%, compared with 98.9% in 2011 BOPAT ROE 9.3%, down from 10.2% in 2011; NIAS ROE of 11.8% comparable to last yearPricing and portfolio management discipline generate strong underlying profitability Accelerating top-line growth in target marketsExcellent investment performance delivering 7% total return Strong capital base and cash flows support a sustainable and attractive dividend proposal of CHF 17

(For a more comprehensive set of financial highlights covering the full year ended December 31, see page 9 of the News Release)

12M 201212M 2011Change in USDQ4 2012Q4 2011Business operating profit (BOP)Net income after tax attributable to shareholders (NIAS) 1Total Group business volumes 2Net investment return on Group investments (calculated on average Group investments)Total return on Group investments (calculated on average Group investments)Diluted earnings per share (in CHF)Return on common shareholders’ equity (ROE) 3Business operating profit (after tax) return on common shareholders’ equity (BOPAT ROE) 3

* Prior periods have been restated. The ending 2012 shareholders' equity is unaffected by the restatement. Due to the restatement, third quarter 2012 BOP and NIAS were higher by USD 264 million and USD 194 million respectively.

Zurich, February 14, 2013 – Zurich Insurance Group (Zurich) today reported a business operating profit (BOP) of USD 4.1 billion and net income attributable to shareholders (NIAS) of USD 3.9 billion for the year ended December 31, 2012.

“We delivered a solid performance in 2012, a year characterized by ongoing economic challenges. Our dividend proposal is again very attractive and reflects our confidence in the success of Zurich’s business strategy as well as the Group's strong cash generation and capital base,” said Chief Executive Officer Martin Senn.

“The integration of our acquired insurance businesses in Latin America and Malaysia is progressing well and contributing meaningfully to growth as evidenced in the strong contribution to profitability from these areas. In addition, during 2012, we expanded our bank distribution agreements through alliances in the Middle East, Italy, Spain and Indonesia.”

“We continue to execute our proven strategy, growing our business in emerging markets while delivering a resilient performance in mature markets. This strong underlying profitability ensures we remain well positioned to continue to deliver for our customers, employees and shareholders in 2013.”

The Group remains focused on delivering its targets. The underlying loss ratio for General Insurance continued to improve in 2012 and was 61.4% at year end. The business segment showed a strong underlying performance, which was adversely impacted by weather-related events, a continued decline in investment income as well as decreases in favorable development on reserves established in the prior years and by the previously announced financial adjustments in Germany.

In the course of the review related to the General Insurance business in Germany the Group determined that improper case reserving practices had resulted in errors which led to insufficient reserves for losses estimated in previous years. Additionally, the Group determined that deferred policy acquisition costs were overstated due to a system error in Germany. In aggregate the errors were deemed material and as a result, the Group has restated for prior periods in accordance with IFRS accounting standards. The restatement has no overall impact on shareholders’ equity as of end 2012. Due to the restatement, third quarter 2012 BOP and NIAS were higher by USD 264 million and USD 194 million respectively. Full details are contained in the Consolidated Financial Statements (note 1) and analysts presentation.

Global Life maintained profitability levels while continuing to show growth in gross written premiums, policy fees and insurance deposits. The business segment strategy of diversifying geographically into target markets and diversifying product mix into protection and fee-based offerings, is offsetting the volume and margin pressures in Europe.

Farmers showed an increase in BOP of 5% in the management services company, while the second consecutive year of significant weather-related events and the absence of favorable prior year loss development compared with 2011 led to losses from reinsurance operations.

The non-core businesses recorded an increased business operating profit of USD 128 million resulting from an increased profit from other run-off businesses.

Total return on Group investments, which includes investment income, net capital gains and losses and impairments as well as changes in net unrealized gains and losses reported in shareholders’ equity, was 7%, an increase of 1.7 percentage points compared with 2011. This excellent investment performance was achieved through a disciplined approach to investing relative to liabilities underpinned by prudent risk management.

The Group preserved an excellent capital position with shareholders’ equity increasing by USD 3 billion to USD 34.5 billion.

(in the year ended December 31)4

General Insurance gross written premiums and policy feesGeneral Insurance business operating profitGeneral Insurance combined ratio (in %)

General Insurance business operating profit decreased by USD 150 million to USD 2.1 billion or by 7% in U.S. dollar terms and 5% on a local currency basis. This solid result reflects the sustained focus on disciplined underwriting and expense management, and is also evident in the improvement in the underlying loss ratio of 2.9 percentage points. The overall performance was impacted by above average levels of catastrophe, large and weather-related losses, including Storm Sandy as well as the previously announced financial adjustments in Germany. As a result of the review of the German General Insurance business, the Group has further strengthened its claims provisions in the fourth quarter by approximately USD 60 million for the lines impacted in the previous quarter and by approximately USD 70 million for other business lines. The German General Insurance segment has now reverted to business as usual where the risk of adverse development should be balanced by the possibility of favorable development. As indicated when reporting the nine months results, the Group remains confident that the issue was an isolated case with no significant issues elsewhere in the General Insurance business.

General Insurance gross written premiums and policy fees increased by USD 1 billion to USD 35.6 billion, or by 3% in U.S. dollar terms and 7% on a local currency basis. Given the strategic focus on selective and profitable growth, the segment achieved average rate increases of 4%, while continuing a disciplined approach to underwriting. Premiums continued to increase in the mature North American market and, while part of this increase was attributable to adjustments in premiums for prior year policies and rate increases, there were also improvements in both customer retention and new business. Premium growth was especially strong in International Markets through both organic growth and acquisitions, as well as in North America, while European results continue to be affected by lower levels of economic activity, particularly in some of the larger markets such as the UK, Spain and Italy.

Global Life gross written premiums, policy fees and insurance depositsGlobal Life business operating profitGlobal Life new business annual premium equivalent (APE)Global Life new business margin, after tax (as % of APE)Global Life new business value, after tax

Global Life business operating profit remained broadly flat at USD 1.3 billion in U.S. dollar terms and increased by 5% on a local currency basis. The positive contribution from the insurance businesses acquired from Banco Santander S.A. (Zurich Santander) of USD 105 million net of non-controlling interests, was largely offset by a lower contribution from Europe, primarily as a result of special operating items in Germany. Risk margin improved with an increased proportion of protection products in new business, that together with improvements in expense margins, was offset by lower investment margin and lower net contributions from the impact of acquisition deferrals.

New business value after tax, including Zurich Santander and Zurich Insurance Malaysia Berhad (Zurich Insurance Malaysia), increased by 11% to USD 1.1 billion. Zurich Santander and Zurich Insurance Malaysia contributed USD 195 million, while new business value from ongoing operations was USD 890 million, a decrease of 9% in U.S. dollar terms or 5% on a local currency basis. Excluding the transitional impact of a methodology refinement for corporate protection renewals, the new business value on a local currency basis remained flat. Increased new business value in North America, Latin America, the UK and Switzerland offset the impact of the persistently low interest rates in Germany. Overall new business margin remains strong at 22.1%, a decrease of 2.5%, mainly driven by the methodology refinement and the impact of a high volume and lower margin social security transaction in Chile and partly offset by higher margin protection business particularly in North America and Spain.

Global Life continues to benefit from its investment in organic growth in target markets, while maintaining focus on shifting from the traditional savings business toward protection and unit-linked products, and leveraging its global strength in Corporate Life & Pensions and Bank Distribution.

Global Life gross written premiums, policy fees and insurance deposits increased by USD 2.5 billion to USD 30.3 billion or by 9% in U.S. dollar terms and 16% on a local currency basis as a result of the inclusion of Zurich Santander.

Farmers Management Services management fees and other related revenuesFarmers Re gross written premiums and policy feesFarmers business operating profitFarmers Management Services gross management resultFarmers Management Services managed gross earned premium margin

Farmers business operating profit decreased by USD 72 million to USD 1.4 billion or by 5%, primarily due to a net underwriting loss incurred by Farmers Re. Farmers Management Services business operating profit increased by USD 71 million to USD 1.4 billion or by 5%, primarily driven by the increase in gross earned premiums in the Farmers Exchanges, which are managed but not owned by Farmers Group, Inc., a wholly owned subsidiary of the Group. Farmers Re business operating profit deteriorated by USD 142 million to a loss of USD 26 million, mainly reflecting the absence of favorable development of reserves established in prior years, which benefited Farmers Re during 2011.

Farmers Management Services management fees and other related revenues increased by USD 79 million to USD 2.8 billion or by 3%, which was driven by the 3% increase in gross earned premiums in the Farmers Exchanges. The 24% increase to USD 4.4 billion in gross written premiums of Farmers Re was mainly a result of changes in the All Lines quota share reinsurance agreement, as well as the 3 percent gross written premiums growth in the Farmers Exchanges. These changes were an increase in the Farmers Re participation in the Farmers Exchanges business to 20 percent effective December 31, 2011 from 12 percent throughout 2011 and a decrease in the All Lines participation to 18.5 percent effective December 31, 2012, subject to regulatory approval.

Other Operating Businesses: Other Operating Businesses, predominantly consisting of Headquarters’ expenses and financing activities, reported an increased operating loss of USD 903 million, up USD 68 million from the same period in 2011. This was mainly driven by the absence of favorable impacts from foreign currency movements compared with the prior year as well as reduced income on short term deposits.

Non-Core Businesses: Non-Core Businesses reported a business operating profit of USD 128 million compared with a business operating loss of USD 8 million in 2011, resulting from an increased profit from Other run-off businesses as well as the partial gain realized from the reinsurance of Eagle Star Insurance liabilities to a third party.

Net investment result on Group investmentsNet investment return on Group investments (calculated on average Group investments)Total return on Group investments (calculated on average Group investments)

The net investment result on Group investments, which includes investment income, realized gains and losses and impairments, contributed USD 8.9 billion to the Group’s total revenues for the year ended December 31, 2012, a net return of 4.4%. Net capital gains on investments and impairments amounted to USD 2.2 billion, mainly driven by sales of debt and equity securities. Net unrealized gains reported in shareholders’ equity increased by USD 5.3 billion since December 31, 2011, mainly driven by the tightening of credit spreads, falling yields on government bondsand a strong rally of equity markets.Total return on Group investments, which includes investment income, realized gains and losses and impairments as well as changes in unrealized gains and losses reported in shareholders’ equity, was 7%, an increase of 1.7 points compared with 2011. This excellent investment return underscores the benefits of Zurich’s continued disciplined approach to investing relative to liabilities on a risk-adjusted basis.

1. Net income after tax attributable to shareholders.

2. Total Group business volumes comprises gross written premiums, policy fees, insurance deposits and management fees generated within General Insurance, Global Life and Farmers.

3. See the Financial Supplement and the Operating and Financial Review on the Investor Relations’ page of our website www.zurich.com/.

4. All further comparisons refer to the year ended December 31, 2012 unless stated otherwise.

5. Does not include any contribution from the Latin American insurance operations acquired from Banco Santander S.A. (Zurich Santander) or from the acquisition of Malaysian Assurance Alliance Berhad (MAA), now known as Zurich Insurance Malaysia Berhad (ZIMB).

6. Calculated based on gross earned premiums of the Farmers Exchanges of USD 18.8 billion, which excludes the return of USD 74 million in premiums as a result of the anticipated settlement of a lawsuit with the State of Texas.

Zurich obtains USD 270 million of North America earthquake protection from Lakeside Re III Ltd.

Zurich Insurance Group (Zurich) today announced that it has obtained, through its subsidiaries Zurich American Insurance Company and Zurich Insurance Company Ltd, a 3-year USD 270 million catastrophe excess of loss reinsurance protection from Lakeside Re III Ltd. (Lakeside III) to cover the risk of earthquakes in specific territories in North America. The cover offers  protection  on an annual aggregate basis. This reinsurance transaction is a replacement of the expiring 2009 Lakeside Re II Ltd. transaction.

Zurich has entered into a reinsurance transaction with Lakeside III, a special purpose reinsurance company domiciled in Bermuda, to receive up to USD 270 million in payment of losses in the event of one or more North America earthquakes during the 3-year period. Lakeside III, in turn, has issued to the capital markets principal at-risk variable rate notes linked to this risk. The catastrophe bond has a floating coupon consisting of a fixed 8% plus a variable investment yield received by Lakeside III on the underlying assets. The offering was oversubscribed.

Zurich proposes three board members for re-election

Zurich Insurance Group Ltd (Zurich) today announced that the Board of Directors proposes the re-election of Susan Bies, Victor L. L. Chu and Rolf Watter at this year’s Annual General Meeting of Shareholders on April 4, 2013. Susan Bies (U.S. citizen) is proposed for re-election for a three year term. As Rolf Watter (Swiss citizen) will reach the maximum term of office under Zurich’s internal guidelines in 2014, he is proposed for re-election for a one year term.
Victor L. L. Chu (British citizen) informed the Board that he will stand for re-election for a one year term.

In addition to the re-elections and as already announced in September 2012, the Board also proposes the election of Monica Mächler (Swiss citizen) to the Board of Directors. Armin Meyer, who has served the maximum tenure of office, will not stand for re-election.

Subject to the re-election and election of the members of the Board by the shareholders, the Board of Directors of Zurich will consist of the following members:

The invitation to the AGM along with the Annual Report 2012 will be published on www.zurich.com on March 8, 2013. 

Zurich reduces its stake in New China Life Insurance Company Ltd. to 9.4%

Zurich Insurance Group (Zurich) announces that Zurich Insurance Company Ltd (the Company), a wholly owned subsidiary of Zurich, has successfully priced the sale of 97.5 million H shares (the Sale Shares) in New China Life Insurance Company Ltd. (NCI), representing 3.1% of the total issued share capital of NCI. The sale of the Sale Shares is being carried out by way of a private placement to a small group of institutional investors conducted on the Hong Kong Stock Exchange.

The Sale Shares have been priced at HKD 22.50 (approximately USD 2.90) per share. Upon the completion of the sale, which is expected to take place on July 16, 2013, the gross sale proceeds to be realized by Zurich will be HKD 2,194 million (approximately USD 283 million).

Following completion of the transaction, the Company will continue to hold 292.5 million H shares in NCI, representing approximately 9.4 % of the total issued share capital of NCI.

Geoff Riddell, Zurich’s Chairman for Asia-Pacific, the Middle East and Africa, commented: “Zurich is a long-time investor in NCI, and appreciates its high quality management team, clear strategy and good prospects within China’s life insurance market. The sale reflects Zurich’s desire to manage its financial exposure to a large single holding of shares. Zurich intends to reinvest the proceeds of the sale into investments in Asia. This will allow Zurich to hold its position in Asian markets while also diversifying its investment portfolio.”

Zurich sponsors PGA Seniors Open in Bad Ragaz

Zurich Insurance Group (Zurich) is pleased to be supporting the PGA Seniors Open in Bad Ragaz for the ninth time as one of the co-sponsors. The tournament, which brings together the world's elite professional golfers, is to take place at the Golf Club in Bad Ragaz, Switzerland, from July 5 to 7, 2013.

Supporting golf sport is an integral part of Zurich’s sponsorship strategy and provides Zurich with a welcome opportunity to reach customers and thus to communicate Zurich’s brand values in a symbolic and emotional way.

As an organization, Zurich is deeply involved in golf around the world: in the United States as title sponsor of two PGA Tour events, the Zurich Classic of New Orleans and the Farmers Insurance Open. In Asia, Zurich supports the Asian Amateur Championship, an event jointly organized by the R&A, the National Augusta and the Asian Pacific Golf Confederation. In Switzerland, Zurich is a sponsor of the OMEGA European Masters in Crans-Montana. The PGA European Seniors Open in Bad Ragaz nicely completes Zurich's golf sponsorship program.

Zurich study: How well are companies prepared to cope with natural catastrophes?

Companies recognize potential risks posed by natural catastrophes yet have insufficient mitigation plans in place. This is the key finding of a survey on «Natural catastrophes: business risks and preparedness», presented today by Zurich Insurance Group (Zurich). The study, conducted in January 2013 by the Economist Intelligence Unit and sponsored by Zurich, continues the Group’s research into understanding and mitigating risks.

The research polled 170 executives from medium-sized and large companies around the world, and confirms a widespread perception among organizations that natural catastrophes are becoming both more frequent and more severe, and that commensurate importance is assigned to assessing and mitigating the associated risks.

Survey respondents say that business disruption from a natural catastrophe would encompass multiple aspects of the enterprise, with the most severe threats confronting continuity of IT support, business-critical functions and supply-chain logistics. The research suggests that there is significant room for improvement in company planning and continuity endeavours. This is true for business-critical functions and is a serious concern for IT functions in particular.

Although most companies surveyed have taken some steps to mitigate associated threats to IT systems, the adoption of systematic, integrated approaches to risk management is surprisingly low. The findings suggest that while businesses are aware of the challenges they face, most have not yet developed a holistic approach to protect themselves from these risks.

Combining the top two most severe ratings on a scale of five puts continuity of IT support as facing the most severe disruption (46%), followed by business-critical functions and supply-chain logistics (both 44%). Supply-chain logistics are difficult to address in the event of a natural catastrophe, as they are generally outside of an organization’s immediate control and often affect a variety of critical infrastructure. This reinforces the importance of preparation and truly understanding the company's exposures. Taken together, these findings indicate that there is plenty of room for improvement. One hopeful finding is that security of sensitive data is associated with a lower perceived risk of disruption. This may be a sign that companies are taking steps to protect their core IT assets even in the face of natural disasters.

Fewer than half of survey respondents (45%) say that they use some form of scenario analysis to assess the risks of natural catastrophes. Another 16% use third-party risk assessments, but nearly three in ten (27%) say that they do not systematically assess business risks related to natural catastrophes. In addition, roughly half of those who do not use scenario analysis say that they do not systematically assess risks of natural catastrophes at all. This means that many companies are unprepared for natural disasters despite being aware of their severity. Inadequate budgets and a lack of technical risk-management skills seem to be the main hurdles, based on the survey’s results.

Nearly one-fifth (19%) of companies have not adopted any strategy to mitigate IT risks related to natural catastrophes. About two-thirds (66%) of respondents say that their companies have adopted at least one of three purely hardware-orientated strategies for mitigating threats to IT systems in the event of a natural disaster. These include locating IT infrastructure away from high-risk regions, hardening IT infrastructure against physical disruption and adopting early-warning tools for back-up or fail-over systems. Clearly most businesses are trying to be proactive in some form, but only a small minority (5%) is employing the full array of robust risk-mitigation tools available to them. And only a minority (31%) of companies is transferring risk through insurance, frequently to bolster their own enterprise risk-management endeavors.

The survey suggests that progress has been made in recognizing risks from natural catastrophes. However, a full integration of risk management across the enterprise remains spotty. Although a long-term trend towards integrated enterprise-wide risk-management programs has been documented, progress remains slow. When asked to name the single biggest weakness in their company strategy for managing IT risks from natural catastrophes, nearly one-quarter (24%) of respondents point to the failure to incorporate the full range of risks into the business-continuity plan. This is followed closely (22%) by the lack of clear ownership of the organizational risk-management function.

A key element of such a strategy would be a full integration of threats from natural catastrophes into an organization’s systems for identifying, assessing and controlling risks. While the survey found that many organizations are taking action in this direction, the analysis concludes that considerably more effort will be required before the risks of natural catastrophes are adequately controlled. Particularly important progress has been achieved in the area of IT risk-mitigation strategies. Nearly 80% of respondents say that their organization has adopted at least one hardware-oriented and at least one employee-oriented IT risk-management strategy related to natural catastrophes. And nearly 60% say that these initiatives have been largely successful. Yet efforts to address the interconnectivity of risk clusters through integrated risk management remain incomplete, as only a minority of business has developed a comprehensive risk profile for senior management.

“A lack of resources and technical know-how are the most common reasons for organizational failure to develop and implement more efficient risk-management processes”, comments Axel P. Lehmann, Chief Risk Officer of Zurich. In fact many respondents lack the ability to present a compelling business case for risk-management initiatives. “But, while in-depth analysis may provide clearer data for decision-makers, it is incumbent on Chief Executive Officers and Risk Officers to develop appropriate risk strategies and to ensure their companies are better prepared.” As already highlighted in the study, «Risk Management in a Time of Global Uncertainty», published last year by Zurich and Harvard Business Review Analytic Services, the Chief Risk Officer’s role is to establish an enterprise risk management framework, to align and control group-wide risk taking, to advise and to communicate regularly as well as to provide resources for better risk management.

Zurich survey: Insurance is no luxury in times of economic crisis

Europeans remain deeply concerned about the economic crisis. When it comes to reducing expenses, they see the greatest potential in the more discretionary areas of dining out, holidays and clothing. By contrast insurance, education and rent are viewed as essential. These are the findings of a survey conducted by GfK on behalf of Zurich Insurance Group (Zurich) in seven* European countries.

Not surprisingly, the economic crisis is worrying people in Mediterranean countries the most. About 70% of those interviewed in Portugal, 65% in Italy and 59% in Spain are highly concerned about the ongoing financial crisis. In Austria (44%) and Germany (38%) the percentage is significantly lower, yet, the Russians (31%) and the Swiss (28%) are the least concerned. Overall respondents believe that people themselves are more likely than politicians to find a way out of the crisis. While in Spain, one in six and in Russia, Portugal and Italy, one in  seven are afraid of  losing their job; in Germany and Switzerland under 5% and in Austria only 1% of those interviewed are afraid of being made redundant.

The Swiss, Germans and Russians say they are most likely to reduce their costs for dining out if they have to cut their family budget. The Austrians, Portuguese and Spanish would cut their travel budget and the Italians would spend less for clothing and fashion items. A quarter of Swiss, Germans and Russians and almost one third of Austrians would be prepared to pay less for their car or motorbike. Yet, they are very reluctant to cut back on insurance, education and rent, seeing these as essential rather than luxury expenses.

Respondents from all countries agree that despite the economic crisis the need for good insurance coverage has not changed. Over 91% of those interviewed in the Mediterranean countries and Switzerland would maintain their insurance even when forced to trim the family budget. And even in Russia, where the highest percentage of respondents said they would cut insurance costs, only 18% would do so.

The majority of Russians and Spanish would not skimp on their car insurance. Very much to the contrary are the Austrians, who are most likely to reduce car insurance if they had to save on insurance costs. For Italians, accident insurance is the most important coverage while Portuguese value their household goods insurance, and the Swiss and Germans wouldn’t want to relinquish their third party liability coverage. If they had to save on insurance costs, the Swiss, Portuguese and Germans are likely to look at life insurance, the Spanish at health insurance and the Russians and Italians at theft and fire insurance.

One third of Swiss and Austrians regards private pension provision in the current environment as important and they invest in life insurance or in a private pension scheme. 36% of the Portuguese and about one quarter of Germans, Russians and Spanish consider pension provision as important, yet, say that they don’t have money left for it. One in three Italians has not yet considered private pension savings. One fifth of Germans and Russians and one quarter of Spanish are afraid that their private pension provision will not suffice. The Swiss (8%) are least concerned about it.

Zurich’s Annual Report 2012 available now

Zurich Insurance Group (Zurich) today announced that its Annual Report 2012 and Annual Review 2012 are now available on www.zurich.com (please see link below). The Annual Report contains detailed information about Zurich's financial performance, strategy, structure, executive bodies, risk management, corporate governance and remuneration in 2012. It is available in English, German and French, with the financial statements in English only. The Annual Review provides an overview of Zurich's business and strategy, and of its financial and operating performance in 2012. It is also available in English, German and French.

Clinical Notes: NIH Scales Back on Using Chimps

NIH Further Restricts Chimp Research

National Institutes of Health Director Francis Collins, MD, PhD, said the agency would put an end to most use of chimpanzees in medical research, tightening restrictions put in place in 2011.

Henceforth, NIH-funded research on chimpanzees can only be performed on a non-breeding group of 50, Collins announced last week, signalling an eventual end to all such research. Other chimps in NIH-sponsored facilities will be moved into federal sanctuaries.

FDA Rules on Six Tobacco Product Applications

The decisions were made on products for which approval was sought under a "substantial equivalence" pathway, under which manufacturers must show that the new products are similar to existing ones in terms of their public health impact.

Approved were two nonmentholated cigarettes made by Lorillard Tobacco under its Newport brand.

Bad Credit Student Loan Tips

Sometimes loan payments can spiral out of control and before you know it, you are in the red and in bad books, but that should not discourage you from pursuing your education as there are options available like the bad credit student loans. The first step in getting that loan is to get a co-signer. This is a person who has a good credit record and will help you get the loan at favourable rates. You could get a family member or a close friend to do this for you. Another option to consider when getting bad credit student loan is consolidating all your loans by applying for a combination loan. This option will save you a lot of money as the interest rates due for payment will come down. Note however, that you may still need a co-signer in order to get a consolidated bad credit student loan this but it will be worth the trouble.

Banks and private lending institutions are another good source to consider. Check out various places to get the best deal and take advantage of special offers when getting your student loan. These institutions generally give loans at a higher interest rate and should be considered when all else fails. Their interest rates are determined by your credit score, amount borrowed and the loan repayment period. You have to be convincing though in order to get loan so make the bank understand your situation to enable them give you a loan that is convenient to pay. Another source of bad credit student loan is the Federal Application for Federal Student Aid which is government funded and has strict rules on eligibility for it.

Students who want bad credit loans can also get it from the federal government coffers and applying for it is very easy.

- The first step is going online and opening the Federal Application for Federal Student Aid website. Navigate to the eligibility page to find out if you qualify for the loan. If you have not defaulted on a federal loan or defaulted on a federal grant, then you qualify.

- Fill out an application form for federal student aid. This is done by clicking on “fill out my FAFSA” on the left hand side menu of the page. Click on the start button.

- You will receive on screen instructions that will guide you as you fill out your bad credit student loan application. You will be required to provide details on your previous year’s tax returns or those of your parents if you are not an independent student.

- Complete your application. This will be sent to your school of choice.

- Follow up with the school before the start of the semester to find out how much money you were granted for your bad credit student loan.

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