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 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.