Global Life Strategy Execution Update

Global Life Strategy Execution Update Investors Day Zurich,

Disclaimer and cautionary statement By attending this meeting where this presentation is made you agree to be bound by the following limitiations. Certain statements in this document are forward-looking statements, including, but not limited to, statements that are predications of or indicate future events, trends, plans or objectives. Forward-looking statements include statements regarding our targeted profit improvement, return on equity targets, expense reductions, pricing conditions, dividend policy and underwriting claims improvements, as well as statements regarding our understanding of general economic, financial and insurance market conditions and expected developments. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and plans and objectives of Zurich Financial Services Ltd or the Zurich Financial Services Group (the Group ) to differ materially from those expressed or implied in the forward looking statements (or from past results). Factors such as (i) general economic conditions and competitive factors, particularly in our key markets; (ii) the risk of the global economic downturn and a downturn in the financial services industries in particular; (iii) performance of financial markets; (iv) levels of interest rates and currency exchange rates; (v) frequency, severity and development of insured claims events; (vi) mortality and morbidity experience; (vii) policy renewal and lapse rates; and (viii) changes in laws and regulations and in the policies of regulators may have a direct bearing on the results of operations of Zurich Financial Services Ltd and its Group and on whether the targets will be achieved. Zurich Financial Services Ltd undertakes no obligation to publicly update or revise any of these forwardlooking statements, whether to reflect new information, future events or circumstances or otherwise. It should be noted that past performance is not a guide to future performance. Please also note that interim results are not necessarily indicative of the full year results. Persons requiring advice should consult an independent adviser. This communication does not constitute an offer or an invitation for the sale or purchase of securities in any jurisdiction. THIS COMMUNICATION DOES NOT CONTAIN AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES; SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR EXEMPTION FROM REGISTRATION, AND ANY PUBLIC OFFERING OF SECURITIES TO BE MADE IN THE UNITED STATES WILL BE MADE BY MEANS OF A PROSPECTUS THAT MAY BE OBTAINED FROM THE ISSUER AND THAT WILL CONTAIN DETAILED INFORMATION ABOUT THE COMPANY AND MANAGEMENT, AS WELL AS FINANCIAL STATEMENTS. 2

Global Life Strategy Execution Update Mario Greco Global Life Chief Executive Officer Zurich,

Agenda Strategy Execution Update Global transformation Operational execution Global pillar update Mario Greco Global Life Performance Monitoring Debra Broek Global Life metrics and link to the strategy Overview of Global Life portfolio Focus on new performance measurement metrics Profit by Source Focus on new performance measurement metrics In-force Management Summary 4

Global Life is a key growth engine to deliver the Zurich Group strategy Focus on volume growth Farmers Global Life EGI IM GC NAC Focus on margin enhancement Legend for General Insurance business divisions: IM International Markets EGI Europe General Insurance GC Global Corporate NAC North America Commercial 5

Our strategy takes a global approach to key distribution channels and customer groups Global distribution channels Global propositions Countries Bank Distribution IFA/Brokers Agents Private Banking Client Solutions Corporate Life & Pensions International / Expats 1 Three global distribution channels to better serve local customer needs Enablers In-force management 2 Three global customer groups Proposition management Regional hubs and platforms Global desks Purchasing Mutual funds Guarantees Risk profile Underwriting (Protection) Reinsurance 3 Consolidation of manufacturing and proposition management 6

Despite current markets our strategy of globalization is unchanged Market situation Our response Customers Distributors Competitors Regulators Unwillingness to take risk Preference for guarantees Increased savings Want a safe pair of hands Changing landscape is leading to consolidation in some markets Service and support increasing in importance Current banking crisis Flight to safety Government intervention Pressure to focus on core business New range of propositions Increase low risk investment choices Special campaigns address customer needs Build on Zurich brand and capital strength Focus on in-force business Accelerate operational strategy delivery Review additional growth opportunities Business model remains unchanged Market tactics to respond to changing environment Priority on profits, not on volumes Market disruption provides opportunities 7

Since launching our strategy in May 2008 we implemented a significant transformation program... Executing the global strategy Globalizing our local businesses 6 pillars in place and driving global growth Focus on distribution and operational efficiency Propositions prioritized globally Transforming the global organization Performance management systems harmonized globally Significant technical skills added to the global organization, e.g. Private Banking Client Solutions led by an experienced insurance private banker IFA pillar head appointed and experienced team recruited for entry into the Italian cross-border market 8

...that enables us to profitably grow scale Maintaining performance & cost management New Business Margin maintained at > 20% with APE at USD 3,261m (FY08) and USD 721m (Q1-09) Focus on profitability Lean organizational structures Embedding the global strategy Country teams provide local market expertise Regional hubs to manufacture and service products Centralization to leverage purchasing power & core skills IT Centers of Competence to drive speed to market Lean global teams with core skills to grow business 9

The core of our strategy is a global approach to distribution and customers Focus on distributors and customers Distributor and customer needs, and not products, drive our strategy We focus on three distribution channels to deliver our strategy Distributor needs converge by channel Our proposition is global in nature while retaining local customization by channel Products are an inherent part of customer and distributor value proposition......and they are based on the needs in each of our markets The three customer facing pillars allow us to meet and service customer needs fully Customer needs converge globally We deliver insightful products using globally available skills and manufacturing capabilities 10

...based on an industrial value chain delivered locally using global & regional resources Product request Local country Proposition request from country Local product specification Product design Product manufacturing Propositions Regional hubs Global prioritization of propositions Technical specification of product Technical manufacturing of product Servicing of cross border products Product services Global desks Product elements added, e.g. funds Sales Local country Proposition delivery Sales and marketing in country Global Pillars Global prioritization of capital Drive growth and sales ideas locally and in new markets Enable cross market benchmarking and sharing 11

which delivers significant operational efficiencies Economies of skill and economies of scale Growth in new markets Substantial unit cost reductions in hubs Re-usable propositions with core products tailored to local market delivery Core skills based in regional hubs and global desks IFA/Broker pillar cross-border entry in 2009 in Italy Opportunities for growth in new markets using regional hubs continues to be part of our strategy Speed to market Manufacturing on strategic platforms increases re-usability and speed to market Global desks service hubs and local markets 12

Global Life Regional hubs Global distribution channels Global propositions Countries Bank Distribution IFA/Brokers Agents Private Banking Client Solutions Corporate Life and Pensions International / Expats Enablers In-force management Proposition management Regional hubs and platforms Global desks Purchasing Mutual funds Guarantees Risk profile Underwriting (Protection) Reinsurance 13

We have 5 hubs in place at varying levels of maturity Distribution Propositions Regional hubs European hub Manufacturing hub for most EU propositions Value creation by cross-border sales Leveraging synergies among propositions Efficiency gains through speed to market DACH hub Supporting Germany (D), Austria (A) & Switzerland (CH) Productivity increase and more efficiency Service quality improvement Americas (US & Latam) International hub A role model of hub implementation Already supports our business in 14 countries Corporate Life hub Global manufacturing hub for Corporate Life First proposition launched in UK in Q1-09 >5 similar solutions in other markets ongoing Private Banking hub Global manufacturing hub for Private Banking Client Solutions Launched first propositions into Italy Next phase under development Customer segment hubs Countries Established Work in progress 14

Capturing efficiency gains through our German, Austrian and Swiss hub (DACH) Benefits 1. Cost reductions Use of common platforms Increase in productivity Centralization of processing Industrialization of servicing with human/service touch 2. Process improvements Increased processing speed Improved service quality Accelerate delivery speed of crossborder propositions through re-use of core product elements Achieving efficiency through the DACH hub Already servicing the German market Provide admin. and servicing capability for Austrian market planned by y/e 2009 Achieve productivity increase and savings by fully servicing Switzerland Reduce time to market by re-using core products/propositions 15

Global Life Global Funds Desk Global distribution channels Global propositions Countries Bank Distribution IFA/Brokers Agents Private Banking Client Solutions Corporate Life and Pensions International / Expats Enablers In-force management Proposition management Regional hubs and platforms Global desks Purchasing Mutual funds Guarantees Risk profile Underwriting (Protection) Reinsurance 16

Global Funds Desk implemented to deliver results in 2009 Our 2008 position... More than 2,000 mutual funds and more than 120 fund house relationships Fragmented fund supplier distribution per country Business Units manage fund house relationships locally consolidating into a single global Zurich interface leading to efficiency and procurement gains Fund investments to be placed with a limited number of preferred, highquality fund houses Additional fund providers will be included as required by distributors and customers All Business Units offering unit-linked business connected to a single trading platform 17

Benefits of the Global Funds Desk to translate to a BOP contribution What this means......and the benefits Scope Volume Core Principle ~ 25-30% of total unit-linked assets are in mutual funds USD 3-4bn annual new business volumes to be invested in mutual funds expected Mutual fund holdings expected to be kept above USD 20bn and to grow going forward Final fund choice is with customer or distributor Fully automated e- transactions on a high-end platform Savings of up to 10bps expected Faster time-tomarket for new unitlinked/fund propositions Centrally managed trading platform to capture global synergies 18

Global Life Protection Global distribution channels Global propositions Countries Bank Distribution IFA/Brokers Agents Private Banking Client Solutions Corporate Life and Pensions International / Expats Enablers In-force management Proposition management Regional hubs and platforms Global Desks desks Purchasing Mutual funds Guarantees Risk profile Underwriting (Protection) Reinsurance 19

Global Protection Unit established to focus on our most profitable business Protection NBV FY08: USD 238m Complete range of protection propositions Protection APE FY08: USD 441m Split by Pillar Bank Distribution IFA 24% 1% 13% 33% Agents Corporate Life & Pensions Direct and Central Initiatives 29% Increase focus on add-ons / riders to existing product suite Protection APE FY08: USD 441m Split by Region 12% 9% 32% Americas Major regions Emerging Markets 47% Rest of World 20

Experienced team appointed at y/e 2008 to drive growth in protection business Milestones 2009 UK Group Life Launch Group Life and Group Income Protection propositions launched in February 2009 Targeted at UK large and medium corporates Launch of significant campaign with Banco Sabadell by June 2009 Farmers accidental death benefit program (ADB) Launch of an Agent assisted program to customers in Austria by June 2009 21

Global Life Global distribution channels Global propositions Countries Bank Distribution IFA/Brokers Agents Private Banking Client Solutions Corporate Life and Pensions International / Expats Enablers In-force management Proposition management Regional hubs and platforms Global desks Purchasing Mutual funds Guarantees Risk profile Underwriting (Protection) Reinsurance 22

Benefits of taking a global view to our distribution and customer pillars Three global distribution pillars Three global customer pillars Consistent global support standards and models of distribution within a channel Growth through coordinated distribution in new markets Expand our Direct capabilities in Asia and other emerging markets Consistent global servicing standards to customers within a customer pillar In-depth insight on customer needs by pillar Develop specific propositions to meet customer needs 23

Global Life Bank Distribution Global distribution channels Global propositions Countries Bank Distribution IFA/Brokers Agents Private Banking Client Solutions Corporate Life and Pensions International / Expats Enablers In-force management Proposition management Regional hubs and platforms Global desks Purchasing Mutual funds Guarantees Risk profile Underwriting (Protection) Reinsurance 24

Bank Distribution established a central team to execute an integrated Life & General strategy Growth Strategy Improved penetration and profitability of existing relationships New territories via Followthe-distributor New global and local bank relationships Targeted acquisitions Global Pillar Focus Management responsibility for main relationships like Deutsche Bank and Banco Sabadell Globally prioritize proposition development initiatives Implement globally consistent operating model Deliver methodical approach to cross-border account management Drive best practice sharing and implementation, via TZW Bank Distribution Opportunistic acquisition target assessment New business APE - Bank Distribution In USD millions 477 FY07 Actual +46% in LC 1 1 In local currency 529 FY08 Plan 746 FY08 Actual 140 Q1-08 Actual +121% in LC 1 209 Q1-09 Plan 269 Q1-09 Actual 25

Sales and marketing activity has been high with our joint venture banking partners in Spain Sales momentum has been maintained Fast, effective new product launches capturing the Spanish customer needs in current economic climate low risk deposit based short term Net inflows Q1-09 (in EUR millions) 590-140 123 450 High inflows reflect high demand for our products 3rd party investments 467 Group & unit linked investments Total net inflows Conversion of unit-linked products to short-term guarantee products reflects the customer need for guarantees in the current market environment 26

Joint venture sales results in Spain exceed expectations to date EUR m 180 160 140 154 135 120 100 80 73 92 60 40 20 14 19 15 19 0 FY08 APE Plan FY08 APE Actual FY08 NBV Plan FY08 NBV Actual Q1-09 Q1-09 APE APE Plan Actual Q1-09 Q1-09 NBV NBV Plan Actual Spain total bank APE and NBV exceeded plan in 2008. This trend continued through Q1-09. In spite of market conditions, the joint ventures are adding more value than planned. Note: FY08 numbers include APE/NBV since date of acquisition 27

Global Life Agents Global distribution channels Global propositions Countries Bank Distribution IFA/Brokers Agents Private Banking Client Solutions Corporate Life and Pensions International / Expats Enablers In-force management Proposition management Regional hubs and platforms Global desks Purchasing Mutual funds Guarantees Risk profile Underwriting (Protection) Reinsurance 28

Productivity increase through a distinctive value proposition to Agents across the globe... Pilot Farmers best practices in Switzerland Agent segmentation Support Switzerland pilot implemented in August 2008 Germany launched program in January 2009 Hong Kong to launch program by Q3-09 Selected program elements under implementation in other countries (e.g., Italy, Portugal, Spain) Governance Recognition 29

showing early success Swiss individual life applications per week, indexed 130 120 110 100 0 +16% average increase in number of individual life applications 32 36 40 44 48 52 4 8 10 Year 1 Year 2 Week 2008-2009 with Pilot 2007-2008 without Pilot Swiss pilot key initiatives All-round support for Agents on Life Revision of monetary incentives Strengthening of General Agents leadership and management skills 30

2009 plan to further strengthen our value proposition to Agents Key global priorities for 2009 Strategy Drive profitable growth Leverage and lead best practices across the Group Continuous rebalance of product range and sales focus Lead proposition development to deliver local and global solutions Review Field Management compensation and follow-through on goal alignment for sales executives Execute in-force customer programs Lead and coordinate CRM/cross-selling systems in selected countries Provide need-analysis tools to Agents for use with Customers Design and support recruiting efforts Assess distribution opportunities in line with strategic plan Local efforts Initiatives launched by individual BUs with GL support to accomplish targets 31

Global Life International / Expats Global distribution channels Global propositions Countries Bank Distribution IFA/Brokers Agents Private Banking Client Solutions Corporate Life and Pensions International / Expats Enablers In-force management Proposition management Regional hubs and platforms Global desks Purchasing Mutual funds Guarantees Risk profile Underwriting (Protection) Reinsurance 32

Reshaping the International & Expats strategy for continued profitable growth Drivers that impact our strategy... and our response Changes in global regulation, accelerated by the global recession Globally coordinated customer insight, marketing and product design, with increasingly localized proposition development Proposition manufactured by the most appropriate Zurich entity or hub significantly impacting customer confidence and negatively impacting sales Increased use of regional hubs, supported by regional distribution Strengthening of protection product suite for Asia Global recession has impacted customer attitudes to saving and investing, especially in Asia Significant cost reduction and re-organization In the short term the changes will result in lower than forecast APE from this customer segment 33

We continue to grow our market share in this profitable customer segment Offshore life insurance market (excl. US) APE in USD billions CAGR +21% 3.1 2.8 2.4 2.0 1.5 1.1 CAGR +30% 2003 2004 2005 2006 2007 2008 12% 10% 11% 13% 14% 17% ZIS market share Source: Association of International Life Offices (AILO), market statistics, internal analyses, translated at actual average f/x rates 34

Global Life Corporate Life and Pensions Global distribution channels Global propositions Countries Bank Distribution IFA/Brokers Agents Private Banking Client Solutions Corporate Life and Pensions International / Expats Enablers In-force management Proposition management Regional hubs and platforms Global desks Purchasing Mutual funds Guarantees Risk profile Underwriting (Protection) Reinsurance 35

Corporate Life & Pensions pillar provides an excellent response to market needs Our strategy Propositions...and response to market needs Development of large case capabilities Development of multinational capabilities Entry into new business lines Access new geographies Cross-selling Re Active use existing Zurich Group Relationships Pro Active target specific customers using all Zurich resources Customer Centric Propositions develop tailored solutions for specific cross-sell opportunities Distribution Globally coordinated relationship management Differentiated approach for distributors Initial focus on top 5 distributors which control access to 70% of total market 36

Corporate Life & Pensions pillar is already delivering consistently on its strategy Implementation successes Propositions Launched international pension plan targeted at internationally mobile large employee schemes Launched Group Risk product in the UK Development of pension capabilities for large schemes progressing on plan Cross-selling Internal cross-sell network between Corporate Life & Pensions and Global Corporate in place Expanding the network to Europe General Insurance Already achieved USD 33m APE cross-sell wins in Q1-09 Distribution Global relationship with major Employee Benefit Consultants and local account management in place in Business Units Relationships delivering major large cases wins and an overall increase in the number of Request for Proposal (RFP) received 37

Corporate Life and Pensions strategy has delivered solid APE and NBM performance to date Key highlights 2008 Exceeded plan by nearly 30% Established a market presence Experienced team set-up to drive growth and develop new propositions New business APE in USD millions 314 414 NBM FY08: 16% +29% in LC 1 FY07 Actual FY08 Actual Key highlights 2009 Bid and won 6 additional major cases in Q1-09 These 6 cases to make a significant contribution to APE New business APE in USD millions 102 111 NBM Q1-09: 19% +30% in LC 1 Q1-08 Actual Q1-09 Actual 1 In local currency 38

Global Life strategy takes a global approach to key distribution channels and customer groups Global distribution channels Global propositions Countries Bank Distribution IFA/Brokers Agents Private Banking Client Solutions Corporate Life & Pensions International / Expats 1 Three global distribution channels to better serve local customer needs Enablers In-force management Proposition management Regional hubs and platforms Global desks Purchasing Mutual funds Guarantees Risk profile Underwriting (Protection) Reinsurance 2 3 Three global customer groups Consolidation of manufacturing and proposition management 39

Global Life strategy to continue delivering growth through globalization Our strategy remains unchanged as we focus on achieving our aspirations We are implementing tactical initiatives to respond to economic markets Globalization remains central to our strategy as the convergence of distributor and customer needs continues We will continue to drive operational efficiencies through our regional manufacturing hubs The Zurich brand and financial strength underpin our promise to the customer 40

Our strategy direction: A truly global life franchise New Business Value 1 in USD billions APE by Pillar in USD billions Direct & Central Initiatives 5.7 1.1 Bank Distribution APE by region in USD billions 5.7 0.2 North America 0.73 0.75 1.2 2.9 0.3 0.5 0.8 1.1 3.3 1 0.6 0.5 0.3 0.4 0.4 0.3 2.0 0.9 0.6 0.9 IFA/Brokers Agents Private Banking Client Solutions Corporate Life & Pensions International/ Expats 0.1 2.1 0.1 2.5 4.0 1.4 0.7 0.6 0.1 0.1 2007 2008 2010 2007 2008 2010 2007 2008 2010 2.9 3.3 Europe Emerging Markets Rest of World Note: The above targets (2010) were presented at the Investors Day on May 23, 2008. 2008 actuals have been added. 1 After tax 41

Global Life Performance Monitoring Debra Broek Global Life Chief Financial Officer Zurich,

Agenda Strategy Execution Update Global transformation Operational execution Global pillar update Mario Greco Global Life Performance Monitoring Debra Broek Global Life metrics and link to the strategy Overview of Global Life portfolio Focus on new performance measurement metrics Profit by Source Focus on new performance measurement metrics In-force Management Summary 43

Agenda Global Life metrics and link to the strategy Overview of Global Life portfolio Focus on new performance measurement metrics Profit by Source Focus on new performance measurement metrics In-force Management Summary 44

Metrics Overview Growth APE by Pillar and Line of Business Net policy holder cash flow Maturity recapture and persistency Profitability and Value Profit by source (BOP) Total Expenses BOP RoE NBV and NBM EV operating profit RBRM Capital/Liquidity Management RBC Cash remittance Cash flow / BOP profiles over the life cycle of products Payback periods Bold = metrics with specific internal targets defined Light = metrics which are tracked in addition, some will have defined internal targets in the future 45

We are on a journey Turnaround phase Profitable growth strategy Analysis of businesses and sustainability of the business model Focus on establishing new business measurements European Embedded Value Reporting of Business Operating Profit (BOP) by geography Monitor the local solvency positions Current metrics New business metrics to track the pillar performance for new business and line of business (APE, NBV, NBM) BOP profit by source including new business strain impact and line of business insights Active in-force management (IFM) including cash flows and persistency and recapture of maturities Optimize dividend capacity based on RBC and local capital requirements and regulations Metrics in progress Product profitability considering the life cycle capital needs of products and the impact of the current financial year (RBRM) 46

Performance measurement is linked to strategy pillars and countries Countries Americas United Kingdom Germany Switzerland Ireland Spain Emerging Markets Rest of World Global distr. channels Bank Distribution IFA/Brokers Agents In-force management Global propositions Private Banking Solutions Proposition management Regional hubs and platforms Corporate Life & Pensions International / Expats Pillar metrics: APE New business Value New business Margin Country metrics: BOP including Profit by Source Total expenses Net policyholder cash flows Maturity recapture and persistency Cash remittance RBC New Business Value EV operating profit Global desks 47

Performance measurement is linked to Strategy - Enablers Americas United Kingdom Germany Bank Distribution IFA/Brokers Agents Private Banking Corp. Life & Pensions International / Expats In-force management Proposition management Regional hubs and platforms Global desks - Purchasing Mutual funds / Guarantees Global desks - Risk profile Underwriting (Protection) / Reinsurance Policyholder cash flows Persistency Maturity recapture Margin management Cash flow profiles Pay back periods Total expenses Unit costs Investment margin Net risk margin 48

Agenda Global Life metrics and link to the strategy Overview of Global Life portfolio Focus on new performance measurement metrics Profit by Source Focus on new performance measurement metrics In-force Management Summary 49

Global Life business mix 2008 APE compared to in-force reserves reflects the change in strategy New Business APE Total Life Reserves USD 3.3 bn 2% 5% 10% 13% 24% 46% Unit-linked Ind. Saving Corporate Life Ind. Protection Ind. Annuity Other USD 154.6bn 8% 14% 34% 4% 9% 31% Unit-linked Ind. Saving Corporate Life Ind. Protection Ind. Annuity Other 1) does only include unit-linked investment liabilities 50

Global Life product mix by geography 2008 Total GL Americas New Business APE USD 3.3bn UK Germany Switzerland Ireland Spain ZIS Total GL Americas UK Germany Switzerland Ireland Spain ZIS Total Life Reserves USD 154.6bn UL + Individual Saving Corporate Life Individual Protection Other 51

Global Life distribution channel and proposition mix 2008 Global distribution and proposition pillars drive new business growth and value New Business APE New Business Value New Business Margin USD 3.3bn USD 0.753bn Bank Distribution 29% 9% 10% 13% 16% 5% 23% 9% 28% 9% 29% 29% 20% IFA/Broker 16% Agents 40% Corp. Life & Pensions 16% International/ Expats 22% Direct & central initiatives 12% Private Banking Client Solutions pillar is scheduled to complete all major set-up measures in first half of 09 and plans are underway to enter into European target markets in second half of 09 52

Agenda Global Life metrics and link to the strategy Overview of Global Life portfolio Focus on new performance measurement metrics Profit by Source Focus on new performance measurement metrics In-force Management Summary 53

Zurich s Profit by Source Analysis of the IFRS business operating profit into components in a consistent and intuitive way to be able to analyze our profit sources + Fee income including expense premium Premium, policy-based and other fees Fund-based fees + Net risk margin Business Operating Profit + + Investment margin Non-insurance profits / unmodeled Spread for non unitlinked business Shareholder asset return - Total expenses including overhead 54

Drivers of source of profits by product class Protection Spread business Unit-Linked Death/mortality, disability, longevity premiums and benefits + Investment income - Interest credited + Volumes x Fees Sources of profit Risk margin Investment margin Fees Drivers leading to strategic enablers Volume in force Underwriting / experience Operating efficiency Invested asset mix Asset return Guaranteed rate Operating efficiency Pricing Managed assets Volume in force Operating efficiency Examples of actions / insights for our business Our risk margin reflects stability in experience compared to pricing Our hedging strategy to protect our spread-based business has been effective The impact on fees of severe market movements is limited as the majority of our fees are premium-based or fund-based with offsetting fund-based expenses 55

Zurich s Profit by Source 2008 results + Fee income including expense premium 3,090 Premium, policy-based and other fees 80% Fund-based fees 20% Business Operating Profit USD 1,480m + + Net risk margin Investment margin 570 770 Spread for non unitlinked business Shareholder asset return 70% 30% + Non-insurance profits / unmodeled business 120 - Total Expenses including overhead -3,070 NOTE: The above breakdowns are unaudited 56

Major country Profit by Source profiles for 2008 USA UK Germany CH Ireland Others Total BOP 230m 429m 332m 190m 77m 222m 1,480m (in USD millions) Investment margin Risk margin Fees Expenses Our focus is on fee-based business and not spread-managed business with the strategy to increase the risk margin business through our protection team 57

Benefits of Profit by Source Profit by Source provides the information to link BOP to other metrics and drive the business holistically 58

Agenda Global Life metrics and link to the strategy Overview of Global Life portfolio Focus on new performance measurement metrics Profit by Source Focus on new performance measurement metrics In-force Management Summary 59

In-force manager global role established...maximize the value of the in-force business The aim is to......improve internal reporting of in-force management for better decision making and early warning...implement best practices globally...support and drive the business to achieve its targets 60

Policyholder cash flows are not created equal Maturity recapture Persistency Product specifics Market drivers Most metrics already anticipate maturities so outflows do not impact the result, however Maturity outflows do represent a potential recapture opportunity Focus on retention of profitable business Understanding of the product life cycle is key to control persistency (i.e. when surrender charges expire) Product structures drive the cash and BOP profiles Some legacy products (particularly in the UK) were designed to extract fees and profits in the early years Conversion programs can be used to prevent outflows where industry circumstances change (e.g. tax rules) 61

Development of Assets under Management 1 Net flows were positive in Q1-09. AuM decreased due to currency translation and a reduction in the market value of assets. in USD billions FY08 Q1-09 Opening balance AuM acquired Inflows Outflows Market movements & other 2 Currency translation Closing balance 220 +13 +23-25 -27-24 180 180.4 +5.7-5.4-5.2-5.5 170.0 1 Assets under Management (AuM) comprise the Group and unit-linked investments that are included in the Global Life balance sheet plus assets that are managed by third parties, for which we earn fees. 2 Other includes dividends, charges levied on Assets under Management, and other changes in invested assets. 62

Net inflows by country in Q1-09 Net inflows by country in Q1-09 Net flows, Q1 2009 Spain CH Germany Ireland UK Others Total Growth of the new business cash inflows exceeded the outflows of primarily legacy in-force books Net outflows were less a reflection of the market and more due to the legacy inforce books 63

In-force management initiatives Maturity recapture Persistency Launch of short-term deposit type products to assist in the retention of maturing funds Providing enhanced management information to agents Extensive use of Customer Option/Save Teams to retain surrendering business Monitoring of distributor level and advisor group persistency to proactively manage performance Product specifics Market drivers Loyalty bonus offer for customers who increase their contributions Enhanced support of agents and customers to drive completions rate of protection products Conversion of unit-linked to short-term guarantee products to maintain existing funds Focused mailings and customer offers for conversion programs to mitigate impacts of regulatory changes 64

Proposition management Unit-linked Individual saving Protection Indicative cash pay-back period 5-8 years 5-6 years < 7 years Drivers of the cash and BOP profiles Split of regular and single premiums Investment or Insurance product classification Duration of the business Local policyholder participation rules Fee structure, especially amount of front-end loaded fees Economic factors 65

Agenda Global Life metrics and link to the strategy Overview of Global Life portfolio Focus on new performance measurement metrics Profit by Source Focus on new performance measurement metrics In-force Management Summary 66

Summary Clear process to measure the performance of our strategy Actively manage our profit drivers Focus on new business, but equally on our business in-force Continuing to build further business insights and provide more transparency 67

Q & A

Appendix

Zurich s Profit by Source - Definitions + Fee income incl. expense premium Net fee income including the expense premium, the change in the deferred front end fees and the surrender fees Business Operating Profit + + Net risk margin Investment margin Death/mortality-, disability-, longevitypremiums and benefits, the reinsurance result and the policyholder bonuses if the policyholder participates in the risk result Spread between investment income and interest credited, the return on free surplus and the policyholder bonuses if the PH participates in the investment result Non-ins. profits and + unmodeled Includes PH tax, financial r/i, exceptional items such as significant DAC unlocking, and income from non-insurance entities - Total expenses including overhead Administration and acquisition costs including the change in deferred acquisition costs, the amortization of intangible assets as well as policyholder bonuses if the policyholder participates in the expense margin 70