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WELCOME!Corporate and Middle Market Broker Advisory Councils

Mike GoldenHead of Distribution ManagementZurich Global Corporate, North America

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Broker Advisory Council Antitrust Statement

Statement of Policy"It is the policy of Zurich in North America (Zurich) and the members of its Broker Advisory Council to comply strictly with all laws applicable to Zurich's activities. The Council emphasizes the ongoing commitment of Zurich of full compliance with Federal and state antitrust laws. Therefore, discussion of any matters relating to competition among our participants or relating to practices that may restrain trade with third parties is not permitted. This includes prohibited subjects such as prices, discounts, allocating territories or customers, or any other statements that could be construed as being anti-competitive. These guidelines will help us all to limit our antitrust risk."

Responsibility for Antitrust ComplianceThe Council's membership structure and programs have been carefully designed and reviewed to ensure their conformity with antitrust standards. Each Council member is equally responsible for antitrust compliance. Each Council member depends upon good judgment by all to avoid discussions and activities which could involve improper subject matter or improper procedures - or even the appearance of improper activity. Thus, all concerned have an important and individual responsibility for assuring that Council activities comply with the antitrust laws.

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WELCOME

Who’s here?

Why are we here?

What are our collective expectations?

How are we going to spend our time?

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Who’s here

37 Broker members

24 Zurich Executives & Speakers

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Vision The vision of the Zurich North America Broker Advisory

Council is to advance, differentiate and set new industry standards for the quality of products and services that Zurich and its brokers provide to the customers we collectively serve.

Mission The mission of the Zurich North America Broker Advisory

Council is to foster the highest levels of company/broker communication and idea sharing through transparent, open and productive discussions about the full range of critical business and risk issues, perspectives and concerns facing our organizations and our customers.

Why are we here

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Member Tools

Membership Guide

“Members-only” web site

Membership Card

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Our Collective Expectations

Alignment around delivering sustainable excellence to our mutual

customers;

Greater insight and appreciation for the “other side”;

Willingness to be an information channel into our respective organizations;

Commitment to use this council as continuing “experience” instead of a

meeting;

We will be accountable to react and respond to the “take-aways”; and

We all leave here tomorrow saying… “I learned something that is of value to

me and my organization right now!”

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Agenda

2:15 Welcome, Overview, Intros – Mike Golden

7:00 Breakfast, Surfside A/B

7:00

Breakfast, Surfside A/B

2:45 Zurich Update – Mike Kerner

Overview of D&RM / Business Units – Randall Clouser, Vince Tizzio & Craig Fundum

8:00 Breakout Sessions:CBAC -> Tides RoomMMBAC-> Cove Room

8:00 – 10:45

Breakout SessionsCBAC -> Tides Room

MMBAC -> Cove Room

4:00 BREAK 12:00 Box Lunch, Coastal Patio

4:15 Regulatory & Legislative Update – Dan Dunmoyer & Jack Quinn

1:00 Group Activities 11:00General Session:

Open Forum / Q&A -> Dunes Ballroom

6:15 Departure for Dinner – Meet in Lobby

5:30 Closing – Day 1 – Randall Clouser

6:30 – Cocktails, Lucca Patio7:15 – Dinner, Lucca Garden Room8:45 – Dessert, Scotch & Cigars 10:00 – Transfer to hotel

12:00 pm – Closing Box LunchesDepartures6:30 Cocktail Reception

– Main Resort

7:30 Dinner – Main Resort

Wednesday Thursday Friday

Zurich North America Update

Mike KernerChief Executive Officer,Zurich Global Corporate in North America

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How we measure ourselves

Customer CentricityTop quartile customer satisfactionGrowth at or above the overall insurance market across the cycleAA-level financial strength

We aspire to become the best global insurer as

measured by our

customers, ourshareholders

andour employees

Employer of ChoiceHigh quality engagement scoresHigh quality retention rates

Shareholder ValueTop tier performance in each of our businesses16% BOPaT ROE across the cyclePaying a sustainable and attractive dividendTop-quartile Total Shareholder Returns (TSR)

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GI to deliver on its targets by focusing on 4 strategic focus areas

GI’s 4 strategic focus areas

Global and simple approach to serving our customers

Focus on continuously improving our business and expense management

Focused value-creating growth initiatives

Enhancing technical capabilities and developing our people

I II

III IV

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Zurich HelpPoint in action

With an unprecedented number & severity of catastrophes in 2011, Zurich has initiated more than 1,000 customer contacts

2011 is already highest loss year on record globally: earthquakes, tsunami, floods and tornadoes are the primary causes of loss$260B in economic losses globally$55B in insured losses globally: more than 4x the 10-year average

Risk InsightsAccess to content from Harvard Business Review through Zurich Risk GatewayLaunched Wall Street Journal microsite dedicated to Supply Chain RiskFree access to Culture Wizard which contains cultural awareness courses and culturally-focused country profiles on over 140 countries

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2011 half year results from our three core business segments

General Insurance

Serving individuals, small and medium-sized businesses, commercial enterprises and major multinational corporations

USD 18,876mGross written premiums and policy fees, first half of 2011

USD 1,106mBusiness operating profit, first half of 2011

1 Result concerns FMS only

Farmers

Including Farmers Management Services (FMS) and Farmers Re

USD 1,375mFMS management fees and other related revenues, first half of 20111

USD 729mBusiness operating profit, first half of 2011

Global Life

Offering life insurance, investments, savings and pension propositions to individuals and groups

USD 13,267mGross written premiums, policy fees and insurance deposits, first half of 2011

USD 728mBusiness operating profit, first half of 2011

Corporate presentation

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(1)After tax; In 2011 new business figures have been determined including liquidity premium in the discount rate and, for greater consistency with other European Insurers, a cost of capital applied to residual non-hedgeable risks of 4%. The 201 comparatives have been restated to reflect changes. A refinement in methodology for calculating new business value for Corporate Risk business was introduced in 2011 contributing USD 84m to new business value, after tax in the first six months of 2011.

(2) Margin on gross earned premiums of the Farmers Exchanges. Zurich Financial Services Group has no ownership interest in the Farmers Exchanges. Farmers Group, Inc., a wholly owned subsidiary of the Group, provides management services to the Farmers Exchanges and receives fees for its services.

Financial highlights

In USD millionsfor the six months to June 30 2011 2010 Change _________________________________________________________________________________

Business operating profit (BOP) 2,132 2,286 -7%

Net income attributable to shareholders 1,965 1,642 20%

General Insurance combined ratio 99.3% 98.0% -1.4pts

Global Life new business value (1) 511 405 26%

Farmers Mgmt Services managed GEP margin (2) 7.2% 7.4% -0.2pts

Shareholders equity 31,153 31.984 -3%

Return on common shareholders’ equity (ROE) 12.5% 11.5% 1.0pts

Business operating profit (after tax) ROE 10.5% 12.4% - 1.8pts

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Business operating profit by segment

In USD millions

for the six months to June 30 2011 2010 Change_____________________________________________________________________________________ General Insurance 1,106 1,377 - 20%

Global Life 728 720 1%

Farmers (including Farmers Re) 729 845 - 14%

Other Operating Businesses - 397 - 361 - 10%___________________________________________________________________________Total BOP Operating business segments 2,167 2,581 - 16%

Non-Core Businesses - 34 - 295 88%___________________________________________________________________________Total BOP 2,132 2,286 - 7%

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Top line development by segment

In USD millions

for the six months to June 30 2011 2010 Change Change in LC (1)

________________________________________________________________________________________

General InsuranceGWP and policy fees 18,876 17,940 5 % 0 %

_________________________________________________________________________Global Life

GWP, policy fees and insurance 13,267 13,111 1.2% -5 %

deposits Annual Premium Equivalent (APE) (2) 1,899 1,716 11%

4 % _________________________________________________________________________Farmers

Farmers management fees 1,375 1,399 -2 % - 2 % Farmers Re GWP 1,481 2,491 - 41% - 41 %

(1) Local Currency(2) Gross new business Annual Premium Equivalent (APE)

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General Insurance – key performance indicators

In USD millions

for the six months to June 30 2011 2010 Change Change in LC (1) ___________________________________________________________________________________________

GWP and policy fees 18,876 17,940 5% 0%

Rate change (2) 3.2% 2.0% 1.2pts________________________________________________________________________________Loss ratio 72.8% 71.0% - 1.8pts

Expense ratio 26.5% 27.0% 0.5pts

Combined ratio 99.3% 98.0% - 1.4pts________________________________________________________________________________Business operating profit 1,106 1,377 - 20% -23%

(1) Local Currency(2) For details, please refer to specific notes on the following slide “Rate Change Monitor”

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2011 estimated economic and regulatory solvency

232% 239% 242%+9pts -6pts

Dec 31 2010 (2)

Mar 31 2011

June 30 2011

Statutory solvency ratio / Group’s Solvency I (1)

(1) Solvency I requirements in accordance with the Swiss Insurance supervisory law.(2) Finalized and as filled with the Swiss regulator; after 20010 dividend (slightly lower than estimate disclosed at Q4-10)(3) The accrual for a future dividend, which is calculated as a proportional fraction of the 2010 dividend, does not represent and obligation to pay a particular amount. The 2011 dividend to be proposed to be proposed to the AGM will be the decision of the Board in February 2012.

Movements in Q2-11

Impact from

dividend accrual (3)

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Zurich Newz

Zurich’s Credit and Political Risk group voted ‘Best Private Insurer,’ ‘Best Trade Insurer in Asia’ and ‘Best Trade Insurer in North America’ by readers of Trade Finance magazineSt. Jude Children’s Research Hospital names Zurich ‘Employee Giving Partner of the Year’ Zurich named as the top rated construction insurer by National Underwriter’s 2011 ‘Risk Manager Choice Awards’Zurich/Farmers healthcare programs win United Health Care APEX awardZurich named Best Overall Commercial Insurance Provider in National Underwriter Risk Manager Choice AwardsZurich’s Supply Chain Insurance and Assessment products garner Business Insurance Innovation AwardAdvisen names Zurich as one of the top New Product Pacesetters for 2010

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OverviewBusiness Units/Distribution & Regional Management

Mike KernerCEO, Global Corporate North America

Randall ClouserHead of Distribution & Regional Management

Vince TizzioHead of Commerical Markets, Customer Industry Segments & Canada

Craig FundumPresident, Programs & Direct Markets

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Q&A

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BREAK

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Welcome Dan Dunmoyer & Jack Quinn

Regulatory & Legislative Update from Washington

Dan Dunmoyer, SVP, Head of Government and Industry Affairs, Americas, Zurich Financial Services and Farmers Insurance Group

Jack Quinn, former Counsel to President Bill Clinton; co-founder and chairman of Quinn Gillespie & Associates

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Overview

Dodd-Frank Update Regulatory Authority Systemic Risk Designation - The Financial Stability Oversight

Council Structure and Designation Process Systemic Risk Designation – FSOC Activities to Date Systemic Risk Designation – Designation and Next Steps

Systemic Risk: Global Activity

Solvency II

NAIC Solvency Activity

TRIA

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Consumer Financial Protection BureauFederal Trade CommissionU.S. Securities and Exchange CommissionCommodity Future Trading CommissionState Insurance

Department of TreasuryFederal Energy CommissionFDICFederal ReserveOffice of Thrift

Financial Stability Oversight CommissionOffice of the ControllerNational Credit Union AdministrationFederal Housing Agency

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Dodd-Frank Act: Regulatory Authority Consumer Financial Protection BureauFederal Trade CommissionU.S. Securities and Exchange CommissionCommodity Future Trading CommissionState Insurance

Department of TreasuryFederal Energy CommissionFDICFederal ReserveOffice of Thrift

Financial Stability Oversight CommissionOffice of the ControllerNational Credit Union AdministrationFederal Housing Agency

FSOC: Authority to recommend to Federal Reserve capital

requirements for covered non-bank companies and covered

bank holding companies

FDIC: Establishes a receiver process for financial

companies deemed to pose a systemic risk to the financial stability of the United States

27

288/13/2010 28

The Financial Stability Oversight Council Structure and Designation Process

Chair: Secretary of Treasury (Tim Geithner) Chairman of Federal Reserve (Ben Bernanke) Comptroller of the Currency (John Walsh – acting) Director of Bureau of Consumer Financial Protection (Richard Cordray ) Chairman of the Securities and Exchange Commission (Mary Schapiro) Chairperson of the Federal Deposit Insurance Corporation (Barbara Holum - Acting)

Chairperson of the Commodity Futures Trading Commission (Gary Gensler) Director of the Federal Housing Finance Agency (Edward DeMarco, acting) Chairman of National Credit Union Administration Agency (Debbie Matz) Independent insurance expert (Roy Woodall)

Director of Office of Financial Research (TBD) Director of Federal Insurance Office (Michael McRaith) State insurance commissioner (John Huff) State banking supervisor (William Haraf) State securities commissioner (David Massey)

Ten Voting Members Five Non-Voting Members

Determination – Upon the FSOC’s determination of a company being designated systemically relevant, a process which still remains in development, the Council must notify the non-bank financial company of a determination (including the basis of the decision) within 60 days of the hearing (or 40 days after written notice if no hearing is requested) upon:

Consultation with any applicable primary financial regulator or appropriate foreign regulatory authority A vote of at least 2/3 (i.e., seven) of the voting members of the Council to designate; and One such vote must be that of the Chair (i.e., Secretary of Treasury)

Appeal – Within 30 days of the final determination, the non-bank financial company may file an appeal in the U.S. district court in the district of its home office of the District of Columbia. Review is limited to whether the designation was arbitrary or capricious.

298/13/2010 29

Meetings

The Financial Stability Oversight Council’s (FSOC) inaugural meeting was in October 2010.

Additional public meetings were held in November 2010, January 2011, and March 2011.

An unannounced, non public meeting was held in May 2011.

The FSOC met on July 18 but there was no discussion of systemic risk criteria.

On September 26, the Senate confirmed former Kentucky Insurance Commissioner and Treasury official Roy Woodall to be the FSOC Insurance Expert, with an independent vote on the FSOC panel

On October 11, the FSOC approved a second notice of proposed rulemaking (NPR) and proposed interpretive guidance on the Council’s authority to require supervision and regulation of certain nonbank financial companies

Key Numbers

236 Rules have been published, all of which have been analyzed and summarized by GAIA

GAIA, in partnership with our business partners, has submitted comments on 19 proposed rules

Financial Stability Oversight Council: Activities to Date

308/13/2010 30

How We Will Be Evaluated The FSOC first proposed a rule on non-bank financial entities in October 2010 and another in January 2011. Neither included details on the evaluation process or metrics that would explain how the FSOC plans to evaluate nonbank

financial companies. The “proposed interpretive guidance”, which was released in a 68 page document following the most recent FSOC

meeting on October 11th outlines a 3-stage process for assessment of non-bank financial companies (NFC)for systemic risk purposes:

1. Application of a uniform quantitative threshold for identifying a subset of NFCs that warrant further review.a) This uniform threshold consist of a size metric of total consolidated assets of $50 billion AND one of

the following: Credit Default Swaps Outstanding over $30 billion; Derivative Liabilities over $3.5 billion; Loans and Bonds Outstanding over $20 billion; Leverage Ratio of total consolidated assets to total equity of 15 to 1; or Short-Term Debt Ratio of 10%.

2. Each NFC that meets the Stage 1 threshold will be individually evaluated based on their risk profile and characteristics using public and regulatory sources, including information possessed by the company’s primary financial regulatory agency or home country supervisor and information voluntarily obtained from the NFC.

3. If after the Stage 2 review, FSOC believes the company merits further evaluation, the NFC will receive a “Notice of Consideration” that they are under consideration for a Proposed Determination and will be requested to provide information the FSOC deems relevant.

Next Steps The industry will have 60 days to respond with public comment to the notice of proposed rulemaking After which, the expectation is that designations of nonbanks will occur in “waves” The first group of designees may be required to adhere to specific capital or operational requirements Subsequent groups may be formally or informally requested to comply with the “spirit” of the rules, and provide

information on service level agreements and interconnections with the market

Dodd-Frank Implementation: Designation and Next Steps

318/13/2010 31

Background International regulators are drawing up a list of 28 global banks that are seen as systemically

important financial institutions (SIFIs), that will face extra supervisory scrutiny and capital requirements because of the pivotal role they play in the financial system

Regulators plan to add to the list in the coming year the names of big insurers that are seen as SIFIs

Recent Activity In a recent speech at a Regulator Conference, Karl Van Hulle, who is in charge of drawing up

insurance standards at the European Commission, declared “Big European insurers need not fear higher capital requirements if they are placed on regulators' watch list of financial companies deemed 'too big to fail’” He continued with…

“Europe's new risk-capital rules for insurers, known as Solvency II, should avoid the need for additional capital buffers, at least in Europe”

“If a company applies Solvency II in the way it was designed, I (Hulle) cannot imagine that we would now invent something else just because it happened to be a SIFI”

Systemic Risk: Global Activity

Source: Thomson Reuters

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Terry Vaughan, NAIC CEO, gave a recent interview surrounding the topics of U.S. Supervisory Framework and Solvency II. A few of her key messages include*:

Solvency II: The U.S. Perspective and Zurich’s Position

The U.S. supervisory framework is commonly misunderstood. US insurance supervision is often seen as a state-based system, but it can be more accurately described as a national system of state based regulation.

We (the US) do have a Solvency Modernization Initiative, but it is not driven by any sense that something is wrong with the US system…. we decided to step back and see what lessons can be learnt from the financial crisis and other initiatives…there are some elements of Solvency II that we think could be useful tools for us. For example we are looking at ways in which we could focus more on insurers’ risk management and governance

The US position is that supervisory equivalence should be on an outcome basis and not the adoption of the same standards. Solvency II is a regional solution and, as yet, untested. In contrast, the US supervisory system has demonstrated its success over many years, and it is continually improving. So we are quite confident in the strength of our (U.S.) system

Zurich’s Position Zurich continues to strongly support an economic, risk-based approach to regulatory solvency, as seen in

Solvency II

Zurich supported EIOPA’s recently published draft advice to the European Commission (EC) to grant Switzerland third party equivalence (the EC has up to 2013 to make a final decision on equivalence) With initial concern that Solvency II would cause duplicative reporting, once at the Group Supervisor

level and second at the EU level, third-party equivalence will likely result in the EU respecting the reporting requirements of the group supervisor, (e.g. FINMA for Swiss-based companies) and not require additional reporting at the EU level.

* Source: Lloyd’s Interview: 60 Seconds with Terry Vaughan

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Background: The NAIC has been working since the beginning of 2011 to develop a process whereby an insurer would file an Own

Risk and Solvency Assessment (ORSA) report

This process is in response to the recommendations for U.S. regulatory enhancements, including the development of a group wide supervision model, as noted in the International Monetary Fund’s 2010 Financial Sector Assessment Program (FSAP) review.

The timeframe indicates adoption of a final ORSA Guidance Manual by the end of 2011, which must be reviewed and adopted by the NAIC Executive Committee before being considered by each state insurance regulator. The next FSAP review will take place in 2012 and it is believed the ORSA requirement could begin as early as 2013

ORSA Guidance Manual The Manual is intended to provide guidance to an insurer as to the reporting of its ORSA, which is one element of

an insurer’s broader Enterprise Risk Management (ERM) framework.

An insurer who is subject to the ORSA requirement will be expected to regularly conduct an ORSA to assess the adequacy of its risk management and current (and likely future) solvency position, internally document the process and results, and provide a high-level summary report annually to the domiciliary regulator, if requested.

Industry Concerns Confidentiality

Legal Entity vs. Group Level Filing

International Coordination

National Association of Insurance Commissioners – Solvency Activity - ORSA

3434

Background and Overview: The current 7 year reauthorization of TRIA carries through until Dec. 31, 2014 Zurich was very involved in the formulation of the original program, and its extension

Chaired AIA TRIA working group Testified and actively communicated with Congress

Because of Zurich’s large “deductible” under the current program, TRIA serves more so as a worst-case solvency backstop rather than a program to encourage more terrorism writings

TRIA remains a budgetary cut target in Congress, despite little evidence that the threat of terrorism has dissipated

Key Industry Concerns Misperception/expectation that private sector can price for and absorb worse-case terror events and

diminish governmental involvement

N-B-C-R (nuclear, biological, chemical or radiological) events remain a top concern, particularly for certain lines (e.g. Workers Comp for Zurich)

Zurich Position and Next Steps Need for meaningful public-private partnership to financially address the reality of potential large-scale

terrorism , while federal support should most heavily target those lines of insurance where loss accumulation is unmanageable

Our Business Units have already begun to analyze where to improve upon the current program; we look forward to partnering with you, your clients, and related trade associations on this key issue as it builds momentum in 2013

Terrorism Risk Insurance Act (TRIA)

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What does this mean for Zurich customers who are facing these same challenges from a risk perspective?

Dodd-Frank and other Regulatory Reform measures are unprecedented in their scope and complexity. Zurich is directly engaged in the rule making process on a global basis

Increasing regulatory scrutiny is not unique to insurance and no organizations are immune

Organizational dedication to risk management, compliance, and corporate governance has never been more crucial and Zurich continues to lead the way with best practice approaches in each area

To assist our customers in these challenging and complex times, Zurich will continually evaluate the impact to our existing product line and determine what products may be needed or expanded to meet our customers’ needs

368/13/2010 36

THAN

K YOU!

CLOSING – DAY 1

Randall ClouserHead of Distribution & Regional ManagementZurich North America

This Evening…6:15 pm – Meet in lobby for departure6:30 pm – Cocktails & Dinner, Main Resort

Tomorrow…

7:00 am – Breakfast, Surfside A/B

8:00 am – Breakout Sessions Corporate Broker Advisory Council

Tides Room Middle Market Broker Advisory Council

Cove Room

40

Breakout Sessions

Broker Member Zurich Member

Suzanne Cantwell Randall Clouser

Jamie Crystal Craig Fundum

Linda Downs Roderic Jacobus

Marshall Fleming Kimberly Moore

Mark Forrester Joseph Murphy

Jack Galloway Tricia O’Neill

Tony Garcia Tim Picken

Kirk James Vince Tizzio

Jeff Jamison Ed Wu

Clark Johnson

B. Linton Puckett

Patsy Redfield

Monte Richardson

Mary Sklarski

Jeff Stoops

Rick Stuzzieri

Mike Tiagwad

Joe Valenza

Middle Market Broker Advisory Council (MMBAC)

Corporate Broker Advisory Council (CBAC)

Broker Member Zurich Member

Anne Anderson Mike Kerner

Steve Anderson Mike Golden

Lance Becker Brian Hegarty

Jackie Bolig Paul Horgan

Sharon Brainard Brenda Lombardo

Paul Bredthauer Michael Karmilowicz

Kevin Brogan Greg Maguire

Brian Elowe Gregory Martin

Pamela Ferrandino Lori Spoon Rafkin

David Finnis Joe Tinetti

Tom Fish Brian Winters

Brian Kelly

Stephen Kempsey

Bertil Olsson

Jim Rubel

Eric Silverstein

Tony Tam

Brian Wanat

418/13/2010 41

THANKYOU!

WELCOME BACK

Mike GoldenHead of Broker Relationship ManagementZurich Global Corporate, North America

Friday, October 21

438/13/2010 43

Q&A Panel

Mike Kerner

Randall Clouser

Paul Horgan

Mike Karmilowicz

CLOSING REMARKS

Randall ClouserHead of Distribution & Regional ManagementZurich North America

458/13/2010 45

THAN

K YOU!

rechter rand right margin marge droite margine destra welcome! corporate and middle market broker...

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