Zurich transaction terminated

Zurich Financial Services Group’s wholly owned Universal Underwriters Group (Universal Underwriters) will not be sold to an investor group led by the private equity investment firm Hellman & Friedman LLC (H&F), according to a recent agreement made between Zurich and H&F.Both parties have been working toward completion of the transaction since the agreement was announced April 2005. Both parties held constructive discussions however they were unable to complete the transaction at mutually agreeable terms. As a result, both Company’s have agreed not to pursue the transaction and Zurich will retain Universal Underwriters as part of its North America Commercial (NAC) business division. “We agree that not pursuing the transaction is in the interest of both parties, and we respect Zurich’s decision to keep Universal Underwriters as part of its North American business,” David Tunnell, managing director at H & F LLC, says. Zurich has appointed the current chief financial officer of NAC and interim head of Universal Underwriters Thomas A. Bradley, as president of the Company.”We have been impressed with the professionalism of H&F throughout this process,” Axel P. Lehmann, CEO of North America Commercial, says.Lehmann adds that in the past six months Bradley has made extreme progression in enforcing compliance with regulatory standards and providing value to customers. “I expect him to quickly align this profitable unit with our North America Commercial business division,” Lehmann says.Regulatory matters specific to Universal Underwriters surfaced during a routine market conduct examination performed by the Kansas Department of Insurance. As a result, Universal Underwriters has complied with the Kansas Department of Insurance and put a comprehensive remediation plan into place. Universal Underwriters provides franchised US auto, truck, equipment and motorcycle dealers and the automotive after-market with specialized insurance and financial services.