LONDON (Standard&Poor's CreditWire) March 9, 1999--Standard&Poor's today placed its double-'A'-plus long-term counterparty credit and insurer financial strength ratings on Zurich Insurance Co. (Zurich), and certain related entities (see list below), on CreditWatch with negative implications. This action follows today's announcement that Zurich Financial Services (ZFS), Zurich's new intermediate holding company, will raise its merger restructuring charge to $2.4 billion from a previously announced $1.4 billion, when it publishes its 1998 financial statements. $800 million of the original charge related mainly to the need to strengthen nonlife loss reserves for asbestos and pollution claims in the U.S. and U.K. This element of the charge has now been raised to $1.6 billion; the other elements of the charge
