On April 16, 2009, Standard&Poor's Ratings Services affirmed its 'AA-' long-term counterparty credit and insurer financial strength ratings on the various operating entities of Switzerland-based insurance group Zurich Financial Services (collectively ZFS), which includes Zurich Insurance Co. (ZIC), the members of the Zurich U.S. Intercompany Pool (ZUS), and Farmers Group Inc. (FGI). The 'A' long-term counterparty credit rating on Zurich Group Holding was also affirmed. The outlook is negative. The affirmation follows today's announcement that ZFS' subsidiary, FGI, has entered into an agreement to acquire 100% of American International Group Inc.'s (AIG; A-/Negative/A-1) U.S. Personal Auto Group. We understand that funding for the initial purchase price of $1.9 billion will be via a fully underwritten share offering, expected
