The ratings on the core entities of the Switzerland-based Zurich Financial Services group (collectively referred to as ZFS) reflect the group's very strong business franchise in its chosen markets, strong capitalization, and the expectation that underlying operating performance will become supportive of the current ratings in 2003. Very strong business position. ZFS continues to command a very strong business position. Diversification, while remaining significant, has narrowed, both by business line and markets, as the group refocuses its activities on core insurance business. In 2002, the group wrote gross premiums of $41.4 billion. Strong capitalization. Capitalization is strong both in terms of risk-based capital adequacy and quality of capital. Management remains committed to further strengthening the group's balance sheet by asset
