ZUG, Switzerland, Jan. 31, 2002 (PRIMEZONE) -- Converium Holding Ltd. (NYSE:CHR) is pleased to announce that its US insurance subsidiary Converium Insurance (North America) Inc. (formerly ZC Insurance Company) has reached agreement with Crop 1 Insurance of Des Moines, IA to manage its delivery of Federal Crop Insurance. The United States Department of Agriculture (USDA) provides private insurance companies the opportunity to sell and service federally subsidized Multiple Peril Crop Insurance (MPCI) to farmers through its Standard Reinsurance Agreement (SRA). In the past 10 years, MPCI has emerged as the preeminent risk management tool used by producers of agricultural commodities in the United States. Roger Cyr, Vice President of Converium Insurance (North America) Inc. said, "Several financial services entities are supplying products and services through Crop 1 to provide an integrated approach to improve farmer's revenue opportunities while managing risk. We look forward to an exciting and bright future."
In December 2001, Converium Insurance (North America) Inc. (formerly ZC Insurance Company) became the nation's newest provider of USDA's federal crop insurance program when government officials approved the company's SRA. Now that it has reached agreement with Crop 1 Insurance, Converium will enter the crop insurance market in time for the 2002 Spring crop season. Converium sought federal authorization to write over US$100 million dollars in crop insurance premium in thirteen Midwestern and Southern states. Over US$2.8 billion dollars in crop insurance was written by fifteen private insurance companies this past crop year. Converium also received approval by Risk Management Agency (RMA) officials of its Electronic Business Implementation Plan, or EBIP, which detailed Crop 1's plan to use the Internet to provide farmer policyholders with increased access and control over their policy information.
In conjunction with Converium, Crop 1 will partner with farm retailers and grain marketers to provide farmers a complete profit management program delivered by people they have grown to trust. "We will be providing farmers with unparalleled access to their insurance coverage and the opportunity to use innovative mapping techniques that take away much of the mystique and hassle surrounding conventional crop insurance delivery," said William Rose, Crop 1's founder and CEO. "One of our goals is to add value to the information our farmer-clients entrust to us and give it back in a form our customers can use in both good years and bad," Rose added. The Crop 1 computer system allows farmers to identify the acres they want to insure by outlining the fields on high-resolution maps created with satellite photography.
The maps help reduce insurance errors and provide a useful tool for managing other aspects of the farm operation.
Converium is a leading global professional reinsurer whose business operations are recognized for innovation, professionalism and service. Converium offers a full range of traditional non-life and life insurance products as well as innovative solutions to help our clients to manage capital and risk. In 2000, gross premiums written amounted to US$2.6 billion. Based on 2000 net reinsurance premiums written, Converium ranks among the ten largest global reinsurers. Converium is rated "A+" (Strong) by Standard & Poor's, "A" (Excellent) by A.M. Best and "A1" (Good) by Moody's.
Statements herein regarding Converium and its subsidiaries include forward-looking statements. Converium's actual results may differ materially from those suggested as a result of various factors. In particular, the amount of premiums and profitability of the arrangements with crop 1 could differ from that projected by Converium. Interested parties should refer to the disclosure set forth in Converium's public filings with the US Securities and Exchange Commission as well as the SWX Stock Exchange for additional information regarding the company's financial condition and results of operations.