ZURICH, Switzerland, Nov. 24, 2005 (PRIMEZONE) -- Credit Suisse Group today announced that the Independent Actuary designated in the Sale and Purchase Agreement (SPA) between XL Insurance (Bermuda) Limited ("XL") and Winterthur Swiss Insurance Company ("Winterthur") regarding the sale of Winterthur International in 2001 has released a Draft Report regarding the estimate of the Seasoned Net Reserves Amount. According to the report, the Independent Actuary's draft conclusion of reserve liability is closer to the estimate submitted by Winterthur. That amount, already provided for in the Winterthur accounts, is expected to become the relevant Seasoned Net Reserves Amount payable to XL.
In a related determination regarding the seasoning of premiums received by XL, the Independent Actuary has also arrived at a draft conclusion closer to Winterthur's estimate which, when issued in a Final Report, will result in a USD 9 Mio payment to Winterthur from XL. The Independent Actuary has reserved the right to adjust the relevant calculations in the Draft Reports for "manifest errors" which might be discovered in the calculations before the Final Reports are issued on December 5, a common step in actuarial work. No new data can be introduced in this period, and actuarial and other judgments will not be revisited. The Independent Actuary's team has worked with the two parties on these issues for seven months, and the Draft Reports comprehensively address all issues raised by XL and Winterthur. Once the Final Reports are released by the Independent Actuary, the so-called Seasoning Process can be considered completed.
Winterthur participated with XL, in accordance with the terms of the SPA, in a review of any adverse development of loss and unearned premium reserves during a three-year post-completion seasoning period. This period expired on June 30, 2004. The provisions recorded by Winterthur on September 30, 2005, for this sale-related contingency, net of pre-payments to and risks retained by XL, amounted to USD 541 million (USD 550 million minus USD 9 million) plus interest accrued between June 30, 2004 and September 2005. The final payment to XL will include further interest up to settlement date and a USD 6 million increase agreed by the parties in the fourth quarter 2005.
Credit Suisse Group
Credit Suisse Group is a leading global financial services company headquartered in Zurich. It provides private clients and small and medium-sized companies with private banking and financial advisory services, and pension and insurance solutions from Winterthur. In the area of investment banking, it serves global institutional, corporate, government and individual clients in its role as a financial intermediary. Credit Suisse Group's registered shares (CSGN) are listed in Switzerland and in the form of American Depositary Shares (CSR) in New York. The Group employs around 62,000 staff worldwide. As of September 30, 2005, it reported assets under management of CHF 1,404.6 billion.
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The press release can be downloaded from the following link: http://hugin.info/100174/R/1022730/161824.pdf