ZURICH, Switzerland, June 11, 2003 (PRIMEZONE) -- Winterthur Insurance, a subsidiary of Credit Suisse Group (NYSE:CSR) (Other OTC:CSGKF), has signed an agreement to sell its subsidiary Churchill to The Royal Bank of Scotland Group plc for total consideration of approximately GBP 1.1 billion in cash. The sale is an important step in repositioning Winterthur's business portfolio. In addition, the transaction will significantly strengthen the capital position of Winterthur. Subject to regulatory approvals, the transaction is expected to be completed in the third quarter of 2003.Consideration of approximately GBP 1.1 billion will be payable in cash at completion. In addition, the transaction will involve the repayment of debt to Credit Suisse Group companies amounting to approximately GBP 100 million. Upon closing, the transaction will substantially strengthen Winterthur's consolidated EU solvency ratio. Furthermore, the sale will result in a significant capital gain expected in the third quarter of 2003.
Oswald J. Grubel, Co-CEO of Credit Suisse Group and CEO of Credit Suisse Financial Services, said: "The strength of The Royal Bank of Scotland Group's proposal together with the commercial fit with its direct insurance operation were central factors behind our decision to sell. The transaction provides Winterthur with more financial flexibility for selective growth and strengthens the capital base of Winterthur Group."
Winterthur Group CEO Leonhard Fischer said: "Although Churchill has been a very successful operation for Winterthur, we decided to sell it because it operates with a different business model and a different brand from the rest of Winterthur Group. The sale of Churchill has no repercussions or strategic implications for Winterthur's life business in the UK market, which is completely separate operationally and legally."
This press release can be accessed on Credit Suisse Group's website at: www.credit-suisse.com.
Winterthur Group Winterthur Group is a leading Swiss insurance company with head office in Winterthur and, as an international company, ranks among the top five providers of direct insurance in Europe. The Group's products include a broad range of property and liability insurance products, as well as insurance solutions in life and pensions that are tailored to the individual needs of private and corporate clients. With approximately 32,000 employees worldwide, Winterthur Group achieved a premium volume of CHF 37.4 billion in 2002 and reported assets under management of CHF 142.8 billion as of 31 March 2003.
Credit Suisse Group
Credit Suisse Group is a leading global financial services company headquartered in Zurich. The business unit Credit Suisse Financial Services provides private clients and small and medium-sized companies with private banking and financial advisory services, banking products, and pension and insurance solutions from Winterthur. The business unit Credit Suisse First Boston, an investment bank, 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 Frankfurt, and in the form of American Depositary Shares (CSR) in New York. The Group employs around 73,000 staff worldwide. As of March 31, 2003, it reported assets under management of CHF 1,160.5 billion.
The Royal Bank of Scotland Group
The Royal Bank of Scotland Group is Europe's 2nd and the world's 5th largest banking Group. The Group's main areas of operation are the UK, Europe and the United States. It currently employs 111,800 staff world-wide. At June 10, 2003 the market capitalisation for The Group was GBP 47.7 billion. The Group includes one of the strongest portfolios of brands in the financial services sector including The Royal Bank of Scotland, NatWest, Direct Line, Coutts, Tesco Personal Finance, Ulster Bank, Lombard, and in the US, Citizens.
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The full press release can be downloaded from the following link:http://reports.huginonline.com/907162/119341.pdf