Converium Holding AG International Settlement

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Converium Holding AG's ("Converium") common stock was listed on the SWX Swiss Exchange from 11 December 2002 to 30 May 2008. Before 11 December 2001, Zurich Financial Services Ltd ("ZFS") was the sole shareholder of Converium. In the period from October 2002 through September 2004, the market price of Converium's common stock declined substantially after Converium made various public announcements that it needed to increase its financial reserves for reinsurance coverage it had issued.

In July 2010, the Stichting Converium Securities Compensation Foundation (the "Foundation") and Vereniging VEB NCVB ("VEB") entered into separate settlement agreements with Converium and ZFS, respectively (the "Agreements"), for the benefit of all eligible purchasers of Converium stock who purchased their stock on the SWX Swiss Exchange or any other stock exchange outside the United States (the "Non-U.S. Exchange Purchasers") during the period from 7 January 2002 through 2 September 2004 (the "Relevant Period"). Pursuant to the Agreements, a total gross amount of USD 58,400,000 (USD 40,000,000 from Converium and USD 18,400,000 from ZFS) (less the fee of the Foundation's U.S. counsel in the amount of USD 11,680,000 and certain other costs, such as costs for implementing the Agreements) will be made available to Non-U.S. Exchange Purchasers by way of compensation in accordance with the provisions of a distribution plan that is part of the Agreements (the "Distribution Plan").

On 9 July 2010, the Foundation, VEB, Converium, and ZFS jointly filed a petition with the Amsterdam Court of Appeal, in The Netherlands (the "Court"), and on 1 October 2010 an amended petition, to have the Agreements declared binding on the basis of the petition of 1 October 2010 (the "Petition") on all Non-U.S. Exchange Purchasers pursuant to Article 7:907 of the Dutch Civil Code (Burgerlijk Wetboek).

By Court Order of 12 November 2010, the Court pronounced in a provisional judgment that it is competent to take cognizance of the request in the joint Petition of 1 October 2010 and, furthermore, decided that interested parties may present their arguments in a statement of defense or at the oral hearing of the Petition if they so desire.

The Court has scheduled an oral hearing to determine whether to declare the Agreements binding on 3 October 2011, at 10:00 a.m., in the Court Building (Paleis van Justitie) at Prinsengracht 436 Amsterdam, The Netherlands, which hearing will be continued the following day, if necessary.

For additional information about the Settlements, the Court proceedings to date, and the claims administration process, please review the documents below. If you have any questions concerning this settlement, please call Robert M. Roseman, Principal Counsel to the Foundation at 1.215.496.0300, or email at rroseman@srkw-law.com.

Click on each document below to download and view in PDF Format.