Global Investments
International Limited

1. Why has the value of the Lehman Brothers asset reduced to Zero?
Lehman Brothers is under the protection of US Chapter 11 bankruptcy protection legislation that is designed to enable Lehman Brothers to wind up its business in an orderly fashion. Currently it is not possible to trade Lehman Brothers shares and nor is it possible to accurately value the debts that they have. Therefore, due to this uncertainty, we have valued the asset at zero, as the worst case scenario is that Lehman Brothers will not be able to honour the debt that this asset represents.

2. What exactly is Zurich International Life's investment with Lehman Brothers? The funds are holding sterling denominated euro commercial paper (ECP) issued by Lehman Brothers. ECP is a short-term interest bearing security, which may be issued in a range of currencies by financial institutions, and is commonly held within money market funds. This Lehman Brothers ECP was due to be repaid to the funds on the day following Lehman's bankruptcy.

3. Why are these funds holding a Lehman Brothers asset?
The funds hold Lehman Brothers ECP as part of a diversified portfolio of money market assets. This short term money market instrument was purchased and held in line with strict credit rating restrictions, based on the market and company information available to our investment advisors. The Standard and Poor's credit rating of Lehman Brothers ECP remained A-1 until the company's default last week.

4. What are the current holdings of these funds and other money market funds? A list of holdings in these funds and our other money market funds will be made available on Zurich International online (ZIO).

5. How dose Zurich International Life monitor its investments?
The fund's investments are monitored against the investment rules set by us, which currently require at least 80% of the funds to be held in investments with a short term credit rating of Standard and Poor's A-1. 20% of the funds may be held in lower quality investments with a minimum short term credit rating of Standard and Poor's A-2. The credit rating of Lehman Brothers ECP remained A-1 until its default last week.

6. When will I know if Zurich International Life's investment with Lehman Brothers has any value and how will my clients receive any payments?
We cannot be sure when the position of Lehman Brothers will be finally resolved but it is likely to take some months. As and when we receive any repayments we will credit your clients' policies with these amounts, using the investment strategy they have selected at that time, and notify you and your clients straight away.

7. What happens if you receive money from Lehman Brothers and my clients have already surrendered their policy?
Zurich International Life will hold any payments we receive and write to all customers affected and issue cheques for any outstanding balances where appropriate.

8. My clients bought units in the fund just before the price of units fell. What is their position?
We aim to ensure that any customers affected in this way have not overpaid for their units. Over the next few days we will reimburse any policy owners who purchased units in the funds between 19 September 2008 and 26 September 2008 inclusive.

9. What relevance does 19 September 2008 have?
This Lehman Brothers ECP was due to be repaid to the fund on 15 September 2008. Lehman Brothers filed for bankruptcy on 14 September 2008 but it was not until 18 September 2008 that we were informed that the proceeds of the asset wouldn't be repaid.

10. Will my clients still be reimbursed with their share of the Lehman Brothers asset if they are no longer invested in these funds?
Yes, provide that your clients were invested in the funds on 26 September 2008, they will still receive their entitlement irrespective of which fund they are in when the payments are made.

11. What happens with new investments into the funds?
Valuing the Lehman Brothers asset at zero has decreased the value of the funds. Therefore any transactions that take place after 26 September 2008 will reflect this.

12. Can my client switch to another fund?
Yes, they can switch to another fund or funds free of charge.

13. What further communication will I get?
As soon as we obtain more clarity regarding the Lehman Brothers asset we will communicate formally by letter to both you and your clients. In the meantime we will regularly update Zurich International online (ZIO).