Nationale Suisse has so far been very cautious about investing in asset-backed securities (ABS). We expect to sustain only minimal impact from the mortgage crisis in the US. August's bad weather has affected Nationale Suisse to the tune of between CHF 7.5 and 10 million gross, representing an increase in claims ratio of some 0.8 to 1.0%. The Group's reinsurance arrangements and the impending payments from the natural disasters pool (the sum of which is not yet known) mean that the adverse weather to date is not likely to have a substantial impact on the Group's results for 2007. The exposure of international insurance groups to the mortgage crisis in the US and its effects on the subprime market are the subject of current speculation among shareholders and analysts. As at 31 December 2006, Nationale Suisse had assets of CHF 6.49 billion, 53.2% made up of fixed-interest securities (bonds), 25% of real estate and buildings, 8.6% of shares, 6.7% of mortgages, 3.2% of alternative investments and 3.3% of other investments (time deposits etc). The composition of these has undergone no significant change as at 30 June 2007, and will be published with the interim results for 2007. Our bond portfolio does not include investments in the American subprime market. Alternative investments include CHF 22 million in structured products partly connected to ABS or credit derivatives, of which 7.8% are on the US ABS market (AAA rating) and 1.2% on the US mortgage market (AAA rating, first quality mortgages only). In our alternative investments, we avoid, as a matter of principle, strategies with inherent event risks. We have therefore invested only CHF 1.7 million in hedge funds based on subprime loans or mortgages. According to information currently available, we have sustained losses of between 5 and 10% in this area to date. It follows that our exposure is very marginal in relation to the Group's total investment volume. Nationale Suisse is carrying only minimal risks from the US subprime loan and mortgage market, so no significant effects are expected on its balance sheet or profit and loss account. According to initial estimates, the effects of the adverse weather conditions in Switzerland in August 2007 have impacted the Group's non-life business to the tune of between some CHF 7.5 and 10 million, with all of 450 claims having been made so far. Over 95% of these relate to property insurance, which is covered by the natural disasters pool, and just under 5% relate to motor vehicle insurance, which is not covered by the pool. Just what net burden National Suisse will ultimately have to bear will depend on how many of the claims are apportioned via the natural disasters pool and how many, over and above those, are covered by the reinsurers. The gross burden of between CHF 7.5 and 10 million amounts to a claims ratio of between approximately 0.8 and 1.0%, which is within the total claims ratio expected for the year. Assuming no further major natural disasters occur, we do not expect the loss events that have occurred to date to result in any material change in the projected results. The current weather forecasts lead us to work on the assumption that the situation has settled down but not finally been resolved. Further loss events may occur, and we have prepared for them. Nationale Suisse has a newly-developed crisis management plan that has proved its worth over recent weeks. We have, since 1 January 2007, had a completely remodelled and even more customer-friendly claims organisation on the Swiss market, which is notable for its improved provision of immediate and on-the-spot help when major loss events strike and for ensuring that we are always within reach of our clients and able to help them. Further information will be provided, if required, when the interim results are published on 12 September 2007. Brief profile Nationale Suisse is an innovative, subsidiaries in Germany, international Swiss insurer providing France, Belgium, Italy and first-rate risk and pension solutions and Spain. The headquarters of tailored niche products. The Group has the Swiss National gross premiums of CHF 1.74 billion, 35.0 % Insurance Company is in of which come from their Basel. Nationale Suisse is listed on the SWX Swiss Exchange (NATN). On 31 December 2006 the Group employed 2,013 persons (1,884 FTEs). Downloads You can access this media release on our website www.nationalesuisse.ch under Medien/Medienmitteilung. Information Remo Meier Head of Investor Relations Tel. +41 61 275 22 45 Fax +41 61 275 22 46 [email protected] Nationale Suisse Steinengraben 41 CH-4003 Basel www.nationalesuisse.ch --- End of Message --- Nationale Suisse Steinengraben 41 Basel WKN: 1081197; ISIN: CH0010811971; Index: SMCI, SPI, SPIEX; Listed: Main Market in SWX Swiss Exchange;