ZUG, Switzerland--(BUSINESS WIRE)--July 29,
2003--Converium,(NYSE:CHR) (SWX:CHR), one of the leading global
multi-line reinsurers, today reports on its financial results for the
second quarter 2003.

-- Profitable growth in specialty lines and in standard property
& casualty reinsurance

-- Strong performance in non-life

-- Strong capital position, global franchise, and infrastructure

-- Converium continues to benefit from the reshuffling in the
reinsurance industry



2Q2003 2Q2002
---------------------------------------------
Gross premiums written US$ 949 million US$ 833 million
Net premiums written US$ 899 million US$ 793 million
Non-life combined ratio 99.1% 99.9%
Total investment yield(1) 4.8% 0.5%
Net income US$ 59.1 million US$ 2.9 million
Earnings per share US$ 1.48 US$ 0.07
Return on equity(2) 13.6% 0.7%
Cash flows from operating US$ 364.3 million US$ 210.9 million(3)
activities
Shareholders' equity as US$ 1,894.3 million US$ 1,663.9 million
per June 30, 2003
Book value per share as US$ 47.61 US$ 41.60
per June 30,2003


1 Summary Results

For the three months ended June 30, 2003, Converium reported a net
income (after-tax) of US$ 59.1 million, compared to a net income of
US$ 2.9 million for the second quarter of 2002, an increase of US$
56.2 million. Earnings per share for the period were US$ 1.48, an
increase of US$ 1.41 compared to the same period of the previous year.
For the three months ended June 30, 2003, Converium reported a return
on equity(2) of 13.6%, an improvement of 12.9 percentage points
compared to the second quarter of 2002.
Converium continues to strengthen its position as a leading global
multi-line reinsurer, in specialty lines and in standard property &
casualty reinsurance, and continues to benefit from the reshuffling in
the reinsurance industry. Including the July 1 renewal season, 90%(4)
of its non-life premium was up for renewal. Converium renewed 70%(5)
of the non-life premium volume that was renewable during the January
1, April 1, and July 1 renewal seasons, and experienced combined
increases in rates and shares of 26%(6) on the renewed business. The
aggregate impact of improved rates, increased shares and new business,
offset by cancellations, resulted in premium growth of 18%(5) of
non-life premium volume that was renewable so far in 2003 including
the July 1 renewal season.
Converium's financial results for the second quarter 2003 were
primarily driven by the following factors:

-- Profitable growth in specialty lines and in standard property
& casualty reinsurance

-- Strong performance in non-life

-- Current conditions in the capital markets

2 2Q2003 - Highlights

Profitable growth in specialty lines and in standard property &
casualty reinsurance Today, Converium is fully established as an
independent leading global multi-line reinsurer and continues to
benefit from the reshuffling in the reinsurance industry. In the
second quarter of 2003, gross premiums written of Converium's non-life
book grew by more than 15.3% to US$ 916.4 million, net premiums
written grew by 12.7% to US$ 856.9 million, net premiums earned grew
by 13.0% to US$ 860.5 million compared to the same period of the
previous year; this growth was driven by both specialty lines as well
as standard property and casualty reinsurance.
Strong performance in non-life The re-underwriting and the
restructuring of the underwriting process continue to pay off. The
non-life combined ratio was 99.1% for the second quarter of 2003
compared to 99.9% for the same period in 2002. The non-life combined
ratio for the first half of 2003 was 98.7%, an improvement of 2.3
percentage points compared to the first half of 2002. This positive
development is largely a reflection of improvements achieved during
the important renewal seasons of January 1 and April 1. In addition,
the results reflect a shift in Converium's business mix, as can be
observed by the strong growth in Continental European markets serviced
by the segments Converium Cologne and Converium Zurich, which grew
their net premiums written by 53.1%, respectively 29.3% in the first
half of 2003. Much of this business was written on a proportional
basis as many European insurers were faced with capital constraints
due to the strain placed on their balance sheets by the melt-down of
the European equity markets. As a consequence, Converium was able to
participate in the core business of many cedents at very advantageous
terms. These lines of business naturally exhibit lower volatility in
their performance over time and, therefore, carry higher expected
non-life loss ratios compared to non-proportional catastrophe
business. Given that much of Converium's new business written was
either in specialty lines, such as credit & surety or professional
liability, or in standard lines of business, such as third party
liability and motor liability, the initial non-life loss ratios are
higher than in short-tail property lines.
Strong capital position Since year-end 2002, Converium's
shareholders' equity increased by 9.0% or US$ 156.3 million to US$
1,894.3 million as per June 30, 2003. Book value per share increased
by 9.3% or US$ 4.06 to US$ 47.61 as per June 30, 2003, compared to US$
43.55 as per year-end 2002. As per June 30, 2003, Converium reported
claims supporting capital(7) of US$ 2.3 billion, an increase by 7.3%
or almost US$ 156 million compared to year-end 2002.

3 Key Drivers of Converium's Financial Results 2Q2003

For the three months ended June 30, 2003, Converium reported a net
income of US$ 59.1 million, compared to a net income of US$ 2.9
million for the same period in 2002, an increase of US$ 56.2 million.
Converium's financial results for the second quarter of 2003 were
primarily driven by:
(1) Profitable growth in specialty lines and in standard property
& casualty reinsurance;
(2) Strong performance in non-life;
(3) Current conditions in the capital markets.

3.1 Profitable growth in specialty lines and in standard property
& casualty reinsurance

The hardening of the reinsurance markets, the strength of
Converium's global franchise and infrastructure, and opportunities
arising from our position as a leading independent multi-line
reinsurer all led to a profitable growth in non-life, both in
specialty lines and in standard property & casualty reinsurance.
For the second quarter of 2003 gross premiums written by
Converium's non-life operations grew by 15.3% or US$ 121.9 million to
US$ 916.4 million (2Q2002: US$ 794.5 million), net premiums written by
12.7% or US$ 96.6 million to US$ 856.9 million (2Q2002: US$ 760.3
million), and net premiums earned by 13.0% or US$ 99.1 million to US$
860.5 million (2Q2002: US$ 761.4 million).
For the first half of 2003 gross premiums written by Converium's
non-life operations grew by 25.2% or US$ 422.0 million to US$ 2,094.8
million (1H2002: US$ 1,672.8 million), net premiums written by 23.8%
or US$ 380.3 million to US$ 1,977.2 million (1H2002: US$ 1,596.9
million), and net premiums earned by 18.8% or US$ 268.7 million to US$
1,700.8 million (1H2002: US$ 1,432.1 million).
The growth was spread across most specialty lines as well as most
lines of business in standard property & casualty reinsurance and
primarily resulted from increased rates, increasing the share of
clients' business upon renewing existing business or writing new
business.

3.2 Strong performance in non-life

The re-underwriting of the non-life book and the restructuring of
the underwriting process resulted in a continued improvement of the
underlying performance. The non-life combined ratio decreased by 0.8
percentage points to 99.1% for the second quarter 2003 (2Q2002:
99.9%); respectively decreased by 2.3 percentage points to 98.7% for
the half year ended June 2003 compared to 101.0% for the six months
ended June 30, 2002.
This improvement of the non-life combined ratio reflects improved
pricing, terms and conditions as well as Converium's shift towards
longer-tail business, both in specialty lines and in standard property
& casualty reinsurance, particularly in Continental Europe.

3.3 Current conditions in the capital markets

Converium's investment results in the second quarter 2003
reflected

-- the continuing strong cash flow from operating activities,

-- the recovery of the global equity markets,

-- the further decline in interest rates,

-- Converium's strategic and tactical asset allocation, as well
as the benchmarks applied for the passive asset management
approach.

Converium reported a cash flow from operating activities of US$
364.3 million for the second quarter of 2003, an increase of 72.7%(8)
or US$ 153.4 million(3) compared to the previous year. This
substantial growth in the cash flow from operating activities
contributed to a significant increase of total invested assets plus
cash and cash equivalents of 5.1% to US$ 7,094 million as of June 30,
2003, compared to March 31, 2003.
From a tactical perspective, Converium kept its overall exposure
to the equity markets to a level that corresponded to the lower range
of the optimal equity allocation recommended by its ALM (Asset
Liability Management) analysis. While keeping an under-exposure versus
its neutral allocation, Converium decided in the second quarter to
moderately rebalance its allocation in favor of equity securities.
Taking advantage of the strong cash flow from operating activities,
Converium invested during the second quarter US$ 120 million or 32.9%
of the operational cash flow in equity securities. Together with the
equity market rebound, this tactical move brought the equity
allocation back to 8.8% of the invested assets and triggered a
positive change in net unrealized gains on investments (pre-tax) of
US$ 53.8 million during the second quarter of 2003.
To protect its balance sheet from a possible rise of the yield
curves, Converium reduced the modified duration of its bond portfolio
(excluding mortgage-backed securities) to 3.8 and shifted
approximately US$ 264 million of government bonds from
"available-for-sale" to "held-to-maturity", and invested US$ 20
million of operational cash flow in fixed maturities classified as
"held-to-maturity" during the second quarter of 2003. As per June 30,
2003, US$ 284 million, or 6.8% of the total fixed
maturities-portfolio, was classified as "held-to-maturity".
As a result of the predominantly passive asset management policy,
Converium's investment returns were in line with the respective
benchmarks. The mortgage-backed securities portfolios, however, which
are actively managed, slightly outperformed their benchmarks and
achieved a relative performance of plus 17 basis points in the second
quarter of 2003.
In the second quarter of 2003, Converium reported US$ 15.8 million
of net realized capital gains, an increase of US$ 76.8 million
compared to the previous year. On the fixed income side, the decline
in interest rates continued and further increased the likelihood of a
change of the trend in the bond markets. As a consequence, Converium
continued to reduce the duration of the fixed income portfolio.
Thereby, Converium achieved capital gains of US$ 16 million. The sale
of a real estate property in Germany resulted in additional realized
capital gains of US$ 2.7 million.
In the second quarter of 2003, to continue to adhere to emerging
new asset impairment standards, Converium has further reinforced its
already strict impairment rules(9). Now, additionally any declines in
value over a period of more than twelve months are recorded as
realized capital losses. In the second quarter of 2003, this change
resulted in additional impairment charges of US$ 4.6 million.

Table: Total invested assets (breakdown by major currencies and
asset classes)


(unaudited; in US$ million) Balance
at at at
June 30, March 31, Dec 31,
2003 2003 2002
----------------------------------------------------------------------
Fixed maturities
US$
- available-for-sale 2,292.6 2,257.6 1,993.2
- held-to-maturity 263.7 0.0 0.0
Euro
- available-for-sale 407.8 358.6 310.4
- held-to-maturity 20.6 0.0 0.0
British pounds
- available-for-sale 252.2 198.5 174.1
----------------------------------------------------------------------
Mortgage-backed securities
US$ (available-for-sale) 850.5 895.7 827.0
----------------------------------------------------------------------
Funds Withheld Asset
US$ 820.5 860.7 871.5
Euro 326.5 316.2 315.5
British pounds 403.1 380.3 385.8
Other 71.6 71.6 74.2
----------------------------------------------------------------------
Equity securities
US$ 405.0 329.2 339.4
Euro 143.0 62.6 90.2
British pounds 51.1 24.2 26.4
----------------------------------------------------------------------
Real estate (direct and indirect)
Swiss francs 226.3 230.7 242.9
----------------------------------------------------------------------
Other, net 279.6 412.7 465.7
----------------------------------------------------------------------
Total invested assets 6,814.1 6,397.9 6,117.3
-------------------------------------------===========================


The tables below illustrate how the achieved investment returns
are reflected in the financial statements.

Table: Investment results



(unaudited; in US$ million, unless Three months Six months Year
noted) ended ended ended
June 30 June 30 Dec 31
2003 2002 2003 2002 2002
----------------------------------------------------------------------
Net investment income 66.8 68.3 123.0 133.0 251.8
- growth (%) -2.2% -7.5% +10.1%
----------------------------------------------------------------------
Average annualized net investment
income yield (pre-tax) 3.9% 5.0% 3.6% 4.8% 4.3%
- change in percentage points -1.1 -1.2 -0.4
pts pts pts
----------------------------------------------------------------------
Net realized capital gains (losses) 15.8 -61.0 7.5 -61.3 -10.3
- impairments(10) -6.1 -13.5 -21.9 -21.5 -48.3
----------------------------------------------------------------------
Total investment results 82.6 7.3 130.5 71.7 241.5
- growth (%) n.m. +82.0% +14.8%
----------------------------------------------------------------------
Average annualized total investment
income yield (pre-tax) 4.8% 0.5% 3.8% 2.6% 4.1%
- change in percentage points +4.3 +1.2 -0.2
pts pts pts
----------------------------------------------------------------------
Change in unrealized (losses) gains
(pre-tax) 101.2 -4.1 105.0 -18.6 -109.0
----------------------------------------------------------------------
Total investment return (pre-tax) 183.8 3.2 235.5 53.1 132.5
- growth (%) n.m. n.m.
----------------------------------------------------------------------
Average annualized total investment
return (pre-tax) 10.6% 0.2% 6.9% 1.9% 2.2%
- change in percentage points +10.4 +4.8
pts pts
----------------------------------------------------------------------


4 Successful 2003 Renewals in Hard Reinsurance Market Continue

Converium continued to experience a favorable business climate
during the recent July 1 renewals. The principal markets for the July
1 renewals are the United States, Australia, Latin America and, to a
lesser extent, the Middle East.
As expected, we observed hard markets in most lines in the United
States: Capacity constraints in some specialty lines - such as
professional liability, surety, accident & health, or agribusiness -
provided opportunities for a very selective and opportunistic
underwriting. In other lines of business (e.g. property, casualty
clash) the market peaked at terms and conditions that were sufficient
to meet our profitability thresholds and allowed for some limited
growth. Yet other lines, such as umbrella, or commercial auto,
continued to harden but still require improved terms and conditions to
achieve sustainable adequate returns.
During the July 1 renewal season, 9%(11) of Converium North
America's portfolio was up for renewal, representing the fact that the
book is heavily oriented towards January 1, with renewals relatively
evenly spread over the remainder of the year. The in-force portfolio
size remained consistent on an estimated annual gross premium basis
(unaudited) after the July 1 renewals. Converium North America chose
to non-renew about 50%(12) of the renewable non-life premium volume
because the underlying business did not meet its stringent performance
standards or was retained by the client. However, the non-renewed
premium volume was offset by new business.
In Australia terms remained favorable as ceding insurers
concentrated more on counter-party credit quality. This favored
incumbents and locally licensed reinsurers, including Converium.
Pricing remained stable to slightly up on standard lines, with higher
increases achieved in specialty lines such as professional indemnity.
Converium was able to add on a significant new account in the
specialty agribusiness field with the support of our Global Center of
Excellence in Mission Viejo.
In Latin America we observed a trend towards tighter terms and
conditions, particularly in proportional treaties. For example, in
Mexico and Central America more extensive exclusion lists were
introduced and natural catastrophe perils were excluded from many
proportional treaties. Unfortunately, an oversupply of
non-proportional catastrophe capacity led to price competition. As a
consequence of Converium adhering to its strict profitability targets,
our in-force premium reduced by approximately 20% following the July 1
renewals. Our catastrophe aggregates in Mexico and Central America are
expected to decline by over 50%.
During the 2003 renewal seasons including July 1, approximately
90%(13) of Converium's non-life premium was up for renewal. The
non-life operations renewed approximately 70%

5 Quotes from Management

Dirk Lohmann, Group CEO Converium, said:

"Today, Converium is fully established as an independent leading
global multi-line reinsurer and continues to benefit from the
reshuffling in the reinsurance industry. The hardening of the
reinsurance markets, the strength of our global franchise and
infrastructure, and opportunities arising from our position as a
global player all led to a profitable growth in non-life, both in
specialty lines and in standard property & casualty reinsurance. In
order to prepare Converium for the 2004-renewals, we are currently
reviewing strategies that will allow us to proactively manage the
cycle in the reinsurance market place."
"I am pleased by the continuing improvement of the underlying
profitability of our non-life operations; a combined ratio of 99.1%
for the second quarter of 2003, respectively of 98.7% for the first
half of 2003 - an improvement of 0.8 percentage points, respectively
2.3 percentage points - is the clear result of our re-underwriting
efforts and reflects Converium's shift to longer-tail business, both
in specialty lines and in standard property & casualty reinsurance."
"For the second quarter 2003 we achieved an annualized return on
equity of 13.6% after-tax that reflects the profitability threshold
applied in pricing."
"Converium's strong performance, as evidenced by the continuing
improvement in the underlying profitability of our non-life operations
and growth in shareholders' equity, is proof that our strategy of
focusing on specialty lines and growth opportunities in the European
market is bearing fruit."

Martin Kauer, Group CFO Converium, said:

"As a result of the recovering of the financial markets and sale
transactions in the fixed income portfolio, the investments had a
significant positive impact on our quarterly results. We achieved an
average annualized total investment yield (pre-tax) of 4.8% in the
second quarter 2003 compared to 0.5% in the previous year. While
keeping an under-weighting exposure to equity securities in our
tactical asset allocation, we invested US$ 120 million net in this
asset class during the second quarter. This tactical move, together
with the equity market rebound, brought the equity allocation back to
8.8% of the total invested assets and resulted in an increase in the
net unrealized capital gains (pre-tax) of US$ 53.8 million as per June
30, 2003."
"For June 30, 2003, we reported US$ 284 million, or 6.8% of our
fixed maturities portfolio, as "held-to-maturity". In the context of
the duration reduction of our core fixed income portfolio, this move
represents a way to keep the economical duration of asset and
technical liabilities in balance while protecting the shareholder's
equity against increases in the yield curves. Due to the current
interest rate environment, which implies locking in low yields to
maturity, the size of the shift was modest."
"Since year-end 2002, Converium's shareholders' equity increased
by 9.0%, or by more than 10% including the paid dividends, to US$ 1.9
billion as per June 30, 2003. Our claims supporting capital of US$ 2.3
billion enables us to continue to benefit from today's hard
reinsurance market."

6 2Q2003: Facts and Figures

6.1 Financial results as per June 30, 2003

Table: Financial highlights 2Q2003 - income statement



(unaudited; in US$ million, Three months Six months Year
unless noted) ended ended ended
June 30 June 30 Dec 31
2003 2002 2003 2002 2002
----------------------------------------------------------------------
Gross premiums written 948.7 832.5 2,212.5 1,773.7 3,535.8
-growth (%) +14.0% +24.7% 22.7%
----------------------------------------------------------------------
Net premiums written 899.3 792.6 2,083.9 1,691.5 3,322.2
-growth (%) +13.5% +23.2% 33.8%
----------------------------------------------------------------------
Net premiums earned 912.5 801.5 1,796.8 1,517.1 3,165.5
-growth (%) +13.8% +18.4% +37.9%
----------------------------------------------------------------------
Non-life loss ratio 73.5% 69.7% 73.0% 72.6% 72.9%
(16)
-change in percentage points +3.8 +0.4 -7.1
pts pts pts (17)
----------------------------------------------------------------------
Non-life underwriting expense 20.3% 25.0% 21.0% 23.4% 21.1%
ratio -4.7 -2.4 -2.1
-change in percentage points pts pts pts
----------------------------------------------------------------------
Non-life administration expense 5.3% 5.2% 4.7% 5.0% 5.3%
ratio +0.1 -0.3 -0.8
-change in percentage points pts pts pts
----------------------------------------------------------------------
Non-life combined ratio 99.1% 99.9% 98.7% 101.0% 99.3%
(16)
-change in percentage points -0.8 -2.3 pts -9.5
pts pts(17)
----------------------------------------------------------------------
Net investment income 66.8 123.0 251.8
-growth (%) -2.2% 68.3 -7.5% 133.0 +10.1%
----------------------------------------------------------------------
Average annualized net
investment income yield (pre- 3.9% 5.0% 3.6% 4.8% 4.3%
tax) -1.1 -1.2 -0.4
-change in percentage points pts pts pts
----------------------------------------------------------------------
Total investment results 82.6 7.3 130.5 71.7 241.5
-growth (%) n.m. +82.0% +14.8%
-including impairments of -6.1 -13.5 -21.9 -21.5 -48.3
----------------------------------------------------------------------
Average annualized total
investment income yield (pre- 4.8% 0.5% 3.8% 2.6% 4.1%
tax) +4.3 +1.2 -0.2
-change in percentage points pts pts pts
----------------------------------------------------------------------
Operating income(18) 61.9 64.6 88.3 103.7 67.7
-change (%) -4.2% -14.9%
----------------------------------------------------------------------
Net income 59.1 2.9 84.6 31.6 106.8
-growth (%) n.m. +167.7% n.m.
----------------------------------------------------------------------
Earnings per share (US$) 1.48 0.07 2.12 0.79 2.68
-growth (%) n.m. +168.4% n.m.
----------------------------------------------------------------------
Retention ratio (%)(19) 94.8% 95.2% 94.2% 95.4% 94.0%
----------------------------------------------------------------------


Table: Financial highlights 2Q2003 - cash flow statement,
investment return, return on equity


(unaudited; in US$ million, Three months Six months Year
unless noted) ended ended ended
June 30 June 30 Dec 31
2003 2002 2003 2002 2002
----------------------------------------------------------------------
Cash flow from operating
activities 364.3 210.9 572.6 276.7 870.4
- growth (%) +72.7% (20) +107.0% (20) 179.4%
----------------------------------------------------------------------
Average annualized total
investment yield (pre-tax) 4.8% 0.5% 3.8% 2.6% 4.1%
- change in percentage points +4.3 +1.2 pts -0.2
pts pts
----------------------------------------------------------------------
Average annualized total
investment return (pre-tax) 10.6% 0.2% 6.9% 1.9% 2.2%
- change in percentage points +10.4 +4.8 pts
pts
----------------------------------------------------------------------
Return on equity(21) 13.6% 0.7% 9.7% 4.0% 6.8%
- change in percentage points +12.9 +5.7 pts n.m.
pts
----------------------------------------------------------------------


Table: Financial highlights 2Q2003 - balance sheet



(unaudited; in US$ million, unless noted) June 30, March 31, Dec 31,
2003 2003 2002
----------------------------------------------------------------------
Total invested assets 6,814 6,398 6,117
- growth (%) +6.5% +4.6%
----------------------------------------------------------------------
Total assets 13,385 12,763 12,051
- growth (%) +4.9% +5.9%
----------------------------------------------------------------------
Total underwriting reserves, net of
reinsurance 7,563 7,247 6,736
- growth (%) +4.4% +7.6%
----------------------------------------------------------------------
Shareholders' equity 1,894 1,794 1,738
- growth (%) +5.6% +3.2%
----------------------------------------------------------------------
Book value per share (US$) 47.61 45.03 43.55
- growth (%) +5.7% +3.4%
----------------------------------------------------------------------


6.2 Other important facts and figures

-- Total investment results: US$ 82.6 million compared to US$ 7.3
million in 2Q2002

Converium's investment results were impacted by the recovery of
the global equity markets, the further decline in interest rates, the
continuing strong cash flow from operating activities, Converium's
strategic and tactical asset allocation, as well as the benchmarks
applied for the passive asset management approach. The returns of the
different asset classes are in line with the respective benchmarks.
Converium reported a total investment result of US$ 82.6 million
including impairments of US$ 6.1 million for the second quarter 2003,
an improvement of US$ 75.3 million compared to the previous year that
included impairments of US$ 13.5 million. The average annualized total
investment yield (pre-tax) was 4.8% for the second quarter 2003, plus
4.3 percentage points compared to the previous year (2Q2002: 0.5%).

The average annualized total investment return (pre-tax) was 10.6%
for the second quarter 2003, an improvement of 10.4 percentage points
compared to the previous year. Converium's impairment policy(22) is
fully compliant with current and emerging standards.

-- Cost of options fully charged

Converium charges the costs of options to operating expense (SFAS
123) and recorded US$ 2.4 million in the second quarter of 2003.

-- Operating income: US$ 61.9 million

Converium reported an operating income(23) of US$ 61.9 million for
the second quarter of 2003 (2Q2002: US$ 64.6 million).

-- Net income: US$ 59.1 million

Converium reported a net income of US$ 59.1 million for the second
quarter of 2003, an increase of US$ 56.2 million compared to the same
period of the previous year (2Q2002: US$ 2.9 million), and earnings
per share of US$ 1.48, plus US$ 1.41 compared to the second quarter of
2002 (2Q2002: US$ 0.07).

-- Cash flow: US$ 364.3 million (plus 72.7%(24))

Driven by the continuously improved operating performance,
Converium increased the cash flow from operating activities by
72.7%(24) or US$ 153.4 million(24) to US$ 364.3 million for the second
quarter 2003 (2Q2002: US$ 210.9 million(24)).

-- Marginal asbestos and environmental exposures

Converium's asbestos and environmental exposures are marginal; as
per June 30, 2003, the respective reserves were less than US$ 45
million, approximately 0.5% of total reserves. Converium maintained a
strong reserving level for these exposures.

-- Repurchase of shares for Employee Participation Plans

Converium Holding Ltd repurchased 160,000 shares in the period of
January 1 through June 30, 2003, on the SWX Swiss Exchange in
conjunction with its share delivery obligations under the various
Employee Participation Plans. Converium Holding Ltd will continue its
repurchases of own stock in order to fulfill its share delivery
obligations under the various Employee Participation Plans.

-- US$ 900 million syndicated letter of credit facility
successfully closed

The 3-year syndicated letter of credit facility led by ABN AMRO,
Barclays Capital and Commerzbank as mandated lead arrangers and book
runners was successfully closed and is available for Converium as of
July 1, 2003. The transaction is a debut facility for Converium in the
international syndicated loan market. As part of the transaction
Converium intends to roll into the facility an amount of US$ 350
million of existing letters of credit, which were previously provided
by certain syndicate banks on an individual basis.

-- New Chief Underwriting Officer Overseas appointed

Converium appointed Patrick Cerceau as Chief Underwriting Officer
Overseas of Converium Zurich, effective July 1, 2003. He will be in
charge of the markets Far East, the Pacific Rim and Latin America.

-- Converium Insurance (UK) Ltd operational

Effective July 1, 2003, Converium Insurance (UK) Ltd, a wholly
owned subsidiary, started its operations of supporting and
strengthening Converium joint ventures and strategic business
relationships.

-- Dividend of CHF 1.00 per share for 2002 approved by
shareholders

The Annual General Meeting of May 27, 2003, approved a total
allocation to dividends of CHF 40.0 million or a dividend of CHF 1.00
per share for 2002 as proposed by the Board of Directors.

7 Overview Business Segments

7.1 Business development

Converium's financial results of the second quarter 2003 reflect
the

-- Profitable growth in specialty lines and in standard property
& casualty reinsurance;

-- Strong performance in non-life;

-- Current conditions in the capital markets.

The hardening of the reinsurance markets, the strength of
Converium's global franchise and infrastructure, and opportunities
arising from Converium's position as a leading independent multi-line
reinsurer all led to a strong profitable growth in non-life, both in
specialty lines and in standard property & casualty reinsurance, and a
non-life combined ratio of 99.1% for the second quarter, respectively
98.7% for the first half of 2003, that also reflects Converium's shift
towards longer-tail business.
Current conditions in the capital markets, particularly the
recovery of the global equity markets, and the further decline in
interest rates, resulted in the second quarter of 2003 in net realized
capital gains of US$ 15.8 million (2Q2002: US$ -61.0 million)
including impairment charges of US$ 6.1 million (2Q2002: US$ 13.5
million), in an increase of the average annualized total investment
income yield (pre-tax) by 4.3 percentage points to 4.8% (2Q2002:
0.5%), and in an increase of the average annualized total investment
return (pre-tax) by 10.4 percentage points to 10.6% (2Q2002: 0.2%).
Converium's investment returns, in accordance with the passive
management approach, were in line with the respective benchmarks.

7.2 Converium Zurich

Table: Financial highlights 2Q2003 of Converium Zurich



(unaudited; in US$ million, Three months Six months Year ended
unless noted) ended ended Dec 31
June 30 June 30
2003 2002 2003 2002 2002
----------------------------------------------------------------------
Gross premiums written 540.7 413.5 1,049.3 805.0 1,802.2
-growth (%) +30.8% +30.3% +25.1%
----------------------------------------------------------------------
Net premiums written 498.6 382.4 968.6 749.3 1,670.5
-growth (%) +30.4% +29.3% +41.0%
----------------------------------------------------------------------
Net premiums earned 467.4 385.7 898.2 703.0 1,571.3
-growth (%) +21.2% +27.8% +55.2%
----------------------------------------------------------------------
Non-life loss ratio 75.2% 60.2% 73.2% 69.2% 69.9%
-change in percentage
points +15.0 pts +4.0 pts -31.5 pts
----------------------------------------------------------------------
Non-life underwriting
expense ratio 17.7% 26.3% 19.6% 22.8% 17.9%
-improvement in percentage
points -8.6 pts -3.2 pts -2.1 pts
----------------------------------------------------------------------
Non-life administration
expense ratio 4.7% 4.9% 4.9% 5.0% 4.8%
-deterioration in
percentage points -0.2 pts -0.1 pts +0.2 pts
----------------------------------------------------------------------
Non-life combined ratio 97.6% 91.4% 97.7% 97.0% 92.6%
-improvement in percentage +6.2 pts +0.7 pts -33.4 pts
points
----------------------------------------------------------------------
Total investment results 33.5 54.5 112.0
-growth (%) +22.7% 27.3 -15.1% 64.2 +22.7%
----------------------------------------------------------------------
Average annualized total
investment income yield
(pre-tax) 3.8% 4.1% 3.1% 4.9% 3.8%
-change in percentage
points -0.3 pts -1.8 pts
----------------------------------------------------------------------
Segment income 45.3 52.6 73.6 74.5 225.9
-growth (%) -13.9% -1.2% +226.4%
----------------------------------------------------------------------
Retention ratio(25) 92.2% 92.5% 92.3% 93.1% 92.7%
----------------------------------------------------------------------


Converium Zurich reported a segment income of US$ 45.3 million for
the three months ended June 30, 2003, compared to a segment income of
US$ 52.6 million for the three months ended June 30, 2002. The
decrease in segment income of 13.9% or US$ 7.3 million in the second
quarter of 2003 was primarily attributable to:

-- The non-life combined ratio increased by 6.2 percentage points
to 97.6% for the second quarter of 2003 (2Q2002: 91.4%). This
increase in the non-life combined ratio was due to positive
reserve developments of US$ 14.0 million for liability
business written in prior years reported by Converium Zurich
in the second quarter of 2002, which reduced the non-life
combined ratio by 3.6 percentage points, as well as to
Converium Zurich's shift to longer-tail business, both in
specialty lines and in standard property & casualty
reinsurance. Converium Zurich's non-life combined ratio for
the first half of 2003 was 97.7%; a slight increase of 0.7
percentage points compared to the first half of 2002,
reflecting the positive reserve developments recorded in the
second quarter of 2002 and the change in Converium Zurich's
business mix.

This decrease in segment income was offset by:

-- The total investment result was higher by 22.7% or US$ 6.2
million for the second quarter of 2003 compared to the second
quarter of 2002. Converium Zurich's increase in the total
investment result is a reflection of the increase in the
invested asset base and the current conditions in the capital
markets. These current conditions in the capital markets,
particularly the recovery of the global equity markets, and
the further decline in interest rates, resulted in the second
quarter of 2003 in lower impairment charges of US$ 2.1 million
on equity securities (2Q2002: US$ 4.8 million). The average
annualized total investment yield (pre-tax) decreased by 0.3
percentage points to 3.8% for the second quarter of 2003
(2Q2002: 4.1%).

In the second quarter of 2003, gross premiums written increased
30.8% or US$ 127.2 million to US$ 540.7 million (2Q2002: US$ 413.5
million), net premiums written increased 30.4% or US$ 116.2 million to
US$ 498.6 million (2Q2002: US$ 382.4 million), and net premiums earned
increased 21.2% or US$ 81.7 million to US$ 467.4 million (2Q2002: US$
385.7 million).
In the first half of 2003, gross premiums written increased 30.3%
or US$ 244.3 million to US$ 1,049.3 million (1H2002: US$ 805.0
million), net premiums written increased 29.3% or US$ 219.3 million to
US$ 968.6 million (1H2002: US$ 749.3 million), and net premiums earned
increased 27.8% or US$ 195.2 million to US$ 898.2 million (1H2002: US$
703.0 million).
Converium Zurich's growth was spread across most specialty lines
as well as most lines of business in standard property & casualty
reinsurance and primarily resulted from increased rates, increasing
the share of clients' business upon renewing existing business or
writing new business.
For the first half of 2003, Converium Zurich's growth in specialty
lines included:

-- Aviation & Space (net premiums written in the first half of
2003 increased by 28.9% or US$ 37.8 million to US$ 168.8
million); and

-- Credit & Surety (net premiums written in the first half of
2003 increased by 46.0% or US$ 28.0 million to US$ 88.9
million).

For the first half of 2003, Converium Zurich's growth in lines of
business of standard property & casualty reinsurance included:

-- Property (net premiums written in the first half of 2003
increased by 29.7% or US$ 44.3 million to US$ 193.3 million);
and

-- Motor (net premiums written in the first half of 2003
increased by 17.8% or US$ 18.5 million to US$ 122.2 million).

For the first half of 2003, Converium Zurich's growth regions in
standard property & casualty reinsurance included:

-- United Kingdom (net premiums written in the first half of 2003
increased by 16.7% or US$ 68.8 million to US$ 480.8 million);

-- Far East/Pacific Rim (net premiums written in the first half
of 2003 increased by 69.2% or US$ 45.6 million to US$ 111.4
million);

-- Latin America (net premiums written in the first half of 2003
increased by 24.5% or US$ 16.0 million to US$ 81.3 million);

-- France (net premiums written in the first half of 2003
increased by 46.2% or US$ 23.0 million to US$ 72.8 million);
and the

-- Rest of Europe, which includes Italy, Spain, and Portugal (net
premiums written in the first half of 2003 increased by 76.7%
or US$ 29.7 million to US$ 68.4 million).

For the first half of 2003, Converium Zurich reported net premiums
written for accident & health of US$ 21.7 million, an increase by
13.6% or US$ 2.6 million (1H2002: US$ 19.1 million).

7.3 Converium North America

Table: Financial highlights 2Q2003 of Converium North America



(unaudited; in US$ million,Three months ended Six months Year
unless noted) June 30 ended ended
June 30 Dec 31
2003 2002 2003 2002 2002
----------------------------------------------------------------------
Gross premiums written 310.3 323.4 705.5 642.5 1,243.5
-growth (%) -4.1% +9.8% +8.0%
----------------------------------------------------------------------
Net premiums written 304.3 323.7 680.0 633.0 1,193.9
-growth (%) -6.0% +7.4% +32.9%
----------------------------------------------------------------------
Net premiums earned 286.4 305.0 599.6 590.9 1,145.0
-growth (%) -6.1% +1.5% +29.8%
----------------------------------------------------------------------
Non-life loss ratio 69.8% 78.6% 70.2% 75.4% 84.0%
-change in percentage
points -8.8 pts -5.2 pts -10.9 pts
----------------------------------------------------------------------
Non-life underwriting
expense ratio 23.1% 24.6% 23.8% 24.6% 25.0%
-change in percentage
points -1.5 pts -0.8 pts -3.5 pts
----------------------------------------------------------------------
Non-life administration
expense ratio 6.2% 5.3% 5.6% 5.9% 5.9%
-change in percentage
points +0.9 pts -0.3 pts -2.1 pts
----------------------------------------------------------------------
Non-life combined ratio 99.1% 108.5% 99.6% 105.9% 114.9%
-change in percentage
points -9.4 pts -6.3 pts -16.5 pts
----------------------------------------------------------------------
Total investment results 36.9 -13.1 60.1 9.2 121.0
-growth (%) n.m. n.m. 15.9%
----------------------------------------------------------------------
Average annualized total
investment income yield 5.8% -2.3% 4.7% 0.8% 5.0%
(pre-tax)
-change in percentage
points +8.1 pts +3.9 pts
----------------------------------------------------------------------
Segment income (loss) 26.3 (32.1) 43.0 -18.3 -57.0
-growth (%) n.m. n.m. n.m.
----------------------------------------------------------------------
Retention ratio(26) 98.1% 100.0% 96.4% 98.5% 96.0%
----------------------------------------------------------------------


Converium North America reported a segment income of US$ 26.3
million for the three months ended June 30, 2003, compared to a
segment loss of US$ 32.1 million for the three months ended June 30,
2002, an increase of US$ 58.4 million. The increase was primarily
attributable to:

-- The loss ratio decreased by 8.8 percentage points and the
underwriting expense ratio decreased 1.5 percentage points
resulting in a decrease of the combined ratio of 9.4
percentage points to 99.1% for the second quarter 2003
compared to the previous year, despite Converium North
America's slight shift to longer-tail business.

-- Realized gains increased by US$ 56.0 million to a gain of US$
13.3 million for the second quarter of 2003 from a realized
loss of US$ 42.7 million for the second quarter of 2002. The
increase in realized gains primarily results from the
restructuring of our equity portfolio in the second quarter of
2002 at a realized capital loss of US$ 27.3 million and the
sale of WorldCom bonds at a realized capital loss of US$ 15.8
million.

This increase in segment income was partially offset by:

-- The current conditions in the capital markets, particularly
the further decline in interest rates, resulted in the second
quarter of 2003 in a reduction of net investment income by US$
6.0 million to US$ 23.6 million compared to the previous year
(2Q2002: US$ 29.6 million), and in a reduction of the average
annualized net investment income yield (pre-tax) by 1.6
percentage points to 3.7% (2Q2002: 5.3%).

-- Other income decreased by US$ 19.7 million, resulting in other
loss of US$ 11.9 million for the three months ended June 30,
2003, compared to the previous year (2Q2002: US$ 7.8 million).
In the second quarter of 2002, we reported other income of US$
7.2 million related to the settlement of a disputed
reinsurance recoverable that resulted in a payment to
Converium North America of US$ 136.7 million.

In the second quarter of 2003, gross premiums written decreased
4.1% or US$ 13.1 million to US$ 310.3 million (2Q2002: US$ 323.4
million), net premiums written decreased 6.0% or US$ 19.4 million to
US$ 304.3 million (2Q2002: US$ 323.7 million), and net premiums earned
decreased 6.1% or US$ 18.6 million to US$ 286.4 million (2Q2002: US$
305.0 million).
In the first half of 2003, gross premiums written increased 9.8%
or US$ 63.0 million to US$ 705.5 million (1H2002: US$ 642.5 million),
net premiums written increased 7.4% or US$ 47.0 million to US$ 680.0
million (1H2002: US$ 633.0 million), and net premiums earned increased
1.5% or US$ 8.7 million to US$ 599.6 million (1H2002: US$ 590.9
million). The change in net premiums earned does not track the growth
in net premiums written because of the run-off in the first half of
2002 of a large program non-renewed at January 1, 2002.
For the first half of 2003, Converium North America's premium
growth was concentrated in specialty lines, such as:

-- Professional liability (net premiums written in the first half
of 2003 increased by 16.8% or US$ 18.1 million to US$ 125.6
million), which grew as a result of the hardening directors' &
officers' market in the United States; and

-- Agribusiness (net premiums written in the first half of 2003
increased by 253.8% or US$ 28.4 million to US$ 39.6 million),
whose growth reflects the hardening market, which resulted
from the exit of several insurers and reinsurers in
mid-to-late 2002.

For the first half of 2003, Converium North America reported net
premiums written for accident & health of US$ 62.4 million, an
increase of 60.4% or US$ 23.5 million (1H2002: US$ 38.9 million); this
growth is the result of the further development of this line of
business, which Converium began to underwrite from the North American
segment in 2001.

7.4 Converium Cologne

Table: Financial highlights 2Q2003 of Converium Cologne



(unaudited; in US$ million, Three months Six months Year
unless noted) ended ended ended
June 30 June 30 Dec 31
2003 2002 2003 2002 2002
----------------------------------------------------------------------
Gross premiums written 56.3 57.7 337.5 226.6 303.4
- growth (%) -2.4% +48.9% +1.2%
----------------------------------------------------------------------
Net premiums written 54.0 54.3 328.6 214.6 289.8
- growth (%) -0.6% +53.1% +12.4%
----------------------------------------------------------------------
Net premiums earned 106.7 70.8 203.0 138.3 284.8
- growth (%) +50.7% +46.8% +3.5%
----------------------------------------------------------------------
Non-life loss ratio 75.9% 83.3% 79.9% 77.9% 96.2%
- change in percentage -7.4 pts +2.0 pts -12.6
points pts
----------------------------------------------------------------------
Non-life underwriting
expense ratio 24.2% 19.5% 19.0% 20.7% 22.5%
- change in percentage
points +4.7 pts -1.7 pts +4.7 pts
----------------------------------------------------------------------
Non-life administration
expense ratio(27) 3.4% 4.5% 3.6% 4.3% 5.3%
- change in percentage
points -1.1 pts -0.7 pts -2.0 pts
----------------------------------------------------------------------
Non-life combined ratio 103.5% 107.3% 102.5% 102.9% 124.0%
- change in percentage
points -3.8 pts -0.4 pts -8.5 pts
----------------------------------------------------------------------
Total investment results 15.1 -4.3 21.9 3.6 4.7
- growth (%) n.m. n.m. -67.6%
----------------------------------------------------------------------
Average annualized total
investment income yield
(pre-tax) 6.8% -2.5% 5.0% 1.1% 0.7%
- change in percentage
points +9.3 pts +3.9 pts
----------------------------------------------------------------------
Segment income (loss) 17.7 -12.4 20.3 -3.4 -64.4
- growth (%) n.m. n.m.
----------------------------------------------------------------------
Retention ratio(28) 95.9% 94.1% 97.4% 94.7% 95.5%
----------------------------------------------------------------------


Converium Cologne reported a segment income of US$ 17.7 million
for the three months ended June 30, 2003; an improvement of US$ 30.1
million compared to the segment loss of US$ 12.4 million for the three
months ended June 30, 2002. The increase in the second quarter of 2003
is primarily attributable to:

-- The combined ratio for the second quarter of 2003 decreased by
3.8 percentage points to 103.5%; the loss ratio improved by
7.4 percentage points to 75.9%, despite a US$ 6.0 million loss
for the Algerian earthquake that added 5.6 percentage points
to the loss ratio in the second quarter of 2003 and despite
Converium Cologne's shift to longer-tail business.

-- The recovery of the global equity markets, the reduction of
the duration in the fixed maturities portfolios, and the sale
of a real estate property resulted in net realized capital
gains of US$ 6.3 million for the second quarter of 2003, an
increase of US$ 19.7 million compared to the previous year
(2Q2002: US$ -13.4 million). For the second quarter of 2003,
Converium Cologne reported an increase in the average
annualized total investment income yield (pre-tax) of 9.3
percentage points to 6.8% compared to the previous year
(2Q2002: -2.5%).

In the second quarter of 2003, gross premiums written decreased
2.4% or US$ 1.4 million to US$ 56.3 million (2Q2002: US$ 57.7
million), net premiums written decreased 0.6% or US$ 0.3 million to
US$ 54.0 million (2Q2002: US$ 54.3 million), and net premiums earned
increased 50.7% or US$ 35.9 million to US$ 106.7 million (2Q2002: US$
70.8 million). The decrease of gross and net premiums written compared
to the increase of net premiums earned is due to a higher share of
non-proportional business written in the second quarter of 2003
compared to the previous year.
In the first half of 2003, gross premiums written increased 48.9%
or US$ 110.9 million to US$ 337.5 million (1H2002: US$ 226.6 million),
net premiums written increased 53.1% or US$ 114.0 million to US$ 328.6
million (1H2002: US$ 214.6 million), and net premiums earned increased
46.8% or US$ 64.7 million to US$ 203.0 million (1H2002: US$ 138.3
million).
Converium Cologne's growth was spread across most lines of
business in standard property & casualty reinsurance and primarily
resulted from writing new business, increased rates, or increasing the
share of clients' business upon renewing existing business.
For the first half of 2003, Converium Cologne's growth in standard
property & casualty reinsurance included:

-- Property (net premiums written in the first half of 2003
increased by 50.7% or US$ 44.1 million to US$ 131.1 million);
and

-- Motor (net premiums written in the first half of 2003
increased by 159.0% or US$ 58.7 million to US$ 95.6 million).

For the first half of 2003, Converium Cologne's growth regions in
standard property & casualty reinsurance included:

-- Germany (net premiums written in the first half of 2003
increased by 75.4% or US$ 63.1 million to US$ 146.8 million);
and

-- Rest of Europe - particularly Austria and Northern Europe (net
premiums written in the first half of 2003 increased by 107.0%
or US$ 71.8 million to US$ 138.9 million).

This growth was partially offset by -- Near & Middle East and
North Africa, where in the first half of 2003 net premiums written
decreased by 14.1% or US$ 7.2 million to US$ 43.5 million compared to
the previous year.
For the first half of 2003, Converium Cologne reported net
premiums written for accident & health of US$ 39.9 million, an
increase of 8.5% or US$ 3.1 million (1H2002: US$ 36.8 million).

7.5 Converium Life

Table: Financial highlights 2Q2003 of Converium Life



(unaudited; in US$ million, Three months Six months Year
unless noted) ended ended ended
June 30 June 30 Dec 31
2003 2002 2003 2002 2002
----------------------------------------------------------------------
Gross premiums written 32.8 38.2 118.2 101.1 199.0
-growth (%) -14.1% +16.9% +20.8%
----------------------------------------------------------------------
Net premiums written 42.5 32.3 106.7 94.6 168.0
-growth (%) +31.6% +12.8% +18.8%
----------------------------------------------------------------------
Net premiums earned 52.1 40.1 96.0 84.9 164.4
-growth (%) +29.9% +13.1% +31.4%
----------------------------------------------------------------------
Underwriting expense ratio life 17.5% 8.0% 24.2% 14.9% 21.1%
-change in percentage points +9.5 pts +9.3 +16.5
pts pts
----------------------------------------------------------------------
Administration expense ratio
life(29) 4.2% 3.5% 4.1% 4.2% 4.2%
-change in percentage points +0.7 pts -0.1 pts
----------------------------------------------------------------------
Total investment results 0.9 1.4 1.5 2.7 7.8
-growth (%) -35.7% -44.4% +225.0%
----------------------------------------------------------------------
Average annualized total
investment income yield (pre-tax) 4.0% 6.1% 3.4% 5.8% 8.2%
-change in percentage points -2.1 pts -2.4 pts
----------------------------------------------------------------------
Segment income (loss) 0.6 2.8 -16.7 4.9 -19.4
----------------------------------------------------------------------
Retention ratio(30) n.m. 84.6% 90.3% 93.6% 84.4%
----------------------------------------------------------------------


Converium Life reported a segment income of US$ 0.6 million for
the three months ended June 30, 2003, compared to a segment income of
US$ 2.8 million for the same period in 2002. The decrease in segment
income of 78.6% or US$ 2.2 million in the second quarter of 2003 was
primarily attributable to:

-- The technical result(31) decreased by 32.1% or US$ 0.9 million
to US$ 1.9 million in the second quarter of 2003 compared to
the previous year (2Q2002: US$ 2.8 million).

-- The total investment result decreased by 35.7% or US$ 0.5
million to US$ 0.9 million for the three months ended June 30,
2003, compared to the previous year (2Q2002: US$ 1.4 million).
This decrease resulted from the decrease of the interest rates
in the international bond markets. Converium Life reported an
average annualized total investment income yield (pre-tax) of
4.0% for the second quarter of 2003, a decrease of 2.1
percentage points (2Q2002: 6.1%).

In the three months ended June 30, 2003, gross premiums written
decreased 14.1% or US$ 5.4 million to US$ 32.8 million (2Q2002: US$
38.2 million), net premiums written increased 31.6% or US$ 10.2
million to US$ 42.5 million (2Q2002: US$ 32.3 million), and net
premiums earned increased 29.9% or US$ 12.0 million to US$ 52.1
million (2Q2002: US$ 40.1 million).
In the first half of 2003, gross premiums written increased 16.9%
or US$ 17.1 million to US$ 118.2 million (1H2002: US$ 101.1 million),
net premiums written increased 12.8% or US$ 12.1 million to US$ 106.7
million (1H2002: US$ 94.6 million), and net premiums earned increased
13.1% or US$ 11.1 million to US$ 96.0 million (1H2002: US$ 84.9
million).
The increase in net premiums written in the first half of 2003 is
mainly driven by growth in the following regions:

-- Germany (net premiums written in the first half of 2003
increased by 41.1% or US$ 4.5 million to US$ 15.4 million);

-- France (net premiums written increased 43.8% or US$ 3.8
million to US$ 12.5 million); and

-- Italy (net premiums written increased by 66.5% or US$ 11.3
million to US$ 28.3 million).

This growth was partially offset by North America and Far
East/Pacific Rim, where in the first half of 2003 net premiums written
decreased by 36.2% or US$ 16.1 million to US$ 28.4 million compared to
the previous year.
As a result of the recovery of the US stock market and the
continuing decrease of total guaranteed minimum death benefits the net
amount at risk decreased during the second quarter of 2003; hence the
ratio between benefit reserves and net amount at risk at June 30, 2003
improved.

The company has made it a policy not to provide any quarterly or
annual earnings guidance and it will not update any past outlook for
full year earnings. It will however provide investors with perspective
on its value drivers, its strategic initiatives and those factors
critical to understanding its business and operating environment.

Enquiries:



Michael Schiendorfer Zuzana Drozd
Media Relations Manager Head of Investor Relations
michael.schiendorfer@converium.com zuzana.drozd@converium.com
Phone: +41 (0) 1 639 96 57 Phone: +41 (0) 1 639 91 20
Fax: +41 (0) 1 639 76 57 Fax: +41 (0) 1 639 71 20


About Converium

Converium is an independent leading global multi-line reinsurer
known for its innovation, professionalism and service. Today Converium
ranks among the top ten professional reinsurers and employs more than
800 people in 22 offices around the globe. Converium is organized in
four business segments consisting of three non-life operations,
Converium Zurich, Converium North America and Converium Cologne, as
well as Converium Life. Converium's September 11 net losses are capped
at US$ 289.2 million by its former parent, Zurich Financial Services.
Converium has minimal A&E exposures. Converium has an "A" rating
(stable outlook) both from Standard & Poor's and A.M. Best Company.

Important Disclaimer

This document contains forward-looking statements as defined in
the U.S. Private Securities Litigation Reform Act of 1995. It contains
forward-looking statements and information relating to the Company's
financial condition, results of operations, business, strategy and
plans, based on currently available information. These statements are
often, but not always, made through the use of words or phrases such
as 'expects', 'should continue', 'believes', 'anticipates',
'estimates' and 'intends'. The specific forward-looking statements
cover, among other matters, the improving reinsurance market, the
expected losses related to the September 11, 2001 attack on the United
States, the outcome of insurance regulatory reviews, the Company's
operating results, the rating environment and the prospect for
improving results. Such statements are inherently subject to certain
risks and uncertainties. Actual future results and trends could differ
materially from those set forth in such statements due to various
factors. Such factors include general economic conditions, including
in particular economic conditions; the frequency, severity and
development of insured loss events arising out of catastrophes, as
well as man-made disasters such as the September 11, 2001 attack on
the United States; the ability to exclude and to reinsure the risk of
loss from terrorism; fluctuations in interest rates; returns on and
fluctuations in the value of fixed income investments, equity
investments and properties; fluctuations in foreign currency exchange
rates; rating agency actions; changes in laws and regulations and
general competitive factors, and other risks and uncertainties,
including those detailed in the Company's filings with the U.S.
Securities and Exchange Commission and the SWX Swiss Exchange. The
Company does not assume any obligation to update any forward-looking
statements, whether as a result of new information, future events or
otherwise.

www.converium.com

(1) Total investment yield is defined as net investment income
plus net realized capital gains (losses) divided by average total
invested assets (including cash and cash equivalents), pre-tax and
annualized.
(2) Return on equity is defined as net income (after-tax) divided
by shareholders' equity at the beginning of the period, annualized.
(3) Excluding US$ 137 million received reimbursement of
reinsurance renewable in dispute.
(4) Estimated annual gross premium income of in-force business
(unaudited), based on underwriters' reports.
(5) Based on 100% of the total non-life premium that was up for
renewal during the January 1, April 1, and July 1, 2003 renewal
seasons.
(6) Based on 100% of the total non-life premium renewed during the
January 1, April 1, and July 1, 2003 renewal seasons.
(7) Claims supporting capital is defined as shareholders' equity
plus debt.
(8) Excluding US$ 137 million received reimbursement of
reinsurance renewable in dispute.
(9) Converium's strict impairment policy requires to record as
realized capital losses declines in value that exceed 20% over a
period of six months, or in excess of 50% regardless of the period of
the decline, or any declines in value over a period of more than
twelve months. At management's judgment, Converium impairs additional
securities based on prevailing market conditions. Converium's
impairment policy is fully compliant with current and/or emerging
standards.
(10) Converium's strict impairment policy requires to record as
realized capital losses declines in value that exceed 20% over a
period of six months, or in excess of 50% regardless of the period of
the decline, or any declines in value over a period of more than
twelve months. At management's judgment, Converium impairs additional
securities based on prevailing market conditions. Converium's
impairment policy is fully compliant with current and/or emerging
standards.
(11) Estimated annual gross premium income of in-force business
(unaudited), based on underwriters' reports.
(12) Based on 100% of the total non-life premium that was up for
renewal during the July 1, 2003 renewal season.
(13) Estimated annual gross premium income of in-force business
(unaudited), based on underwriters' reports.
(14) Based on 100% of the total non-life premium that was up for
renewal during the January 1, April 1, and July 1, 2003 renewal
seasons.
(15) Based on 100% of the total non-life premium renewed during
the January 1, April 1, and July 1, 2003 renewal seasons.
(16) Adjusted for prior years' reserve development.
(17) Adjusted for prior years' reserve development and September
11th terrorist attacks.
(18) Operating income is defined as pre-tax income excluding
pre-tax net realized capital gains or losses.
(19) Retention ratio is defined as net premiums written divided by
gross premiums written.
(20) Excluding US$ 137 million received reimbursement of
reinsurance renewable in dispute.
(21) Return on equity is defined as net income (after-tax) divided
by shareholders' equity at the beginning of the period, annualized.
(22) Converium's strict impairment policy requires to record as
realized capital losses, declines in value that exceed 20% over a
period of six months, or in excess of 50% regardless of the period of
the decline, or any declines in value over period of more than twelve
months. At management's judgment, Converium impairs additional
securities based on prevailing market conditions. Converium's
impairment policy is fully compliant with current and/or emerging
standards.
(23) Operating income is defined as pre-tax income excluding
pre-tax net realized capital gains or losses.
(24) Excluding US$ 137 million received reimbursement of
reinsurance renewable in dispute.
(25) Retention ratio is defined as net premiums written divided by
gross premiums written.
(26) Retention ratio is defined as net premiums written divided by
gross premiums written.
(27) The non-life administration expense ratio of Converium
Cologne is defined as other operating and administration expenses
divided by net premiums earned for three- and six-months-periods, but
other operating and administration expenses divided by net premiums
written for the full year.
(28) Retention ratio is defined as net premiums written divided by
gross premiums written.
(29) The administration expense ratio of Converium Life is defined
as other operating and administration expenses divided by net premiums
earned for three- and six-months periods, but other operating and
administration expenses divided by net premiums written for the full
year.
(30) Retention ratio is defined as net premiums written divided by
gross premiums written.
(31) Technical result is defined as net premiums earned plus other
income minus life benefits and policyholders' dividends minus
underwriting acquisition costs.