---

BMW Selects Chubb As Strategic Partner

5 April 1999

BMW Selects Chubb As Strategic Partner to Offer Personal Insurance to BMW Customers

    WARREN, N.J., April 2 -- The Chubb Group of Insurance
Companies and BMW Financial Services have signed a letter of intent to offer
BMW owners a customized personal insurance program.  The program is designed
to help BMW's informed automotive customers also make informed insurance
buying decisions, lower their cost of luxury vehicle ownership, and access
insurance products to meet their more sophisticated insurance needs.  The
firms announced that they expect the program to begin later this spring.
    BMW evaluated the product offerings and service capabilities of several
leading national insurers before selecting Chubb.  This new program will
feature Chubb's highly regarded Masterpiece(R) products, which offer
protection for auto, home, antiques and collectibles, liability and
watercraft.  In particular, Chubb's new Masterpiece(R) Auto Preference(SM)
policy is well suited for the luxury vehicle owner.  BMW customers accessing
the program will be assisted by a dedicated team of personal insurance
specialists employed by a Chubb affiliate, PLI Brokerage, Inc. (PLI).  In
addition to Chubb's Masterpiece product line, PLI will also offer BMW owners a
choice of products and services from other select insurance carriers based on
the customer's needs.
    Stefan Krause, CEO of BMW Financial Services, Americas Region, commented
on the selection of Chubb.  "We are delighted to be working with a premier
insurance company like Chubb because, like BMW, they understand customers who
want performance and value," he said.
    Chubb's chief operations officer, Thomas Motamed, echoed Mr. Krause's
comments: "We are honored to be selected and are committed to working with BMW
Financial Services to offer their successful and discerning customers a truly
distinctive array of products and services."
    Masterpiece(R) Auto Preference(SM) was designed after two years of
research and development, including a detailed survey of luxury vehicle
owners.  The survey found that financial protection was a primary concern of
car owners; they want sufficient insurance protection from lawsuits, payment
for medical bills, and higher insurance limits to help pay for losses caused
by an increasing number of uninsured or underinsured motorists.  In response,
Masterpiece Auto Preference offers liability limits up to $10 million and up
to $1 million in uninsured or underinsured motorist coverage, thereby
providing some of the highest limits of these coverage types in the industry.
    Additionally, Masterpiece Auto Preference has an optional provision called
"agreed value" that allows the customer to know their settlement amount to the
penny in the event of a total loss, thereby eliminating the typical industry
practice of depreciating vehicle values when settling a claim.
    BMW owners will also have access to Chubb's Masterpiece homeowners, city
home (for historic homes), vacation home, condominium, cooperative, valuable
articles, personal excess liability and personal watercraft insurance
policies.
    For the past two years, BMW Financial Services has outranked all other
financial institutions, both independent and captive, in retail lease
satisfaction in the J.D. Power and Associates Dealer Financing Study.  BMW
Financial Services was established in 1993 as a captive finance company to
support the U.S. sales and marketing efforts of BMW of North America.  The
company offers a wide range of leasing and retail financing services for both
BMW and Land Rover customers.  The company also provides commercial lending
programs for BMW and Land Rover dealers.  The BMW Financial Services Center is
located in Dublin, Ohio.
    Member insurers of the Chubb Group of Insurance Companies form a
multi-billion dollar organization providing property and casualty insurance
for personal and commercial customers worldwide through 5,000 independent
agents and brokers.  Chubb's global network includes branches and affiliates
throughout North America, Europe, Latin America, Asia, and Australia.  For
additional information, visit Chubb's Web site at http://www.chubb.com.