Contemporary art is No.1 must-have for UK's wealthiest

11 February 2003

According to a new report from insurer Zurich, return on investment in contemporary art continues to outperform many of the more traditional categories of art and antiques. The index of works by Britpack artists such as Damien Hirst, Gary Hume and Tracey Emin has grown by 126% since 1995 and by over 26% in the last year (December 2001 versus December 2002), showing continued support for works of art by contemporary artists during the last twelve months. Newly affluent collectors in their 30s and 40s are often keen to buy works their parents didn't, and the contemporary field for many is the exciting market of choice.

The Zurich-AMR (Art Market Research) Art & Antiques Index which tracks the performance of arts and antiques collections owned by the country's High Net Worth consumers, identifies the following categories as those which have demonstrated the highest increase in value over the past 12 months:-

1. Contemporary Art 100 Index up 26%
2. European 19^th and 20^th Century Sculpture up 10%
3. European 18^th Century Porcelain up 9%
4. General Books (comprising Atlases, Natural History Books, Books on Architecture, English 19^th century Literature and Modern First Editions) up 6%
5. Old Masters up 3%

The categories that have experienced the most dramatic drop in value from 2001-2002 include:

1. European & oriental rugs/carpets down by 25%
2. English Regency Furniture down 4%
3. Clocks and Watches Index down 1%

Kris Coombes, Client Manager of Zurich's Private Clients business commented: "A major factor affecting the arts and antiques market as a whole is buyers' increasing selectiveness. In the contemporary arts market in particular, the controversial nature of contemporary pieces enables buyers to make a personal statement about their taste and financial status. Contemporary art has a huge image-building quality, demonstrating that the buyer has confidence to support new genres."

Kris continues: "With high net worth individuals investing in pieces which complement their equity and property portfolios, it is vital they are aware of the value of their investments. As the first insurer to actively track the art market, we aim to ensure Zurich Private Clients customer's valuable art and antiques are adequately insured."

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For further information contact:

Maria Donald, Zurich Financial Services on 01489 864817

For further information regarding Zurich Private Clients look at www.zurichprivateclients.co.uk

The Zurich Financial Services Group is an insurance-based financial services provider that focuses its activities on its key markets of North America, the United Kingdom and Continental Europe. Founded in 1872, Zurich is headquartered in Zurich, Switzerland. It has offices in approximately 60 countries and employs well over 70,000 people