ZURICH H1 figures impacted by weather-related events

5 September 2013 — Vlad BOLDIJAR
zurich_insurance_groupSwiss ZURICH Insurance Group posted a 1H2013 business operating profit (BOP) of USD 2.29 billion, 9% less than last year's USD 2.51 billion, while its net income attributable to shareholders (NIAS) fell to USD 1.85 billion, from USD 2.27 billion in 1H2012. At the same time, the combined ratio was 95.6%, representing an increase of 0.7% compared with the prior year.

"We delivered these results in a period characterized by natural catastrophes and large weather-related events, including severe flooding in Eastern and Central Europe, tornadoes in Oklahoma as well as an unusual number of mid-sized weather-related events in the U.S., Canada and Europe. The economic environment remains challenging with continued low interest rates exerting pressure on our investment income," said the Chief Executive Officer Martin SENN.

By divisions, non-life insurance gross written premiums increased by 3%, to USD 19.77 billion, while the business operating profit decreased by USD 267 million, to USD 1.37 billion (16% less y-o-y). At the same time, despite the severe weather-related events and other large losses, the combined ratio was 95.6% (compared to 94.8% in 1H2012). "Losses related to floods in Central and Eastern Europe in May and June this year are estimated at USD 140 million, whereas losses related to two severe tornadoes, which hit Oklahoma City Metropolitan Area in May this year, are estimated at USD 52 million," the company said in a statement.

For the same period, in the life insurance segment, the business operating profit remained at the level of 1H2012 - USD 659 million, while the value of gross written premiums, policy fees and insurance deposits decreased by USD 1.7 billion to USD 13.03 billion or 11% less compared with January-June 2012.

In the reinsurance field, FARMERS Re reported a 17% increase, to USD 696 million in BOP, while the gross written premiums and policy fees decreased by 8% to USD 2.03 billion.

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