ZURICH Insurance Group: Q3 net profit down 62%

21 November 2012 — Vlad BOLDIJAR
zfs1Swiss ZURICH Insurance Group posted third-quarter net income of USD 477 million, 62% less than last year's USD 1.24 billion, while its business operating profit fell to USD 733 million from USD 1.12 billion in Q3 2011. At the same time, the company reported for January-September 2012 a net profit of USD 2.7 billion, down 16% compared with the previous year, while the business operating profit was USD 3.2 billion, unchanged compared with prior year.

"Our strong overall underlying profitability clearly demonstrates that Zurich's strategy is delivering. While the third quarter was adversely affected by the previously reported adjustment in the German General Insurance business, we continue to see the benefit of our strong focus on pricing discipline and portfolio management", said Martin SENN, Chief Executive Officer.

In the first nine months of 2012, non-life insurance gross written premiums increased by 1% to USD 27.31 billion, business operating profit increased by USD 80 million to USD 1.8 billion (5% more), while the combined ratio was 97.6% (compared to 98.8% in 3Q2011).

For the same period, in life insurance segment, business operating profit decreased by USD 47 million to USD 959 million (or by 5%), while the value of gross written premiums, policy fees and insurance deposits increased by USD 1.8 billion to USD 21.1 billion or 9% more compared to January-September 2011.

In reinsurance field, FARMERS Re reported 50% increase to USD 3.4 billion in gross written premiums. At the same time, FARMERS business operating profit decreased by USD 97 million to USD 998 million, primarily due to a net underwriting loss by FARMERS Re, while the FARMERS Management Services management fees and other related revenues increased by USD 63 million to USD 2.1 billion.

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