ZURICH reports BOP of USD 1.1 billion for first three months of 2016

26 May 2016 — Vlad BOLDIJAR
ZURICH Insurance Group reported a business operating profit (BOP) of USD 1.1 billion (down by 16% y-o-y) and net income attributable to shareholders (NIAS) of USD 875 million (28% less y-o-y) for the three months ended March 31, 2016, the company announced in a statement.

"While it is still early in the process, these results show that the measures we put in place to improve the performance of our General Insurance business are taking effect," said Chief Financial Officer George QUINN. "Even adjusting for a benign catastrophe claims environment, there has been an underlying improvement and we expect to see this trend continue throughout the year."

General Insurance reported a BOP of USD 542 million (down 23% from the prior year period) "but a significant improvement on an operating loss of USD 120 million in the previous quarter. The combined ratio of 97.7% for the first three months of 2016 was significantly better than the 103.6% combined ratio for the full year 2015 and one percentage point higher than in the same period in the previous year", ZURICH pointed out a the press release.

Global Life BOP was USD 317 million, "little changed in U.S. dollar terms compared to the same period in 2015 but up 11 percent on a local currency basis, helped by a strong performance from Zurich Santander and gains from accelerated in-force management initiatives in EMEA. Zurich Santander earnings increased by 29% in local currency, while in Asia Pacific BOP increased 61% in local currency due to favorable claims experience in Australia and strong protection growth in Japan".

At the same time, FARMERS BOP was down 12% at USD 343 million as FARMERS Re reported a small loss for the period due to significant catastrophe losses at the Farmers Exchanges. "These included more than USD 250 million in claims related to two hailstorms that struck the Dallas/Fort Worth area of north Texas on March 16 and 24".

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