Zurich UK sees 72% fall in profits

by David Masters

Story link: Zurich UK sees 72% fall in profits

Zurich UK’s General Insurance business has announced operating profits for 2007 of £91 million, representing a 72% fall compared to 2006.

The business recorded premiums of £2.06 billion for 2007, only marginally less than the £2.065 billion for the previous year.

Zurich UK’s combined ratio, however, rose to 104.8%, largely as a result of the UK floods. This figure is almost 8% higher than the combined ration of Zurich’s global business, who reported record results for 2007.

Commenting on the results in a statement, the company said that in spite of difficult market conditions, sustained pressure on pricing, January storms, and summer flooding, the UK General insurance business “delivered a strong underlying performance.”

The UK division also made an important contribution to the European division’s overall results, which were “excellent” across the continent. According to Zurich, the UK division’s decline in premiums is in line with the overall market, and Zurich has maintained its position as the fifth largest insurer in the UK.

CEO of Zurich UK’s General Insurance business, Guy Munnoch, said of the results: “Clearly 2007 was a challenging year, not only for Zurich, but for the UK insurance industry as a whole, however our strong GWP result reflects our commitment to deliver sustainable profitable growth.

“We remain focussed on financial discipline and pricing integrity and we will grow our business by developing propositions that meet the needs of customers and distributors. We will continue to attract and retain the right people with the knowledge and expertise that will help us deliver our plans.”