Zurich profits down 47%
Zurich has posted its 2008 results with net income down 47% on year to $3 billion.
The Swiss insurer’s fourth quarter profits were hit particularly hard, down 87% to $205 million compared to $1.53 billion in the year ago period.
Combined ratio for general insurance worsened to 98.1%, compared to 95.6% in 2007.
General insurance gross premiums and policy fees increased 4% to $37.20 billion, whilst management fees and other revenues rose 8% to $2.5 billion.
Total return on its $185.6 billion investments was 1% – pleasing for the insurer considering the economic climate.
Zurich’s chief investment officer Martin Senn said: “I must tell you that we are very proud of this.
“We see this as proof that our investment approach works.”
James Schiro, CEO, commented: “It is no surprise that Zurich’s results were impacted by the ongoing financial crisis.
“We are pleased with our performance during this period of adversity.
“When you look at these results in the context of today’s environment, our strategy is working.”
Schiro added that Zurich’s cost cutting targets for 2009 have been doubled to $200 million.
“Looking forward, we do not see significant improvements in the economic environment in the near term, but our strong balance sheet, operational capabilities and well-balanced portfolio of businesses position us well to continue executing on our strategy,” Schiro said.
Zurich shares dropped 3.6% following the announcement.
Category: Financials, Insurance News, Zurich News
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