Zurich’s GI profit down 23%
Zurich has reported a business operating profit of $4.9 billion for 2010 (down 13% on 2009) and net income of $3.4 billion (also down 13% on a year earlier).
Total group business volumes, comprising gross written premiums, policy fees, insurance deposits and management fees, fell 3% to $67.7 billion.
Business operating profit from General Insurance stood at $2.7 billion, a reduction of 23% on 2009.
The decrease was mainly attributable to an above-average frequency of loss events (such as earthquakes, weather-related losses and higher levels of large losses) compounded by lower investment income.
Such events exceeded last year’s incurred losses by over $600 million, which combined with a lower volume of earned premiums resulted in an overall deterioration in the combined ratio, to 97.9% (2009: 96.8%).
However, according to Zurich’s chief executive officer, Martin Senn, the group’s well-diversified portfolio of businesses allowed it to perform well in a challenging environment,
Mr Senn added: “In General Insurance, our focus remains on protecting profit margins driven by carefully targeted re-underwriting actions.”
Category: Financials, Insurance News, Zurich News
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