Zurich Financial Services Group reported a business operating profit (BOP) for the nine months ended September 30, 2011 of $3.258 billion, an 8 percent decline from 2010, when it posted $3.537 billion. However, Zurich’s net income after tax rose by 34 percent for the period to $3.21 billion, compared to $2.399 billion in 2010.
“This result again demonstrates the success of our strategy. Our focus on profitability and market risk mitigation has enabled us to deliver a strong result,” stated CEO Martin Senn. He also indicated that Zurich’s performance in its Group investments “delivered a net return of 3.9 percent for the first nine months [$7.616 billion].”
General Insurance gross written premiums and policy fees totaled $27.047 billion, a 6 percent rise from $25.528 billion in 2010. Life premiums were $19.350 billion, while Farmers management fees and gross written premiums and policy fees were $2.071 billion and $2.261 billion, respectively.
Net income after tax for the third quarter rose 64 percent to $1.252 billion, from $773 million in Q3 2010. Zurich’s combined ratio in its general insurance sector rose slightly to 98.8 percent for the first 9 months of 2011 from 97.7 percent for the same period in 2010
Senn noted: “In emerging markets, we closed two major transactions this year. Our long-term alliance with Banco Santander is now finalized in all the five Latin American markets of Brazil, Mexico, Chile, Argentina and Uruguay, allowing us to extend our life and general insurance distribution capabilities and become one of the top four insurers in this fast growing region. In Malaysia, we completed the acquisition of Malaysia Assurance Alliance Berhad (MAAB) and further enhanced our presence as a full service insurance provider.”
However, Zurich also noted that its results were impacted “by significant weather events in the third quarter, particularly Hurricane Irene in the United States and hailstorms in Switzerland and Germany. Already, the half year results were impacted by a number of significant events, including the earthquakes in Japan and New Zealand as well as weather events in Australia and the United States.”
The full report, as well as additional and supplemental information and instructions for accessing the earnings conference call may be obtained on the company’s website at: www.zurich.com .
Source: Zurich Financial Services