Zurich Posts $2.7 Billion First Half Net

Zurich Financial Services Group reported $2.7 billion in net income for the first six months of 2008, a slight increase over the same period last year, and a 19.5 percent return on equity.

Other highlights in the earnings report for the period were as follows:
–Business operating profit (BOP) of $3.5 billion, an increase of 8 percent. Annualized BOP ROE after tax of 19.9 percent
— General Insurance gross written premiums and policy fees of $20.6 billion, up 8 percent or 1 percent in local currencies, and a combined ratio of 96.2 percent, an improvement of 0.3 percentage points
— Global Life new business value, after tax, up 7 percent, with new business margin, after tax (as percent of APE), of 22.4 percent and APE up 15 percent or 9 percent in local currencies
— Farmers Management Services’ management fees and other related revenues up 9 percent to $1.2 billion
— Shareholders’ equity of $26.8 billion, a decrease of 7 percent over year end

“These are excellent results under any market condition,” remarked Zurich’s CEO James J. Schiro. “Not only are we exercising strict operational and financial discipline, but we are also executing on a successful growth strategy that is bolstering our position in attractive markets.”

Zurich’s report stressed the Group’s successful “ability to execute on its stated strategy of profitable growth and operational transformation across all business segments, enabling it to exploit profitable opportunities in its chosen markets. Through the various targeted acquisitions announced in recent months, Zurich is for instance significantly enhancing its distribution capabilities in places such as Spain, Italy, Turkey and Brazil, strengthening its bancassurance pillar, while in some cases also adding new product lines and accessing new customer segments.”

The full report, and details for accessing the earnings conference call may be obtained on the Group’s web site at: www.zurich.com.

Source: Zurich Financial Services