Zurich Financial Services Group reported a business operating profit (BOP) of $4.9 billion, a 13 percent decline, and net income of $3.4 billion for the year ended Dec. 31, 2010.
The company said the results reflected “its strong focus on profitability and operating performance.” BOP return on equity after tax was 12.9 percent, and 11.4 percent on net income.
Zurich also noted that its Global Life and Farmers operations “contributed to the Group’s profitability through steady top-line growth coupled with strong profit margins. General Insurance’s underlying performance underscored the continued success of the Group’s targeted pricing strategy. Results in General Insurance were affected by an above-average frequency of significant loss events, exceeding last year’s total incurred losses from such events by over $600 million.”
Zurich announced that, as a measure of confidence in its business strategy, it intends to increases its dividend to CHF 17.00 [$17.66], an increase of 6 percent.
Performance highlights for 2010were listed as follows:
– Total Group business volumes, comprising gross written premiums, policy fees, insurance deposits and management fees, of $67.7 billion, a decrease of 3 percent but unchanged on a local currency basis
– Return on Group investments through the income statement of 4.1 percent, up 90 basis points
– Shareholders’ equity of $32.0 billion, an increase of 9 percent.
-Solvency I ratio up 48 percentage points to 243 percent
CEO Martin Senn commented: “Our well-diversified portfolio of businesses generates strong cash flows and allows us to perform well in a challenging environment. Global Life continues to increase new business value, volumes and net policyholder inflows. The ongoing success of our life strategy is best underscored by the continued growth in new business value.”
“Farmers’ fee-based business continues to excel with good results generating strong operating margins. The significant contribution from 21st Century is a testament to Farmers’ overall channel strategy.”
“In General Insurance, our focus remains on protecting profit margins driven by carefully targeted re-underwriting actions. In a year with an exceptionally high number of significant loss events, Zurich employees delivered outstanding customer claims services around the world.”
Source: Zurich Financial Services
Topics Profit Loss
Was this article valuable?
Here are more articles you may enjoy.
Michigan Supreme Court Rules Against Couple in Drone Surveillance Case 
Fannie and Freddie Hit Pause on Replacement-Value Requirements for Home Insurance 
Progressive Set to ‘Maximize’ Growth, Building on Q1 
Berkshire’s ‘Most Important’ Biz Drives Q1 Results; GEICO Still Behind on Tech 
