Zurich Insurance Group posted a $2.2 billion net after tax income available to shareholders. Other selected highlights from the earnings report are as follows:
Q2 2012 Q2 2011
Business operating profit ———— $1.131 bn $1.287 bn
Total group business volumes —— $17.872 bn $17.129 bmn
Net income after tax —————- $1.075 bn $1.331 bn
1st Half 2012 1st Half 2011
*Gross premiums written ———— $19.153 bn $18.876 bn
Business operating profit ———- $2.506 bn $2.141 bn
Total group business volumes —– $37.502 bn $34.999 bn
Net income after tax —————- $2.218 bn $1.971 bn
*1st half combined ratio: 94.9 percent (99.3percent in 1st half 2011)
*General (P&C) insurance only
CEO Martin Senn commented: “Zurich’s performance demonstrates our strategy is working. We have again achieved strong levels of profitability, a very good result in the challenging environment. Profitability is driven by the disciplined approach to underwriting and our continued focus on the insurance products that enable us to maintain a resilient performance in mature markets.”
“We are successfully executing our growth strategy, as the increased contribution to business volume from the high-growth regions of Latin America, the Middle East and Asia Pacific shows, and we see promising delivery from selected mature markets,” he added.
“The integration of the business activities from our alliance with Banco Santander in Latin America is delivering results, further supporting the growth strategy of the Group.” The Group remains focused on delivering its targets. The underlying loss ratio for General Insurance continued to improve in the first six months of 2012. The business segment showed a strong BOP, also benefiting from less severe catastrophes compared with the first six months of last year.
Zurich’s earnings report also gave the following statement for the Farmers Exchanges: “Farmers business operating profit decreased by $128 million to $601 million [$729 million in 1st half of 2011] or by 18 percent, due to the loss from Farmers Re.
“Farmers Management Services business operating profit increased by $38 million to $711 million or by 6 percent, driven by the increase in gross earned premiums in the Farmers Exchanges, which are managed but not owned by Farmers Group, Inc., a wholly owned subsidiary of the Group.
“Farmers Re business operating profit deteriorated by $165 million to a loss of $110 million, mainly reflecting the second consecutive year of significant weather-related losses but without favorable prior year loss development, which benefited Farmers Re in the first six months of 2011.
“Farmers Management Services management fees and other related revenues increased by $45 million to $1.4 billion or by 3 percent, which was driven by the 3 percent increase in gross earned premiums in the Farmers Exchanges. The 49 percent increase to $2.2 billion in gross written premiums and policy fees of Farmers Re reflects the increase from 12 percent to 20 percent in the All Lines quota share reinsurance agreement with the Farmers Exchanges and the 4 percent gross written premiums growth in the Farmers Exchanges.”
Source: Zurich Insurance
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