Zurich must do more to return its general insurance earnings to pre-2015 levels, according to AM Best.

It says CEO Mario Greco’s plans to turn around the business contain “significant execution risk”, despite encouraging figures from the Swiss insurer’s most recent financial results.

“The weak technical performance of the general insurance segment remains a negative rating factor,” the ratings agency says. “Zurich also is expected to focus on reducing its earnings volatility through the tactical rebalancing of its insurance portfolio, optimisation of its reinsurance program and the de-risking of its investment asset allocation.

“AM Best believes that there is significant execution risk associated with the group’s business transformation initiatives, and hence its ability to improve and sustain its earnings at levels demonstrated prior to [last year].”

General insurance accounted for about two-thirds of Zurich’s consolidated gross written premium and 50% of business operating profit in the first nine months of this year.

AM Best makes the assessment in a ratings update.

It has affirmed Zurich Insurance Company’s financial strength rating of A+ and its long-term issuer credit ratings of aa- with a negative outlook.

Parent Zurich Insurance Group’s long-term issuer credit ratings is affirmed at “a”.

The insurer made a net income of $US912 million ($1.23 billion) in the three months to September 30, up 342% on the corresponding period last year.