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Zurich moves back to NZ market

Zurich Financial Services Australia has launched general insurance operations in New Zealand, six years after it walked away from the market.

Zurich NZ is headquartered in Auckland, and all main operational functions of underwriting and claims will be provided by local staff.

Former Ace NZ MD Mike Poole has been appointed to head Zurich’s NZ operations.

Zurich Australia CEO David Smith – who was until last year CEO of IAG’s NZ operations, says that after consultation with brokers Zurich NZ will initially focus on the mid-market sector with products in liability, property, financial lines and motor fleet (heavy and light), as well as marine products introduced last year under the Zurich subsidiary Associated Marine Insurers.

Mr Smith says the NZ general insurance market is about $NZ3.5 billion ($3.08 billion). The market has grown 11% between 2003 and 2005 and is profitable across most classes of business.

“The New Zealand general insurance industry is stable, growing and profitable in recent years. The attraction for Zurich is the return on equity being achieved, combined with considerable consolidation suggesting room for another insurer.”

He says commercial general insurance is mainly distributed through brokers, a situation that fits the insurer’s business model and skills.