Surging general insurance lines and falling claims have helped the Zurich Group post a record annual profit of $US5.86 billion ($7.45 billion).

Zurich’s general insurance division achieved an operating profit of $US3.83 billion ($4.87 billion) – double the previous year’s return – as the group announced a 48% profit increase on 2005.

CEO James Schiro says Zurich’s record financials reflect a strong, well-balanced and diversified book of business while maintaining financial strength and operational discipline.

Zurich now has more than $US34 billion ($43 billion) on its general insurance books, up 2% from the previous year, and more than $US21 billion ($26 billion) in gross written premium, policy fees and insurance deposits.

Mr Schiro says Zurich will expand the business in 2007 through bolt-on acquisitions, organic growth and investment in new technology.